State of the Union 2025: circular economy central to Europe’s competitiveness

Each September, the President of the European Commission delivers the State of the Union address to the European Parliament.

This annual speech sets out the Commission’s priorities for the year ahead, taking stock of progress and announcing major new initiatives.

In her 2025 address, Ursula von der Leyen placed strong emphasis on reducing Europe’s strategic dependencies through clean technologies and circular production models.

She highlighted that circularity is not only an environmental imperative but also a vital competitiveness strategy for the EU.

Von der Leyen stressed that Europe’s ability to thrive in turbulent times depends on securing critical materials and keeping industrial leadership within the Union.

To this end, she announced the Commission will:

• Accelerate the work on the Circular Economy Act, moving quickly in sectors that are ready
• Launch an Industrial Accelerator Act to scale up strategic sectors and technologies
• Create lead markets for circular and clean products through instruments such as green public procurement and ‘made in Europe’ criteria, and
• Boost investment in recycling and reuse as part of the broader Clean Industrial Deal

The President made clear that circularity limits Europe’s exposure to volatile global supply chains while opening opportunities for export-oriented frontrunner industries.

By combining circular production with clean energy, the EU can strengthen its independence, attract investment and support jobs around the continent.

The Circular Economy Act remains a flagship file for this mandate and is expected to advance in 2026.

It is not only about recycling processes and compliance, it is also about networking. ERP shares knowledge, insights, and news so that together we can promote the sustainable agenda.