President von der Leyen is in Australia for the signature of the EU-Australia Security and Defence Partnership and Trade Agreement.
I will represent the European Commission in today's debate.
Let me begin with Ukraine.
The EU remains Ukraine's biggest donor.
Our total support provided reached €194.9 billion this month.
Last week, 25 Heads of State or Government reaffirmed their continued and unwavering support to Ukraine.
In December last year, the European Council took the decision to provide Ukraine with a €90 billion support loan for 2026 and 2027.
The Commission appreciates the high level of urgency that this House has given to this file.
This has allowed the swift adoption of two of the three necessary legislative proposals underpinning the Ukraine Support Loan.
We regret that the European Council could not reach a decision on the Ukraine support loan.
When the European Council made a decision on the Support Loan in December, there was one condition: that three countries would not participate in the loan.
This condition has been fulfilled.
As the President underlined after the European Council, and I quote: "the loan remains blocked because one leader is not honouring his word."
But we will not be deterred.
President von der Leyen has been very clear:
We will deliver – one way or the other.
At the same time, the Commission is progressing on the technical work for the implementation of the loan.
We will be prepared to move swiftly to provide the support once there is agreement in the Council.
We have already received a Financial Strategy from Ukraine and are working on conditions for this funding, including on the Memorandum of Understanding linked with the Macro-Financial Assistance programme.
These conditions include structural reforms to strengthen the resilience of its economy, anti-corruption reforms, and further measures to speed up the accession process and facilitate Ukraine's integration in the Single Market.
Ukraine's future is in the EU.
Our overall strategy on Ukraine remains the same:
To provide maximum support to Ukraine and exert maximum pressure on the Russian aggressor.
The European Union is determined to continue weakening Russia's war economy.
This goal is even more important now as we can see that Russia is benefiting from the war in Iran and the corresponding increase in oil and gas prices.
The European Commission has prepared the 20th sanctions package and it is important to move forward with it.
It focuses on further reducing Russia's energy revenues, targeting Russia's banking system and limiting the operation of its shadow fleet.
We are also intensifying our engagement concerning their financial support for Ukraine.
The European Council also discussed the latest developments in the Middle East, including Iran, Gaza and Lebanon.
The situation in the region is extremely serious.
Developments in Iran and the wider region threaten regional and global security.
We condemn Iran's indiscriminate military strikes against countries in the region.
We need de-escalation and maximum restraint, the protection of civilians and civilian infrastructure.
The European Commission stands with its partners and friends in the region in a spirit of solidarity and friendship.
Cyprus has been directly impacted by this war, more than any other Member State.
The security of Cyprus - as of any Member State - is the security of the European Union.
We stand firmly in support of Cyprus.
We therefore welcome the deployment by Member States of military assets in the Eastern Mediterranean.
The European Council also expressed its deep concern about the increase in hostilities in Lebanon and its severe impact on civilians, including large-scale displacement, suffering and loss of life.
We will continue to stand by Lebanon, its authorities and its people.
The European Council also discussed the deteriorating situation in Gaza, calling on Israel to allow immediate, unimpeded access and sustained distribution of humanitarian assistance at scale into and throughout Gaza.
Earlier this month, the Commission announced €458 million in humanitarian aid for Palestine, Lebanon, Syria, Jordan and Egypt in 2026.
The war's most immediate impact on Europe is through energy.
The Council called on the Commission to present a toolbox of targeted temporary measures to address the recent spikes in the prices of imported fossil fuels arising from the crisis in the Middle East.
The Commission will act across all four components that determine electricity prices.
First, on energy costs themselves.
Member States can already make use of State aid measures to compensate for the cost increases of the energy source and the Commission will futher flexibilize the use of State aid for this purpose.
Second, on grid charges.
The Commission will prepare a legal proposal to improve the productivity of grid infrastructures and allow Member States to reduce grid charges for energy-intensive industries.
Third, on taxes and levies.
The Commission will propose to mandate lower tax rates on electricity, and to make sure that electricity is taxed less than fossil fuels.
And fourth, on carbon pricing.
The Emissions Trading System is working and delivering on its promise to massively reduce gas consumption.
But we need to modernise it and make it more agile.
We are preparing measures, including updating the benchmarks for free allocations and take into account the concerns of industry, increasing the firepower of the Market Stability Reserve (MSR) to reduce price volatility, and this will be followed up by the broader review of the ETS system.
The Commission will continue to report to the Council on the potential impact of recent developments for the EU in terms of energy security and energy prices, supply chains and migration, and will propose appropriate measures.
Energy is just one element of Europe's overall competitive position.
Leaders also discussed how to further deepen the Single Market.
To this end, the Commission will soon present its "One Europe, One Market" Roadmap.
The Roadmap will set out key legislative measures with a very clear timeline, targets, milestone for delivery by the end of the year 2027.
Last week, the Commission presented the proposal for the EU Inc.
This is the foundation and starting point for the EU's 28th regime.
This makes it easier, faster and cheaper for our companies to start, scale and do business across the EU.
Here we count on the co-legislators to swiftly proceed with the adoption of this file.
Our simplification agenda continues apace.
The European Council called on the Commission, the co-legislators and the Member States to continue to ambitiously simplify rules and reduce administrative burdens at EU, national and regional level.
We have set an ambitious target of a 25% cut in administrative burdens for businesses, and 35% for SMEs.
Last year, the Commission tabled ten Omnibus proposals.
These proposed measures have the potential for €15 billion reduction of recurring administrative costs, and €6 billion in one-off savings.
These are real savings that contribute to boosting the competitiveness of EU companies.
The European Council called on the co-legislators agree all pending omnibus proposals before the end of 2026.
This year, more than half of the legislative initiatives in the Commission's Work Programme have a strong simplification focus.
This means that they must deliver net administrative savings.
In addition to further omnibus proposals, the Commission will introduce a "simplicity by design" approach to future rules, so that we improve the governance and the development of legal text.
Finally, in the broader context of a further deteriorating geopolitical environment, and Russia's war of aggression against Ukraine remaining an existential challenge for the European Union, the European Council also reaffirmed its determination to decisively ramp up Europe's defence readiness by 2030.
The leaders also took stock of progress on migration and held a lunch with UN Secretary-General Guterres.
Finally, the Leaders decided that the discussion on the next Multiannual Financial Framework would be postponed to the informal meeting of the Heads of State and Government of 23-24 April in Cyprus.
To conclude, Honourable Members, we must continue to act with determination and focus to address the challenges we face.
That is the only way that we can ensure that Europe remains resilient, prosperous and sovereign in a rapidly changing world.
Thank you and I look forward to today's debate.
