European Commission President Ursula von der Leyen, in a speech to the European Parliament on 20 May 2026, outlined a six-point plan to modernise the Single Market, announcing new legislative initiatives including a Chips Act 2.0, a Cloud and AI Development Act, and a Quality Jobs Act. The address, delivered during a plenary debate on the Single Market, stressed the need to adapt the EU's core economic framework to technological change, climate goals, and geopolitical competition.
Von der Leyen's first point focused on removing remaining barriers, citing the 'Terrible Ten' proposal and EU Inc. as tools to harmonise rules across member states, while calling for a crackdown on national gold-plating. The second point, 'digital by design', included the announcement of a Chips Act 2.0 to build on the original Chips Act, which she said had unlocked over EUR 32 billion in semiconductor investments since its launch three years ago. She also promised a Cloud and AI Development Act to support the AI ecosystem and confirmed that the first AI Gigafactories call would open in summer.
On sustainability, von der Leyen pointed to the Industrial Accelerator Act as a means to create lead markets for clean products. The fourth point, European independence, referenced recent trade deals with India, Australia, Mercosur, and Switzerland, and a planned trip to Mexico to finalise a modernised global agreement. She also mentioned the RESourceEU proposal, a Critical Raw Materials Centre, the Grids Package, and an upcoming Electrification Action Plan as tools to strengthen strategic autonomy.
Inclusion and social dimension formed the fifth and sixth points. Von der Leyen called for adoption of the e-declaration for labour mobility and highlighted the Fair Labour Mobility package, including a European Social Security Pass and digitalised recognition of professional qualifications. She noted the adoption two weeks earlier of the first-ever anti-poverty strategy and announced plans to consult social partners on a new initiative to support people into work, with a focus on enabling parents, especially single parents, to return to employment. She also confirmed work on a Quality Jobs Act, developed with social partners.
The speech contained several concrete proposals with measurable objectives: the Chips Act 2.0, Cloud and AI Development Act, and Quality Jobs Act are new legislative initiatives with clear timelines. The call for AI Gigafactories in summer and the Electrification Action Plan in weeks provide deadlines. However, details on funding, targets, and institutional structures were limited, with many points remaining at the level of declarative support or calls for action.
Von der Leyen's speech shifts the Single Market agenda towards deeper integration and digitalisation, with a strong emphasis on EU strategic autonomy and sustainability. On foreign policy, the tone is assertive but conciliatory, seeking trade deals to secure supply chains while maintaining openness.
EU businesses, especially in semiconductors, AI, and clean tech, stand to gain from new support schemes and harmonised rules, reducing compliance costs. EU workers may benefit from improved labour mobility and quality job initiatives, but the anti-poverty strategy and childcare investments could impose costs on member state budgets. EU consumers could see better choices and lower prices from a more integrated market. National authorities face pressure to reduce gold-plating, which may limit their regulatory flexibility. The cleavage between EU integration and national sovereignty is evident, with von der Leyen pushing for more centralised coordination, particularly in energy and strategic investments.