The 2026 State of the Union (SOTEU) places competitiveness, investment, trade and the reduction of strategic dependencies at the centre of the European Union’s priorities for the year ahead, with potential implications for Portuguese exporters and investors. In her 16 September address, European Commission President Ursula von der Leyen presented initiatives aimed at accelerating investment, simplifying rules and strengthening Europe’s industrial and technological capacity.
For Portuguese businesses, one of the areas with the most direct impact is the reduction of barriers within the Single Market. The Commission plans measures to address unjustified territorial supply restrictions, accelerate permitting procedures and simplify the movement of goods and services. A new package to strengthen the competitiveness of the banking sector is also planned, through simplification and reduced fragmentation.
These measures could be particularly relevant for companies seeking to invest, expand production capacity or develop operations in other EU Member States, at a time when permitting timelines, access to finance and logistics costs can influence investment decisions.
Diversifying supply chains
The EU strategy also envisages greater diversification of sources of supply through DiversifyEU and the creation of a European Corporation on Critical Raw Materials. The new structure is intended to help secure and build reserves of critical raw materials used in sectors such as electric vehicles, semiconductors, batteries, clean technologies and defence.
For Portuguese companies integrated into European industrial value chains, this approach could create opportunities in supply, processing, recycling, storage and the development of alternative solutions, particularly in sectors exposed to external dependencies.
Defence, security and cybersecurity
Defence is also emerging as an area of increased European investment. Among the initiatives announced is the European Instrument for Strategic Enablers, aligned with NATO, aimed at strengthening strategic capabilities including air and missile defence, strategic transport, aerial refuelling, space and cybersecurity.
For Portuguese industry, this direction could create opportunities for companies with expertise in aerospace, space, electronics, communications, cybersecurity, software, sensors, maintenance and dual-use technologies, including through European supply chains and projects.
The Commission also announced a new European Security Strategy and plans to establish a European Security Council, strengthening European coordination on security matters.
Climate, water and resilience
The climate agenda is also becoming more directly linked to business competitiveness. The Commission plans to review CO₂ standards for heavy-duty vehicles and establish a Climate Insurance Alliance, addressing the insurance protection gap associated with climate-related disasters. A European Water Initiative is also planned to strengthen water management and address risks linked to water scarcity.
These initiatives could have a particularly significant impact on sectors such as agri-food, industry, energy, transport, construction, insurance and water-management technologies, creating both investment needs and opportunities for solution providers.
A new strategic approach to Canada
One of the announcements with the greatest potential economic significance was the proposal to open the way for Canada to become the EU’s first associate member. The proposal envisages deeper cooperation in areas including advanced manufacturing, technology, defence, the Arctic, energy, critical raw materials, batteries, artificial intelligence, quantum technologies, cybersecurity and economic security.
The Commission President also proposed moving beyond the current relationship based on CETA towards a new “alliance for the future”, with greater integration of defence industrial bases and new forms of technological and economic cooperation.
For Portuguese companies, this development could strengthen opportunities for exports, investment and integration into transatlantic value chains, particularly in technology, industry and the energy transition.
Opportunities for Portugal
Overall, the initiatives presented in the 2026 SOTEU point towards an EU increasingly focused on industrial competitiveness, strategic autonomy, supply-chain diversification and investment mobilisation.
For Portuguese companies, the new European framework highlights the importance of closely monitoring forthcoming legislative and financial instruments, identifying opportunities in strategic supply chains and strengthening participation in European projects, consortia and international partnerships.
Exporting companies could find opportunities particularly where European priorities converge: digital technologies and AI, energy and clean technologies, defence and security, critical raw materials, mobility, water, advanced industry and cybersecurity.
This approach could translate into new opportunities for international trade, investment, integration into value chains and partnerships across European and global markets.Sources: State of the Union 2026 – European Commission, State of the Union 2026 – President von der Leyen’s speech, State of the Union 2026 – President von der Leyen’s Letter of Intent
