Von der Leyen said the EU is opening the door for Canada to become the first associate member, although such status is not envisaged.

European Commission (EC) President Ursula von der Leyen said the European Union (EU) is opening the door for Canada to become its first "associated member", although such status is not provided for in EU treaties, Reuters news agency reported today.

Von der Leyen's announcement represents a significant shift in EU policy. The bloc has traditionally opposed flexible membership categories, and EU members reacted rather reservedly in May to Germany's proposal to offer Ukraine associate membership as a step towards full membership, according to Reuters.

"Partnerships are a strategic choice for Europe. But they are also a response to the erosion of the rules-based international order," von der Leyen said in her annual State of the EU address to the European Parliament (EP) in Strasbourg.

"We see the world in the same way: from artificial intelligence to climate change, from the Arctic to geopolitics. And we have stood by each other: when it comes to Ukraine, defense, raw materials and supply chains. But above all... Europe and Canada believe in democracy," said Von der Leyen.

Canadian Prime Minister Mark Carney said earlier this week that Canada wants a "unique alliance" with the EU, but not membership. Von der Leyen invited Carney to join her in Strasbourg, where he will address the EP on Thursday.

Carney's visit to Europe follows a historic deterioration in relations between Canada and the United States (US), after trade talks collapsed last month, triggering a series of reciprocal tariff measures.

"I said that we urgently need to reinvent our partnerships. That's why I would like to work with you to open the door for Canada to become the first associate member of the EU," said von der Leyen.

She added that the EU and Canada will cooperate in a number of areas, from manufacturing and artificial intelligence to critical minerals and energy.

"We will cooperate on intelligent manufacturing. We will create a technological alliance. We will connect our defense industrial bases. We will make the Arctic a flagship joint project," she said.

Von der Leyen added that "this partnership is not directed against anyone else," which could be an attempt to avoid straining relations with US President Donald Trump.

Von der Leyen: EU faces an openly hostile world

Fon der Leyen called on EU countries to work together and forge a new partnership with Canada to confront climate change, competition from China and other major challenges, Reuters reports.

The bloc faces an "openly hostile world," Ursula von der Leyen said in her annual address to the European Parliament (EP) in Strasbourg, presenting the 27-nation EU's priorities for the coming year.

Solidarity among member states is the only possible solution, she said.

"Our path is clear. Building an independent Europe that has the power to act," said Von der Leyen.

The 27-nation bloc is facing war on its borders over Russia's invasion of Ukraine. On trade and other issues, the EU also faces fierce competition from the United States under President Donald Trump and an increasingly assertive China, according to Reuters.

The EU also faces major internal challenges, including the rise of the Eurosceptic far right, as evidenced by regional elections in Germany that have weakened Chancellor Friedrich Merz. Opinion polls show Marine Le Pen as the strongest candidate ahead of next year's French presidential election.

"The state of our Union is stronger than ever. At the same time, the state of our Union may also seem more uncertain than ever," said Von der Leyen.

Cooperation with Canada

Von der Leyen, now in her second five-year term at the head of the EU's executive body, was also expected to emphasize the need to preserve European independence in various sectors, including energy, raw materials and clean technologies, according to Reuters.

To achieve this, EU countries will not only need to cooperate with each other, but also have strong partners like Canada, whose Prime Minister Mark Carney was in Strasbourg and received warm applause from MEPs when he arrived to attend Von der Leyen's speech.

"We want to take our relations with Canada to the highest possible level. That's why I would like to work with you to open the door for Canada to become the first associated member of the EU," said von der Leyen.

She approached Carney and hugged him after raising the issue of Canada's "associate membership," and Carney received a standing ovation from lawmakers in the chamber.

Trade deficit with China

Speaking on trade, von der Leyen said the EU would use all available means to reduce its "unsustainable" trade deficit with China. She said the imbalance, with a goods trade deficit of 1 billion euros ($1,15 billion) a day last year, had reached a tipping point.

"Let me be clear: we will use all the instruments at our disposal to restore balance in our relations. Words are good. But actions are better," she said.

The fight against climate change

Von der Leyen also said that the EU will need to continue on an ambitious path in mitigating climate change, but also to step up efforts to adapt to its consequences, drawing on the experience of the previous three months, during which Europe was hit by unprecedented heat waves and forest fires.

She said the EU would establish a "climate insurance alliance" to increase insurance coverage for damage from extreme weather events, Von der Leyen said today, after a summer marked by droughts, forest fires and heatwaves across the Union.

Due to climate change, Europe has become the fastest-warming continent in the world, twice as fast as the global average.

This year's wildfire season has been one of the worst on record in Europe, while a series of heatwaves has claimed dozens of lives, caused power outages, reduced productivity and led to school closures.

According to EU data, only a quarter of economic losses in the Union related to climate change are insured, and the new system should contribute to reducing that gap.

"Too often, national budgets become the last resort for covering damage. We need to take action to reduce this gap," von der Leyen said in an address to the European Parliament.

Although the EU has an ambitious policy framework to reduce greenhouse gas emissions that cause climate change, it has been slow to prepare for the consequences of global warming, Reuters reports.

Independent EU climate advisers said in February that Europe was not investing enough in climate change adaptation and called for measures including better planning to avoid building houses in flood-prone areas and designing cities to help residents cope with high temperatures during heatwaves.

"We need to significantly improve preparedness," said Von der Leyen.

She also announced other proposals. A "climate resilience" strategy, due to be presented in October, will look at ways to manage climate risks in 100 vulnerable areas across Europe. A heatwave plan will aim to improve early warning systems, while an EU water management plan will focus on better managing drought risks.

Brussels has also asked senior fire service officials to put forward proposals for more effective forest fire management, including the possibility of the EU forming its own fleet of firefighting aircraft.