Keynote speech by President António Costa at the opening of the Bled Strategic Forum 15:05 The President of the European Council, António Costa delivered a keynote speech at[...]

Let me begin by expressing my sincere thanks to our Slovenian hosts for their generous hospitality and for once again making Bled a place where Europe gathers not only to reflect, but to think strategically, challenge assumptions and shape the future.

At this critical moment, as the tectonic plates of global order continue to shift, allow me to speak frankly about three things:

(1) the main events that shaped this summer,

(2) what the European Union stands for, and

(3) how the EU can become stronger and safer in today's world.

In what the European Union is concerned, this summer was defined by two important developments: the EU-U.S. framework trade agreement and renewed diplomatic efforts surrounding the war in Ukraine.

I am aware of the frustration felt by many Europeans who perceive the Union as having been too passive in shaping these developments. Let me address this directly. We certainly do not celebrate the return of tariffs or the limitations of an unbalanced trade framework. But we must be honest about the broader picture. In today's interconnected world, trade, diplomacy and security inevitably influence each other.

Trade is one dimension of our relationship with the United States. Security-especially during a war on our doorstep-is an existential concern. Escalating tensions with a key ally over tariffs, while our Eastern border is under threat, would have been an imprudent risk. That is why, at this moment, we chose diplomacy over escalation. We gave space to dialogue, we chose restraint because we are responsible. Stabilizing transatlantic relations and ensuring U.S. engagement in Ukraine's security has been a top priority.

The European Union did not start a trade war.

But yes, we refrained from retaliation protect our own interests:

• the interest of the European consumers by not taxing them with tariffs;
• the interest of business by providing predictability,
• and ensuring that our products and services are not at disadvantage in relation to other exporters to the US.

That said, our partners-including the U.S.-must know that the EU will always defend its sovereignty, its citizens, its companies, and its values. Diplomacy should never be mistaken for complacency. It is true that this moment proved once again that our powerful single market of 450 million consumers, our rules-based approach are not sufficient. We must become more autonomous, more resilient, and more prepared to act. More sovereign!

We cannot anymore rely just on our allies when facing threats. We must take greater responsibility for our own destiny. That is why today, I want to affirm one clear message on behalf of the European Union: We stand for a world where peace is protected, partnerships are genuine, and where the principles of the United Nations Charter are upheld-not just in words, but in action. Europe does not retreat. Europe engages.

First, Europe has stood firmly with Ukraine against Russia's war of aggression, as the truly indispensable partner. Our support has helped Ukraine remain sovereign after more than three years of war. Together with our Member States, the EU has mobilized over €170 billion-the largest contribution from any global donor-supporting Ukraine's defence, economy, energy grid, and institutions.

Our security is tied to Ukraine's resilience. But equally, to the idea that power cannot trump law. We are also supporting Ukraine's reconstruction and its path to EU membership. This is not a political slogan. It is a strategic reality that we are shaping every day.

Secondly, In the Middle East, we are witnessing a humanitarian catastrophe in Gaza that shocks the conscience of the world. The scale of civilian suffering-especially among children-is appalling and unacceptable. As the resolution presented by Slovenia at the United Nations Security Council stated: the use of starvation as a weapon of war is prohibited under international humanitarian law. Regrettably, while supported by 14 out of 15 Council members, this resolution was blocked by the US.

The EU has consistently condemned the Hamas terrorist attacks of October 7th and continues to call for the unconditional release of all hostages. At the same time, the right to self-defence does not justify the indiscriminate destruction of civilian infrastructure, or the collective punishment of an entire population. We must be unequivocal: international humanitarian law applies to all parties.

We are deeply concerned by actions that threaten the viability of a future Palestinian state-particularly the expansion of settlements in the West Bank and the ongoing displacement in Gaza. These developments risk undermining peace and destabilising the broader region.

We therefore call for:

• An immediate and sustained ceasefire,
• Unhindered humanitarian access,
• A halt to illegal settlement activity, and
• A renewed international commitment to a two-state solution.

The European Union remains the leading donor of humanitarian aid to the Palestinian people. European funding has kept hospitals, schools, and institutions running-providing more than €450 million since the start of this war. We are actively supporting diplomatic efforts.

Palestinian representatives must obviously be allowed to participate in international fora, including the UN General Assembly and the upcoming conference on the conflict. The Palestinian people deserve peace, dignity, and statehood. And that this is also the most sustainable path to security for the Israeli people. We believe both are possible. But only if we act together-engaging more actively with our partners in the region and speaking with one strong European voice.

Let me be clear. Unanimity in the Common Foreign and Security Policy is not a right to veto, but on the contrary the special responsibility for each Member State to build compromises in a spirit of loyal cooperation.

Thirdly, geopolitical naiveté is over. That is why we are massively increasing our defence investments-to reinforce our own security, strengthen our industries, and create jobs across Europe. This also enhances our credibility and influence on the global stage. Peace without defence is an illusion. Soft power alone is not enough in a world where hard power too often prevails.

In the meantime, contrary to the worst predictions, we have succeeded in keeping the U.S. engaged in NATO and committed to Europe's Eastern security. Diplomacy still works-and the transatlantic bond holds. The U.S. accounts for 20% of our exports and 13% of our imports. But the remaining 80% of the global economy also matters-and Europe must engage with it more actively.

That is why we are building stronger trade and industrial partnerships across the globe. We are advancing deals with Mercosur, Mexico, India, Indonesia, the Philippines, and Thailand-not just to boost trade, but to increase predictability and resilience.

Diversification makes our supply chains more secure and reduces strategic dependencies-especially in critical raw materials. Our updated Global Gateway strategy is expanding our cooperation across Central Asia, the South Caucasus, Latin America, and Africa. It is a trade and investment agenda based on sustainability, digital innovation, labour rights, and climate alignment. Because trade deals-not tariffs-deliver real benefits for countries, companies, and citizens.

Europe remains a reference point. Not through coercion, but through example. For decades, the EU has helped lift millions out of poverty and has stood for development, democracy, and peace. Our soft power is not naïve-it is necessary. In a fragmented world, our contribution is needed more than ever.

Finally, let me conclude by addressing our own future. The European Union is not a closed club. We are a community of values and a project of peace and prosperity-and that project is not yet complete. The accession paths of the Western Balkans, Moldova and Ukraine are not just promises. They are priorities. These countries are at the heart of Europe, and they are part of Europe's future.

In the coming years, we must prepare the Union for enlargement-through reforms, budget adjustments, and strengthened governance. Enlargement will not be easy. But it will be worth it. It is the best investment we can make-to reconcile nations and histories, and to build a more united continent. We will continue to work with all accession partners and take advantage of this positive momentum on enlargement.

The EU's Growth Plan for the Western Balkans is a potential game-changer-offering financial support and incentives for reforms, regional cooperation, and economic integration. We must not lose this momentum. All leaders must do their part. All parties must take responsibility. Because this is not about geography. It is about values - democracy, human rights, freedom and the rule of law.

This enlargement presents a significant challenge for the European Union and its Member States. But it is even more demanding for the Western Balkan countries. The greatest difficulty is not the required reforms or the negotiation of various chapters and clusters. The real challenge lies in adopting a new cultural mindset: overcoming historical conflicts in order to build a shared future.

Ladies and gentlemen,

In today's fragmented world, the European Union chooses to act-not through power alone, but through partnership, principle, and perseverance. We will stand with those who uphold international law-not with those who seek to dismantle it. And we will keep building a stronger Europe-not for ourselves alone, but for the benefit of global peace, justice, and cooperation.

This is Europe's promise. This is Europe's purpose.

Thank you.