DAILY NEWS
Brussels, 28 February 2025
Speech by President von der Leyen: ‘The Consequential Partnership: Reimagining and realigning EU and India ties for today's world'
Ladies and Gentlemen,
It is a great pleasure to be back here in India for such a landmark occasion for the EU-India partnership. Returning here, now for the third time as President of the Commission, is always a welcome excuse to immerse myself in your culture and democracy, your history and your modernity. And it was with real privilege and pride that I started this visit by laying a wreath in honour of Mahatma Gandhi yesterday.
It was of course Gandhi himself who famously said that a nation's culture resides in the hearts and in the soul of its people. This is certainly true of India, its people and its breathtaking cultural heritage and history. And above and beyond any economic or diplomatic relations, I believe it is culture that binds the people of India and Europe together. We have a shared love of sport, art and literature. Our students and academics work and deepen their knowledge together. And our companies do business together on a scale almost unmatched around the world. All of this makes us natural and long-standing partners as we start our third decade of strategic partnership.
But, Ladies and Gentlemen,
I believe what lies ahead is far greater than what has already been. Although history can always be a useful guide for how to approach the world of today. If we think back to 1947, we see how the soul of this great nation and its struggle through history propelled India to its independence. And looking back at the voices of the time, we also hear and feel the resolve and the determination of India to build prosperity, security and democracy for its future generations. As I stand here today in this vibrant and independent country, the largest democracy in the world, the words spoken at the time were as prophetic as they were poignant. At the same time in Europe, we were trying to put back together the pieces of our Continent ravaged by war. The countries of Europe chose to come together. To tie their destinies, their security and prosperity to one another in order not to repeat the mistakes of our past. This is how the seeds of our European Union were planted.
The point is that the world then was fragile, fractured and on the verge of change that would define the next eight decades. And both Europe and India, albeit in very different circumstances, understood the need to come together. I believe this is a clarion call for all of us as we stand here in 2025 at another inflection point in history. I do not need to describe the geopolitical and geoeconomic headwinds that both the EU and India are confronted with. We have all seen how countries are weaponising their sources of strength against each other whether natural resources or new technologies, or economic and military coercion. We have seen how supply chains and dependencies are used to gain influence or drive wedges between nations and regions. We have seen a more aggressive posture from major powers and of course the conflicts that have destabilised entire regions. How countries, in particular in the Global South, are looking for alternatives to what the international system has offered them. And we have seen clear attempts to split off parts of the world into isolated fragments.
This world is fraught with danger. But I believe this modern version of great power competition is an opportunity for Europe and India to reimagine their partnership. In many ways, the EU and India are uniquely placed to respond to this challenge together. India is the largest democracy and soon to be in the top 4 of the world's largest economies. It is the leading voice of the Global South. Europe is a unique cross-border democracy and open economy. The largest trading partner for some 80 countries around the world. But this partnership makes sense not only because of our shared values or our close ties. Or even because of our respective geographies, demographies or economies. But it is because our interests in this hyper-competitive world align more often than not. We both stand to lose from a world of spheres of influence and isolationism. And we both stand to gain from a world of cooperation and working together. Because we can offer each other distinctive alternatives and tools to make ourselves stronger, more secure and more sovereign in today's world. The kind of offer that cannot really be replicated by others.
This is why the EU and India have the potential to be one of the defining partnerships of this Century. And it is why it will be a cornerstone of Europe's foreign policy in the years and decades to come. So, I want this visit to be the start of this new era. Prime Minister Modi and I share the same view. It is time to take our EU-India Strategic Partnership to the next level. For our own security and our prosperity. For the common global challenges that we face. And for the benefit of our respective regions and our partners around the world.
Over the last thirty years we have done a lot together. But in truth we have only been scratching the surface of the potential that is there. So, this is not a time to place limits on our cooperation. Or to get stuck looking for agreement on every issue of regional or global concern. It is time to be pragmatic and ambitious. And to realign our priorities for today's realities. Allow me to very briefly map out my vision of the three areas which can take our partnership to the next level. The first is trade and technology. The second is security and defence. And the third is connectivity and global partnership.
The first area where I believe we can make real progress is on delivering prosperity in Europe and in India. Here we have a real shared interest and sense of purpose. India's Viksit Bharat 2047 vision will help to transform the economy and create millions of jobs from traditional manufacturing sectors to high-tech industries and innovation. Europe is striving towards the same goal through our own economic and industrial transformation. I believe that we can help each other to reach our goals. Make in India and “made in Europe” can work together to drive our industries forward. And our common interests in de-risking our economies, in particular in sensitive technological areas, can help drive our economic security. Let's take some examples. We are both looking to diversify some of our most critical value chains. From our side this is for example the case on batteries or pharma, semiconductors, clean hydrogen or defence.
And we can support each other to achieve that. For that we need to have an ambitious trade and investment partnership. Today, the EU is India's largest trading partner, sitting ahead of both the US and China. European companies create 8 million jobs here in India. But we could do so much more by improving market access and tackling the barriers to trade. And I believe this can be a launchpad to strengthen cooperation in key sectors which will drive the global economy as we head towards mid-century. From semi-conductors to clean tech, from AI - we just had a summit in Paris, and the next one will be here - to high performance computing and digital public infrastructure. By investing together in this tech and by building strong supply chains, we can create a real advantage for ourselves in today's competitive global economy. And we should draw on each other's skills and talents. Such as our academics and researchers, to help make that happen.
A free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world. I am well aware it will not be easy. But I also know that timing and determination counts, and that this partnership comes at the right moment for both of us. This is why we have agreed with Prime Minister Modi to push to get it done during this year. And you can count on my full commitment to make sure we can deliver.
The second broad area for renewed cooperation is security and stability. Here again we have many shared interests. Wars, conflicts and coups have erupted in Europe, the Middle East and Asia, in Africa and across different regions. And what happens in one part of the world matters to both Europe and India. Even if we sit far apart on the map. Because peace, security and prosperity are indivisible in this world. In Europe, Russia's goal is to tear Ukraine apart. And we should be clear about what is at stake here. A failed Ukraine would not only weaken Europe. And that is why we have taken historic steps to support Ukraine and its future. But a failed Ukraine would also intensify the challenges in other parts of the world. Not least in this region. Other countries around the world are watching very closely whether there is any impunity if you invade a neighbour or violate international borders. Or whether there are real deterrents. This is why we want any peace talks to lead to a just and lasting peace. With a free and prosperous Ukraine, that can join the European family. And Europe is ready to live up to its responsibility when it comes to security and defence. We will step up our defence spending to ensure that Member States have access to the full spectrum of capabilities that this new reality demands. But we also want to step up cooperation with crucial partners like India.
This is why I can announce that we are exploring a future Security and Defence Partnership with India in the mould of the partnerships we have with Japan and South Korea. This will help us step up our work to counter common threats whether on cross-border terrorism, maritime security threats, cyber-attacks or the new phenomenon we see: attacks on our critical infrastructure. There is a lot that we can build on. For instance, the recent collaboration on maritime security. And I am delighted at India's interest in joining defence industrial projects under the EU's Permanent Structured Cooperation. India is working hard to diversify its military supply and to access new capabilities. And I believe we can help each other to deliver on our security objectives.
For instance, we can join forces where we have technology and expertise, such as on cyber security, space and drones. This is not only about stability in our respective regions. But it is also a key part in strengthening our economic security and ultimately our prosperity. And this is why security should be a core part of our new strategic partnership with India.
The third and final element I will touch on is the need to deepen our connectivity links and our global partnerships. And here there is a lot that Europe can learn from India. India has been a leading voice in bringing to the fore the concerns of many countries in the Global South. Addressing these issues becomes all the more important in a world where major powers are pulling away or even pulling at the seams of the international system. And I believe India and Europe have a real opportunity to step up. To invest in each other, and to invest in our global partnerships. This is in our core economic and national security interest. India can play a unique role as a bridge between the Global South and the rest of the world. Between the Indo-Pacific and Europe. And Europe is ready to invest to help bring that to life. Through Global Gateway, our EUR 300 billion global infrastructure offer, we can invest in projects to transport energy across India, and between India and the world. And this is just the start of what can be done to build this connectivity between India, Europe and the regions between us.
The India-Middle East-Europe corridor launched here in New Delhi in 2023 during India's G20 Presidency is a historic opportunity to bring this to life. It's an amazing project. This can be a modern golden road – directly connecting India, the Arabian Gulf and Europe. With a rail link, that will make trade between India and Europe 40% faster. With an electricity cable and a clean hydrogen pipeline. And a high-speed data cable to link some of the most innovative digital ecosystems in the world. This corridor is much more than “just” a railway or a cable. It is a green and digital bridge across continents and civilisations. And it can help bring us closer together and boost trade on everything from batteries to clean hydrogen and digital services. This can be a win-win-win for Europe, India and our partners. We are ready to invest in concrete projects that can already start making these connections happen. Europe is open for business, and we are ready to invest in our common future with India.
Ladies and gentlemen,
Investing in our common future. This is the driving force of this new era of partnership between Europe and India. In troubled times great opportunities come. And I believe 2025 is a historic window of opportunity to build an indivisible partnership between Europe and India. Our interests align. Our commitment is iron-clad. And if it can be done anywhere, it can be done here. Because as Romain Rolland – the French writer and great admirer of India said: “If there is one place on the face of earth where all the dreams of living men have found a home from the very earliest days when man began the dream of existence, it is India” And today we are one step closer to making our common dream a reality.
Thank you and long live our friendship.
Statement by President von der Leyen at the joint press point with Indian Prime Minister Modi
Dear Prime Minister Modi, dear Narendra,
Ministers,
Commissioners,
Excellencies,
Friends,
Thank you very much for the warm welcome. It is a taste of India's legendary hospitality. Today is no ordinary day. Europe and India are coming together. And, as I read in the news, so are the planets. Indeed, today, seven planets in our solar system come into perfect alignment. That is a very outstanding event. They say that this event signals transformation and growth. It is exactly the moment we find ourselves in. The planets are aligned – and so are Europe and India.
I am here today with the whole College of Commissioners. Indeed, it is our first visit outside Europe since we took office in December. This shows how much we value our partnership. We want to take it to new heights. India is a like-minded friend. We are the two largest democracies in the world. And under your leadership, Prime Minister, it has been thriving. We are bound by shared convictions and values. From resilient supply chains to our shared interest in a free and open Indo-Pacific, we are working together. Today's exchanges will set the path for the future of our relationship. We have agreed to work on a new Strategic Agenda. I see three main avenues.
First, we will work together on economic growth. The potential is immense. Europe is already India's biggest trading partner. Last year alone, we exchanged EUR 120 billion worth of goods. And over the past two decades, our trade has tripled. All this is proof that our businesses and people want to work together. One of the best examples of this partnership is the new Federation of European Businesses in India. It brings together 6,000 EU companies, which have created 8 million direct and indirect jobs in this economy. We have tasked our teams to build on this momentum and finalise our Free Trade Agreement before the end of this year. We are expecting a lot of our trade negotiators, we told them they should surprise us. Now more than ever, the geopolitical context asks for decisive action. At the same time, we must take our Trade and Technology Council to the next level and connect research, innovation and market uptake. This allows us to tackle important economic challenges together. And to build robust and diverse supply chains such as for example semi-conductors, a very important topic we have been working intensively on. Because we know that economic security and growth go hand in hand. By sourcing the products we need from partners we trust, we avoid harmful dependencies. And of course we build stronger economies.
The second avenue we should explore is a common tech agenda. On clean tech, together we champion the International Solar Alliance. We agreed to launch a Joint Task Force on green hydrogen. But today I want to focus on digital technologies, where you excel. We are both powerhouses of innovation and entrepreneurship – the kind that only democracies can nurture. We share the belief that technology should serve the people, not the other way around. And here Artificial Intelligence is a prime example. It is advancing at a scale and speed never seen before. Dear Narendra, at the Paris AI Summit you said, AI is writing the code of humanity, you are so right. I am convinced that Europe and India working together can shape a future in which AI is a driver of a positive change in our economies and societies. In Paris we both have highlighted the advantages of a cooperative model for AI development where the innovators have access to quality data and computing resources. I am glad to note that AI is a major focus of the Trade and Technology Council. The European AI Office and India Al Mission also agree to deepen cooperation. And we will apply AI in the areas of natural hazards, climate change and bioinformatics. AI should be at the heart of our Strategic Agenda. The next AI Summit hosted by you, Prime Minister, will take us forward. You can count on the European Union that this Summit is going to be a big success.
Our cooperation on digital in not limited to AI. We are aiming at the interoperability of our two digital public infrastructures, which actually are the world's largest and most advanced. India's Aadhaar and the EU digital wallet aim to offer public and private services to nearly 2 billion citizens. Interoperability of our digital identities will strengthen ties between the EU and India even more. Our digital cooperation has also an ambitious industrial agenda. We are committed to strengthen cooperation in semiconductor R&D and manufacturing. We are cooperating in the future of secure telecommunication networks. In particular, our industrial associations have agreed to closely cooperate on 6G.
Of course, technology is only as good as the people who can use it. That is why digital skills are so important. This is a topic very close to my heart. People are essential for Europe's competitiveness. Yet, we face a gap. India can help to close it. Let us increase student and skilled worker exchanges. Let us share expertise, talent and experience.
The third avenue I see is deeper cooperation in security and defence. For Europe, India is a pillar of certainty in an increasingly uncertain world. We know that authoritarian states are getting bolder, ignoring borders and threatening peace at sea. Now is the time to step up our security and defence cooperation on land, at sea and in space. Cybersecurity has never been so crucial. Our Cyber dialogue offers a platform for effective cooperation and information exchanges. Because threats are evolving, becoming more sophisticated by the day. Maritime security is just as essential. The Indian Ocean is a lifeline for global trade. Ensuring its security is vital, not just for India but for the whole world. We should also explore expanding our joint naval exercises, building on our very successful operations in the Gulf of Guinea and the Red Sea. Finally, we should deepen cooperation in protecting the cables that ensure data connectivity between India and the European Union. On defence, we see avenues for cooperation. India is looking into diversifying its military supply and access to new capabilities, so does Europe. So, both India and the European Union can be partners on this topic.
Prime Minister, dear Narendra,
We are going back to Europe with fresh ideas for the future of our cooperation and for the Summit later this year. India and the EU are together greater than the sum of our parts. Together, we send a powerful and positive signal to the world. The planets are aligned – and so are Europe and India.
Commission launches public consultation on antitrust rules for motor vehicle sector
The European Commission has launched today a public consultation inviting all interested parties to express their views on the functioning of the competition rules applicable to vertical agreements in the automotive sector. These rules include the Motor Vehicle Block Exemption Regulation (‘MVBER') and the Supplementary Guidelines (‘SGL'), both as amended in April 2023, as well as the Vertical Block Exemption Regulation (‘VBER') and the Guidelines on vertical restraints, as far as they apply to the automotive sector.
The public consultation is part of the ongoing evaluation of the MVBER and the SGL launched on 18 January 2024. These rules, which assist companies in the automotive sector in assessing the compatibility of their vertical agreements with Article 101(1) of the Treaty on the functioning of the European Union (‘TFEU'), are currently set to expire on 31 May 2028.
In parallel, the Commission launched on 30 January 2025 the Strategic Dialogue on the Future of the Automotive Industry. The Commission will soon present an Action Plan which will address issues relevant for the automotive sector, such as ensuring access to talent and resources, technological innovation and the development of next-generation vehicles, and establishing a predictable regulatory framework. The MVBER evaluation complements these efforts by ensuring a competitive automotive aftermarket.
Background on the evaluation process
On 17 April 2023, the Commission prolonged the MVBER for five years, until 31 May 2028, and updated the SGL to reflect the main technological developments in the automotive industry since 2010. This was the outcome of the previous evaluation of the framework, launched in 2018 and concluded on 28 May 2021, which indicated notably that the motor vehicle market was likely to evolve in the following years, due to the digitalisation of vehicles and new mobility patterns in particular.
The Commission launched the current evaluation on 18 January 2024 and a call for evidence on 27 May 2024. In its review, the Commission will take into account the current competitive situation in the automotive sector and include an assessment of the impact of the 2023 amendments to the SGL. The evaluation will also consider how the market is likely to evolve until 2028 based on current trends.
Next steps
All interested parties can submit their comments by 23 May 2025. More information on how to submit a contribution is available here.
The Commission will analyse the responses to the consultation and publish a summary of the main points and conclusions on the Commission's “Have your say” portal. On the same page, the Commission will also publish the contributions made to the public consultation in the language in which they were submitted.
As part of the ongoing evaluation, the Commission will also seek feedback from national competition authorities. In addition, the Commission is working with the Commission's Joint Research Centre on a study to collect sector-specific information pertaining to a list of relevant industry indicators, with particular focus on the digital transformation of the automotive markets.
After the evaluation is finalised, the Commission will analyse the possible policy options for the future of the MVBER, in a policy-making phase planned for 2026. The progress of the evaluation can be followed on the Commission's “Have your say” portal.
Background on the MVBER
Vertical agreements are agreements between two or more companies operating at different levels of the production or distribution chain, and relating to the conditions under which the parties may purchase, sell or resell certain goods or services.
Article 101(1) TFEU prohibits agreements between companies that restrict competition. However, under Article 101(3) TFEU, such agreements can be declared compatible with the Single Market, provided they contribute to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefits without eliminating competition.
The MVBER states that the Commission's general regime (i.e., the VBER) applies to agreements for the distribution of new vehicles. The VBER exempts vertical agreements that meet certain conditions from the prohibition in Article 101(1) TFEU, thus creating a safe harbour for those agreements. The Guidelines on vertical restraints provide guidance on how to interpret and apply the VBER and how to assess vertical agreements falling outside the safe harbour of the VBER.
As to agreements relating to the sale or resale of spare parts for motor vehicles or the provision of repair and maintenance services for motor vehicles, the MVBER provides that Article 101(1) TFEU does not apply, so long as these agreements fulfil the requirements for an exemption under the general regime of the VBER and do not contain any of the severe restrictions of competition listed in the MVBER (such restrictions would remove the benefit of the exemption).
For More Information
More information on the upcoming steps of the current evaluation is available on the dedicated webpage of the Commission's competition website.
Quote(s)
With this evaluation, we want to make sure that our antitrust framework keeps pace with the rapid changes in the motor vehicle market, ranging from digitalisation to new mobility patterns. As part of the evaluation, it is essential to draw on the experiences of various stakeholders — from manufacturers to independent repairers — to have rules that continue to foster innovation and safeguard fair competition in sales, repair and maintenance of motor vehicles.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
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