Commission President von der Leyen began her speech by evoking the famous opening line of Charles Dickens' A Tale of Two Cities, "It was the best of times, it was the worst of times", underscoring the rapid changes and escalating challenges the European Union faces.

It is very fitting to use these opening lines commenting on the complexities and contradictions of Europe today. However, Dickens was not talking about political shifts and challenges in a vacuum, but instead, he was calling attention to the socio-economic inequalities leading to and resulting from them and warned against neglecting addressing them in times of uncertainty and major transformations. The address primarily focused on the Russia-Ukraine war, dependence on China, climate change and Artificial Intelligence as critical issues. These challenges are serious and affect our citizens and enterprises, but the EU must go further by addressing their consequences and invest in resilience, skills, quality jobs, innovation and social cohesion.

Industrial and service cooperatives can demonstrate that by putting people before profit, inequalities can be lessened and via democratic participation in the workplace, meaningful, inclusive and quality jobs can be created. We urge the Commission to recognise worker-ownership as a practice for protecting the social market economy amidst geopolitical shifts.

For instance, in terms of the technological advancements, it is necessary to examine their impact on the lives and jobs of people. To this end, CECOP is glad that the European Commission plans to deliver the Quality Jobs Act this year, which, among others, will focus on Artificial Intelligence in the workplace. As AI and algorithmic management in the workplace are threatening the quality of workers’ jobs, we must consider who is in control and who owns the technology deployed in the first place. Industrial and service cooperatives are human-centred enterprises by nature. They create and retain quality jobs, provide opportunities for disadvantaged groups and foster social inclusion. They also reject the use of algorithms to manage workers and offer solutions for using advanced technologies in the service of the workers and not the other way around. Platform cooperatives, in particular, have proven that worker-controlled platforms, operating with transparency, solidarity and democratic governance, are possible. CECOP demands a fair digital transition, where algorithms and AI are held accountable.

We are glad that the speech mentioned the European Pillar of Social Rights (EPSR), however, noting its importance is not enough. After the recent publication of the updated EPSR Action Plan, we underline the need for concrete actions in order to meet its headline targets and strengthen Social Europe. Similarly, we welcome the confirmation that the upcoming European Care Deal will address the demographic challenges in the sector. We underline that in order to tackle the challenges in the care sector, such as the shortage of care workers, investment in social infrastructure is indispensable. The European Care Deal must prioritise the creation of quality jobs and the improvement of wages and working conditions for care workers, taking example from care cooperatives that invest in the provision of fair working conditions and remuneration, as well as the training and upskilling of workers. Furthermore, care cooperatives prioritise delivering essential, community-rooted services, particularly in rural, remote and island areas – as recognised by the recent European Parliament resolution on “Advancing towards a care society: addressing the gender care gap”.

Another key Strategy would be that on the Right to Stay, only hinted at in the State of the Union speech. Industrial and service cooperatives are at the forefront of providing quality jobs and services that are rooted in the local community and boost the local economy. Owned and controlled by members of the community and due to their “asset-lock” mechanism which prevents relocation, cooperatives guarantee that the wealth generated remains within the local community. To this end, the Right to Stay Strategy must acknowledge the role played by cooperatives in creating and maintaining local value that is reinvested and that is empowering members of local communities.

Cooperatives offer a powerful mechanism both for ensuring the right to stay and for addressing deindustrialisation, another key challenge identified in the State of the Union speech: workers buyouts, or business transfers to the employees under the cooperative model. By converting an enterprise that is at the risk of closure or facing succession challenges into a worker cooperative, the jobs, skills, and economic activity in the local area are preserved. This makes them an effective tool against deindustrialisation as well, highlighting the importance of treating Social Europe and industrial policy as two sides of the same coin.

In terms of protecting European industries, CECOP is also looking forward to the European Corporation on Critical Raw Materials, aiding EU industries in obtaining and building reserves of critical raw materials in order to reduce dependence on China.

We regret that the address failed to mention two critical files while highlighting the importance of financing EU ambitions: the Public Procurement Act and the next Multiannual Financial Framework (MFF).

In terms of public procurement, the new Regulation will decide under what conditions 15% of the EU GDP can be spent, offering a timely possibility to ensure strategic spending in the service of the EU’s climate and social goals. With the introduction of European preference, the Public Procurement Act could also ensure that the value generated through public money can be retained in the EU. To do so, the ‘Made in EU’ concept must go beyond geographical location and rest on an ‘Owned by EU’ foundation – the way cooperatives prove it can be done.

Similarly, the development of the next MFF is pivotal in deciding how the EU will invest in the ambitions mentioned in the speech. According to CECOP, the next MFF must simultaneously support European industry, including cooperatives, through the European Competitiveness Fund and tackle social challenges through a strengthened, stand-alone European Social Fund. Industrial and service cooperatives are key partners in preserving Union values, contributing to sustainable and inclusive growth by combining economic performance with social progress, and this must be represented in the next MFF.

Finally, as last year, the 2026 SOTEU address mentions democracy throughout the speech. Democratic backsliding and attacks on the rule of law must be addressed holistically. Cooperatives represent a safeguard for the principle of democracy, as they are enterprises democratically controlled by the members. Therefore, promoting cooperatives and strengthening civic education may be the most powerful way to protect democracy in the public sphere and countering authoritarian practices, offering a simple choice between advancing towards “the age of wisdom” or “the age of foolishness”.