Von der Leyen warns of EU's 'dangerous' reality in shifting world order ahead of crunch summit

European Commission President Ursula von der Leyen has raised the stakes ahead of a crucial gathering of the European Union's 27 leaders in Brussels on Thursday, framing the talks as pivotal for Europe's security and independence.

"Yesterday’s peace is gone. We have no time to indulge in nostalgia. What matters is how we confront today," von der Leyen told the Strasbourg hemicycle on Wednesday morning.

"We know the urgency. It is acute. We all feel it. We all see it."

The EU is reaching a decision point on two critical issues that could shape its global image and international standing.

First, it must decide how it can keep Ukraine economically afloat and ensure it remains able to withstand Russian aggression.

Secondly, it must choose whether to seal a free trade deal with the South American Mercosur bloc and restore faith in rules-based trade agreements, which has plunged to new lows since the advent of the second Trump administration.

On Ukraine, von der Leyen favours an unprecedented plan to tap into frozen Russian state assets to issue a reparations loan. But the approach has divided EU leaders, and Belgium, where most of the assets are held, remains unconvinced that its demands for the risks to be equally distributed between EU countries are being addressed.

Leaders are also facing another crucial decision: whether to seal a free trade deal with the South American Mercosur bloc, 25 years after negotiations began.

The plan needs the backing of a so-called qualified majority of member states, meaning 15 countries representing at least 65% of the bloc's population.

Several major countries, including France, are leaning against the deal as their domestic agricultural industries campaign against it. Italy has emerged as kingmaker, with France needing its support in order to mount a so-called blocking majority and derail the plan. But Italian Prime Minister Giorgia Meloni is keeping her cards close to her chest, casting doubt on whether the deal can survive.

France is also seeking support to postpone the vote into next year, a move proponents say could effectively kill the deal and severely undermine the EU's standing in South America and across the world.

At stake is the 27-member bloc's credibility to shape its foreign policy and trade agenda, as it faces a more aggressive Trump administration pursuing an "America first" trade and foreign policy.

In her speech, von der Leyen addressed the US's recent pivot on its approach to Europe head on, saying: "We, Europeans, cannot afford to let the worldviews of others define us."

"None of us should be shocked by what others say about Europe. But let me say this, it would not be the first time that assumptions about Europe were shown to be outdated. And it would not be the first realisation that the postwar world order is changing beyond recognition," the Commission President said.

It comes after a scathing US national security strategy warned of Europe's impending "civilisational decline". Soon after its release, President Trump described the continent as a collective of "decaying nations" led by "weak" politicians.

And just this Tuesday, Trump's Trade Representative Jamieson Greer launched another attack against the EU's digital regulations, accusing the bloc and its member states of imposing "discriminatory and harassing lawsuits, taxes, fines, and directives against US service providers".

A EU spokesperson said in response that "as we have made clear many times, our rules apply equally and fairly to all companies operating in the EU".

"These rules ensure a safe, fair and level playing field in the EU, in line with the expectations of our citizens," the spokesperson added.