It is rarely a good sign when European politicians open their speeches by quoting Charles Dickens. So alarms should have sounded the moment European Commission President Ursula von der Leyen declared this to be the best and the worst of times at the start of her State of the European Union address on September 16.

Things went downhill from there: the EU leader painted a picture of the region that stands in complete contrast to the general experience of its people, amounting to a summary of the bloc’s worst achievements.

“Von der Leyen has achieved the feat of not mentioning a single measure to help Europeans cope with the soaring cost of living across Europe, at a time when an ever-growing number of people are now forced to choose between housing, food and transport,” said Manon Aubry, Co-President of The Left in the European Parliament.

“Fiscal sustainability” and concern for businesses

In the lengthy address, von der Leyen laid out what she considered the EU’s successes, including raising military spending by almost 80% over the past five years and “reducing dependence” on Russian fossil fuels. However, this interpretation does not correspond to what people are experiencing, as outlined by The Left in a dedicated dossier. Growing military spending benefits only the arms industry. And attempts to replace cheaper Russian gas have essentially boiled down to committing to more expensive and environmentally devastating US LNG imports.

While recognizing growing energy prices, von der Leyen offered no tangible response to this problem plaguing EU households. On the other hand, she demonstrated notable concern for businesses, signaling the continuation of eroding labor and environmental protections along the lines implemented by right and far-right parties at the EU level.

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The likelihood of maintaining the status quo was also noticeable when von der Leyen turned to the deadly wildfires that hit Europe this summer, devastating communities from Belgium and France to Spain and Greece. Trade unions and progressive analysts have warned for years that fire preparedness is severely impaired by a lack of planning and, specifically, shortages of firefighters. Yet there was no commitment in the address to invest more in essential public service workers. Instead, the EC President referred to the ongoing need for overall “fiscal sustainability” – meaning Europeans should expect no relief from austerity programs.

“The best of times is clearly reserved for billionaires, multinational energy companies, and war profiteers,” remarked Member of the European Parliament Marc Botenga from the Workers’ Party of Belgium (PTB-PVDA). “The other side of the coin for workers: austerity and rising prices.”

The EU’s failed foreign affairs policy

Based on the vision tabled by von der Leyen, there is also little to look forward to in Europe’s international and trade policy. “It’s hard to think of an area where the EU has been more inactive and less effective than in foreign affairs,” The Left wrote, referring to the union’s ongoing disregard of international law in relation to the genocide in Gaza and its approach to the Trump administration. 

“The President has praised Saudi Arabia’s war on Yemen, she has stood with Trump as he bombed Tehran and the European Commission has sided with the USA as they brought the global economy to a standstill in the Strait of Hormuz,” the progressive bloc warned.

The EU’s relationship with the US has continued to be one of submission, with elected regional leaders going to great lengths (unsuccessfully) to appease Donald Trump. Even when the region announced it would stand firm against US threats – in Greenland or on tariffs – this did not translate into practice.

In the context of von der Leyen’s speech, this boiled down to announcing Canada would become the “first associate member of the EU” and listing trade agreements signed with India, Mercosur, and Indonesia – met by the people of these countries with understandable concern.

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Von der Leyen’s speech showed no sign of breaking with disdain towards nations outside the West. In addition to continuing animosity toward China, it offered a glimpse into plans involving countries rich in critical materials. The EC President announced the launch of a European Corporation on Critical Raw Materials – designed to secure and stockpile supplies for Europe’s industry and defense – with obvious implications for mineral-rich territories like Ukraine, Greenland, and several African countries. For the more skeptical listeners, this also carried weird echoes of the East India Company.

The State of the EU’s vision, it goes without saying, comes with further promises of an even stricter migration framework – on the pretext of situations like the one experienced in Ceuta earlier this year – that allow the erosion of basic human rights like asylum. Von der Leyen’s speech pledged even more finances for Frontex and suggested that outsourcing migration enforcement to third countries will continue, as endorsed by recent EU legislation.

“This policy of externalizing migration control has contributed to grave human rights violations, arbitrary detentions and systematic violence against people on the move,” The Left warned, calling for a union rooted in solidarity rather than violence and militarization.

At the end of August, the Greek government signed the “Achilles Shield” agreement – a €3 billion “defense” deal with Israel. Under the terms, Israeli companies including Rafael Advanced Defense Systems and Israel Aerospace Industries (IAI) will develop and build anti-aircraft and anti-ballistic systems for Greece.

“This is the largest defense export deal in the history of Israel-Greece relations, and one of the largest in the history of the State of Israel,” the occupation’s Ministry of Defense stated. “Greece’s choice of Israeli technology as the backbone of its most ambitious air defense buildup program in the past decade reflects the depth of trust built between the two countries.”

“Under the deal, Israel will build Greece a comprehensive, multi-layered air defense array, drawing entirely on Israeli-made systems and on the extensive operational experience Israel’s defense establishment has gained during the war.”

The “war” in the statement being the genocide Israeli forces have been conducting in Gaza since October 7, 2023.

An influx of Israeli investments in Greece

According to journalist Vangelis Ilias, the new deal should be contextualized within broader trends of Greek capital and subsequent governments deepening ties with the occupation power.  While the current Mitsotakis administration did not initiate this trend, he says, it deepened it both before and since the genocide in Gaza began. “Over the past 6-7 years, we have witnessed an influx of Israeli investment funds into Greece, both in the real estate sector and through the acquisition of former public – but not exclusively public – companies in various sectors of the economy, one of which is defense.”

Israeli real estate investments in Greece have already had a notable impact on people’s everyday lives, driving up rents and making housing more unaccessible. Endeavors in the defense sector might have been more lowkey, Ilias adds, but they are widespread and expanding under the sight of NATO and European institutions. “In the south of the country, in Kalamata, there is a large Greek Air Force base that also falls under the NATO umbrella as an International Pilot Training Center,” he says, emphasizing the presence of Elbit Systems in the area.

Israeli companies have also purchased local military enterprises, including Intracom Defense, operating in electronic warfare and drone production. “Through this acquisition, the Israeli state-owned company IAI gained access to the European Defense Fund (EDF), an EU mechanism intended exclusively for financing European defense procurement programs – something that was made possible only thanks to the active support of the Greek government,” Ilias adds.

“[Achilles Shield] has been promoted by the domestic media and the elite as an agreement that shields Greece,” he adds. “[Under the claim] that the money being spent, while not going to healthcare and education, or toward supporting the incomes of citizens who are still trying to recover from the years of economic crisis, protects us from those who seek to harm the country, with Turkey always implied in this context,” he explains. 

“In this era of crises, military buildup, and preparations for a full-scale war, they are trying to present this not only as something reasonable but also as something necessary, where strategic agreements between states take precedence over the needs of the people and international law, overlooking genocides or the ethnic cleansing of an entire people.”

The deal’s Achilles’ heel: reliance on Israeli arms

While Greek officials described the deal as a breakthrough for Greek sovereignty, critics have warned of dangers on several fronts. To begin with, in the announced distribution of funds, local industry expects only €750 million of the total €3 billion. The rest goes to Israeli arms companies making the genocide in Gaza technically feasible.

And despite the amount of money being spent, parts of the agreement have been presented inconsistently to the public. “We’re talking about a complex system of sophisticated weapons utilizing artificial intelligence, with a central control unit that operates based on computer code, Ilias emphasizes. “There has been extensive debate over whether this code will belong to Israel or be controlled by Greece. So far, the government’s responses to a barrage of questions from the opposition have been neither reassuring nor consistent. This remains to be clarified.”

The expenditure has been heavily criticized by left movements, including the Communist Party of Greece (KKE), in the context of EU armament taking place at the expense of labor rights and social services. “Costing more than €3 billion, this agreement forms part of the broader ‘2030 Agenda’ arms program serving NATO’s needs, for which our people are paying dearly – tens of billions of euros – at the expense of their rights and needs,” the KKE pointed out.

Like most other EU governments, the Mitsotakis administration has announced harmful labor and social reforms just as it committed billions for Israeli arms producers. This new-old austerity agenda has met widespread resistance. Recently, tens of thousands demonstrated in Thessaloniki demanding dignified wages and pensions, efficient public healthcare, and investments in education. “Not one euro for imperialist wars,” they insisted.

The “Achilles Shield” deal also adds to the case made by academics and activists worldwide that Israel is using the Gaza genocide to market its weapons. This is apparent not only from the purchase list, but from official statements as well. The Israeli Ministry of Defense announced similar deals are part of a broader strategy “to expand defense exports as a central tool for strengthening the IDF’s force buildup, influencing Israel’s foreign policy standing worldwide, and bolstering the Israeli defense industry and economy.”

Critics have argued that Greece’s arms deal risks making the country captive to Israel’s defense industry and alienating it from other countries in the region. “In practice, strategic relations with the murderous state of Israel, together with joint military preparations, are adding fuel to the fire of imperialist rivalries in the region, as well as the conflicts between the bourgeois classes of Turkey and Israel, and of Greece and Turkey, in the Aegean and the Eastern Mediterranean, with the peoples being the victims,” the KKE emphasized.

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“Greece’s ruling class has made a strategic choice to align itself closely with the Western alliance,” Ilias says, referencing events since the Greek Civil War. “It is particularly worth noting that, as a result, the Greek people have borne the brunt of the bloodshed.”

And while the post-Civil War regime attempted to crush “the popular and anti-imperialist movement that existed in the country,” he concludes, they did not succeed. 

“This is partially why we still see today such a stark contrast between the ruling class and the organized, collective reactions of significant segments of the Greek people throughout the country against the genocide perpetrated by the Israeli state against the Palestinian people. These reactions are multifaceted, with segments of the working class – beyond just the youth – actively participating.