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European Commission President Jean-Claude Juncker said that the coming year will be vital for the European Union as it seeks to remain relevant following the United Kingdom decision to quit the 28-nation bloc.

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European Commission chief Jean Claude Juncker said Wednesday as part of his State of the Union address during a plenary session at the European Parliament that protecting the bloc against terrorism was its top priority.

He also announced a plan to propose by year-end a European Defense Fund for research, saying weapons makers in Europe need to boost innovation.

“We have to take responsibility for protecting our interests and the European way of life”, Juncker said.

Thirty military and civilian missions have been run in Africa and the Middle East by the European Union in the last 10 years, but Mr Juncker insists a permanent headquarters would make operations more effective.

“Europe can no longer afford to piggy-back on the military might of others or let France alone defend its honor in Mali”, Juncker told members of the European parliament.

Mr Juncker warned Britain: “There can be no a la carte access to the single market”. He said some early reality checks will come at the September 26-27 meeting of European Union defense ministers, and at a summit of bloc leaders scheduled for December.

However, as the EU’s current, seven-year budget programme ends in 2020, the total target will rise to €500bn for five years and the commission will call on member states to add to their contributions.

He also proposed providing more than $500 billion of investment for small firms by 2020, and to set up a European Solidarity Corps which would see young people volunteer to help in crises including the refugee crisis and the recent quake in Italy.

He thinks that increases the chances of a “hard Brexit”, in which Britain crashes out of the European Union without a deal and falls back on World Trade Organization rules.

He said: ‘It is clear that no lessons are going to be learned from Brexit.

Hungary is to hold a referendum in October on whether to reject the EU’s key policy on mandatory migrant quotas.

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Instead, Juncker warned that the remaining European Union governments should narrow their differences on addressing many problems facing their economies and societies, although he had no plans for “United States of Europe”.

Jean-Claude Juncker says Brexit talks must start 'as soon as possible'