European Commission President Jean-Claude Juncker sought to present a bright future for the European Union after the United Kingdom leaves in 2019, but warned that Britain "will regret" the move as much as the EU will.
Juncker proposed a elected "single president" to lead the EU, merging his job as head of the European Commission and the president of the European Council of member states, now held by Donald Tusk.
He added that the Schengen area of free movement should be opened to Bulgaria and Romania immediately "if we want to strengthen the protection of our external borders".
Chancellor of the Exchequer Philip Hammond will try to reassure the European Union that Britain isn't going to use Brexit to undercut financial regulations, as Theresa May's government adopts a more conciliatory tone in its negotiations.
It was a year when the 28-nation bloc was "shaken to our very foundations", he said, following the British vote to leave, the rise of populism, the migration crisis and economic troubles.
The creation of a European cyber security agency. 'Europe, ' he said, 'would be easier to understand if there was one captain steering the ship'.
As one who still believes in that ideal, I can only say: we are not amused.
He went on to rule out Turkey's accession to the EU in the foreseeable future and called for the presidencies of the European commission and the European council to be combined in the future. "I can not accept that people, especially in central and eastern Europe, are buying poorer quality products with the same labels and packaging as in other countries".
Financial services are the UK's most important export to the European Union, he said.
He described a post-Brexit EU with all member states part of the banking union, where there are funds to protect the euro, reinforced social standards, and a defence union.
Juncker said that it was Europe that set the rules of the game with the ratification of the multilateral Paris climate agreement.
"The judgements of the court have to be respected by all".
They reject the "settled status" option outlined by the Prime Minister, arguing it would strip them of equal family reunification rights and the ability to leave the United Kingdom and return after two years. "It is a must".
During the address, he spoke about securing new European Union trade deals with New Zealand and Australia, ruled out Turkey becoming a member and said a new migrant deportation policy would be proposed by the end of September.
Keen to push ahead with his masterplan, billed as the biggest reboot in the EU's history, Mr Juncker ratcheted-up the federalisation of the 60-year-old bloc's core economies.
Juncker said the commission would aim to conclude talks with Mexico and the South American trading bloc Mercosur, led by Brazil and Argentina, by the end of the year.