As the world’s political and business elite gather in Davos for the annual World Economic Forum, the spotlight is firmly on the growing geopolitical tensions that threaten to overshadow the event’s optimistic theme of “A Spirit of Dialogue.”
Nearly 3,000 leaders, including over 50 heads of state and government, have convened in the Swiss ski resort under the shadow of Donald Trump’s designs on Greenland. The sight of a NATO member coveting another’s territory, and threatening trade levies if it can’t have it, is anathema to the WEF’s identity as a champion of the rules-based, multilateral system.
This tension will be put to the test, as European leaders question how to handle a US president who likes to communicate through the big stick of tariff threats. In response, the EU is now considering retaliatory measures, a move that Treasury Secretary Scott Mnuchin has warned would be “very unwise.”
Mnuchin’s comments came as he told reporters that “the president is looking at Greenland as a strategic asset for the United States,” dismissing suggestions that Trump’s interest is driven by a desire for a Nobel Prize.
Greenland is just one of the crises overshadowing Davos, with Iran, Ukraine, AI bubble fears, and the selection of the next head of the US Federal Reserve also on delegates’ minds. Beyond the main conference centre, businesses and governments have taken over Davos shops, turning them into their own bases for the week, hinting at the wheeling and dealing that will take place alongside the high-level discussions.
Today’s agenda includes speeches from European Commission President Ursula von der Leyen, French President Emmanuel Macron, and China’s Vice-Premier He Lifeng, as well as a panel discussion featuring UK Chancellor Rachel Reeves. All eyes, however, will be on Trump’s special address on Wednesday, as the world watches to see how the US president navigates the delicate geopolitical landscape.
