Canada’s Prime Minister Mark Carney delivered a seminal address at the World Economic Forum in Davos, Switzerland, urging European leaders to heed his warning and embrace a painful emancipation from the United States. Carney’s clear-eyed analysis of the new age of predatory great powers has provided a roadmap for how liberal democratic “middle powers” must build coalitions to counter coercion and defend the principles of territorial integrity, the rule of law, free trade, climate action and human rights.
Carney’s message could not have been timelier, as European leaders remain torn between de-escalation and bargaining with US President Donald Trump on one hand, and escalation to create a balance of power before any negotiation on the other. Trump’s insistence on taking possession of Greenland and his threat of punitive tariffs against European allies should be the red line that finally triggers a united and firm European response.
However, the EU appears to be faltering in its resolve, with the European Parliament recently delaying the ratification of a trade deal with the Mercosur group of South American economies, a move that undermines the bloc’s trade diversification strategy. The European Commission now faces a sensitive decision on whether to defy the legislature and provisionally implement the Mercosur agreement, or forfeit the economic benefits.
Carney’s central message is that political leaders must deal with the world as it is, not as they wish it would be. “Nostalgia is not a strategy,” he warned, urging Europe to embrace a painful emancipation and seek partners around the world to keep the torch of rules-based governance and trade burning. The time has come for Europe to join forces with like-minded countries such as Canada, Japan, Australia, Brazil and India, to build new trade pacts and rules that can counter the abuse of US power.
