Turning to the Greenland crisis, EC president Ursula von der Leyen declares that “tariffs are a mistake, particularly between long-term allies”.
She reminds Davos that the US and Europe reached a trade deal last year.
In a nod to President Trump, as he jets towards Davos, von der Leyen says:
In politics as in business, a deal is a deal.
And when friends shake hands, it must mean something.
Von der Leyen adds that Europe considers the people of the Uniter States not just our allies, but our friends.
Plunging us into a downwards spiral would only help the adversities we are both committed to keeping out of the strategic landscape, she warns.
And Europe will be “unflinching, united and proportional” in its response, she insists.
Von der Leyen then explains that Europe is working on a package for arctic security.
It will have three points:
that the soverienty of Greenland and Denmak is non-negotiable
a massive investment surge in Greenland.
work with the US on wider Arctic security, which she says is in both sides’ joint interest.
Von der Leyen then pledges that Europe will work with its regional partners to strengthen their combined security; including UK, Canada, Iceland and others, as it adjusts to a new security architecture.
I couldn’t quite see who Emmanuel Macron was greeting at the start of his speech – the answer is King Philippe-Filip and Queen Mathilde of Belgium….
…plus Serbia’s president Aleksandar Vucic, and European Central Bank president Christine Lagarde.
No sooner had Emmanuel Macron concluded his speech than treasury secretary Scott Bessent popped up in a session to discuss the US economy.
You can watch it here:
Blowing the trumpet for Donald Trump’s economic agenda (as he did this morning), Bessent said the US president’s tax deals, trade deals, and deregulation are all helping – deregulation, the most powerful part, just starting to kick in, he says.
Bessent also predict that “very substantial tax refunds” are coming to working Americans in the first quarter of the year.
[This, I think is due to the retroactive effects of the July 2025 “One Big Beautiful Bill Act,” which included tax cuts for overtime, tips, and Social Security. US workers who didn’t adjust their withholdings (the amount employers deduct from paychecks for federal income), will qualify for a refund].
This could run up to $1,000 per wage earner, Bessent says.
Summing up the challenges for 2026, French president Emmanuel Macron says it important not to be shy, not to be divided, and not to accept a new global order by those who claim to have the biggest voice.
There are three priorities, he insists – growth, peace and climate (an issue which has not been top of the agenda yet this week).
Macron insists:
We should not forget climate in the current agenda.
His session has now concluded, to a warm-sounding round of applause.
Emmanuel Macron rounds off his speech with another rallying cry.
He tells Davos that more growth, and more stability, is needed.
And he declares “we do prefer respect over bullies”, and prefer respect for the rule of law over brutality.
Then, taking questions, Macron says he would like to dismantle the existing tariffs between the US and Europe, as it doesn’t make sense to have tariffs between allies.
It doesn’t make sense to threaten allies with additional tariffs, Macron adds – a clear reference to Trump’s Greenland threats.
He says this could lead to Europe using its Anti-Coercion mechanism – a powerful tool that allows the EU to impose punitive economic methods – for the first time
Can you imagine that, it is crazy, Macron says, adding that he does regret that the anti-coercion tool is now on the table, but that is a consequence of the current instability.
Macron then praises Europe, despite its economic problems.
He says you know that if somewhere is “predictable, loyal, and you know that the rule of the game is just the rule of law, it is a good place, for today and tomorrow.”
Macron then pushes for more investment in areas where innovation is taking place, such as AI and clean energy.
The EU common budget is not large enough, he suggests, to help Europe compete in these key sectors.
There also isn’t sufficient private investment, the French president adds. He points out that Europe does have savings, more than the US, but much is invested in bonds and equities outside Europe.
Europe has to fix its key issues, Macron continues, citing the lack of growth, and the lack of GDP per capita growth.
European competitiveness still lacks behind that of the US, he points out.
And he then calls for tougher action by Europe to protect its companies and markets, insisting that “protection does not mean protectionism.”
Macron warns that some European industries are being “literally killed” by the lack of respect for a level-playing field, and suggests there is a case for “European preference” to support its domestic industry…
…and capital market union to spur investment.
He says:
Europe are the only ones not to protect their own companies and their own markets when other countries do not respect a level playing field.
Europe must strengthen its protections against dumping of products from overseas, and more overseas investment, to help rebalance with China.
Accepting a new colonial approach doesn’t make sense, Emmanuel Macron continues, suggesting that we cannot accept a world where the law of the strongest hold sway.
Passively accepting a new subordination does not make sense, he adds.
Emmanual Macron begins his speech to Davos by joking that “This is a time of peace, stability and predictability”….
…before warning WEF that it is clear that we are reaching a time of instability, of inbalances.
That is from both a security point of view, and an economic point of view, he says.
Update: Macron warns:
“It’s … a shift towards a world without rules, where international law is trampled underfoot and where the only law that seems to matter is that of the strongest.”
Macron says that there were more than 60 wars in 2024, even though “I understand some of them were fixed” (a jibe at Donald Trump’s claim to have ended several wars?).
Macron then declares that it is”unacceptable” when competition with the US aims to subordinate Europe, especially when it is being used as leverage to obtain territory (ie Greenland…).
Now its Emmanuel Macron’s turn to take to the stage at Davos.
Earlier the French president was spotted sporting a pair of sunglasses inside the congress centre here in Davos, having recently suffered an eye condition (reported to be a burst blood vessel).
He’s wearing them again now, as he gladhands various bigwigs in the front row of the audience, before being introduced by Larry Fink who is talking about his love of France.
Fink says that the economic debate in France has changed over the last decade; there is broad agreement today that economic growth matters, he says, and he gives Macron the credit.
You can make an argument that no French leader has led his country at a more pivotal time since World War 2, Fink suggests.
French president Emmanuel Macron and Canada’s prime minister Mark Carney have met inside the WEF congress centre this lunchtime:
Harvard economist Kenneth Rogoff says European governments are really worked up over Trump’s threat to impose new tariffs over support for Greenland.
Rogoff said today:
“It’s no accident he did this just before coming here and got the Europeans all riled up. Suck all the oxygen out of the room so everyone would be talking about nothing else.”
The Guardian
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