Last year, European Central Bank President Christine Lagarde was asked at Davos about chances of Republican leader Donald Trump returning to the White House. In response, she quipped that she needed more coffee before answering that question.
Everyone in those circles was laughing back then. Today, a year down the line, no one is laughing. In fact, everyone seems to be panicking.
The overrated Davos forum was winding down, then appeared Trump. His virtual address is now what everybody wants to talk about. Trump has truly arrived at the world stage and Western liberals are already falling in line.
Trump dropped his classic tariff threat at the meeting. He said either you make your goods in US or you pay a tariff.
Trump 2.0 already feels like a nightmare for European leaders.
Ukraine’s Zelensky is looking to him with cautious optimism, while the likes of German Chancellor Olaf Scholz are keeping a low profile. At the World Economic Forum in Davos, the shadow of Trump’s presidency looms large, dominating conversations as global leaders assess his policies and their implications.
Almost every EU leader is signaling a willingness to adapt to Trump’s approach. For instance, Finnish President Alexander Stubb summarised the sentiment: “Listen to what President Trump has to say and act accordingly. A country like Finland will certainly do that.”
In Davos, leaders are focusing on burying the hatchet. They wanna forget when they themselves used to target Trump for his America First policies.
Spanish Prime Minister Pedro Sanchez highlighted the need for a pragmatic stance: “We have to engage in a constructive approach in our ties with the new administration.”
Even NATO’s Secretary General, Mark Rutte, who last year attended Davos as Dutch prime minister, reflected on Trump’s push for increased European defense spending, a stance that once divided opinions but is now widely accepted.
“In the end, Trump starting the debate is good, and he will always do it in his own way,” Rutte said, adding “But that’s OK because it makes it possible to come to an agreement.”
Swedish Prime Minister Ulf Kristersson, representing one of NATO’s newest members, struck a diplomatic tone when discussing Trump style. “Politics is run in a different way in the United States compared to European countries,” he noted in a Bloomberg TV appearance.
Elon Musk, a key Trump ally thanks to his financial backing and social media support, has been another topic of interest in Davos. Musk’s bold actions—especially his support for right-wing groups in Germany—have drawn scrutiny.
Chancellor Scholz addressed the issue indirectly, he couldn’t muster the courage to say his name aloud. He said, “We have freedom of speech in Europe—and in Germany, everyone can say what he wants, even if he is a billionaire.”
Meanwhile, UK Chancellor of the Exchequer Rachel Reeves brushed off Musk’s stance with a laugh, a serious laugh!
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Coming back to Zelensky, his focus is clear: he needs military support to fend off Russia’s invasion. Discussing the idea of a peacekeeping force should a truce ever be reached, Zelensky was direct in underscoring Europe’s limitations. He declared at Davos: “It can’t be without the United States.”
Well, credit must go to Trump for doing the undoable: The EU looks united today. Almost everyone is panicking, bowing to Trump and looking ready to help Make America Great Again.
