Davos 2026: Dialogue in a Fractured World (First 3 days review)

Context and Theme

• Setting and participation. The 56th World Economic Forum (WEF) Annual Meeting is convening in Davos‑Klosters, Switzerland, from 19–23 January 2026. More than 3,000 delegates from 130 countries, including nearly 65 heads of state or government, gathered alongside roughly 850 business leaders. This year’s meeting – the first since founder Klaus Schwab stepped down – took place against a backdrop of U.S. protectionism, geopolitical fragmentation, and rapid technological change.
• Theme – “A Spirit of Dialogue.” WEF president Børge Brende said the theme underscores that dialogue is not a luxury but a necessity in an era of uncertainty. An official WEF programme article explained that the meeting focuses on five challenges: cooperation in a contested world, unlocking new sources of growth, investing in people, deploying innovation responsibly and building prosperity within planetary boundaries. Sessions explored economic resilience, artificial intelligence (AI) governance, clean‑energy transitions and strategies for a new world order.
• High stakes. The week opened amid intense tensions after U.S. President Donald Trump threatened to acquire Denmark’s autonomous territory, Greenland and warned European countries of tariffs. Leaders and analysts said these moves tested the rules‑based order. A survey released by WEF showed executives believed doing business became harder in 2025 due to deteriorating cooperation.

Day 1 (19 January) – Opening and Welcoming Remarks

Opening concert and theme setting

The meeting started with an opening concert blending classical music and AI‑generated visuals. WEF interim co‑chair André Hoffmann described the performance as symbolizing how diverse voices can create harmony when combined, reflecting the meeting’s aim to “bring together very different voices”. WEF president Brende said the theme “A Spirit of Dialogue” illustrates a commitment to listening and collaboration.

Special address by Swiss President Guy Parmelin

Swiss President Guy Parmelin delivered the first head‑of‑state address. He thanked countries for supporting Switzerland after the Crans‑Montana tragedy and urged participants to respond to crises with dialogue, unity and resilience. Parmelin warned that rising protectionism and geopolitical tensions risk fracturing cooperation and that artificial intelligence must be developed responsibly. Switzerland, he said, remains committed to free trade and a rules‑based international order.

Early sessions and mood

The WEF’s live‑blog reported on sessions discussing women’s health, humanitarian aid and economic resilience. In a session on public‑debt crises, UNCTAD Secretary‑General Rebeca Grynspan warned that many developing countries are defaulting on development because debt has spiralled out of control. Italy’s health minister Orazio Schillaci urged seeing women’s health as “longevity infrastructure” and advocated universal healthcare and lifestyle improvements. In a humanitarian aid briefing, David Miliband of the International Rescue Committee said humanitarian financing shrank by 50 %, calling for new thinking on funding mechanisms.

Day 2 (20 January) – Middle‑Power Diplomacy and AI Ethics

Speech by Canadian Prime Minister Mark Carney

In his first WEF address as prime minister, Mark Carney said the world faces a “rupture, not a transition” in the international order. He argued that middle powers must stop “living within the lie” that the rules‑based order still functions and instead forge a new order based on human rights, sustainable development, and sovereignty. Carney warned that nations must achieve strategic autonomy in energy, food, and critical mineral supply chains. His stark message that middle powers cannot be complacent – “If you are not at the table, you are on the menu” – resonated strongly. He called for dialogue on the Greenland dispute, saying Canada opposes tariffs and advocates focused talks to ensure Arctic security.

United States reaction and controversy

Carney’s remarks prompted an immediate reaction. U.S. President Donald Trump later responded in his own address by telling Canada it should be grateful to the United States, insisting that Canada lives because of U.S. protection. Trump also told delegates he would not use force to seize Greenland but repeated demands to negotiate its purchase and threatened consequences if Europe blocked his plans. And criticised Europe on issues such as wind power and immigration. European leaders reacted with disbelief; Swedish deputy prime minister Ebba Busch said Europe must “toughen up” rather than placate the U.S..

AI panel on the future of artificial intelligence

A high‑profile session on artificial intelligence drew global tech leaders:

• Satya Nadella (Microsoft) said AI should be deployed to improve lives and stressed that its rollout would be uneven due to capital and infrastructure disparities. He urged governments to provide essential infrastructure like electricity and broadband.
• AI pioneer Yoshua Bengio warned that making AI systems appear human could mislead people; he emphasized that AI is not human and urged caution.
• Historian Yuval Harari noted that AI can be intelligent yet “deluded” and called for mechanisms to ensure humility and correction in these systems.
• Dario Amodei (Anthropic) argued that restricting chip sales to China could slow global AI development and suggested that the real competition is among tech companies rather than nations; he cautioned that AI may eliminate entry‑level white‑collar jobs.
• Demis Hassabis (Google DeepMind) offered a more optimistic view, predicting that AI will create more meaningful jobs but acknowledging that artificial general intelligence could disrupt labor markets; he advocated for global safety standards.

Other notable remarks and sessions

• Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani told a session on Middle‑East security that rising regional tensions require diplomacy and that regional nations must address root causes and reshape their security architecture.
• Ukrainian and NATO leaders used the forum to highlight the risks of weakening transatlantic ties. Lithuanian President Gitanas Nauseda said a split between the U.S. and EU over Greenland would be heartbreaking and could threaten NATO’s future.
• The humanitarian crisis in Gaza weighed heavily. APs live‑blog reported that a baby died from the cold in Gaza while leaders debated trade, underscoring the disconnect between Davos discussions and events on the ground.

Day 3 (21 January) – Europe’s Strategic Autonomy and Confrontation

Special address by European Commission President Ursula von der Leyen

European Commission President Ursula von der Leyen delivered a far‑reaching speech emphasizing that recent geopolitical shocks require Europe to build a more independent economy and security architecture. She drew an analogy with the 1971 “Nixon shock” that ended the Bretton Woods gold standard, arguing that Europe must once again act decisively to secure its independence

Key points from her address include:

1. Trade diversification and new alliances. Von der Leyen celebrated Europe’s first major trade agreement in over 25 years with Mercosur, calling it a deal that covers 31 countries and more than 700 million consumersec.europa.eu. She said the EU is finalising agreements with Mexico, Indonesia, Switzerland, Australia, the Philippines, Thailand and Malaysia, and she announced plans to travel to India after Davos to conclude a historic trade agreement covering two billion people
2. “EU Inc.” – a single corporate regime. To attract investment and unleash Europe’s savings, she proposed a “EU Inc.” – an optional 28th regime where a company can register online, operate under a uniform capital regime and raise funds across the EU. This would create a Savings and Investment Union with deep, liquid capital markets similar to the United States
3. Energy independence and infrastructure. Von der Leyen outlined the Affordable Energy Action Plan, which focuses on cross‑border interconnectors, resilient grids and accelerating home‑grown energies (nuclear and renewables) to end price manipulation and supply shocks
4. Technological and defence autonomy. She emphasised that Europe must champion key technologies like next‑generation batteries and AI, noting that European companies adopt AI at roughly the same pace as U.S. firms She called for a surge in defence spending – Europe will spend €800 billion by 2030 – and hailed emerging European defence‑tech startups developing AI‑powered battlefield software and surveillance drones
5. Support for Ukraine and Arctic security. Von der Leyen confirmed that Europe will provide €90 billion in loans to Ukraine for 2026–27 and that the EU will immobilise Russian assets to fund reconstruction. She declared the sovereignty and territorial integrity of Denmark and Greenland non‑negotiable and called additional U.S. tariffs a mistake because an EU‑U.S. trade agreement from July 2025 must be honoured. Europe is preparing a massive investment surge in Greenland and an Arctic security package, including icebreakers and collaboration with partners like the U.S., Canada, and Norway. She stressed that nostalgia will not bring back the old order – Europe must adapt because the world has changed permanently.

Speech by French President Emmanuel Macron

French President Emmanuel Macron warned of a world “without rules” where international law is trampled by the strong. He said Europe cannot be a “miserable slave” to U.S. tariffs and must defend multilateralism. Macron urged the EU to use its anti‑coercion mechanism (known as the “trade bazooka”) if necessary and called the endless accumulation of tariffs unacceptable, especially when used against territorial sovereignty. He also called for more Chinese foreign direct investment in Europe, emphasising that Europe welcomes investment but seeks technology transfer and balanced trade. Macron concluded: “We prefer respect to bullies” and said Europe will not submit to coercion.

Trump’s Day‑3 Address and reactions

On Day 3, U.S. President Donald Trump delivered another lengthy address. He again stated that he would not use force to acquire Greenland but continued to insist on negotiations for its transfer. He called Greenland a piece of Ice multiple times and ridiculed European policies, criticising wind power, immigration, and European alliances. He lauded U.S. military strength and insisted that only America could secure Greenland. European Commission President von der Leyen called the tariffs a mistake and said “a deal is a deal”, referring to the July 2025 trade agreement that the U.S. should honour. EU leaders scheduled an emergency summit in Brussels and suspended work on the EU‑U.S. trade deal in protest. Swedish deputy PM Ebba Busch said Europe must toughen up and not flatter Trump.

Other leaders’ remarks on Day 3

• Aziz Akhannouch (Morocco’s head of government) highlighted Morocco’s role as a crossroads between Europe, the Atlantic and Africa and touted fiscal reforms.
• Chinese Vice‑Premier He Lifeng asserted that China’s development is “an opportunity, not a threat” and urged equal consultation to resolve trade disputes. He announced that China would continue opening up its economy and treat foreign and domestic enterprises equally, calling on other countries to provide a predictable investment environment.
• Egyptian President Abdel Fattah El‑Sisi and Palestinian Prime Minister Mohammad Mustafa discussed regional stability and development, emphasising cooperation to seize opportunities for mutual benefit.
• Qatar’s Prime Minister reiterated calls to reshape Middle‑East security architecture and address root causes of regional conflicts.

Unconventional moments

• Christine Lagarde, president of the European Central Bank, reportedly walked out of a dinner speech by U.S. Commerce Secretary Howard Lutnick after he criticised Europe. The dinner, hosted by BlackRock CEO Larry Fink, ended early as several participants left in protest.
• Howard Lutnick later apologised, but the episode highlighted frayed transatlantic relations and the heightened emotions at the forum.

Wider Reactions and Ongoing Issues

European unity and calls for toughness

A Reuters article captured European leaders’ firm stance. Emmanuel Macron said Europe should not “bend to the law of the strongest” and urged the EU to defend its industries and values. European Commission president von der Leyen, Belgian PM Bart De Wever and Swedish deputy PM Ebba Busch all called for a united response and warned that flattery will not work. Some business executives cautioned that Europe’s emotional response could hinder negotiations.

U.S. Treasury seeks to calm markets

U.S. Treasury Secretary Scott Bessent attempted to reassure markets, saying the EU’s anti‑coercion mechanism would likely result only in a working group and emphasising that U.S. government debt remains attractive. Bessent dismissed talk of a trade war and expressed confidence that negotiations would yield a solution.

Humanitarian and geopolitical context

Several non‑economic issues coloured the discussions:

• Middle East crisis: Leaders condemned the abduction of Venezuelan President Nicolás Maduro by U.S. forces and expressed concern over escalating tensions.
• Humanitarian crises: Tragic news of a baby’s death from cold in Gaza emphasised the human toll of geopolitical conflicts.
• Spain train crash: Spain’s Prime Minister cancelled his Davos trip after a deadly train crash, illustrating how domestic crises can derail international engagement.

What’s Next (22–23 January)

The forum’s final days (Days 4–5) are expected to focus on:

• Trade and investment dialogues with India, Australia and Southeast Asian partners as Europe pushes to finalise free‑trade agreements.
• Climate‑energy sessions exploring the intersection between AI and energy demand, decarbonisation strategies and green finance.
• Security roundtables on Arctic governance and the Ukraine conflict, particularly the EU’s planned Arctic package and future support for Ukraine.
• Closing remarks synthesising insights from business, academia and civil society on how to rebuild cooperation in an era of fragmentation.

Conclusion

Midway through the World Economic Forum 2026, Davos has become a microcosm of the turbulent world order. The theme “A Spirit of Dialogue” emphasises listening and cooperation, yet dialogues have often been tense. European leaders, led by Ursula von der Leyen and Emmanuel Macron, used their platforms to promote strategic autonomy, defend multilateralism and counter U.S. pressure. U.S. President Donald Trump dominated headlines with demands for Greenland and attacks on allies, prompting strong rebuttals and emergency EU meetings. Meanwhile, discussions on AI ethics, women’s health, debt crises and humanitarian aid reminded participants that global challenges extend far beyond geopolitics.

As the meeting enters its final days, the world watches to see whether Davos can help forge a path toward cooperation or whether it will instead underscore the deep divides shaping the early months of 2026.