Von der Leyen: Greenland tariff risk is a mistake, a deal is a deal
Turning to the Greenland disaster, EC president Ursula von der Leyen declares that “tariffs are a mistake, significantly between long-term allies”.
She reminds Davos that the US and Europe reached a commerce deal final 12 months.
In a nod to President Trump, as he jets in the direction of Davos, von der Leyen says:
In politics as in enterprise, a deal is a deal.
And when buddies shake fingers, it should imply one thing.
Von der Leyen provides that Europe considers the individuals of the Uniter States not simply our allies, however our buddies.
Plunging us right into a downwards spiral would solely assist the adversities we’re each dedicated to protecting out of the strategic panorama, she warns.
And Europe might be “unflinching, united and proportional” in its response, she insists.
Von der Leyen then explains that Europe is engaged on a bundle for arctic safety.
It can have three factors:
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that the soverienty of Greenland and Denmak is non-negotiable
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a large funding surge in Greenland.
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work with the US on wider Arctic safety, which she says is in each side’ joint curiosity.
Von der Leyen then pledges that Europe will work with its regional companions to strengthen their mixed safety; together with UK, Canada, Iceland and others, because it adjusts to a brand new safety structure.
Key occasions
Financial institution of England’s Bailey: We ‘have to stay very alert’ amid Greenland threats
Kalyeena Makortoff
Financial institution of England governor Andrew Bailey mentioned officers “want to stay very alert” to how rising geopolitical tensions may threaten monetary stability, amid rising considerations over Trump’s threats to annex Greenland.
Bailey didn’t instantly reply to questions on Greenland, referring as a substitute to how the Financial institution’s December monetary stability report mentioned dangers to monetary stability had elevated over the previous 12 months.
He advised the Treasury Committee:
I do assume that geopolitical tensions and significantly commerce points, are an necessary a part of that.
Now, that doesn’t imply to say that I would like say that any specific concern is set off.
However the stage of geopolitical uncertainty, and the extent of geopolitical points, is clearly a giant consideration as a result of they will have monetary stability penalties.
Bailey mentioned that whereas monetary markets and international financial progress had been extra secure than anticipated given the occasions of the previous 12 months (assume Trump’s earlier tariff threats), he warned that didn’t recommend the identical would occur going ahead:
Neither of them I take as a supply of any assurance going ahead.
We have now to stay very alert to those issues.
Von der Leyen: Greenland tariff risk is a mistake, a deal is a deal
Turning to the Greenland disaster, EC president Ursula von der Leyen declares that “tariffs are a mistake, significantly between long-term allies”.
She reminds Davos that the US and Europe reached a commerce deal final 12 months.
In a nod to President Trump, as he jets in the direction of Davos, von der Leyen says:
In politics as in enterprise, a deal is a deal.
And when buddies shake fingers, it should imply one thing.
Von der Leyen provides that Europe considers the individuals of the Uniter States not simply our allies, however our buddies.
Plunging us right into a downwards spiral would solely assist the adversities we’re each dedicated to protecting out of the strategic panorama, she warns.
And Europe might be “unflinching, united and proportional” in its response, she insists.
Von der Leyen then explains that Europe is engaged on a bundle for arctic safety.
It can have three factors:
-
that the soverienty of Greenland and Denmak is non-negotiable
-
a large funding surge in Greenland.
-
work with the US on wider Arctic safety, which she says is in each side’ joint curiosity.
Von der Leyen then pledges that Europe will work with its regional companions to strengthen their mixed safety; together with UK, Canada, Iceland and others, because it adjusts to a brand new safety structure.
Turning to the Ukraine warfare, Ursula von der Leyen says Russia exhibits no signal of abating, no signal of regret, no signal of searching for tempo – simply the opposite.
Final week’s bombing of Ukraine’s vitality infrastructure left thousands and thousands dealing with darkness, chilly, and meals shortages.
She declares, to applause:
This should finish.
All of us need peace in Ukraine, von der Leyen continues, saying Europe recognises president Trump’s position in pushing peace talks ahead.
Ukraine should be ready of power to go to the negotiating desk, she provides, which is why the EU agreed a €90bn mortgage.
The corridor right here at Davos is fairly packed to listen to from the European Fee chief:
One of many greatest beneficiaries of consideration from an erratic Trump will be the EU. I’ve by no means seen Davos’ congress corridor so crowded for a WEF particular handle by Ursula von der Leyen. #WEF26 pic.twitter.com/w3duiv1Mvc
— Holger Zschaepitz (@Schuldensuehner) January 20, 2026
Europe ‘on cusp’ of historic commerce take care of India
On commerce, Ursula von der Leyen factors to the Mercosur commerce deal agreed with South America.
Mercosur exhibits the EU is severe about free commerce, to derisking our economies and diversifying our provide chains, she says.
And she or he then declares that Europe is on the cusp of a historic free commerce settlement with India, however there may be nonetheless work to do.
Von der Leyen says she’s going to go to India subsequent week, telling Davos:
“There may be nonetheless work to do. However we’re on the cusp of a historic commerce settlement. Some name it the mom of all offers.
One that may create a market of two billion individuals, accounting for nearly 1 / 4 of world GDP.”
Von der Leyen tells Davos: We should construct stronger European independence
European Fee president Ursula von der Leyen is now giving a particular handle to Davos – you’ll be able to watch it on the high of this weblog.
Von der Leyen begins by saying the world has remodeled fully for the reason that first WEF annual assembly in 1961.
She applauds this 12 months’s theme, “A spirit of dialogue”, saying it’s:
All of the extra necessary in a world that’s extra fractured and extra fractious than ever.
1961, she reminds us, was the 12 months of the Nixon shock when the then US president broke the hyperlink between gold and the greenback – (ending the Bretton Woods system of mounted alternate charges created after the second world warfare).
That transfer, though disruptive, resulted in a brand new international order, and “a pointy lesson to Europe to scale back their dependencies”, she says.
The world could also be very totally different as we speak, von der Leyen provides, however she believes the lesson may be very a lot the identical – that “geopolitical shocks can and should function a chance”.
The seismic adjustments going down as we speak means it’s a “necessity” to construct a brand new type of European independence, von der Leyen provides.
She denies this can be a response to latest occasions; really it’s been an crucial for a while.
If this alteration we’re seeing as we speak is everlasting, then Europe should change completely too, von der Leyen insists, declaring it’s time to seize this opportunitty and construct a brand new impartial Europe.
“Protectionism is on the rise around the globe,” warns Man Parmelin, President of the Swiss Confederation, as he welcomes WEF delegates to this 12 months’s assembly.
Within the WEF congress corridor, interim co-chairs Larry Fink and André Hoffmann are delivering welcoming remarks.
It’s not going fully easily, Hoffmann’s speech hits a hitch, and he needs to be handed a contemporary copy of the handle from the viewers.
UK CEO confidence dips
Even earlier than these newest commerce tensions, confidence amongst international CEOs was weakening.
A brand new survey of CEOs carried out by PwC discovered that solely three in 10 chief executives had been assured of their firms’ income progress prospects over the following 12 months, the bottom stage in 5 years.
The annual ballot, launched at the beginning of the World Financial Discussion board’s annual assembly, additionally discovered that CEOs are grappling with uncertainty over international political developments, elevated cyber threats and technological change.
UK CEOs had been notably extra pessimistic in the direction of the top of final 12 months; 1 / 4 (25%) count on the home financial system to say no over the following 12 months – in comparison with 13% in 2025.
PwC’s survey befell within the run-up to November’s price range, when there was a excessive stage of hypothesis about what Rachel Reeves would possibly do.
Amid this uncertainty, Germany and India have joined the UK because the second most necessary vacation spot for funding for international CEOs.
Marco Amitrano, senior associate of PwC UK, insists that the dip in CEO confidence doesn’t imply Britain is broken (as some politicians have claimed).
He says:
“Being the world’s second-most necessary funding vacation spot for a second-year operating shouldn’t be underestimated. It demonstrates that the UK nonetheless seems to be secure in a turbulent world.
However in now sharing that place it’s additionally a wake-up name – different international locations are gaining floor and dealing laborious to market themselves globally. As a number one nation, this now factors to the necessity to step up our sport, with authorities and enterprise working collectively. This implies motion to assist progress sectors, take advantage of commerce alternatives, and supply the consistency and readability that underpins investor confidence.
Falling inflation will assist lay the groundwork for this, which is able to in flip construct momentum, enhance productiveness and create alternative.”
World shares tumble whereas gold and silver rise
Julia Kollewe
World inventory markets and the US greenback have tumbled whereas gold and silver costs hit report highs, as Donald Trump stepped up his rhetoric over Greenland, threatening contemporary tariffs on international locations against the sale of the Danish territory to the US.
In Asia, Japan’s Nikkei fell by 1.1%. The primary European inventory markets are all down round 1.1%, with the UK’s FTSE 100 index dropping 1.1%, or 111 factors, to 10,083.
US inventory markets (which had been closed for Martin Luther King Day yesterday) are additionally set to dump when Wall Avenue opens later. The Dow Jones is anticipated to drop greater than 700 factors, or 1.4%, whereas the S&P 500 is seen down greater than 100 factors, or 1.6%, and the Nasdaq is ready to tumble 466 factors, or 1.6%.
The greenback fell by 0.8% towards a basket of main currencies.
The value of gold, seen as the final word protected haven, rose 1.3% to $4,728 an oz. Silver touched a contemporary peak of $94.77 an oz and is now down 0.5% at $94.23 an oz.
In the meantime, yields on UK authorities bonds, generally known as gilts, rose, indicating greater borrowing prices. The yield, or rate of interest, on the 10-year gilt, the benchmark bond, rose 5 foundation factors to 4.467%, the very best since 6 January.
Right this moment, the US president threatened to impose 200% import duties on French wines and champagne, amid studies that the French president, Emmanuel Macron, doesn’t wish to be a part of his so-called Board of Peace for Gaza.
Scott Bessent, the US Treasury secretary, then warned different international locations to not retaliate towards the US’s commerce tariffs, talking at a press convention in Davos as we speak.
Trump declared in a Truth Social post on Saturday that eight European countries including the UK, France and Germany, will face tariffs “till such time as a Deal is reached for the Full and Whole buy of Greenland”. The tariffs are on account of begin at 10% on 1 February, rising to 25% on 1 June.
Trump additionally hit out on the UK as we speak, calling the plan by Keir Starmer’s authorities at hand over sovereignty of the Chagos islands, which host a joint UK-US navy base, to Mauritius “an act of nice stupidity”.
Georgieva: Can be good to keep away from tit-for-tat commerce warfare
The pinnacle of the Worldwide Financial Fund has urged world leaders to keep away from a brand new tit-for-tat commerce warfare.
Chatting with CNBC right here in Davos, Kristalina Georgieva warned that renewed commerce tensions woud harm international progress.
Georgieva says:
We had upgraded projections for this 12 months. One of many elements for the improve is that the influence of tariffs was muted, there was no tit for tat commerce warfare, and it might be superb if we maintain it this manner. It might be good for the world financial system. It might be good for particular person international locations.
By the way, the Deutsche Financial institution report into the likelihood that Europe would possibly cease shopping for US authorities debt as a result of Greenland disaster, cited by Scott Bessent as we speak, was launched on Sunday.
In it, Deutsche Financial institution analyst George Saravelos wrote:
Europe owns Greenland, it additionally owns a variety of Treasuries. We spent most of final 12 months arguing that for all its navy and financial power, the US has one key weakness: it depends on others to pay its payments through giant exterior deficits. Europe, alternatively, is America’s largest lender: European international locations personal $8 trillion of US bonds and equities, virtually twice as a lot as the remainder of the world mixed. In an setting the place the geoeconomic stability of the western alliance is being disrupted existentially, it’s not clear why Europeans could be as keen to play this half. Danish pension funds had been one of many first to repatriate money and scale back their greenback publicity this time final 12 months. With USD publicity nonetheless very elevated throughout Europe, developments over the previous few days have potential to additional encourage greenback rebalancing.
Lastly, Bessent is requested if he sees Europe as an ally of america – and if that’s the case, how a lot financial ache the US is ready to inflict on the EU.
Bessent returns to his ‘false narrative’ place – accusing the media of “going to the farthest level” reasonably than ready for occasions to play out.
