Arab Press

بالشعب و للشعب
Saturday, May 31, 2025

World Economic Forum: Davos distracted by war in Europe and growing global division

World Economic Forum: Davos distracted by war in Europe and growing global division

It is not easy to disturb the tranquillity of Davos, but Vladimir Putin has managed it.

The invasion of Ukraine has shattered economic and security assumptions, and the self-assured bubble of the World Economic Forum is no exception, though its delegates are better placed to withstand, and shape, the consequences.

The headcount of political and business leaders was a little down at this first spring meeting and more Eurocentric, with a smaller US & Chinese presence. But if they still glided from seminar to reception to hotel in luxurious black saloon cars - largely electrified to reflect the times - the themes have been as unfamiliar as the weather.

For half a century this conference has been the cradle of globalisation, tirelessly promoting ever closer trade as the solution to the world's ills, but those comfortable certainties have been challenged.

Executives have found themselves repeatedly discussing food security and the humanitarian consequences of the Black Sea grain blockade, while politicians have had to grapple with the economic cost for their electorates of freezing out Russia.

"Food security, a subject we have never had to consider at Davos before, but it's been on every agenda in every meeting, and second has been security and defence," says Ilham Kadri, chief executive of Belgian chemical giant Solvay.

"And Davos used to be about globalisation, right? The reality is now we are talking about decoupling economies, between China and the US, and obviously Russia with the rest of Europe. There are still opportunities for our industry, but it has been very different."

If executives are operating in a more hostile environment, with inflation fuelled by energy prices exacerbated by the war, a large Ukrainian delegation has ensured that the human cost of the invasion has not been forgotten.

President Volodymyr Zelensky's address on the opening day was uncompromising, calling on business to isolate Russia entirely and politicians to sanction those that do not, and to immediately end the reliance on Moscow's fossil fuels.

Europe's answer to Putin's aggression


Ukrainian ministers and MPs have made the point in person, stressing that every dollar spent on Russian energy is returned in bullets aimed at civilians. The Klitschko brothers have loomed large in every way, the embodiment of Ukraine's fighting spirit.

European leaders here have offered their solidarity but little progress on the supply of further heavy weaponry, or bringing forward the closing of oil and gas taps.

That's most pressing for Olaf Scholz who closed the meeting with a pledge to defeat Putin's "imperialism", striking for a German chancellor, but no end date for the era of cheap Russian gas on which its prosperity is built.

For EU leaders here, the answer to Putin's aggression is more Europe, not less. Taoiseach Micheal Martin was among those who said they would support Ukrainian membership, and there were calls to admit Albania and Montenegro.

"If we don't export European values, we will import Russian aggression," he said.

The starkest note came from Eduard Heger, Prime Minister of Slovakia. With 400,000 refugees and a border with Ukraine, the invasion is not an abstract economic issue. "If Ukraine fails, we are next," he said.

Dutch PM Mark Rutte, the longest-serving EU leader, called for the union to be more forceful, flexing its diplomatic and market muscle.

In language to curl Brexiteer toes, he said the EU should also present a more united foreign policy front, even if that meant Paris, Berlin, and Rome sacrificing some diplomatic sovereignty.

Had there been a senior British minister present, they would doubtless have explained that's precisely why we left, but the UK has been largely invisible.

From Brexit to Ukraine - leaders give their verdict on UK


Lord Grimstone, the investment minister, was here.

"It's a good call for me because I can meet everyone I need here, I save 10 flights by coming," he told me, but the chancellor and business secretary were notable for their absence.

Joining the elite in the Alps may not have been a good look for Rishi Sunak as he prepared his cost-of-living package, but the UK was not unseen.

Partygate was likely to raise a smile, while irritation at the running sore of the Northern Ireland Protocol came close to the surface.

"This is the oven ready deal," said Irish deputy prime minister Leo Varadkar, who negotiated it with Boris Johnson.

"We'd be dismayed if the British government followed through and took unilateral action. We accept that there are some problems with the protocol that could be ironed out or improved, but that can only be done by negotiation, not through threats."

A minister from another northern capital was more direct: "If they break this deal, why should we trust them to sign a new one?"

But the UK's contribution to the war effort was acknowledged. "The UK's is probably number one in this," said Estonia's President Alar Karis.

Major talking points go under the radar


The war meant a host of issues that would normally enjoy oxygen dropped down the agenda.

Pharmaceutical giant Pfizer made a major commitment to supply drugs to the 45 poorest nations on earth, a move that deserved more than a footnote.

Even climate change and the road to net-zero, still the defining challenge of the age, was discussed largely in the context of Russian aggression, though it has added urgency to the effort.

Svein Tore Holsether, chief executive of global fertiliser manufacturer Yara, whose Ukrainian offices were shelled by Russia, summed up the challenge.

"We had already sounded the alarms when we saw how energy prices were impacting the production and cost of fertiliser, and the cost to produce food.

"On top of this, we have climate change. That's part of the equation as well. It makes farming more difficult, more unpredictable. And now the war accelerates everything. It's really the perfect storm."

Svein Tore Holsether of Yara


It has not been all gloom.

On the main promenade, a few doors down from a display of alleged Russian war crimes, Davos Medical Psychedelics was doing good business. So too Bitcoin Pizza (which presumably gets much larger, or disappears altogether, before it's delivered). Nearby, the Liquidity Lounge, hosted by various financiers, suggested there was still business to be done.

The circus will be back in just eight months in its usual January slot, in the familiar snow and sub-zero temperatures.

Everyone will hope the agenda has returned to more comfortable themes too, but no-one's betting on it.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Netanyahu Accuses Starmer of Siding with Hamas
Calls Grow to Resume Syrian Asylum Claims in UK
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Denmark Increases Retirement Age to 70, Setting a European Precedent
Iranian Director Jafar Panahi Wins Palme d'Or at Cannes
Israeli Airstrike Kills Nine Children of Gaza Doctor
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
Mount Lewotobi Laki-Laki Erupts Again, Spewing Ash Cloud over Flores Island
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
Senate Democrats Move to Censure Trump Over Qatar Jet Gift
Hamas Releases Last Living US Hostage from Gaza Amid Ongoing Conflict
×