Switzerland has been neutral ground in the heart of Europe for more than 500 years. This week, Davos provided a safe space for a full-frontal assault on the continent’s economic and political model that will be felt long after the canapes are cleared.
The World Economic Forum has always relied on a political presence to bring relevance to its annual meeting, but never has it been hijacked so comprehensively by one man.
Donald Trump’s attendance at the head of the largest-ever American delegation was always going to dominate attention. His wild threats against Greenland, made as delegates were packing their cashmere and Canada Goose at the weekend, ensured a monopoly.
The diplomatic fallout dominated the public platforms. Ursula von der Leyen talked of a new “European independence” and French President Emmanuel Macron, bizarre in mirrored Aviators, decried Trump’s threats as bullying.
Perhaps the most significant words came from Canadian Prime Minister Mark Carney. The former Bank of England governor talked of a “rupture” and called for a new alliance to face down American and Chinese belligerence.
“The middle powers must act together, because if we’re not at the table, we’re on the menu,” he said.
The official Davos theme was “a spirit of dialogue” but when it came Trump’s address was more a case of “shut up and listen”.
It was a familiar blend of braggadocio and bombast, with some falsehoods and insults thrown in.
He claimed China, home to the largest wind farms in the world, had none, and told the audience they would all be speaking German, “and maybe a little Japanese” had it not been for the US in the Second World War.
There were some home truths too, including for the UK. His fixation with “windmills” and renewable energy seems eccentric, and his projections for North Sea oil and gas reserves are contested, but when he pointed to the soaring cost of energy, he was not wrong.
Trump’s climbdown on Greenland endorsed predictions from business leaders in Davos that calm heads would prevail.
“Cool cats win spats,” said one British executive.
‘We have come with a clear message’
If the immediate threat of tariffs passed, the challenge of US disruption did not. Even before Greenland, the American delegation here was spoiling for a fight.
Commerce secretary Howard Lutkin was belligerent at every opportunity.
“We have come with a clear message,” he said on a panel, sat next to Chancellor Rachel Reeves: “Globalism is dead.”
At a private dinner following Trump’s tariffs retreat, a fellow guest described his triumphalism as “embarrassing”.
European Central Bank boss Christine Lagarde walked out of another event following Lutkin’s remarks about Europe.
US trade representative Jamieson Greer was equally strident, telling reporters that no one, not even European allies, could take access to American markets for granted.
It was a measure of US dominance of the agenda that perhaps the highest-powered Davos line-up ever assembled was reduced to a supporting cast.
Only in this weird week in January can you see the likes of Apple chief executive Tim Cook, Elon Musk, David Beckham (dodging his own family drama), MI6 boss Blaise Metrewelli, Matt Damon and Rachel Reeves in a single afternoon.
Davos remains a gold-plated networking platform and, if the public festival of ideas was largely sidelined, behind-the-scenes dealmaking continued.
How did Britain fare at Davos?
There was a sizeable UK delegation led by the chancellor, in good humour and bullish about the reception she received.
Changes to visa regulations to attract overseas talent went down well, and investors were far more positive than the gloomy sentiment about Britain that dominates domestic politics (and media).
Privately, however, British and American executives were sceptical about the clarity of the UK’s pitch, which rests on strengths in higher education, life sciences and the rule of law, outweighing concerns about taxation, energy costs and the speed of decision making.
“We need to tell a better story,” said one supportive executive.
There is a broader question for Britain raised by this disruptive Davos.
In a world of great powers and trade tension, sitting outside the EU bloc but yet to exploit the opportunities that might be offered, how can it be heard?
An American bank executive said it is already costing the UK.
“Just imagine the opportunity Britain would have today if it was still in the EU. There are American investors deeply uncomfortable about Trump who would like to move some money. With the language, the institutions, the rule of law, they would come to the UK as a bridge to Europe.”
If there is no appetite to re-fight the battles of Brexit, there are moves to get closer to the EU, but these will bring friction with the US.
Read more:
What global leaders said at Davos
California governor tells EU to stand up to Donald Trump
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Jamieson Greer told Sky News that moves to align with EU agriculture regulations “were a problem”.
“If others want to put up trade barriers, we are bringing them down because that is in our national interest,” Reeves told me.
The truth is, the UK has few economic weapons to deploy in response. For now, we were not alone in being drowned out in Davos.
