Beautiful Virgin Islands

Sunday, Sep 06, 2026

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

Beautiful Virgin Islands
0:00
0:00
Close
TSA Unveils Major Airport-Security Overhaul as It Drops Gold+ Privatization Plan
CIA Chief Warned Russia Against Attacking NATO in Secret Moscow Mission
Raheem Sterling Charged With Dangerous Driving After Lamborghini Crash
The Secret Dolly Parton Kept Until Her Death: "She Was Much Sicker Than She Let On"
Glacier Collapse, Not Earthquake, Triggered Deadly Nepal-Tibet Flood
Turnbull Warns AUKUS Could Leave Australia Without Promised Nuclear Submarines
California Billionaires Pour More Than $150 Million Into Fight Over Proposed Wealth Tax
German Broadcaster Goes Dark to Warn AfD Could End Its Saxony-Anhalt Service
Badenoch Plans Major Shadow Cabinet Reshuffle as Tories Struggle in Third Place
Prime Minister Andy Burnham to Give Ukraine Classified Storm Shadow Blueprints for Domestic Missile Production
UK Graduate Job Vacancies Plunge 45% to Lowest Levels on Record
Iranian Hackers Shut Down British Power Plant for Four Days in Landmark Cyber Attack
Novak Djokovic Reveals Relentless Self-Doubt and Rejects Retirement in New Documentary
Trump Imposes 50% Tariffs on Canadian Goods After Bilateral Trade Talks Collapse
Australia Combines Indigenous Fire Knowledge With Satellite Tech to Combat Catastrophic Wildfires
Father and Son Jailed in Scotland Over £900,000 Airport Cannabis Smuggling Operation
UK Fraud Reports Surge Sevenfold as Criminals Exploit QR Codes in Parking Meters and Phishing Emails
Brighton Thrash Aston Villa in Four-Goal Opening Half as Manchester City Trail Bournemouth
Erin Patterson Appeals Triple Murder Convictions After Hotel Mixed Sequestered Jury With Prosecution
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
A Sleepless Night on Wall Street: Nasdaq to Begin Nearly Round-the-Clock Trading
"The First in the World": 69-Year-Old Protested Artificial Intelligence—and Went to Jail
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
China’s Lifelike AI Humans Move From Livestreams Into Real-World Service Roles
Sarah Ferguson Reportedly Retreats to Late Ex-Boyfriend's Swiss Chalet
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Better.com Founder Who Fired 900 Employees on Zoom Is Ousted as CEO
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
AI Manager at San Francisco Store Recommends Firing Human Employee
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
×