Behind closed doors in Davos: Leaders discuss EU’s future with Trump

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The discussions, which took place during an exclusive executive roundtable lunch, hosted by Massimo Andolina, Europe CEO of Philip Morris International, and Claus Strunz, CEO of Euronews, with moderation by Christoph Keese, CEO of World Minds, highlighted the need for Europe to become more competitive, innovative, and united.

A wake-up call for Europe

Andolina warned that Europe is “sleepwalking into a catastrophe” with regards to its economy. Citing the Draghi report as a wake-up call, he emphasised the need to loosen regulations and foster an environment where businesses can thrive. “A shift in mindset is crucial,” he stressed.

Talk less, act more

Former European Council President, Charles Michel, also urged swift action. “We should talk less and act more in Europe,” he said during the discussion. He also noted, as per the Draghi report, that Europe is regulating in a way that doesn’t work anymore. Michel also advocated for structural reforms, including increasing the European Investment Bank’s (EIB) capitalisation, to boost economic growth. “We must find the resources to invest in defence and business,” he said.

Michel also spoke with Euronews about Donald Trump’s trade threats. “If there is a start of a trade war, it means everyone will be poor,” he noted. “We have to react with the tools we have in our hands…but we also have to talk.”

Trust and private investment

Romania’s Minister of Economy, Ivan Bogdan, called for a cultural shift to rebuild trust in European institutions. Meanwhile, Bo Sandberg, Chief Economist at Active Owners Denmark, highlighted the need to mobilise private capital. “The issue is not the availability of money but getting institutional investors to act, similar to the US,” he argued.

Optimism amidst challenges

Silvana Koch-Mehrin, former Vice President of the European Council, struck a more hopeful tone. She pointed to Europe’s resilience during past crises, such as its leadership during the Covid-19 pandemic. “Europe has always risen to the challenge,” she said, noting how Europe provided vaccines to Canada and the US.

Tech and AI leadership

Fredrikson Kenneth, Senior Vice President at Huawei Europe, stressed the importance of Europe establishing a stronger position in artificial intelligence (AI). “The value creation is happening here, but we need to be proactive,” he said. Kenneth called for significant investments in AI and infrastructure to compete globally, emphasising that this requires collective action, simplified investments, and common markets.

General consensus

Across the discussions, there was agreement that Europe must work together to remain competitive on the global stage, especially with the US economy growing under Trump’s leadership, despite rising public debt. Leaders emphasised collaboration as the key to addressing economic, technological, and geopolitical challenges.