The annual World Economic Forum in Davos has opened under a significant diplomatic cloud, with Danish officials confirming they will not attend this year's gathering. The boycott comes amidst intensifying disputes over US President Donald Trump's persistent campaign to acquire Greenland, a situation that has now provoked a severe threat of retaliatory tariffs from the European Union.
Greenland Dispute Dominates Pre-Conference Tensions
President Trump's ambition to bring Greenland under US control has moved from speculative interest to a direct point of international contention. The US leader has not only been insistent on the idea but has refused to rule out taking the autonomous Danish territory by force. In a significant escalation over the weekend, Trump announced a 10% tariff on nations unsupportive of the acquisition, set to begin on February 1 and potentially rising to 25% in June without a deal.
This aggressive stance prompted the EU to prepare a formidable response. According to reports, the bloc is set to threaten the US with retaliatory tariffs on $107.7 billion worth of goods, or could even deny America access to the EU single market entirely. A forum spokesperson confirmed to Bloomberg that the Danish government would not be represented in Davos this week, stating attendance decisions were a matter for the concerned government.
A Davos Agenda Overshadowed by Geopolitical Rifts
The forum, which opened on Tuesday under the theme 'A spirit of dialogue' and the motto 'improving the state of the world', finds its idealistic aims challenged by stark realpolitik. Trump is scheduled to deliver a keynote speech on Wednesday, where he is expected to address European leaders directly. A White House official indicated the President would urge the US and Europe to move beyond economic stagnation.
Alongside the Greenland issue, other major geopolitical crises will feature prominently. Ukraine's President Volodymyr Zelenskyy will attend in person, seeking a meeting with Trump to discuss new security guarantees for a potential ceasefire with Russia. The US delegation, its largest ever sent to Davos, will also hold meetings with Russia's special envoy, Kirill Dmitriev.
Trump's proposed 'Board of Peace' for Gaza also looms, with invitations reportedly extended to leaders from Jordan, Greece, Turkey, Egypt, and others. Meanwhile, Iran's Foreign Minister will not attend following a forum decision that it was not appropriate for the Iranian government to be represented after recent tragic loss of civilian life in the country.
Broader Themes: Trust Deficits and Glaring Inequality
Beyond the immediate diplomatic fires, nearly 3,000 attendees from business, advocacy, and policy circles will confront systemic global challenges. The growing gap between rich and poor, AI's impact on employment, and eroding trust between communities are all key agenda items.
Ahead of the event, Oxfam released a damning report showing billionaire wealth surged by over 16% last year—three times faster than the five-year average—to exceed $18 trillion. The advocacy group criticised what it called the Trump administration's 'pro-billionaire agenda', highlighting tax cuts for the wealthy and the thwarting of efforts to tax giant corporations.
This sentiment of disconnect was echoed in the Edelman Trust Barometer, which found public optimism falling and a retreat into 'insularity'. CEO Richard Edelman noted a shift in mentality from 'we' to 'me', with people favouring nationalism over global connection.
As the forum proceeds, it does so without its founder, Klaus Schwab, and under the new leadership of co-chairs Larry Fink of BlackRock and Andre Hoffman of Roche. The event also welcomes the debut of Nvidia CEO Jensen Huang, reflecting the central role of AI in discussions about the future of business and work.
Outside the secure conference zone, the familiar protests have begun. Hundreds marched behind a banner reading 'No Profit from War', with critics, including Switzerland's Young Socialists, accusing the forum of fuelling escalation and highlighting the disconnect between the world's 'haves and have-nots'.
