The European Central Bank91Ƶs president responded Friday to U.S. President Donald Trump91Ƶs by calling for negotiations and mutual respect rather than a focus purely on trans-Atlantic trade figures.
The comments by alluding to a U.S.-EU rift offered a fitting final note at the : Trump91Ƶs return to the White House on Monday was on everyone91Ƶs lips, overshadowing traditional Davos talk about issues like climate change, free trade and economic development.
Many business leaders, world-class academics, top government officials and other elites on hand sought to cast an upbeat tone about economic prospects, efforts to end wars in places like Ukraine and the Middle East, and technological progress.
Some human rights advocates insisted that the poor, war victims and struggling migrants shouldn91Ƶt be forgotten.
Trump talks tariffs
Trump, in an on Thursday, said that the United States had 91Ƶhundreds of billions of dollars of deficits with the EU and nobody91Ƶs happy with it. And we91Ƶre going to do something about it.91Ƶ
Lagarde noted his focus on the U.S. trade deficit, but said decision-makers should look deeper at the details.
91ƵYou have to look at the good exchanges, you have to look at the services exchanges, you have to look at the capital account, 91Ƶshe said. 91ƵIt cannot just be black and white. What is true is that there has to be negotiation.91Ƶ
91ƵSome countries are in a stronger position than others, but we all need each other,91Ƶ Lagarde added.
Tariffs weren91Ƶt popular in Davos: Economic policymakers and trade officials warned that they could backfire and fan inflation.
Kristalina Georgieva, the managing director of the International Monetary Fund, echoed Lagarde by saying that trade patterns show the benefits of open relationships, and countries that fare best are ones 91Ƶthat are friends with everybody.91Ƶ
An intensified trans-Atlantic competition, despite calls for cooperation, belied an overall upbeat mood among many business leaders in Davos who are looking for economic growth, fewer regulations, lower taxes and greater efficiencies through technologies like artificial intelligence 91Ƶ another key theme to the week.
Optimism for some, obliviousness for others
Rich Lesser, global chairman of Boston Consulting Group, a leading management advisory firm, noted a strong U.S. economy and investment flowing in, but acknowledged 91Ƶthe high uncertainty is tariffs91Ƶ and cited risks of both inflation and further budget deficits that could drive up interest rates.
As for Europe, he said he came away 91Ƶmore optimistic from this week.91Ƶ
91ƵThe first stage to fixing something is awareness,91Ƶ Lesser said. He sensed 91Ƶmore understanding91Ƶ among European government leaders about 91Ƶthe need for competitiveness in Europe, the need to undertake reform, (and) the need to make some hard changes that still, politically, will be hard.91Ƶ
Critics insisted that talk of 91Ƶconstructive optimism91Ƶ 91Ƶ a buzzword among many this week 91Ƶ was overblown.
Amnesty chief says 91Ƶwe can91Ƶt hide our faces in the sand91Ƶ
Agnès Callamard, the secretary-general of Amnesty International, said that the reception to Trump among many elites in Davos was 91Ƶvery striking,91Ƶ adding: 91ƵThere is almost not a negative word that is being uttered about what he is planning to do.91Ƶ
In Davos, where luxury suites, Champagne-doused parties and custom-tailored suits abound 91Ƶ far from the suffering around the world 91Ƶ 91Ƶthere is a real determination not to see Trump 2.0 as a threat to peace and to prosperity,91Ƶ she said.
91ƵWhether it will be peace and security for the climate refugees; for the migrants fleeing Venezuela; for the Sudanese in the midst of crimes against humanity; for the Palestinians in Gaza living in rubbles: That is questionable,91Ƶ Callamard said.
91ƵWe cannot hide our faces in the sand,91Ƶ she added.