Davos 2026: the last-chance saloon to save the old world order?
Donald Trump arrived in Davos with an unprecedented US delegation, sparking heated debate over his tariff threats and broader challenges to the post‑war international order. The summit also featured a counter‑push from NATO, EU and UN leaders defending multilateralism, free trade and Ukraine's defe…
The World Economic Forum opened its 2026 session in the Alpine resort of Davos under the banner “A Spirit of Dialogue,” a slogan that many observers say rings hollow as former President Donald Trump arrived with the largest U.S. delegation ever sent to the gathering. Accompanying Trump were Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and special envoy Steve Witkoff, signaling Washington’s intent to shape the agenda on trade, defence and geopolitics.
Trump’s agenda and the backlash
During a televised address at the 2025 summit, Trump warned of “across‑the‑board tariffs” on allies that failed to support his controversial plan to annex Greenland. He also urged NATO members to boost defence spending and called on the Federal Reserve to cut rates immediately. Those remarks set the tone for a turbulent year marked by aggressive moves in Venezuela, provocative statements about Ukraine and Iran, and a series of diplomatic spats with European capitals.
In the days leading up to Davos, EU ambassadors convened emergency talks after Trump threatened punitive tariffs on the United Kingdom and other partners. The threat prompted a swift response from European leaders, who travelled to Davos to argue for free trade, trans‑Atlantic cooperation and a robust defence of Ukraine against Russian aggression.
Geopolitical context: war, economics and the erosion of rules‑based order
The summit takes place against a backdrop of ongoing conflict in Ukraine, where President Volodymyr Zelenskyy is also present to rally international support. Meanwhile, the war in Gaza, Russia’s invasion of Ukraine, and China’s expanding influence have already strained the post‑Cold‑War rules‑based order. A WEF poll of more than 1,300 participants identified “geo‑economic confrontation” as the top risk for the next two years, followed closely by the prospect of outright war.
Global military spending now exceeds $2.7 trillion, an annual rise of 9.4%, the steepest increase since the Cold War ended. Nations across the spectrum—democracies and autocracies alike—are bolstering defence budgets in response to perceived threats from the United States, Russia and China. While the United States projects power through actions such as the attempted seizure of Venezuelan President Nicolás Maduro, many diplomats warn that such moves may fuel popular resistance worldwide.
Counter‑forces at Davos
Despite Trump’s high‑profile presence, several senior figures arrived to champion multilateralism. NATO Secretary‑General Jens Stoltenberg, French President Emmanuel Macron, European Commission President Ursula von der Leyen and UN Secretary‑General António Guterres all scheduled speeches emphasizing the need to uphold international law and collective security.
Guterres warned that when leaders “pick and choose which rules to follow,” they undermine the very fabric of the global order. He highlighted the erosion of international law in Ukraine, the Middle East and now the United States, noting that the United Nations will launch an independent scientific panel on artificial intelligence to temper the commercial dominance of U.S. AI firms.
Central bankers also entered the fray, issuing an unprecedented joint letter defending the independence of Federal Reserve Chair Jerome Powell amid Trump’s calls for immediate rate cuts. Their intervention underscored the broader financial community’s concern that political interference could destabilise markets.
Business, technology and the climate cost of Davos
Corporate giants are well‑represented: Nvidia President Jensen Huang, Microsoft CEO Satya Nadella and Anthropic founder Dario Amodei will showcase AI breakthroughs that have driven Wall Street gains and expanded U.S. billionaire wealth. Yet the event’s environmental footprint is under scrutiny. Greenpeace analysis shows private‑jet flights to Davos more than tripled between 2023 and 2025, raising questions about the summit’s climate credibility.
The World Economic Forum charges companies 27,000 Swiss francs per delegate, plus an annual membership fee, using part of the revenue to subsidise civil‑society participants. Critics argue that the lavish spending, ski‑boot networking and champagne‑filled evenings clash with the forum’s stated mission of inclusive, rules‑based dialogue.
Legacy of Klaus Schwab and the future of the Forum
This year marks the first Davos without Klaus Schwab, the 87‑year‑old founder who stepped down from the board after whistle‑blower allegations of financial irregularities. Although an internal investigation cleared him of material wrongdoing, Schwab’s absence signals a generational shift. He is releasing a new book, “Restoring Truth and Trust,” timed to the summit, but his influence on the agenda appears waning.
Former Young Global Leaders such as Danny Sriskandarajah and Jamie Drummond argue that Davos has lost its relevance. Sriskandarajah contends the forum has become a “relic of the past” lacking accountability, while Drummond recalls the early 2000s when Davos helped launch initiatives like Gavi and Make Poverty History. Both acknowledge that the summit still attracts heads of state, finance ministers and CEOs, but its ability to shape global policy is increasingly questioned.
In sum, Davos 2026 is a microcosm of a world at a crossroads: a United States pushing unilateral economic measures, a Europe rallying around multilateral defence, and a global community grappling with climate, AI governance and the very rules that have underpinned international stability for decades.
Why it matters
The summit highlights how divergent U.S. policies and rising geopolitical tensions threaten the post‑war rules‑based order, while multilateral leaders attempt to preserve cooperation and stability.
Key points
- Trump leads the largest U.S. delegation ever at Davos, emphasizing tariffs and defence spending
- European leaders and the UN use the forum to defend multilateralism and Ukraine’s sovereignty
- Global military spending hits a 30‑year high, intensifying geo‑economic rivalry
- Central bankers publicly defend Federal Reserve independence amid political pressure
- Critics question Davos’ climate impact and its relevance after founder Klaus Schwab steps back
Frequently asked questions
What is the main theme of Davos 2026?
The World Economic Forum has chosen “A Spirit of Dialogue” as its theme, aiming to foster conversation despite deep geopolitical divides.
Which U.S. officials are traveling with Donald Trump?
Trump is accompanied by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and special envoy Steve Witkoff.
How are European leaders responding to Trump’s tariff threats?
NATO chief Jens Stoltenberg, French President Emmanuel Macron, EU Commission President Ursula von der Leyen and others are attending to promote free trade, collective defence and adherence to international law.
What new UN initiative will be announced at Davos?
The United Nations will launch an independent scientific panel on artificial intelligence to address the commercial dominance of U.S. AI firms.
Why is the climate impact of Davos under criticism?
Greenpeace reports that private‑jet traffic to the summit more than tripled between 2023 and 2025, raising concerns about the event’s carbon footprint.
