Davos to Welcome Trump Virtually as World Leaders Await New US President’s Policies

Former US President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center in West Palm Beach, Florida, on November 6, 2024. (AFP)
Former US President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center in West Palm Beach, Florida, on November 6, 2024. (AFP)
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Davos to Welcome Trump Virtually as World Leaders Await New US President’s Policies

Former US President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center in West Palm Beach, Florida, on November 6, 2024. (AFP)
Former US President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center in West Palm Beach, Florida, on November 6, 2024. (AFP)

Donald Trump will mark his return to the global stage with a virtual World Economic Forum appearance in Davos next week, as world leaders await details of the incoming US President's policies and his pledge to end the war in Ukraine.

Trump is due to return to the White House on Jan. 20, with his inauguration for a second term as US President coinciding with the start of the 55th annual WEF meeting of political and business leaders in the Swiss mountain resort.

Meanwhile, another key player in any attempt to bring peace to Ukraine, the country's President Volodymyr Zelenskiy, will make a special address and take questions, the WEF meeting organizers said on Tuesday.

Among the other global leaders due to attend the meeting, which will include 60 heads of state and government, are European Commission President Ursula von der Leyen and China's vice premier Ding Xuexiang, WEF President and CEO Borge Brende said during a press conference.

Brende said Trump, who has twice previously attended Davos, will join "digitally" on Jan. 23, without giving further details. He said it would be a "very special moment" to learn about the new Trump administration's policy priorities.

"There is a lot of interest to decipher and to understand the policies of the new administration, so it will be an interesting week," Brende said.

Topics on the Davos agenda range from mounting global geopolitical and economic uncertainty to trade tensions, climate goals and how AI can help make lives better.

Business leaders have become more optimistic about the economy given Trump's pledges to reduce regulation, potentially cut taxes and ease restrictions on activities including mergers and acquisitions, Rich Lesser, global chair of Boston Consulting Group, told Reuters ahead of the meeting.

Lesser said, however, that underlying optimism is being offset by concerns about tariffs, deportations, a widening budget deficit and the US relationship with China.

MIDDLE EAST

This year's meeting in Davos is taking place against "the most complicated geopolitical backdrop in generations," Brende said, adding that the forum will have a strong focus on Middle East geopolitics, including high-level diplomatic talks.

Delegates will discuss developments in Syria and the humanitarian crises in Gaza and Yemen alongside other topics.

Participants will include Qatar's Prime Minister, the Saudi Arabian Foreign Minister, Syria's foreign minister, the UN special envoy on Syria, the Iranian Vice President, Israel's President and the Palestinian Prime Minister.

"There will be a hard work at the situation in Syria, the terrible humanitarian situation in Gaza ... the potential escalation of the conflict in the Middle East. We were very close to it between Israel and Iran, and I don't think we're out of the woods yet," Brende said.

CLIMATE

The WEF will this week release an analysis looking at companies that account for two-thirds of global market capitalization, which will show that only about 10% are taking meaningful and tangible action on the climate and nature agenda.

Business and political leaders gathering in Davos from Jan. 20 to Jan. 24 are also due to discuss how to ensure energy remains affordable, secure and green and the challenges preventing acceleration of efforts towards energy transition.

"We’re in a really challenging moment for climate, where countries are asking if other nations are doing their share," said Boston Consulting Group's Lesser.



Urgent Financial Tasks Await Lebanon’s Emerging Government

Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
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Urgent Financial Tasks Await Lebanon’s Emerging Government

Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)

A broad internal consensus, encompassing both political and economic dimensions, is taking shape to adopt the principles outlined in the presidential inauguration address as the foundation of the new government’s program and ministerial statement. This approach aims to sustain Lebanon’s immediate and strong positive momentum, which is reinforced by widespread support on both Arab and international levels.

Economic bodies and professional unions representing business sectors have openly expressed their relief and full support for the strategic directions set by President Joseph Aoun following his election. However, they have made it clear that maintaining this positive momentum depends on the formation of a reform-oriented rescue government, composed of competent, experienced, and honest ministers. This government must also collaborate constructively with the president.

According to a senior financial official, the rescue mission will be challenging due to years of governmental inaction and constitutional voids, which led to a deterioration in public sector operations and the accumulation of economic, financial, and monetary crises over the past five years. These challenges were further compounded by a devastating war, which inflicted severe human and financial losses estimated at approximately $10 billion, thereby worsening the country’s financial gap, now estimated at $72 billion.

Economic and banking circles are looking to the new government to swiftly capitalize on extensive international support by restoring trust and reestablishing financial channels between Lebanon and its regional and international partners. Key to this effort are explicit and transparent commitments to combating illegal economic activities, corruption, smuggling, money laundering, and drug trafficking. In parallel, the government must prioritize strengthening judicial independence and implementing strict controls over land, sea, and air borders.

The national consensus evident in the presidential election, according to Mohammad Choucair, head of Lebanon’s economic associations, paves the way for constructive collaboration among political factions. This collaboration is crucial for addressing challenges, rebuilding the state, and benefiting from renewed international and Arab—particularly Gulf and Saudi—interest in Lebanon. Choucair emphasized the importance of normalizing relations with Gulf nations, supporting Lebanon’s recovery, and providing resources for reconstruction efforts.

One of the urgent tasks for the new government, according to the financial official, is revisiting the draft 2024 state budget, which was previously submitted to parliament. Adjustments are necessary to address fundamental discrepancies in expenditure and revenue projections, taking into account significant changes brought about by the Israeli war.

Ibrahim Kanaan, chairman of the Parliamentary Finance Committee, described the budget as “unrealistic, if not entirely fictitious,” particularly in its revenue estimates. He pointed out that revenue increases were based on income and capital taxes, internal duties, and trade-related fees, all of which have been severely impacted by the war.

Reassuring depositors, both domestic and expatriate, who have suffered massive losses over recent years, is another pressing issue. These losses were exacerbated by the inability of successive governments to implement a comprehensive rescue plan addressing the $72 billion financial gap fairly. The situation was worsened by mismanagement in the electricity sector and the squandering of over $20 billion in central bank reserves following the onset of the financial crisis.

In response to Aoun’s commitment to a fair resolution for depositors, the Association of Banks in Lebanon welcomed his emphasis on safeguarding deposits. It also expressed its readiness to collaborate with the central bank and the government to protect depositors’ rights, citing a recent State Council ruling that prohibits any financial recovery plans from including measures that would erode depositors’ funds.

In its final session, the caretaker government addressed long-standing creditor issues by unanimously agreeing to suspend Lebanon’s right to invoke statutes of limitations on claims by foreign bondholders under New York law. This suspension, effective until March 9, 2028, aims to facilitate future negotiations.

With this decision, the caretaker government tacitly acknowledged Lebanon’s pending debt obligations, including over $10 billion in suspended interest payments on Eurobonds and approximately $30 billion in principal debt. The resolution now awaits direct negotiations under the new administration, which faces the challenge of resolving a nearly five-year-old crisis triggered by the previous government’s uncoordinated decision to halt payments on all Eurobond obligations through 2037.

Caretaker Finance Minister Youssef Khalil emphasized that despite the difficult circumstances, “Lebanon remains committed to reaching a fair and consensual resolution regarding the restructuring of Eurobond debt.”