Farage: Carney gets everything wrong
Nigel Farage is being interviewed by Bloomberg’s Stephanie Flanders here in Davos this morning, and promising to tear down the pillars of UK economic policy, if his party comes to power.
The Reform CEO - as he described himself, confirmed that he would stop the Bank of England paying interest on QE reserves, accepting it might cost the UK’s banks £20bn.
“This will be tough for banks to accept. I get that. I’m sorry. The drain on the public finances is just too great,” he said.
When Flanders suggested banks would pass the costs on to their customers, he replied, “or they become more efficient, or they cut costs, or they do whatever. They should not have had this money.”
Farage also appeared to call into question the independence of the Bank of England - he said the governor after the EU referendum should have been a Brexiter.
Asked whether he backed Bank independence, he said, “what a catastrophe UK economic policy has been over the last 15 years, and we should challenge every single tenet of it.”
He described current Bank governor Andrew Bailey, whom he met recently, as “a perfectly polite, nice man,” but said, “they should have picked someone who’s Brexiter to take control of the Bank of England and to think totally differently, especially around financial markets.”
He said he wants to bring in experts from outside politics to draw up plans in a series of policy areas, comparing this to the US approach.
Farage also claimed debates here at the World Economic Forum (WEF) show that the Brexit vote was the start of a significant shift in the world order, away from “globalism”.
“Now everyone realises that actually, these were the first tremors of a very, very major change in political conversation and debate, and that, I think that was really large.”
Asked about Mark Carney’s call this week for mid-sized nations to club together in the face of Donald Trump’s disruptive approach to geopolitics, Farage joked, “good old Mark Carney, isn’t he marvellous? A chap who gets everything wrong and he’s been promoted - it’s remarkable.”
Merz: Germany has got the message about rise of world powers
Friedrich Merz outlines the important of raising Germany’s competitiveness, and expand and modernise its infrastructure.
In comments reminiscent of Canada’s Mark Carney’s speech on Tuesday, Merz concluded his speech by urging Davos to look at the “bigger picture”.
He says:
The world around us is changing at unprecedented pace. The direction it takes must worry us. A world of great powers is a new reality. Europe has got the message. Germany has got the message. We must and will live up to this challenge. My Government will do its homework and pursue an ambitious reform agenda revolving around security, competitiveness and European unity.
Our fate is in our hands. It is in our responsibility and our freedom to shape it. This historic task lies ahead of us. Germany wants to play a key role in mastering it.
Merz welcomes Trump's comments on Greenland deal
Turning to the crisis that has rocked Nato, and Europe, in recent days, Germany’s chancellor welcomes Donald Trump’s announcement last night that ‘the framework of a future deal’ on Greenland has been reached.
Friedrich Merz tells Davos that Germany welcomes that the US is taking the threat posed by Russia in the Arctic seriously.
He says this threat is an expression of the great power rivalry he is worried about – which is being aimed at both Europea and the US, such as through hybrid attacks in the Baltic Sea and in Russia’s winter war against the people of Ukraine.
Merz adds that Germany shares the conviction that, as European Nato allies, we must do more to secure the High North as Nato.
Merz says Denmark and the people of Greenland can count on Germany’s support, pledging to
We will protect Greenland, Denmark, and the high North from the threat posed by Russia.
Merz then explains that Germany will “uphold the principles” which the transatlantic partnership is founded on, namely sovereignty and territorial integrity.
As such, they support talks between Denmark, Greenland and the United States on the basis of these principles.
Merz says he has discussed this issue with Trump, Denmark’s PM Fredriksen, Nato’s Mark Rutte and others.
The aim of these talks is to agree for closer cooperation amongst allies in the High North.
And Merz warns it would be ‘unacceptable’ if the US had seized Greenland by force, as Trump ruled out last night.
He says:
It is good news that we are making steps into the right direction.
I welcome President Trump‘s remarks from last night. This is the right way to go.
Ladies and gentlemen, any threat to acquire European territory by force would be unacceptable.
Germany's Merz warns of rise of 'great powers'
Back in the WEF congress centre, Germany’s chancellor is addressing Davos, and warning that we are entering a world of ‘great powers’, which is a serious threat.
Friedrich Merz starts by telling delegates that the calm and peace up here on the magic mountain of Davos (as it is known) is at stark contrast to a world whose old order is “unravelling at breathtaking pace”.
Merz says Russia’s war of aggression against Ukraine has been the most drastic example, but the change runs much deeper, he says, saying China has worked its way into the ranks of the great powers, and the United States’ “global pole position” is being challenged
Merz declares:
We have entered a time of great-power politics. The international order of the past three decades - anchored in international law - has always been imperfect.
Today, its very foundations have been shaken.
Merz says this is “not a cosy place”
And he warns that world where only power counts is a dangerous place - first for small states, then for the middle powers, and ultimately for the great ones.
And harking back to the rise of Nazi Germany, Merz warns Davos delegates sternly:
I do not say this lightly. In the twentieth century, my country, Germany, went down this 6 road to its bitter end. It pulled the world into a black abyss.
Trump/Zelenskyy meeting confirmed for 1pm local time
We now have some extra clarity on the planned meeting between the US president and Ukrainian leader on the sidelines of the World Economic Forum.
The pair plan to meet at 1pm local time (or 12 noon GMT), Reuters report, citing a spokesperson. Ukraine’s international bonds rallied ahead of the meeting with broad hopes that progress could be made towards ending the war with Russia.
(Also happening later today: US envoy Steve Witkoff is set to meet with President Vladimir Putin in Moscow.)
Danish PM rules out negotiations on Greenland's sovereignty as part of Trump's 'deal'
Danish prime minister Mette Frederiksen has issued a statement reacting to the vague agreement apparently reached after talks between Donald Trump and Mark Rutte last night.
Frederiksen says it is “good and natural” that Arctic security was discussed between the US president and the Nato secretary general here in Davos last night.
Frederiksen says she had spoken with Rutte “on an ongoing basis,” including before and after he met Trump.
She also puts a spotlight on the key issue – Nato cannot make decisions on the sovereignty of Denmark and Greenland.
She wrote that NATO is fully aware of Denmark’s position that anything political can be negotiated on, including security, investment and economic issues — “but we cannot negotiate on our sovereignty.”
She adds:
“I have been informed that this has not been the case.”
Updated
Jonathan Powell, the UK’s national security adviser, is at today’s Ukraine breakfast too – he pays tribute to the heroism of Ukraine’s soldiers, some of whom have suffered brutal treatment as prisoners of war.
Powell – who was the chief British negotiator in the Northern Ireland peace process – says it is clear that the war with Russia won’t end with a victory.
Russia can’t win, he argues, due to the resolve of Ukraine’s soldiers, while Ukraine won’t be able to reclaim its territory through physical force.
So there have to be negotations – though he doesn’t see evidence that Putin wants to negotiate. So, financial and military pressure must be applied to Russia.
Powell also remarks, wryly, that he hopes Putin can live up to his membership of Trump’s new Board of Peace, by engaging seriously in the negotiations.
And Powell, a veteran of many peace talks – both successful and unsuccessful – cautions that peace talks always take longer than you think.
We should patient, it won’t be solved tomorrow, he adds.
Rutte: very good discussion with Trump over Greenland
NATO secretary Mark Rutte has said he had a “very good discussion” with Donald Trump yesterdy about how to keep the Arctic region safe from Russia and China.
Rutte says the question is how Arctic countries, such as Canada, Iceland, Denmark, Sweden, Finland and Norway, can collectively work with the US to ensure that the Arctic remains safe, to keep the Russians and Chinese out.
He added that discussions will be taken forward to:
“make sure when it comes to Greenland particularly, that we ensure that the Chinese and the Russians will not gain access to the Greenland economy… [or] militarily to Greenland.”
Updated
Witkoff: We are going to get Ukraine peace deal done
Steve Witkoff, the US Special Envoy, then pops up at today’s breakfast, to declare that “a lot of progress” has been made in the Russia-Ukraine peace talks.
Witkoff, who is meeting Putin later today in Moscow, says:
It’s time to end this. I think we’re going to get this done.
Witkoff says he is “encouraged” and “optimistic”, and that negotiations are now down to “one issue”. Varius iterations of that issue have been discussed, he says, which mean “it’s solvable”, he argues.
He also pays credit to Ukraine’s Voldymyr Zelenskyy, saying “he’s been on this issue, he’s available and accessible”.
Zelenskyy is expected to visit Davos today, and meet with Trump here.
Witkoff adds that he spent last night talking about “the upward trajectory” for Ukraine’s economy.
Alexander Stubb, president of Finland, tells the Davos Ukraine breakfast that he believes Ukraine, the US and Europe will agree a “good package” to create a lasting peace.
But, he isn’t convinced that Russia will approve it – that’s his worry, and he agrees with Nato chief Rutte that support for Ukraine must continue.
Stubb points out that Finland, a new Nato member, can do a lot on arctic security.
He then outlines how Russian president Putin has failed in each and everyone of his strategic aims.
He wanted to take over Ukraine and make it Russian. He won’t, Stubb insists, predicting that Ukraine will become a member of the European Union.
He wanted to prevent the expansion of Nato – instead got two substantive military powers in the alliance, and doubled his border with the alliance
He wanted to project power in the region – look what’s going in central Asia, the southern Caucasus, Iran and Venezuela. “It’s not exactly a success story from the perspective of the Kremlin”.
Stubb also fundamentally disagrees that Russia is winning the war, as it is losing 1,000 soldiers per day, and its economy is suffering, with high inflation and high interest rates.
Fink: Capital wants 'fair and just' return from Ukraine
Larry Fink tells Davos that we are meeting at a moment when Ukrain’s resilience is no longer in question.
The question before us is how the resilience translates into renewal, and how the international community can support a pathway to lasting peace, Fink adds.
Capital follows opportunity, points out the Blackrock chief.
Governments lead on peace and security, the private sector follows once those conditions are in place.
Ukraine’s future depends on whether it can establish economic direction – strong governance, absolute transparent, and a reform framework. That will allow it to attract long-term capital, which seeks returns that are “fair and just”, he outlines.
Fink, a co-chair of this year’s WEF annual meeting, says sovereign wealth funds, pension funds, and insurance companies are “ready to be here” to help.
Victor Pinchuk, the Ukrainian billionaire and philanthropist sponsering this morning’s event, tells delegates here that Ukrainians’ main hope is for a “just and secure peace”.
But our enemy doesn’t want to make peace – we must get them to suspend the war and make peace, and for that we must crush their hope that they can win, Pinchuk added.
Rutte: Must keep military support flowing to Ukraine
Mark Rutte adds that “our main adversary is Russia” – a reminder not to be distracted by the row over Greenland.
And that means Ukraine must be given the military assistance it needs – such as interceptors to repel attacks from Russia.
We have to keep the flow of military support going, and don’t lose sight of this issue, Rutte insists.
Rutte adds that he hopes peace talks will conclude soon, but that probably won’t happen until April or May – in the meantime, cities such as Kyiv, Kharkiv and Lviv, and smaller cities, are being attacked.
We know that the water supply, and the electricity supply, is being brought down by the conflict, he adds.
Rutte: I've never doubted US support on Ukraine
The United States is ‘truly committed’ to supporting Ukraine’s independence and sovereignty, Nato chief Mark Rutte believes.
Rutte is telling attendees at a breakfast event organised by the Victor Pinchuk Foundation and EastOne here in Davos that Donald Trump and his team are pushing to bring the war to an end, to a position where Russia will “never, ever” try to attack again.
Asked if the Trump administration is ‘truly committed’ to supporting Ukraine, and its independence and security,
Rutte replies:
Absolutely, the answer is yes, and I’ve never doubed this.
Introduction: scepticism over Trump's Greenland deal
Good morning from Davos, amid relief and scepticism that Donald Trump has reached a rather vague agreement with Nato over Greenland.
Hours after telling the World Economic Forum that he wouldn’t use force to seize the island from Denmark, Trump surprised us by declaring that “the framework of a future deal” on Greenland had been reached, after talks with Nato chief Mark Rutte.
With Trump lifting the threat to impose new tariffs on eight European countries, the crisis that was threatening to rupture the Nato military alliance may have eased.
But….leaving the forum last night, Rutte told the AFP newswire:
“I think it was a very good meeting tonight. But there’s still a lot of work to be done.”
The scepticism comes from the fact that Nato can’t negotiate the ownership of a country’s territory.
Trump was somewhat vague about exactly was agreed last night, telling CNBC:
“Well it’s a little bit complex but we’ll explain it down the line – but the secretary general of Nato and I and some other people were talking and it’s the kind of deal that I wanted to be able to make.”
A ‘deal’ over Greenland could allow European leaders to refocus on ending the Russia-Ukraine war, which is approaching its fifth year.
Yesterday, Rutte told Davos that focusing on Ukraine should be “our number 1 priority”.
We should hear more from the Nato chief shortly – I’m at a breakfast event organised by the Victor Pinchuk Foundation and EastOne here in Davos.
The agenda
7.30am Davos / 6.30am GMT: Ukrainian breakfast discussion, with Nato secretary-general Mark Rutte, Edgars Rinkevics, President of Latvia; Alexander Stubb, president of Finland; Dick Schoof, PM of the Netherlands, Andrej Plenković, PM of Croatia, and Larry Fink of Blackrock
8.30am Davos / 7.30am GMT: Conversation with Gavin Newsom, Governor of California
9am Davos / 8am GMT: Conversation with Isaac Herzog, president of Israel
9.30am Davos / 8.30am GMT: Special Address by Friedrich Merz, chancellor of Germany
10.30am Davos / 9.30am GMT: Conversation with Kyriakos Mitsotakis, prime minister of Greece
1.30pm Davos / 12.30pm GMT: Session on Venezuela: What Next?
2pm Davos / 1pm GMT: Special Address by Prabowo Subianto, president of Indonesia
