European Commission President warns of “global race to bottom” at World Economic Forum

European Commission President Ursula von der Leyen issued a stark warning at the World Economic Forum on January 21, cautioning against a potential "global race to the bottom" driven by increasing economic competition.

Speaking a day after US President Donald Trump's inauguration, von der Leyen highlighted the dangers of relying on sanctions, export controls, and tariffs as tools for economic and national security, Caliber.Az reports, citing foreign media. 

"As this competition intensifies, we will likely continue to see frequent use of economic tools, such as sanctions, export controls, and tariffs, that are intended to safeguard economic and national security…In this spirit, we will need to work together to avoid a global race to the bottom," she added.

Von der Leyen emphasised the importance of global cooperation, stating that "it is in no one's interest, to break the bonds in the global economy. Rather we need to modernize the rules to sustain our ability to produce mutual gain for our citizens."

On January 20, Trump indicated his desire to address the US trade deficit with the European Union, proposing potential tariffs or increased energy exports as possible solutions. 

The World Economic Forum's annual meeting takes place in Davos from 20-24 January 2025.

By Vugar Khalilov