Von der Leyen Warns Against Economic 'Race to the Bottom' at World Economic Forum
European Commission President highlights risks of using economic tools in global competition and stresses need for modernizing trade relations.
DAVOS, SWITZERLAND – At the World Economic Forum’s annual meeting, European Commission President Ursula von der Leyen expressed concerns about the potential global repercussions of economic strategies such as export controls, sanctions, and tariffs.
She cautioned against the emergence of a 'global race to the bottom' in which these economic tools could be used excessively to safeguard national interests at the expense of international cooperation and economic growth.
In her address, von der Leyen underscored the importance of maintaining innovation while managing economic tools strategically.
She stressed that international collaboration is vital to prevent the dissolution of economic connections, which could harm global economic interests.
"Because 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," she stated.
Her comments come amid heightened economic tensions following remarks by U.S. President Donald Trump on January 20, 2025, advocating for tariffs or an increase in U.S. energy exports to Europe to address the U.S. trade deficit with the European Union.
This forms part of his administration’s 'America First' approach, aiming to rectify trade imbalances and protect domestic industries.
Von der Leyen has been active in seeking to modernize trade relations between the EU and the USA.
In a joint statement previously issued with President Joe Biden on October 31, 2021, she emphasized the importance of negotiating a carbon-based arrangement on steel and aluminum trade, highlighting the need to strengthen transatlantic trade and address shared challenges.
Her advocacy for a modernized trade relationship aims to foster fair competition, support workers, and tackle climate change.
Amidst growing global tensions, von der Leyen has consistently called for proactive engagement in trade agreements to uphold the EU’s economic interests.
She cautioned against the emergence of a 'global race to the bottom' in which these economic tools could be used excessively to safeguard national interests at the expense of international cooperation and economic growth.
In her address, von der Leyen underscored the importance of maintaining innovation while managing economic tools strategically.
She stressed that international collaboration is vital to prevent the dissolution of economic connections, which could harm global economic interests.
"Because 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," she stated.
Her comments come amid heightened economic tensions following remarks by U.S. President Donald Trump on January 20, 2025, advocating for tariffs or an increase in U.S. energy exports to Europe to address the U.S. trade deficit with the European Union.
This forms part of his administration’s 'America First' approach, aiming to rectify trade imbalances and protect domestic industries.
Von der Leyen has been active in seeking to modernize trade relations between the EU and the USA.
In a joint statement previously issued with President Joe Biden on October 31, 2021, she emphasized the importance of negotiating a carbon-based arrangement on steel and aluminum trade, highlighting the need to strengthen transatlantic trade and address shared challenges.
Her advocacy for a modernized trade relationship aims to foster fair competition, support workers, and tackle climate change.
Amidst growing global tensions, von der Leyen has consistently called for proactive engagement in trade agreements to uphold the EU’s economic interests.
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