ECB President Christine Lagarde's Abrupt Exit from Davos Dinner Following US Official's Critical Speech
European Central Bank President Christine Lagarde made a sudden departure from an invitation-only sit-down dinner during the World Economic Forum in Davos, Switzerland, after US Commerce Secretary Howard Lutnick began delivering a speech that sharply criticized European economies, according to multiple sources familiar with the incident.
VIP Dinner Incident at World Economic Forum
The exclusive Tuesday evening event was attended by more than 100 high-profile guests and featured Lutnick as the final speaker. Sources who requested anonymity due to the private nature of the gathering described how the US official's remarks belittled European economies and highlighted what he characterized as their lack of competitiveness compared to American economic prowess.
As Lutnick's criticism escalated during his three-minute address, several European attendees reportedly became uncomfortable. Witnesses observed Lagarde exiting the venue during the speech, though accounts differ on the precise circumstances surrounding her departure.
Conflicting Accounts of the Dinner Incident
A spokesperson for the US Commerce Department disputed reports that multiple people left during Lutnick's speech, stating that only one person departed hastily. The spokesperson added that just one individual booed during the address, identifying that person as former US Vice President Al Gore.
In a statement provided by his spokesperson, Gore acknowledged his reaction to Lutnick's remarks, saying, "I sat and listened to his remarks. I didn't interrupt him in any way. It's no secret that I think this administration's energy policy is insane. And at the end of his speech I reacted with how I felt, and so did several others."
Other sources described Lutnick as having a less prominent seat at the back of the room, while US Trade Representative Jamieson Greer was positioned at the head table alongside Blackrock Inc. Chief Executive Officer Larry Fink.
European Response and Broader Context
Several European officials and business leaders defended Lagarde's actions, with one European CEO and a euro-zone official both speaking anonymously to express support for her decision to leave. They suggested that Europe needs to begin standing up for itself more assertively in international forums.
Lagarde, a former French finance minister who also headed the International Monetary Fund during much of Donald Trump's first presidential term, has previously expressed concerns about potential challenges for Europe should Trump return to the White House. She began warning about this possibility as early as 2024.
Lagarde's Comments on New World Order
Speaking with RTL radio on Wednesday morning following the dinner incident, Lagarde highlighted what she described as "the curtain coming up on a new world order." She elaborated on this perspective, stating, "Threatening to take a territory like Greenland that is not for sale, and brandishing tariffs and restrictions on global trade, isn't really behaving like an ally. This new world order must lead us to deeply revise the way we organize our economy in Europe, in the way we build ties with other countries in the world who play by the same rules as us."
Financial Leaders Weigh In on US-Europe Relations
During his own appearance at the World Economic Forum on Wednesday, JPMorgan Chase & Co. CEO Jamie Dimon commented on the approach to addressing differences between the United States and Europe. While not directly referencing the dinner incident, Dimon noted, "I would be more polite about it, about the weaknesses of Europe," suggesting his method would aim to strengthen rather than fragment the region.
The European Central Bank declined to comment on the dinner incident when approached for response. The Wall Street Journal first reported details of the Davos dinner confrontation, which occurred against the backdrop of broader discussions about shifting global economic alliances and leadership approaches.
