ECB President Christine Lagarde Exits Davos Dinner Following US Official's Critical Remarks
European Central Bank President Christine Lagarde made a sudden departure from an exclusive dinner during the World Economic Forum in Davos, Switzerland, after United States Commerce Secretary Howard Lutnick launched into a critique of European economic competitiveness.
VIP Gathering Turns Tense
The invitation-only event on Tuesday evening featured more than 100 high-profile attendees, with Lutnick scheduled as the final speaker. According to multiple sources familiar with the incident who requested anonymity, the U.S. official's speech belittled European economies and highlighted what he characterized as their lack of competitiveness compared to American economic prowess.
As Lutnick's criticism escalated, several European guests reportedly grew uncomfortable. Lagarde, who was seated at the head table alongside Blackrock Inc. chief executive Larry Fink and U.S. Trade Representative Jamieson Greer, was observed leaving the venue during the remarks.
Reactions and Context
One European CEO, speaking anonymously, supported Lagarde's decision to exit, stating that Europe needed to begin standing up for itself in such diplomatic settings. The incident occurred against a backdrop of growing transatlantic tensions, particularly concerning potential policy shifts should Donald Trump return to the White House.
Lagarde, a former French finance minister and former head of the International Monetary Fund during much of Trump's first term, has previously warned that his potential reelection could create challenges for Europe. "We are seeing the curtain come up on a new world order," Lagarde told RTL radio on Wednesday morning, following the dinner incident.
Broader Implications for Transatlantic Relations
In her radio interview, Lagarde elaborated on her concerns about changing global dynamics, noting that "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." She emphasized that this emerging world order necessitates a fundamental reevaluation of how Europe organizes its economy and builds relationships with countries that share similar rules.
Meanwhile, JPMorgan Chase & Co. chief executive Jamie Dimon, speaking separately at the World Economic Forum, suggested he would adopt a different approach than Trump in addressing U.S.-Europe differences. "I would be more polite about it, about the weaknesses of Europe," Dimon stated, adding that his goal would be to strengthen rather than fragment the region.
The European Central Bank declined to comment on the dinner incident, while a spokesperson for Lutnick did not immediately respond to requests for comment. The Wall Street Journal first reported the details of Lagarde's departure from the Davos gathering.
