Switzerland After Trump's Greenland turnaround: Merz gives speech in Davos
Ahead of the politically sensitive speech by the German Chancellor at the World Economic Forum in Davos, US President Donald Trump has surprisingly defused the conflict over the island of Greenland, which belongs to Denmark.
22.01.2026, 05:13
22.01.2026, 05:14
SDA
Following talks with Nato Secretary General Mark Rutte on the sidelines of the summit in the Swiss mountains, he withdrew his threat of punitive tariffs against Germany and other European countries on February 1 on Wednesday evening. This has also changed the omens for the speech by Chancellor Friedrich Merz, who is due to take to the podium today (9.30 a.m.).
To justify his change of course, Trump pointed out that a framework for a future agreement on Greenland and the entire Arctic region had emerged during the meeting with Rutte. If implemented, this solution would be of great benefit to the USA and all NATO members, Trump wrote on the Truth Social platform. "Based on this agreement, I will not impose the tariffs that were to come into effect on February 1st."
Nato chief: "There is still a lot to do"
Rutte confirmed Trump's statements on a framework for a possible Greenland agreement, but - like the US president - did not initially provide many details. In an interview with US broadcaster Fox News, the Dutchman made it clear that he still sees a lot of work ahead of the parties involved in the political dispute. He had agreed with Trump that the Arctic region had to be protected together, said Rutte. However, the USA would of course also continue its talks with Greenland and Denmark, for example when it came to preventing Russia and China from gaining access to the economy of the resource-rich island in a geopolitically significant location.
He considers this to be a "very good result", said Rutte, adding: "There is still a lot to do." They had agreed to work on the question of what NATO could do together to protect the entire Arctic region. There is much to do to ensure that everything necessary is done on land, at sea and in the air to protect this important part of the world and Nato territory.
What is known about a possible deal
According to information from informed sources, the stationing agreement for Greenland is to be reworked and take into account the planned US "Golden Dome" missile defense system that Trump wants to build on the world's largest island. According to the information provided, the USA should also have a say in investment projects from other countries in Greenland. There are also plans to increase the involvement of European NATO states in the Arctic region.
The New York Times reported, citing government officials, that part of the discussion in Nato about a possible compromise with the Trump administration was that Denmark could transfer sovereignty over small areas of Greenland to the United States, on which the US could then build military bases. However, the report also made it clear that much is still in flux.
The US news site "Axios" reported, citing sources familiar with the developments, that the framework for a possible Greenland agreement contains the principle of respecting Denmark's sovereignty over the island. According to the report, Rutte had outlined the framework plan in talks with Trump.
The US president had previously always insisted that he wanted to bring Greenland under the control of the United States at all costs. When asked whether the framework for a deal envisaged that the largely autonomous Arctic island would remain part of Denmark's territory, Rutte told Fox News that the topic had not come up in his conversation with Trump that evening.
Merz relies on prudence instead of confrontation
Chancellor Merz will now have to deliver his speech planned for today differently than planned. Whether he would have confronted Trump with harsh words had it not been for the new development is unclear anyway. In the past few days, Merz had tried to avoid an escalation of the conflict and a direct confrontation with Trump. As Europeans, we want to react "prudently and appropriately" to "such challenges", he said before his departure.
Before Merz's speech, it is unlikely to be made public what exactly the agreement between Rutte and Trump contains in detail. And just as little about its half-life. After all, the US President is known to sometimes do a backwards roll and question decisions that have already been made if something doesn't suit him.
"The day ends better than it began"
In an initial reaction in the evening, Vice Chancellor Lars Klingbeil therefore called for restraint for the time being. "After the back and forth of the last few days, we will now wait and see what substantive agreement there is between Mr Rutte and Mr Trump," said the SPD politician on ZDF's Heute Journal.
There was an initial relieved reaction from Denmark. "The day ends better than it began," Danish Foreign Minister Lars Løkke Rasmussen told Danish radio. "I take two things away from Davos: That Trump says he will not attack Greenland (...) and that the tariff war is on standby. That is positive."
Is Merz taking a position on Trump's "peace council"?
Immediately after his speech in Davos, Merz will travel on to the EU summit in Brussels, where the Greenland conflict will also be discussed. The early departure will not be a bad idea for the Federal Chancellor - because Trump wants to establish his "Peace Council" in Davos at around the same time. There is speculation as to whether the first supporters, such as Argentinian President Javier Milei or Hungary's head of government Viktor Orban, could already sign up.
Critics accuse Trump of wanting to establish a kind of alternative to the UN, which is supposed to deal with crises and conflicts worldwide, with a "peace council" that is completely tailored to his needs. The international response to the proposal - particularly from Germany and the rest of Europe - has been muted. So far, however, few countries have officially rejected the idea. French President Emmanuel Macron immediately received a threat of tariffs of 200% on wine and champagne for his suggestion that Trump would refuse.
Merz has not yet taken a clear public stance. His circle has only indirectly signaled that agreeing to the charter of the "Peace Council" in its current form is out of the question for him. In principle, any measure that contributes to peace and stability is supported, according to government circles. However, it would have to remain "within the framework of international law". It is to be expected that Merz will probably not be much clearer in Davos.
