[Photo Credit to Wikimedia]

The president of the European Commission, Ursula von der Leyen, delivered a special address at the opening session of the Davos World Economic Forum on January 20th,  the necessity of global collaboration to prevent fragmentation, specifically advocating for the modernization of global economic regulations to ensure mutual benefits. 

Her focus on balancing global partnerships with the protection of  European values comes shortly after Donald Trump’s re-election as U.S. President. 

The Davos World Economic Forum is an annual conference where thousands of heads of state and government, business executives, civil society leaders, youth leaders, leaders in academia come together to discuss pressing global issues. 

Throughout the forum, delegates will participate  in panel discussions and private meetings, fostering networks and fruitful dialogues to forge solutions that will bring systemic change. 

This year, approximately 3000 leaders from more than 130 countries with key figures like “Donald J. Trump, President-elect of the United States”, “Ding Xuexiang, Vice-Premier of the People's Republic of China,” and “António Guterres, Secretary-General of the United Nations”, to name a few. 

Through this platform, leaders debate solutions to the major economic, political, and social challenges of our time like climate change, geopolitical tensions and economic fragmentation. 

The theme of this year’s forum is “Collaboration for the Intelligent Age”, which focuses on  five pillars; reimagining growth, industries in the intelligent age, investing in people, safeguarding the planet, and rebuilding trust. 

In line with this theme, many sessions addressed the critical issues of climate change and artificial intelligence, both of which have resulted in not only systemic issues like inequality, but regulatory challenges too. 

The conference took place from the 20th to the 24th of January in Davos, Switzerland. 

This year’s  special address at the opening session was delivered by the EU chief Ursula von der Leyen, where she spoke about the need to address pressing global challenges through innovation and openness. 

She did not shy away from acknowledging the economic difficulties facing the region and also strongly reaffirmed the EU’s commitment to supporting Ukraine, calling out Russia’s aggression and weaponization of supply chains. 

Von der Leyen vowed that the European Union would remain  “pragmatic but principled” in negotiations with Trump and in global engagements,  ensuring that  both  European interests as well as values are upheld. 

In her address, von der Leyen underscored the shift in global dynamics brought about by increasing economic fragmentation and geopolitical competition, which has left the EU more divided and less competitive. 

The forum holds significant influence,  as the discussions  held at  this forum facilitate agreements between the private and public sector, ultimately shaping national policies and corporate strategies. 

Consequently, in a conciliatory yet firm tone, von der Leyen advocated for modernizing global economic regulations to avoid a “global race to the bottom” and sustain “mutual gains” in a way that encourages the balance between security and innovation.

With a focus on Europe’s commitment to foster innovation, decarbonization, and competitiveness, she announced proposals for the “28th Regime”. 

The 28th Regime is a unified regulatory framework for innovative firms that aims to harmonize the diverse laws and regulations across the EU. 

This new framework would help make the EU more attractive for startups and tech firms as it would reduce the bureaucracy while enhancing productivity. 

Moreover, the European Commission president also said that the EU would pursue a more constructive and balanced relationship with China to address the trade imbalances responsibly , for balanced engagement. 

She reiterated  the importance of transparency and fair competition in both trade and technology.  

In her inspiring address, she firmly declared that “Europe is ready for change”, and extending the open invite in a collaborative spirit, she said “if there are mutual benefits in sight, we are ready to engage with you. If you want to upgrade your clean tech industries, if you want to upscale your digital infrastructure – Europe is open for business”