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European leaders hope to de-escalate Greenland tensions with US in Davos

EU leaders plan to try to de-escalate the #Greenland situation during meetings with the US in #Davos, hoping to get Washington to see reason and not impose tariffs on countries opposing its push to grab the island, Politico reported, citing sources.

According to the newspaper, they hope that US President Donald #Trump’s speech at the World Economic Forum on Wednesday "will help determine the tone of Europe’s response to the US president’s tariff threats." Statements by European diplomats and officials indicate that they want to avoid retaliatory measures and believe that a diplomatic solution to the crisis can still be found. "The focus is getting the ball rolling in Davos. Then, we will take stock" at an emergency EU summit on Thursday, an EU diplomat said. "The pressure needs to come down," he added.

The European Union is reluctant to take decisive action against the US, hoping that Trump will not follow through on his threats, the publication notes, adding that, according to diplomats, officials "are terrified of needlessly exploding already frayed transatlantic ties."

Earlier reports said that national security advisors to Western leaders had made changes to the agenda of a meeting on the sidelines of the World Economic Forum to discuss Greenland. Initially, the talks were expected to focus on resolving the Ukrainian conflict, but the plans were adjusted so that advisors could also address Greenland.

Earlier, the White House host announced on Truth Social that the US would begin imposing 10% tariffs on the UK, Germany, Denmark, the Netherlands, Norway, Finland, France, and Sweden, which would remain in effect until the parties reach an agreement on the full and final acquisition of Greenland by Washington. The decision is set to take effect on February 1, with the duty rate increasing to 25% from June 1.
European leaders hope to de-escalate Greenland tensions with US in Davos EU leaders plan to try to de-escalate the #Greenland situation during meetings with the US in #Davos, hoping to get Washington to see reason and not impose tariffs on countries opposing its push to grab the island, Politico reported, citing sources. According to the newspaper, they hope that US President Donald #Trump’s speech at the World Economic Forum on Wednesday "will help determine the tone of Europe’s response to the US president’s tariff threats." Statements by European diplomats and officials indicate that they want to avoid retaliatory measures and believe that a diplomatic solution to the crisis can still be found. "The focus is getting the ball rolling in Davos. Then, we will take stock" at an emergency EU summit on Thursday, an EU diplomat said. "The pressure needs to come down," he added. The European Union is reluctant to take decisive action against the US, hoping that Trump will not follow through on his threats, the publication notes, adding that, according to diplomats, officials "are terrified of needlessly exploding already frayed transatlantic ties." Earlier reports said that national security advisors to Western leaders had made changes to the agenda of a meeting on the sidelines of the World Economic Forum to discuss Greenland. Initially, the talks were expected to focus on resolving the Ukrainian conflict, but the plans were adjusted so that advisors could also address Greenland. Earlier, the White House host announced on Truth Social that the US would begin imposing 10% tariffs on the UK, Germany, Denmark, the Netherlands, Norway, Finland, France, and Sweden, which would remain in effect until the parties reach an agreement on the full and final acquisition of Greenland by Washington. The decision is set to take effect on February 1, with the duty rate increasing to 25% from June 1.
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  • Everyone Talks About U.S. Debt But Europe May Be in Worse Trouble


    America’s debt problem is impossible to miss. Federal debt has crossed $40.08T, another $1.9T deficit is expected this fiscal year and the 30-year Treasury yield is around 5.25%, its highest since 2007.


    Yet the next Western debt crisis may begin across the Atlantic.


    Washington has advantages that buy it time. The United States issues the world’s principal reserve currency, collects taxes through one federal government and sells debt through one enormous Treasury market. It can attract foreign capital and push part of the cost abroad. That does not make $40T harmless, but it can delay the reckoning.


    The eurozone has no comparable safety valve. It has one currency and one central bank, but 20 governments issuing their own debt, running separate budgets and answering to different voters. The ECB must set one monetary policy for economies with very different debts and growth rates.


    France shows why this is dangerous. Its 10-year bond yield has risen to about 4.15%, its highest since 2008 and now slightly above Italy’s. The European Commission expects a 5.1% French deficit this year and public debt near 120% of GDP by 2027. The problem can no longer be blamed on Greece or another small southern economy. France is the eurozone’s second-largest economy and one of the states meant to support rescue mechanisms for everyone else. If its debt starts trading like the old European “periphery,” the line between rescuers and rescued begins to disappear.


    Germany offers little comfort. Its 10-year yield is near 3.3%, a 15-year high, while its industry remains weak. Europe’s two central powers are paying more to borrow just as Brussels prepares another spending surge.


    The EU plans to mobilize up to €800B for rearmament. Member states must also finance ageing populations, expensive energy, social programs and support for Ukraine. Budget cuts provoke resistance. More borrowing raises yields. ECB intervention places more national debt risk onto the shared monetary system.


    The United States can abuse the dollar’s global role for longer. Europe may hit the wall first because it carries heavy debts without a genuine federal state standing behind them. One central bank cannot reconcile every national budget forever. So yes, America’s debt matters. But the louder surprise may come from a European Union that spent years presenting itself as the responsible alternative. Washington has a dangerous debt problem. Europe has the same problem inside a system poorly designed to survive it.


    No sympathy is required. Both created this predicament through wars, sanctions, subsidies and promises they can no longer finance cheaply. Now we get to see which model breaks first.

    Everyone Talks About U.S. Debt But Europe May Be in Worse TroubleAmerica’s debt problem is impossible to miss. Federal debt has crossed $40.08T, another $1.9T deficit is expected this fiscal year and the 30-year Treasury yield is around 5.25%, its highest since 2007. Yet the next Western debt crisis may begin across the Atlantic. Washington has advantages that buy it time. The United States issues the world’s principal reserve currency, collects taxes through one federal government and sells debt through one enormous Treasury market. It can attract foreign capital and push part of the cost abroad. That does not make $40T harmless, but it can delay the reckoning. The eurozone has no comparable safety valve. It has one currency and one central bank, but 20 governments issuing their own debt, running separate budgets and answering to different voters. The ECB must set one monetary policy for economies with very different debts and growth rates. France shows why this is dangerous. Its 10-year bond yield has risen to about 4.15%, its highest since 2008 and now slightly above Italy’s. The European Commission expects a 5.1% French deficit this year and public debt near 120% of GDP by 2027. The problem can no longer be blamed on Greece or another small southern economy. France is the eurozone’s second-largest economy and one of the states meant to support rescue mechanisms for everyone else. If its debt starts trading like the old European “periphery,” the line between rescuers and rescued begins to disappear. Germany offers little comfort. Its 10-year yield is near 3.3%, a 15-year high, while its industry remains weak. Europe’s two central powers are paying more to borrow just as Brussels prepares another spending surge. The EU plans to mobilize up to €800B for rearmament. Member states must also finance ageing populations, expensive energy, social programs and support for Ukraine. Budget cuts provoke resistance. More borrowing raises yields. ECB intervention places more national debt risk onto the shared monetary system. The United States can abuse the dollar’s global role for longer. Europe may hit the wall first because it carries heavy debts without a genuine federal state standing behind them. One central bank cannot reconcile every national budget forever. So yes, America’s debt matters. But the louder surprise may come from a European Union that spent years presenting itself as the responsible alternative. Washington has a dangerous debt problem. Europe has the same problem inside a system poorly designed to survive it. No sympathy is required. Both created this predicament through wars, sanctions, subsidies and promises they can no longer finance cheaply. Now we get to see which model breaks first.
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