Podcast Summary: "Trump at Davos: What does Europe do next?"

Podcast: The World with Richard Engel and Yalda Hakim
Host: Sky News
Date: January 21, 2026
Episode Theme:
A special episode from the World Economic Forum in Davos, where the global agenda has been overtaken by President Donald Trump’s dramatic proposal to acquire Greenland, raising questions about Europe’s future, US-European alliances, and the international order.

Main Theme Overview

This episode revolves around the shockwaves sent through Davos and Europe by President Trump’s speech proposing immediate negotiations for the US to acquire Greenland from Denmark. Hosts Yalda Hakim (in Davos) and Richard Engel (from the US) dissect the reaction from European leaders, the history behind Trump’s fixation with Greenland, what it means for NATO and the rules-based order, and broader geopolitical implications—including the potential wedge driven between the US and Europe. The episode also touches on ongoing unrest in Iran and addresses listener questions about the region’s future.

Key Discussion Points & Insights

1. Davos as Ground Zero for the Trump Administration

• Yalda describes Davos: "It's where the globalization elite come to be at the most, you know, talked about networking event on the planet." (01:55)
• Trump’s arrival turned this year’s Davos gathering “into ground zero for the Trump administration.”

2. Trump’s Greenland Speech: What Did He Say?

• Core message: America must acquire Greenland for global security, to build a “golden dome” defense network against Russia and China.
• Notable Trump quote:

  “We need it for strategic national security... This enormous unsecured island is actually part of North America... It is, therefore, a core national security interest of the United States of America.” (08:30, Trump speech excerpt)

• Trump insisted he would not use military force:

  “We probably won't get anything unless I decide to use excessive strength and force... But I won't do that. I don't have to use force. I don't want to use force. I won't use force.” (09:27, Trump speech excerpt)

3. European Reaction: Anxiety, Defiance, and Strategic Calculus

• European leaders described this moment as a “rupture, a transition, a new era.” (03:42, Yalda)
• Canadian PM Mark Carney:

  “When the rules no longer protect you, you must protect yourself. But let’s be clear eyed about where this leads. A world of fortresses will be poorer, more fragile and less sustainable.” (12:05, Carney speech)

• Carney reaffirmed commitment to NATO’s Article 5, warning against unilateral US action.
• French President Macron criticized by Trump, including personal jabs about his sunglasses and character (13:40, Trump speech excerpt).

4. The US Obsession with Greenland — Origins and Reality

• The idea goes back to Trump’s first term and earlier (as far back as his National Security Council, a decade ago).
• The US already has significant military latitude under the 1951 Greenland Defense Agreement; the base built under “Operation Blue Jay” is now key for US Space Force.
• “If they are interested in protecting national security... why haven’t they moved on creating more bases or tapping into the rare earth minerals?” (15:23, Yalda)

5. A Manufactured Crisis and History Repeating Itself

• Trump frames Greenland as a legacy-bolstering territorial acquisition, paralleling historic US land purchases like Louisiana and Alaska.
• “He wants to etch his name into the history books... already offered a price for Greenland, I think was $700 billion.” (19:52, Richard Engel)

6. Strategic and Emotional Impact on Europe

• Europeans feel “stabbed in the back”—not covert betrayal, but a direct affront:

  “They haven't been stabbed in the back, they’ve been stabbed in the chest... they literally punched them in the face with this.” (21:56, Yalda)

7. The Likely Path Forward: Negotiations, Not War

• Relief in Europe that Trump isn’t threatening immediate force.
• Yalda predicts Trump presses for a lease/treaty, possibly a 25-year deal; Europeans wager they can undo it with a new US administration, but history shows once deals are made, reversals are rare.
• “They’re now going to have to come to the negotiating table... perhaps Donald Trump signs a lease that goes on for 25 years. He gets his gratification... Europeans have saved NATO and saved the alliance by agreeing to some kind of deal and, you know, putting an end to, frankly, what is an epic distraction.” (24:37, Yalda)

Expert Interview: Richard Fontaine (Center for a New American Security)

[26:39 – 42:47]

Major Points:

• Fontaine is “reeling” at seeing the US instigate a crisis over the territory of a NATO ally (28:38).
• This is a “manufactured crisis”—the alarm from Europe is unprecedented; if it continues, collateral damage could extend well beyond Greenland.
• On taking Trump seriously: “He means some stuff seriously and other things apparently not... It is hard to know what exactly to take as a serious threat and what to take otherwise.” (29:54, Fontaine)
• The US already has full military access and economic opportunity in Greenland; there’s “nothing... that we need to try to strip away sovereign territory from another country for.” (31:30, Fontaine)
• Intensifying Arctic competition is real, but “hard to understand... why the US ‘needs’ Greenland more than, say, northern Canada or Svalbard [Norway]” under Trump’s logic (32:48, Fontaine).
• Europe’s choices: Stand firm, impose counter-tariffs, support Denmark diplomatically, but finding an “exit ramp” is hard.
• Russia and China are “toasting their good luck” as the US-European rift widens; a divided NATO is exactly their geopolitical aim (34:42, Fontaine).
• Europe’s drift toward China: As US reliability wanes, European leaders (Macron, Carney) seek more economic partnership with China.
• Washington is “astonished”; even experienced officials are scrambling to invent justifications for a new Greenland strategy.
• Fontaine notes a break not just with Biden, but even with Trump’s first term; international adventurism and improvisation have increased.

Notable Quotes & Memorable Moments

• Trump (at Davos):
  “All the United States is asking for is a place called Greenland, where we already had it as a trustee, but respectfully returned it back to Denmark not long ago. After we defeated the Germans, the Japanese, the Italians and others In World War II, we gave it back to them.” (09:27)

• Yalda Hakim:
  "Frankly, they haven't been stabbed in the back, been stabbed in the chest... they literally punched them in the face with this." (21:56)

• Richard Fontaine (re: Trump’s unpredictability):
  “He means some stuff seriously and other things apparently not... It is hard to know what exactly to take as a serious threat and what to take otherwise.” (29:54)

• Mark Carney (Canadian PM):
  "When the rules no longer protect you, you must protect yourself. But let’s be clear eyed about where this leads. A world of fortresses will be poorer, more fragile and less sustainable." (12:05)

Iran Segment & Listener Questions

Ongoing Situation in Iran

• Internet remains shut down, with thousands reportedly killed in government crackdowns.
• Listener (Leche Ajay) asks: “Predictions for the future of Iran?”
  • Richard Engel: Expects more attempts at “managed regime change,” but possibility of state collapse or fragmentation exists. (44:56)
  • Yalda Hakim: Believes US/Israel build-up suggests military action is still possible; the situation is at a historic, irreversible point of confrontation.

Timestamps for Key Segments

| Time | Segment | |---------|---------------------------------------------------------------| | 00:02 | Opening – Yalda explains podcast delay, Davos context | | 01:55 | Davos setting & atmosphere | | 03:42 | European reaction: A “rupture,” new era; intro to Iran topic | | 06:15 | Trump’s Greenland speech excerpts | | 11:09 | Trump’s showmanship and the building drama | | 12:05 | Mark Carney’s “rules no longer protect you” speech | | 14:11 | Macron’s strained relationship with Trump | | 15:23 | US military access & minerals in Greenland | | 18:47 | History of US military bases in Greenland, Operation Blue Jay | | 21:46 | European sense of betrayal, wedge between US/EU | | 24:37 | Yalda’s prediction: negotiation, possible lease deal | | 26:39 | Interview: Richard Fontaine | | 28:38 | Fontaine – “manufactured crisis,” European alarm | | 32:48 | Fontaine – Arctic “great game” logic | | 34:42 | Fontaine – Russia/China “toasting their good luck” | | 37:51 | Washington’s internal reaction | | 42:47 | Fontaine – Summary of year one of Trump II | | 44:01 | Iran segment: regime crackdown, casualties, future scenarios |

Flow & Tone

The episode is brisk, urgent, and slightly incredulous—matching the high-stakes, unpredictable, and at times surreal drama unfolding between the US and Europe. Yalda Hakim’s reporting is energetic and on-the-ground; Richard Engel is skeptical but analytical; expert Richard Fontaine is grave and clear-eyed. Notably, there’s a strong emphasis on the psychological and emotional impact on European allies, and the sense of a historical turning point.

Conclusion

This episode offers a front-row seat to extraordinary upheaval in transatlantic relations, with Trump’s Greenland gambit emblematic of much larger questions facing the West. Whether this is the beginning of a “new era” or a temporary rupture, the uncertainty is palpable. The guests agree: Europe is forced to act, alliances are being tested, and adversaries like China and Russia are standing by to capitalize on the discord. Iran’s crisis looms in the background—a reminder that while the world is transfixed by Trump’s theatrics, other flashpoints remain volatile.

Next week: Yalda will interview NATO Secretary General Mark Rutte for deeper insights on the alliance’s cohesion and crisis management.

Notable Quote to Close:

“It is a new world order, and we don’t know where this is going... once you start that taking from the weak and trading with the strong, you’re redefining the map.” (42:57, Richard Engel)