Macron's Paris Invitation to Trump Amidst Greenland Dispute: Live Updates

Key Reads European leaders hope to avoid Greenland dispute escalating into trade war Keith Duggan: Donald Trump’s White House is now a volatile force of change and whimsy Bleak times in Copenhagen: ‘It’s like fifth graders bullying the small guy in the corner’ Global Briefing: The EU needs to understand the world can leave the US alone. Sign up for the newsletter from Denis Staunton Stock markets have weakened in response to Trump’s threats on Greenland and fears of a trade war, writes Cliff Taylor. So far, moves have been limited enough, except for the continued rise in the price of gold, now up 8 per cent since the start of the year to new record highs and a hefty 70 per cent higher since Trump took office. In times of uncertainty, gold tends to win out. Today, share prices are weaker again in Europe, though many investors are taking a wait-and-see approach. A key thing to watch is whether there is a drift away from US assets. Weakness in the price of the dollar and US government bonds have been evident in recent days. Trump’s unpredictable policies may lead investors to diversify away from US investments. And his drive to take more control of the US Federal Reserve Board – and thus US interest rates – will worry those investing in US assets, who will fear higher inflation and dollar weakness. This is the key trend to watch in the days ahead. Talk that Europe could in some way increase pressure on Trump by selling down US assets – and particularly government bonds – seem far-fetched, given that most of these are held by the private sector. But a drift away from US assets by big investors is conceivable – as is some wider upheaval in the markets as this plays out. Threat of tariffs would rip up EU-US trade deal struck last year, says Helen McEntee Minister for Foreign Affairs Helen McEntee has said Donald Trump’s threat of tariffs on eight EU countries was “deeply regrettable” and would “rip up” an EU-US trade deal struck last year. McEntee said that it was clear support for Greenland and Denmark was “absolute”. She said if the threatened tariffs are introduced, €93 billion worth of counter tariffs would be “back on the table” as the EU needed to “respond strongly”. “What’s really important is that, first and foremost, we engage in dialogue with the US, and that will intensify our efforts over the next number of days,” she said. “But it is also important to have a number of possible options to respond should these threats actually come to the fore in the next two weeks. Of course, a threat of tariffs on eight member states is essentially a threat of tariffs on all member states and it would be hugely regrettable for last year’s deal between the US and the EU to essentially be ripped up.” McEntee added:“It is really apparent that the president is trying to use tariffs to change that approach but that’s not something that… [will change] the overall resolve of Europe in support for Greenland. It is utterly regrettable that a president of the US would say that they’re not focused on peace, but we need to engage, we need to use our voice, as we always have in Ireland, to try and bring reason and to try and bring calm to the current situation.” Ursula von der Leyen makes case for Europe’s ‘independence’ at Davos European Commission president Ursula von der Leyen has called for Europe to assert its independence, in response to the “seismic” changes to the global order taking place, writes Europe correspondent Jack Power. The EU’s response to Trump’s recent threats would be “unflinching, united and proportional”, the head of the union’s powerful executive body said. In a closely watched speech at Davos, von der Leyen said the sovereignty of Greenland and Denmark was “non-negotiable”. Plunging Europe and the US into a “dangerous downward spiral” would only help the adversaries of both traditionally close allies, the German politician said. Trump’s proposed new tariffs on European countries of 10 per cent, rising to 25 per cent, until Greenland was ‘sold’ to America, were a “mistake”, von der Leyen said. The new tariffs would rip up a deal struck last July, where EU states reluctantly agreed to stomach 15 per cent import duties on future US trade. “In politics as in business, a deal is a deal and when friends shake hands, it must mean something,” von der Leyen said, a thinly veiled criticism of Trump’s latest threats. “Europe must speed up its push for independence – from security to economy, from defence to democracy. The point is that the world has changed permanently. We need to change with it,” von der Leyen said. Recent agreement on the EU-Mercosur deal shows the 27-state union was choosing “fair trade over tariffs”, she said. Commission negotiators were working to finalise another major trade deal with India, which von der Leyen said had been described as “the mother of all deals”. Donald Trump has also lashed out at British prime minister Keir Starmer over the “act of great stupidity” in giving up sovereignty over the Chagos Islands, which include the UK-US military base on Diego Garcia. The US president said handing the British Indian Ocean Territory to Mauritius was a sign of “total weakness” by the UK. The UK government has agreed to hand over the islands but will pay billions of pounds to lease back the strategically important Diego Garcia base. Ministers have claimed the deal is necessary because international court rulings in favour of Mauritian claims to sovereignty had threatened the future of the base. In the attack on his Truth Social platform, Mr Trump said: “Shockingly, our ‘brilliant’ NATO Ally, the United Kingdom, is currently planning to give away the Island of Diego Garcia, the site of a vital U.S. Military Base, to Mauritius, and to do so FOR NO REASON WHATSOEVER. “There is no doubt that China and Russia have noticed this act of total weakness.” He highlighted the decision as a reason for his continued pursuit of Greenland, which is a semi-autonomous part of the Kingdom of Denmark. “The UK giving away extremely important land is an act of GREAT STUPIDITY, and is another in a very long line of National Security reasons why Greenland has to be acquired.” Situation has potential to cause a ‘spiral of destabilising actions that could have dire consequences’, says Simon Harris Tánaiste Simon Harris has said it is important that “intensive diplomatic efforts” happen to try and de-escalate an “extraordinarily dangerous economic situation”. Speaking on his way into the Economic and Financial Affairs Council in Brussels on Tuesday, the finance minister said when it comes to the EU-US relationship, “there is not an hour to spare”. “It’s absolutely important that intensive diplomatic efforts are put under way to try and de-escalate an extraordinarily dangerous economic situation,” he said. “We all know that tariffs are bad for the Irish economy. They’re bad for the European economy. They’re bad for the US economy as well. But this is now deeper than that, also. “This has the potential to cause a spiral of destabilising actions that could have dire consequences. “So cool heads must prevail, and there is not a moment to lose and the next number of days will be crucial as Europe works to try and stabilise this situation and find a way forward. “Because we are always stronger the EU and the US when we co-operate, when we collaborate.” US president Donald Trump posted this on his Truth Social social media page earlier this morning. Macron invites Trump to Paris for talks, texts show French president Emmanuel Macron is seeking to arrange an emergency G7 meeting in Paris, involving Trump, a private message between the two leaders shows, Europe correspondent Jack Power writes. In a text message to Mr Trump, Mr Macron said: “I do not understand what you are doing on Greenland”. Mr Macron offered to arrange a meeting of G7 powers, which includes the US, in Paris on Thursday, followed by a dinner between the French and US leaders. “Let us have a dinner together in Paris together on Thursday before you go back to the us,” he wrote. A screenshot of the full message was posted on Truth Social by Mr Trump this morning. A source in the Élysée confirmed to The Irish Times that the text was genuine. “We are totally in line on Syria. We can do great things on Iran. I do not understand what you are doing on Greenland. Let us try to build great things,” it said. Mr Macron proposed inviting the Ukrainians, Danish, new Syrian government, and Russia to Paris for the talks on the margins of the proposed meeting. The texts give a glimpse into European leaders’ efforts to engage Mr Trump, in a bid to encourage him to walk back his demands to buy or seize Greenland and hit European allies with more trade tariffs. The Maga faith has not been shaken through what has been a disorienting year, Washington correspondent Keith Duggan writes. Trump has, at 79, transformed the White House into a volatile and unknowable force of change and whimsy. Read his full piece here. European leaders are hoping to prevent a trade war breaking out with the United States over Greenland, but are preparing contingency plans to push back on Donald Trump’s “blackmail” attempts, should high-stakes attempts to defuse tensions this week fail. Efforts to engage the White House are being stepped up and several EU leaders are expected to discuss the crisis in transatlantic relations with Mr Trump in Davos this week on the margins of the World Economic Forum. It is understood top officials close to European Commission president Ursula von der Leyen have been in contact with senior figures in the Trump administration, including Jared Kushner, to sound out the US president’s intentions. Read our lead story this morning here. Fianna Fáil MEP Barry Cowen has said Donald Trump, JD Vance and “radical” elements of their administration “do not speak for the American people”, Europe correspondent Jack Power writes. In a speech to the European Parliament last night, the former agriculture minister said the US was breaking away from an international order it had helped to build and defend for decades. “I can’t help but wonder, where are the voices in the US Congress who not so long ago stood for partnership and international law? Their silence is being heard across Europe,” he told MEPs. “All in all, this is not simply a trade dispute. It is a test. A test of whether law still matters, whether alliances still matter and whether Europe is prepared to defend them,” he said. Good morning. US president Donald Trump has said he will impose a 200 per cent tariff on French wines and champagnes, a move he claimed would push French president Emmanuel Macron to join Trump’s Board of Peace initiative aimed at resolving global conflicts. When asked by a reporter about Mr Macron saying he will not join the board, Trump said: “Did he say that? Well, nobody wants him because he will be out of office very soon. “I’ll put a 200 per cent tariff on his wines and champagnes, and he’ll join, but he doesn’t have to join,” Mr Trump said. Mr Trump ⁠originally proposed establishing the board of peace when he announced last September his plan to ⁠end the war in Gaza. However an invitation sent to world leaders last week outlines a broad role ending conflicts ⁠globally. Mr Trump has also said that he thought European leaders would not “push back too much” on his attempt to buy Greenland. “I don’t think they’re gonna push back too much. We have to have it. They have to have this done,” he told reporters on Monday. The ⁠US president has said that he had a “very good” telephone call with Nato secretary general Mark Rutte concerning Greenland. Mr Trump also said he had agreed to a meeting of various parties at the World Economic Forum in Davos, Switzerland. Follow irishtimes.com for updates throughout the day.