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Europe Today: Global gathering in Dubai on AI, trade and geopolitics
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Tune in to Euronews' new flagship morning programme, Europe Today, at 8 am Brussels time. In just 20 minutes, we bring you up to speed on the biggest news of the day.
READ MORE : http://www.euronews.com/2026/02/03/europe-today-european-leaders-gather-in-dubai-to-discuss-trade-ai-and-geopolitics
Subscribe to our channel. Euronews is available on Dailymotion in 12 languages
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NewsTranscript
00:00Good morning, it is Tuesday the 3rd of February. I'm Maeve McMahan and this is Europe Today.
00:21Your daily fix of European news and analysis live here on Euronews.
00:27Coming up, it is coined the Davos of the Middle East.
00:31European leaders and business representatives have flocked to Dubai to discuss trade, AI, geopolitics and more.
00:40Some 150 governments are there alongside 500 ministers, all meeting to consider how governments can adapt and innovate in a changing world.
00:50Euronews's EU News Editor, Maria Tadeo, is also in Dubai for the occasion and sent us this update.
00:55Good morning, indeed. Europe Today on the road, this time from Dubai, where the world government's summit,
01:02where heads of states, ministers and the private sector will come together to discuss geopolitics, but also trade.
01:08At a key moment also for this region, I should note two big topics on the agenda.
01:13One is Iran. There are expectations that talks will take place between a U.S. delegation and Iranian authorities as soon as this week,
01:22potentially restarting talks over a nuclear framework.
01:26Remember, President Trump has always said Iran will not have a nuclear weapon and will never be allowed to have a nuclear weapon.
01:33The question in this region, in the UAE, but also the Gulf, is whether or not there can be a diplomatic solution to the tensions that we've seen really kick up
01:43because of the protests from the Iranian regime on protesters on the streets of the country
01:49and whether a war, a regional war, can be averted if indeed the U.S. were to use a military strike and military action in the country.
01:58That is certainly the big topic permeate in this conference, but as I mentioned, the broad region in the Middle East.
02:04The other big point, and now connected to the UAE, is Ukraine.
02:08Because yesterday, the Ukrainian President Volodymyr Zelensky confirmed that a Ukrainian delegation and a Russian delegation
02:15will meet in Abu Dhabi to continue talks over whether or not there's a path to end the war.
02:20This in a very difficult winter for the Ukrainian people.
02:23The temperatures have dropped below 20 degrees.
02:26The energy infrastructure has been severely damaged.
02:29And you have a country that is quite literally freezing.
02:32On that note, very interesting comments from the German Chancellor yesterday,
02:36saying that it would be a mistake for the Europeans to re-engage in talks with the Russians
02:41because Vladimir Putin has not changed, quote, his maximalist demands and goals when it comes to Ukraine.
02:49That is for the politics.
02:50But as I mentioned, trade is also very present.
02:53This is a region, but also the broader trade picture in 2025 that was shaken by the Liberation Day tariffs from President Trump.
03:01Countries are having to adjust.
03:03That also goes for the European Union.
03:05Remember, the EU, since the start of the year, has signed two major deals, the Mercosur and India.
03:11The question is whether this momentum to create regional trade can continue in an environment that is very complex and difficult when it comes to the geopolitics.
03:20On that note, I spoke with the head of the OECD, Matthias Korman, who told me despite this very difficult backdrop,
03:27despite the conflict and the geopolitics right now, trade remains a force for good.
03:32We've had many interviews over the years, but there's one thing you like to repeat, and that is that you believe you're firmly convinced that trade is a force for good.
03:42Is that still the case?
03:44Well, 100 percent.
03:45I mean, the expansion of global trade has been unequivocally positive for the global economy and for people all around the world.
03:53It has helped lift hundreds of millions of people out of poverty.
03:57Of course, I mean, global trade and the global competition that comes with it helps to bring the prices down,
04:03helps to increase choices for consumers.
04:04It helps to drive, increase the incomes and opportunities for businesses,
04:08and hence drive stronger growth and higher incomes and living standards.
04:12But it is also true that, you know, we always need to think about whether the global markets are functioning,
04:19whether the global rules by striding system is in good working order.
04:22And some issues have been appropriately identified that need addressing,
04:28but what we would say is we need to address them in a way that helps preserve the economic benefits of open markets and rules by stride.
04:36So I wonder, when you look at the EU at this point, what analysis do you make?
04:40We've had a very narrative of a declining continent that's almost fallen behind in every possible innovation.
04:47Others suggest there's too much doom and gloom.
04:49How do you see it?
04:50Well, the way I see it, first and foremost, is that Europe and the European Union as a project is an unequivocal success story.
04:58I mean, when you look at the history of Europe as a continent, I mean, by any measure,
05:02the last ideas have been a great success in terms of stability, in terms of peace, in terms of prosperity.
05:09I mean, yes, of course, there are challenges.
05:10There are things that need to be improved.
05:12There are things that Europe needs to reconsider in terms of the approach moving forward.
05:16And that would be what?
05:17What do they need to do?
05:18I mean, I think, you know, I think the conversation that is happening in Europe around making sure that Europe remains internationally competitive,
05:24making sure that Europe is positioned in the best possible way in the geopolitical context as it is evolving.
05:29I mean, these are all during conversations, but it's always important not to forget, in thinking about what needs to be improved,
05:35not to forget everything that's been achieved.
05:37I mean, you look at when I grew up in Belgium, you know, in the 70s and 80s,
05:42I wouldn't have been able to just travel to Poland or Hungary or Czechoslovakia as it was then.
05:48Now, I mean, all of these countries are successful, thriving, market-biased economies, part of the European project.
05:55I mean, like, Europe today is in a much better place than it has been.
06:01But yes, of course, Europe is facing challenges, and Europe needs to continue to think about how best to meet the challenges
06:06and how best to pursue the opportunities.
06:08So is there an element to perhaps self-confidence and pride that is lacking for Europeans and they need to regain in a way?
06:15No, I wouldn't make such a blanket statement.
06:17I mean, I think, I mean, Europe fundamentally is a great place to live.
06:22It's overwhelmingly a successful continent.
06:26And I think we need to put things into perspective.
06:28Yes, I mean, there are particular challenges.
06:30There are particular challenges at this time, but there are challenges that are longstanding
06:33and that are not just unique to Europe, but there are other challenges perhaps where Europe needs to think
06:38about how to position itself in the best possible way in the evolving circumstances.
06:42But this is, it will always be thus, but there will always be evolving circumstances to which we need to adapt
06:49and to which we need to position ourselves in the best possible way.
06:52And when you look at the deals that were cut with both India, but also the Mercosur,
06:56is that something that you go, that is going in the right step?
06:59The appetite to talk to each other, the appetite to enter into agreements in the last couple of,
07:05in the last period has actually increased, if anything.
07:09And then that's also a good thing.
07:10There is, of course, Mario Draghi has come up again with this call to say the European Union
07:16needs to move from a sort of confederation that's not really working to a federation.
07:21He's also said we need to see radical changes, otherwise it's going to be a slow agony.
07:25Is that a message that you can rally behind?
07:27And do you understand where he's coming from?
07:29Well, look, I mean, Mario Draghi is an exceptional leader, policy thinker,
07:34and I think that everybody would be well advised to listen very carefully.
07:38So you say listen to his message?
07:40It's not really for me to give advice to the European Union on this point.
07:44But when I think that Mario Draghi is somebody that everybody would be very well advised to listen to very carefully.
07:49So what do you expect to see this year now from a global OECD perspective beyond Europe and the United States?
07:54What is the outlook that you're hoping to achieve?
07:56Look, we will have a ministerial council meeting later this year, as we do every year in June.
08:01This year we will be focusing on the interaction between industrial policy and trade policy.
08:06How can we ensure that industrial policy is well designed, well targeted, non-market distorting,
08:12and helps to achieve policy objectives in a way that doesn't detract from the future expansion of global trade?
08:19Really seeking to support countries around the world to manage structural transformations in relation to digital and green transition,
08:28the energy transition, but also really to position themselves in the most competitive, successful way for the future.
08:34And it's not an OECD member, but since you talk about market distortions, is China your biggest worry?
08:38We deal with the global economy, and China is a big factor in the global economy.
08:45You're obviously nearly 20% of global economic activity.
08:49And there are, again, there are challenges and opportunities.
08:52Some talk about a big China shock.
08:54There are areas where we're concerned about market distorting practices, about excessive levels of market distorting subsidies,
09:01about, you know, and I mean, these are conversations that we need to continue to have.
09:05And it's certainly from our point of view that we would prefer if there was stronger alignment with, you know,
09:11market-based practices like those promoted by the OECD.
09:17Here in News' EU editor there, Maria Tadeo, speaking with Matthias Cormann,
09:21the Secretary-General of the OECD, who spoke very highly of Mario Draghi.
09:26Well, speaking of Mario Draghi, the former ECB chief took centre stage at the University of Leuven yesterday,
09:32where he had a very, very stark message for Europeans.
09:36Our Stefan Kobe was listening to that speech and is joining me now in the studio here for a debrief of the speech.
09:42Stefan, what else did Mario Draghi have to say?
09:44Yeah, good morning, Maeve.
09:45Well, it was Super Mario at his best.
09:48Remember, this was the guy in 2012, when he was president of the European Central Bank,
09:52single-handedly defended the euro, saved the euro by saying the ECB will do everything,
10:00whatever it takes to preserve the euro.
10:03And that basically put an end to the financial crisis because the bond markets,
10:08the financial markets reacted and felt a relief.
10:11Then in 2024, he published the Draghi, the now famous Draghi report,
10:16400 pages, almost 400 policy recommendations aimed at reversing the trend of a declining Europe
10:24and closing the competitiveness gap with China and the US.
10:29Now, yesterday in Leuven, he even went further.
10:32He made political recommendations that everybody should listen to.
10:35Take a listen right now.
10:36Europeans alone have the option to become a genuine power themselves.
10:45So we must decide.
10:48Do we remain merely a large market subject to the priorities of others?
10:54Or do we take the steps necessary to become one power?
10:59Grouping together small countries doesn't automatically produce a powerful bloc.
11:05This is a future in which Europe risks becoming subordinated, divided and de-industrialized at once.
11:16And a Europe that cannot defend its interests will not preserve its values for long.
11:24Mario Draghi there with a bit of a cold shower this morning, Stefan, for EU leaders.
11:28And this speech is well coming at a very difficult time for the EU,
11:31just when the transatlantic bond is at a historic low.
11:34Yeah, absolutely.
11:35I mean, Mario Draghi has a tendency of being very parsimonious when it comes to public statements.
11:41But whenever there is a public statement, it comes with a big bang.
11:45And yesterday's speech was addressed to the audience at Leuven University.
11:50But in reality, he was addressing the chancelleries across Europe.
11:55Because it so happens that next week, there's going to be an extraordinary EU summit,
11:58to which Mario Draghi is invited.
12:01And he will tell the leaders what they need to do.
12:04They need to act.
12:04They need to act to get their act together.
12:06Otherwise, we'll be the lunch of an assertive China and an increasingly aggressive United States under Donald Trump.
12:13So, Mario Draghi, once again, has become the oracle of Europe, the elder statesman of Europe,
12:20the one that everybody is listening to.
12:23And I'm very, very thrilled to see him next week.
12:29And let's see what comes out of it.
12:31Indeed, you mentioned that.
12:32Leaders, so much.
12:33It'll be a retreat, in fact, taking place on the 12th of February.
12:36So, we'll keep a very close eye on that, Stefan Kobe.
12:38Thank you so much for that update.
12:40But now, moving on.
12:41France is making the headlines this morning for having finally finalised its budget for 2026.
12:48After months of political deadlock,
12:50Prime Minister Sébastien Le Corneau had to use his constitutional provision to force it through
12:54and managed to survive not one, but two no-confidence votes to do so.
13:00The budget includes big plans for military spending in France.
13:03For more, we can head over to Paris and bring in our correspondent, Sophia Kaskinkova.
13:07Good morning, Sophia.
13:09So, this vote brings an end to months of political deadlock in France.
13:13Just give us the context here.
13:17Yes, good morning, Maeve, from rainy Paris.
13:21So, as you said, after a long and often bitter standoff in a deeply divided parliament,
13:27just where I am standing, the government,
13:30I finally secured the adoption of the long overdue 2026 budget on Monday evening.
13:38Prime Minister Sébastien Le Corneau chose to bypass a vote by MPs
13:42by invoking Article 49.3, which is a constitutional tool that lets him do this.
13:49And this opens the floor up to two no-confidence motions,
13:55one from the far right and another one tabled by the left, excluding the moderate socialists.
14:02And so, Le Corneau survived both last night, allowing the budget to pass.
14:07And so, the budget itself aims to reduce the ballooning public deficit of Europe's second largest economy
14:16to 5% of GDP this year, from 5.4% of GDP last year.
14:22Shortly after the vote, Prime Minister Sébastien Le Corneau welcomed this outcome on social media.
14:29He tweeted, and I quote,
14:31And he also added that he will be referring the text to the Constitutional Council in the next few days
14:56to make sure that it fully complies with the country's constitution.
14:59Back to you, Brussels.
15:01So, Sophia, what does this all mean now for France?
15:03And, of course, the EU, because this has been watched very carefully from Brussels.
15:10So, for France, this brings some immediate relief, but that doesn't mean a long-term stability, Maeve.
15:16The country, yes, now has a budget giving clarity for markets and public services,
15:22But the way it was passed just shows how fragile the political system in France has become.
15:31As a reminder, Le Corneau is now the fourth prime minister in just two years for French President Emmanuel Macron.
15:39And he has survived not just two no-confidence votes last night,
15:43But in total, eight no-confidence votes from both the left and the far right in these past few weeks.
15:51And to stay in office this time, he had to make a lot of concessions,
15:55especially for the socialists,
15:57most notably suspending President Emmanuel Macron's unpopular pension reform plan
16:04that would have raised the retirement age from 62 to 64 years old.
16:08And, as you said, for the EU, the stakes are really high.
16:12France has been under growing pressure from Brussels and credit rating agencies to control its debt.
16:19So, passing this budget signals that Paris can deliver some sort of fiscal discipline,
16:25but it also raises questions about how sustainable that discipline will be
16:30as France heads towards another crucial electoral cycle,
16:34which are the presidential elections in just one year.
16:37Indeed, we'll be gripped to France.
16:40Sofia Kacinkova, and you'll, of course, be reporting it all for us here on Euronews.
16:44Thank you so much for that live update on a story that we've been, quite frankly, been watching for weeks.
16:49And here's another.
16:50The value of gold took a nosedive last week.
16:53And silver, too, while prices tumbled.
16:56Europeans keep buying, though, and in huge quantities, as our Jakob Janis reports.
17:00Have you seen this shiny metal recently?
17:06After hitting a record high, gold plummeted, losing over 15% of its value.
17:13And silver went even worse, crushing over 30%.
17:17Ouch!
17:18So what caused the crash?
17:20Markets are reacting to Trump's latest nomination for the Federal Reserve,
17:25sparking fears that interest rates might stay higher for longer.
17:29But despite this crash, Europe is still hoarding gold.
17:34But why?
17:35Let's start with central banks.
17:38They buy gold to reduce reliance on the US dollar and to stabilize national economies.
17:43And they buy a lot.
17:45Take Portugal as an example.
17:47They hold almost 400 tons, which historically is a legacy of selling raw materials to Nazi Germany in exchange for gold.
17:57Then there is Poland.
17:59With Russia's war in Ukraine, they've been on a buying spree, now holding 550 tons.
18:06That is already more than the European Central Bank itself.
18:10And finally, Germany.
18:12They own over 3,000 tons, but with a big number of it sitting in New York.
18:18And with Trump backing power, German politicians are demanding, bring our gold home.
18:24And that's Europe.
18:26But what about Europeans?
18:28Gold is seen as a shield protecting your savings when the value of paper money becomes worth less over time.
18:35Do you remember when your espresso cost you 1 euro?
18:38Good luck buying one now for this price in Brussels.
18:42But as we've seen in the recent days, it doesn't always have the midas touch to your portfolio.
18:48So why does your reporter buy gold?
18:51Because even if its price falls down, I still have something shiny to play with, as opposed to crypto.
19:29Thanks so much for your company.
19:31Take care and see you soon on Euronews.
19:33Take care and see you soon on Euronews.
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