The race to lead Germany is diverting through Switzerland, with a campaigning push in Davos set to showcase competing visions for how to revive Europe’s biggest economy.

Paris and Berlin are currently at odds on several files including trade agreements and what approach to take on China.

Carlos Cuerpo, Spain’s economy minister, told the Financial Times he had come to Davos to counter the view that Europe was moribund, touting his country’s own stellar record, after it outpaced US performance last year with estimated growth of 3.1 per cent and record job creation.

U.S. Secretary of State Marco Rubio spoke with Israeli Prime Minister Benjamin Netanyahu on Wednesday to reiterate Washington's support for its ally, and the two also discussed Iran and Israeli hostages in Gaza, the State Department said.

Chancellor Olaf Scholz voiced cautious optimism on Tuesday on the potential for German-U.S. relations under President Donald Trump, citing good first talks with his administration, but stressed the importance of "cool heads" in the face of uncertainty.

Ukraine’s President Zelenskyy asked whether the US saw NATO as being necessary as he addressed the World Economic Forum in Davos. Leaders from China, Ukraine and Germany have taken the stage on day one.

President Donald Trump has given everyone at Davos something to talk about with his actions on the first day of his second term.

Europe’s generous welfare states are coming under increasing strain as weak economic growth collides with rising demands on government budgets, particularly from aging populations.

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

Mr Merz argued the need “to negotiate with the American side from a position of strength”. Read more at straitstimes.com.

Jörg Kukies, Germany's finance minister, discusses his country's economy and upcoming elections at the World Economic Forum in Davos.