The Greenland debacle highlights why Europe needs to become “more self-reliant”, Taoiseach Micheál Martin has said.

He also confirmed that Ireland had been invited to join US president Donald Trump’s proposed Board of Peace for Gaza but said no decision had yet been made.

Speaking at the World Economic Forum (WEF) in Davos, the Taoiseach welcomed the emergence of a framework deal to resolve the Greenland dispute after what he described as a “very difficult week” for EU-US relations.

Trump’s Greenland climbdown brings relief but way forward unclearOpens in new window ]

Mr Trump dropped his threat late on Wednesday to impose tariffs on European countries opposed to his bid to take control of the Arctic island, a dramatic reversal in a dispute that has pushed transatlantic relations to their lowest point in decades.

Mr Martin, however, played down concerns that the controversy had caused a permanent rupture in EU-US relations while insisting Europe needed to develop greater strategic independence.

“I think it’s fair to say Europe needs to develop a stronger self-reliance across the board,” he said.

“There is a need now to deal with these issues in a proper way. I think we need to dial down language and rhetoric. We need to de-escalate it. We need to focus on Ukraine … that is the pressing issue.” he said.

Old order ‘not coming back’ as Trump overshadows World Economic Forum

“It’s absolutely important that the relationship between Europe and the US is a strong one in the interests of Ukraine and in the interests of a sustainable and fair peace,” he said.

The Taoiseach flew into Davos last night where he delivered the keynote address at an IDA-hosted dinner for Irish investors.

He confirmed that Ireland had been invited to join Mr Trump’s controversial Board of Peace for Gaza.

“At this stage we’re examining that, we welcome the moves in terms of phase two of the Gaza peace process … we would like to see a dramatic escalation in terms of humanitarian aid into Gaza,” he said.

The board, which gives the US president wide decision-making powers as chairman, is being touted by Washington as a new organisation for resolving conflicts.

But concerns have been raised about Russian leader Vladimir Putin and Israeli prime minister Binyamin Netanyahu‘s possible participation.

While in Davos, Mr Martin is due to hold several bilateral meetings with executives from Apple, Meta, Microsoft and AstraZeneca, companies with big operations in Ireland, before contributing to a panel discussion on the future of the European economy.

The Taoiseach said he had received positive feedback from companies “in terms of the resilience of the Irish economy and the attractiveness of Ireland still as a location for investment”.

In the wake of the European Parliament’s decision to refer the EU’s landmark trade deal with Mercosur to the courts, Mr Martin said the move reflected “a deep concern in terms of agricultural products, beef products in particular, across Europe”.

However, he insisted the EU’s trade deals had been beneficial in the context of the current “protectionist trend and increased tariffs from others”.

Mr Martin acknowledged there were “serious concerns” regarding the environmental aspects of these trade deals.

“That said, diversifying trade is important – others are doing it as well to avoid over-dependence on any one market,” he said.

Mr Martin will later fly to Brussels for an emergency summit of EU leaders, originally organised to discuss a response to Mr Trump’s threats to seize Greenland.