The founder and executive chairman of the World Economic Forum, Klaus Schwab, said last night that President George W. Bush’s efforts this week to “mend relationships” between America and Europe were timely and that they would be productive.

“The current U.S. initiative to mend fences with Europe is a necessity,” Professor Schwab told The New York Sun. “Both America and Europe have a common interest in creating a stable, and hopefully democratic, situation in Iraq.”

Speaking in advance of receiving the prestigious Transatlantic Bridge Award at the Pierre Hotel from the Friends of Freie Universitat Berlin (FFUB), the German-born Mr. Schwab said: “I would say I am very appreciative of the outreach by President Bush. The main problem, I think, was that Europe had an image of him as a unilateralist – as someone who would not listen. But he has made it very clear that we have common interest. I hope that the action that will follow will match the words. Indeed, I am convinced this would be the case.”

He added that both America and Europe also had a “common interest in avoiding the spread of weapons of mass destruction through Iran’s nuclear ambition.”

And, Professor Schwab said, both countries had a “common interest in ensuring that Russia pursues a path that leads to more democracy.”

Professor Schwab’s pronouncements on global issues are usually monitored carefully by the international political and financial communities, particularly because the World Economic Forum – which he founded in Geneva in 1971 – annually hosts a gathering in Davos, Switzerland, which attracts top decision-makers in government, diplomacy, business, finance, the press and broadcasting, academe and the sciences. In effect, the global agenda for the year is established at Davos, and Professor Schwab is influential in shaping it through his initiatives and often subtle moves that typically get antagonists – such as the Israelis and Palestinians – together in an informal setting to discuss their differences.

He told a black-tie audience of 300 corporate, diplomatic and New York community leaders last night that decision-makers in science, politics and culture needed to discuss problems in gatherings such as the ones sponsored by the Forum. He quoted United Nations Secretary General Kofi Annan who characterized the Forum as a “place where full-dress debates and more intimate discussions can take place with the same ease.”

At last night’s award ceremony, FFUB announced that it was launching the Kofi Annan International Fellowship in Global Governance. According to both Deiter Lenzer, head of the Free University of Berlin – which was founded in 1948 – and Helene Sostarich-Barsamian, head of FFUB, the fellowship will advance the principles Professor Schwab has spent his life promoting. Its recipients will address “topics related to corporate responsibility and transparency within the public and private sectors,” Ms. Sostarich-Barsamian said. Mr. Lenzer added that the fellowship – which will involve the cooperation of many American and international companies – will help “in developing the capacities of future leaders to contribute to better global governance.”

At the ceremony, John Costas, chairman and CEO of UBS Investment Bank, said of Professor Schwab: “He has worked tirelessly to promote international economic growth, social progress and stronger ties among the world’s decision-makers. Through his efforts to build consensus for an enlightened global agenda, he has touched the lives of countless people around the world. His commitment knows no borders and makes him eminently qualified for this distinguished award.”

Corporate sponsors of the Transatlantic Bridge Award include UBS, BASF, Bloomberg Financial, Credit Suisse First Boston, Deutsche Bank, The Dilenschneider Group, Lehman Brothers, Mutual of America, Montblanc, Novartis, Schering Berlin and Zurich Financial.

Professor Schwab told the Sun: “The word ‘free’ has always resonated well with me, ever since I was a young child growing up in postwar Germany.”

“That is why this award from FFUB means so much to me – FFUB’s twin pillars of political and academic pillars are tied to the objectives of the World Economic Forum, and both institutions offer a framework for free interaction to shape the global agenda,” he said.

“This framework,” Professor Schwab said, “is characterized by values like free market economics and freedom of expression. These values must be cherished and strengthened.”