A new wave of EU money is heading to Greenland, as Brussels moves to deepen its Arctic footprint with a €200 million package and a promise to more than double existing support over the next decade.
The investment plan comes in the wake of a diplomatic confrontation earlier this year between the EU and the Trump administration, when US President Donald Trump threatened to seize the island by force.
EU officials said the funding sits within an updated Joint Partnership between Greenland and the European Union, unveiled by the European Commission alongside Denmark and the Greenlandic government.
In Nuuk, European Commission President Ursula von der Leyen cast the announcement as both strategic and personal, telling the audience: “Greenland is Europe’s trusted friend, strategic ally and a valued member of our wider European family.
“The declaration reflects Greenland’s choice to strengthen its ties with the European Union, and Europe’s choice to be more present, more engaged and more invested in Greenland and the Arctic. We share a future together. And it starts today.”
Under current budget plans, EU backing for Greenland totals €225m since 2021, with about 90% directed to education.
The Commission has put forward plans to increase that to €530 million over the next seven-year budget cycle, covering 2028-2034.
The newly announced €200m will be paid out this year and next, an amount the EU says would equate to roughly 8% of Greenland’s GDP.
Greenland, an autonomous part of the Kingdom of Denmark, also receives a yearly Danish subvention of €123m.
Pressed on how President Trump might respond to the latest EU move, Danish Prime Minister Mette Frederiksen told reporters: “The Kingdom of Finland is a sovereign state, and we are a member of the European Union, and we are a member of NATO.
“We have been under pressure, and it has been very clear, and we are very thankful for the great support we have received from our European partners, but by the way, also global. “
European Commission President Ursula von der Leyen (R) is welcomed by Greenland’s Prime Minister Jens-Frederik Nielsen (C) and Denmark’s Prime Minister Mette Frederiksen
She added: “The most important thing about this is that we will aim to show people that politics can make a difference. We know that we work more slowly than others, but in people’s concrete life, there will now be a positive change.”
“We would like to work closely together with the U.S. on security and defense, but we of course would also like to work even closer together with our European allies.”
EU officials said the extra funding announced today will prioritise satellite and cable connectivity, designed to expand internet access into northern and eastern areas of the vast island.
Support is also slated for hydropower, critical raw materials, tourism, housing, and small and medium sized businesses.
Greenland is believed to contain 25 of the 34 critical raw materials considered necessary for the global economy, with particular importance for the tech sector.
The updated Joint Partnership was formally presented in Nuuk during a signing ceremony attended by von der Leyen, Ms Frederiksen and Greenlandic Prime Minister Jens-Frederik Nielsen.
At a news conference, Mr Nielsen recalled the framework that has guided ties for a decade, saying: “Back in 2015, we signed a joint declaration on our overall partnership, providing an umbrella framework for our relations, defining our financial cooperation and including areas of mutual interest for cooperation and data, such as active manners, natural resources, and environment.
“Looking back on the past 10 years, the world has, however, changed drastically. We face new challenges that we cannot tackle alone. Luckily, there are also new opportunities.
“To tackle both challenges and opportunities requires expertise, investments, dialog, and increased collaboration.”
