Denmark on Tuesday announced plans to increase spending in Greenland, pledging DKK1.6 billion ($253 million) for healthcare and infrastructure investments between 2026 and 2029, as international interest in the Arctic island intensifies.
US President Donald Trump has said he wants to take control of Greenland, a semi-autonomous territory within the Kingdom of Denmark. The strategically-located island is rich in oil, natural gas, and many minerals needed for high-tech industries.
Denmark, which retains control over Greenland's security and foreign affairs, has responded with increased investments to improve strained relations with the territory's 57,000 residents.
The funds, which supplement Greenland’s annual block grant of around DKK4.3 billion, will include financing for a new landing strip in Ittoqqortoormiit in eastern Greenland and a deep-water port in Qaqortoq in the south.
Additionally, Denmark will now cover the costs for Greenlandic patients requiring treatment at Danish hospitals, a financial responsibility previously borne by Greenland.
The funding comes as Greenland faces economic challenges, including declining prices and stocks of key exports such as shrimp and halibut. The fisheries industry, which dominates Greenland’s economy, has slowed after record catches earlier this decade.
An ageing Greenlandic population and reliance on state-owned enterprises have compounded the economic difficulties. A business-friendly party that won Greenland’s March election has pledged to reform the economy and sees Denmark as a preferred partner on Greenland's path towards independence.
"This deal aims to support a self-sustaining Greenland with, among other things, long-term investments," Greenland's Prime Minister Jens-Frederik Nielsen said in a joint statement with Denmark's Mette Frederiksen.
Denmark this week is holding a large military drill in Greenland, following criticism from US Vice President J.D. Vance that Denmark is not doing enough to secure the territory.
(Reporting by Jacob Gronholt-Pedersen; Editing by Sharon Singleton)
