EU Plans Major Investment Package for Greenland

The European Union plans to expand its investments in Greenland as the Arctic island's strategic importance grows and tensions continue over U.S. President Donald Trump's demands for control of the territory.

European Commission President Ursula von der Leyen is expected to announce the increase during a visit to Greenland. The plans will cover critical minerals, satellite communications and renewable energy, according to EU sources. She said in the capital Nuuk on Sunday that the financial package would be substantial.

Greenlandic Prime Minister Jens-Frederik Nielsen said his country wanted to build on its close friendship and partnership with the EU. Von der Leyen arrived in Greenland for a two-day visit to demonstrate support for the governments of Greenland and Denmark.

The visit highlights the Arctic's growing geopolitical importance. Melting ice and new shipping routes are making the region's mineral resources more accessible. Trump triggered a NATO crisis this year by demanding U.S. control of the world's largest island, arguing that NATO member Denmark could not defend it. Copenhagen and Nuuk firmly rejected those demands, but Trump repeated his claim in July at a NATO summit in Turkey.

Greenland left the EU in 1985, but the bloc has long provided funding, mainly for fishing rights and education. The new package will represent not only a substantial increase in funds, EU officials said, but also a broader range of sectors eligible for EU support.

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The financial package will be substantial.