European Commission announces €200 million investment deal for Greenland

The European Union has announced a €200 million investment agreement for Greenland, strengthening its ties with the autonomous Danish territory as U.S. President Donald Trump pursues annexation ambitions there.

European Commission President Ursula von der Leyen announced the deal in Nuuk on Monday. The investment, planned for 2026 and 2027, will focus on digital connectivity, raw materials, sustainable energy, education and research, and tourism.

The EU will support a programme to modernise and decarbonise energy supplies in remote settlements across Greenland. The island has about 56,000 inhabitants and covers 2.1 million square kilometres, 80% of which is permanently covered by ice.

The agreement also refers to two EU-backed raw-materials projects, involving graphite and molybdenum. Von der Leyen said the molybdenum project could generate up to €90 million in annual added value.

“The EU stands in full solidarity with the Kingdom of Denmark and the people of Greenland. And we will continue to do so. We want to be very clear again here: Greenland’s future must be decided by the people of Greenland and Denmark. No one else,” von der Leyen said.

“

The EU stands in full solidarity with the Kingdom of Denmark and the people of Greenland. And we will continue to do so. We want to be very clear again here: Greenland’s future must be decided by the people of Greenland and Denmark. No one else.

She added that territorial integrity, sovereignty and the inviolability of borders are fundamental principles of international law. The EU, she said, has a direct interest in developments in the Arctic.

The Commission has proposed doubling EU aid for Greenland in the bloc’s next budget, covering 2028 to 2034, to €530 million. Brussels will also present a new EU Arctic strategy this autumn.

“Greenland needs the European Union and the European Union needs Greenland,” Greenlandic premier Jens-Frederik Nielsen said, thanking Brussels for its support in “difficult times.” Danish Prime Minister Mette Frederiksen said Denmark wanted deeper security and defence cooperation with the United States, while also working more closely with its European allies.

During von der Leyen’s visit, the parties signed a declaration updating a 2015 agreement and reinforcing investment, political dialogue and people-to-people exchanges. Greenland left the European Economic Community in 1985, three years after its residents voted to do so.

“

Greenland needs the European Union and the European Union needs Greenland.