EU chief unveils $232M Greenland package as tensions heighten with Trump claims

European Commission President Ursula von der Leyen is offering Greenland a new investment package worth more than $230 million

BRUSSELS -- European Commission President Ursula von der Leyen unveiled on Monday a 200-million-euro ($232 million) investment package for Greenland , as the European Union seeks to boost its relations with the vast island.

“Greenland can count on the EU,” von der Leyen said, after signing an EU-Greenland declaration with Prime Minister Jens-Frederik Nielsen and Danish Prime Minister Mette Frederiksen. Greenland is a semiautonomous territory of NATO ally Denmark.

The EU has increased its focus on Greenland since U.S. President Donald Trump began insisting that the United States should take control of the island for security reasons.

Von der Leyen said the investment partnership “will create new opportunities and a strong and engaged EU in both Greenland and the Arctic, because Greenland is a strategic ally and a trusted friend.”

It aims to help Greenland improve education and fisheries, internet connectivity, hydropower systems, and the use of critical raw minerals. Funds are also earmarked for better housing, support to small businesses and sustainable tourism.

Trump’s persistent claims on the island raised sovereignty concerns and pushback from Greenlandic and Danish leaders and heightened tensions among NATO allies.

Denmark and seven of its European allies sent a small group of military personnel to the island in January, publicly for military exercises focused on strengthening Arctic security, but with the intention of showing support for Greenland’s sovereignty.

In response, Trump threatened to slap new tariffs on them all: Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom.

“Tariff threats undermine trans-Atlantic relations and risk a dangerous downward spiral,” they said in a statement. “We are committed to upholding our sovereignty.”

Trump eventually backed down after NATO agreed to a security deal in the Arctic region.

Von der Leyen’s visit came as 11 NATO countries began military exercises in Greenland on Monday involving around 400 military personnel, including special forces troops trained to operate in Arctic conditions from Canada, Denmark and Finland.

No U.S. troops are taking part in the Arctic Shield drills, which run Sept. 7-18.

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