Business News

Three reasons why the EU chief’s trip to Greenland is important as Trump moves forward


European Commission President Ursula von der Leyen attends a press conference on the day of the European Union leaders’ summit in Brussels, Belgium, October 23, 2025.

Yves Herman | Reuters

European Commission President Ursula von der Leyen will travel to the Greenland capital on Sunday, seeking to bolster support for the Arctic island amid repeated threats from US President Donald Trump.

The EU chief is expected to announce new funding for the autonomous Danish territory when she makes her second trip to Nuuk, accompanied by Danish Prime Minister Mette Frederiksen.

It comes shortly after Icelanders voted to reject restarting EU membership negotiations and as Trump renews his push to acquire Greenland on national security grounds.

Greenlandic Prime Minister Jens-Frederik Nielsen made a thinly veiled reference to Trump’s attempt to acquire the island ahead of von der Leyen’s visit.

“The EU has made clear its support for us in the geopolitical situation, while responding to our desire for an even greater partnership. I look forward to the coming days and sharing more about the importance of the Joint Declaration for Greenland,” Nielsen said in a statement shared with CNBC.

Analysts highlighted three key reasons for Von der Leyen’s visit to Greenland: Arctic security, economic and infrastructure investment, and broader cooperation in the North Atlantic and the broader Arctic theater.

The European Commission, the EU’s executive arm, did not respond to a request for comment from CNBC ahead of von der Leyen’s visit. A spokesman for Denmark’s Foreign Ministry declined to comment.

Security in the Arctic

The EU chief’s trip to Nuuk serves as a show of solidarity with both Greenland and Denmark at a time of heightened geopolitical tensions, according to Kristina Spohr, a professor in the Department of International History at the London School of Economics.

“We must never lose sight of what is happening with Russia and China. By this, I don’t just mean the sabotage activity and hybrid warfare that we see, and the focus has now been on Germany, but we actually again have question marks over the Russian trawlers around Svalbard,” Spohr told CNBC via video call.

“We also see that the Chinese and the Russians are conducting dual-use scientific actions in the Chukchi Sea, across the Bering Strait, further north. And, of course, the United States has said that they should not enter American national waters.”

These security concerns also extend to the so-called GIUK gap, Spohr said, referring to a strategic sea passage between Greenland, Iceland and the United Kingdom that links the Arctic to the Atlantic Ocean.

A sign reading “Greenland is not for sale!” Seen in Nuuk, Greenland, on January 20, 2026.

“So it’s very, very volatile… when actually one of our most important allies in the global scheme of things, the United States, is making life incredibly difficult, especially when it comes to Greenland and Denmark,” he added.

Trump has long advocated control of Greenland, a vast, sparsely populated and largely frozen island, but the US president’s fixation on the territory became a major transatlantic issue earlier this year.

Trump, who had refused to rule out using military force to annex Greenland, abruptly announced in late January, however, that he and NATO Secretary General Mark Rutte had formed a “framework for a future agreement” regarding the territory.

Since then, a working group of representatives from the United States, Denmark and Greenland has been meeting to discuss the path forward.

Local investment

The EU’s Greenland funding package for 2026 and 2027, which the Financial Times says could amount to €200 million ($232.4 million), could focus on areas such as critical minerals, renewable energy and undersea cables, among other priorities.

Von der Leyen had previously opened the European Commission office in Nuuk in March 2024, establishing a permanent European presence in the country. The EU chief also signed cooperation agreements worth close to €94 million at the time.

“There are several layers, but the one we should never forget is the Greenland-Denmark relationship,” Andreas Raspotnik, a senior researcher at the think tank The Arctic Institute, told CNBC by phone.

“The focus now is very clear: What can we actually do? We can invest, we can offer support on previously agreed issues such as infrastructure, investments in education and increase our presence there.”

Jozef Síkela, EU commissioner for international partnerships, recently highlighted some of the EU’s investments in Greenland during a meeting to discuss Arctic issues in Brussels.

“The EU has invested in education, fisheries and sustainable tourism in the Arctic for decades. €372 million in Arctic research through Horizon, €273 million through Interreg,” Síkela said on Tuesday at the EU Arctic Forum. “We are not newcomers here. But the current environment demands more,” he added.

‘Northern Quarter’

Von der Leyen’s visit to Greenland is also seen as an excellent opportunity for the EU to coordinate closely with regional leaders on issues such as defense and economic resilience, particularly given that the bloc is in the process of updating its Arctic policy.

“I think strategic thinking is changing in Brussels as they consider how they can even better include Greenland in, maybe they want to call it, the northern neighborhood,” Raspotnik said.

“I hear that term now too, you know, we have an eastern neighborhood, we have a southern neighborhood, but how can we define north? And by north, that means Iceland, that means Canada, and that means the United Kingdom,” he continued.

Head of Government of Greenland (Naalakkersuisut), Jens-Frederik Nielsen (L), and Prime Minister of Denmark, Mette Frederiksen, give a statement on the current situation at a press conference in the Hall of Mirrors of the Prime Minister’s Office in Copenhagen, Denmark, on January 13, 2026.

“How can we think more strategically about these partners, about those states that are outside the EU in the north?”

Greenland is scheduled to host a biannual national meeting on Monday with Denmark’s Frederiksen and Faroe Islands Prime Minister Beinir Johannesen.

“These times commit us to working closely. As if we were three people in the same boat, we must row together and ensure a common direction, as is the case in the current system,” said Nielsen.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button