Denmark has announced plans to inject 1.6 billion Danish crowns ($253 million) into Greenland between 2026 and 2029. The four-year package will focus on healthcare and infrastructure at a time when the Arctic is becoming an arena of international competition.
Greenland is part of the Danish kingdom but manages many of its own affairs. Defence and foreign policy remain under Copenhagen’s control, and the fresh investment is being presented as a gesture of support for the island’s 57,000 people.
Ports, airstrips, and hospital care
Part of the money will be directed to new transport links, including an airstrip for the isolated settlement of Ittoqqortoormiit in the east and a harbour project at Qaqortoq in the south.
The deal also changes how medical costs are handled. From now on, Denmark will pick up the bill when Greenlandic patients need treatment at Danish hospitals, an expense that until now had fallen on Greenland’s budget.
“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.
Economic strain shapes policy
The Greenlandic economy relies heavily on fishing, but lower prices and dwindling stocks of shrimp and halibut have put pressure on exports. After years of record catches, the slowdown has been sharp. Added to that are the challenges of an ageing population and a dependence on state-owned companies.
March’s election brought in a business-friendly government that has promised reforms. While independence remains a long-term goal, the leadership has made clear that Denmark is seen as a key partner on that path.
Security concerns in the Arctic
Greenland’s resources and location have drawn global attention. US President Donald Trump has openly said he wants America to take control of the island, which holds reserves of oil, natural gas and minerals needed for modern technologies.
In response to concerns about defence, Denmark is holding a major military exercise in Greenland this week. The drill follows criticism from US Vice President J.D. Vance, who claimed Denmark was failing to do enough to safeguard the territory.
