(Sept 7): The European Union (EU) is investing €200 million (US$232 million or RM940 million) in Greenland, part of the bloc’s campaign to tighten links to the island as President Donald Trump claims it should belong to the US.

European Commission President Ursula von der Leyen announced the funds during a two-day visit to the island’s capital, Nuuk, meant to show support for the semi-autonomous territory of EU member Denmark. The money will help develop critical minerals, renewable energy and satellite communications. 

“It reflects a clear choice expressed by Greenland to strengthen the ties with the European Union,” von der Leyen said at a press conference, speaking alongside Danish Prime Minister Mette Frederiksen and Greenlandic leader Jens-Frederik Nielsen. 

“It also shows a very strong interest of Europe having made a choice, too,” she added. “The choice to be more present and to be more engaged in Greenland and in the Arctic.”

Greenland has become an increasing geopolitical priority for Europe in recent years, as melting ice caps free up maritime routes and spur regional competition for influence. Trump turbocharged that fight earlier this year, threatening to seize the island and rupture the entire transatlantic relationship before backing off.

“The Arctic has become one of the places where the tectonic plates of geopolitics collide,” von der Leyen said. “So we have a direct stake in what happens here.”

In addition to the fresh investments, the EU is preparing to release a new Arctic Strategy on Oct 20. The document will redefine the region as the bloc’s “northern neighbourhood”, rather rather than its “high north” — illustrating the attempt to reframe the area as a central part of Europe. 

Von der Leyen’s trip — her second overall and first since inaugurating an EU office in Nuuk in 2024 — featured moments meant to display this cohesiveness. The EU leader boated through the Nuuk fjords with Frederiksen and Nielsen, visited the historic settlement of Qoornoq and toured a Danish navy ship and satellite ground station.

Nielsen welcomed the EU’s increased attention — “We feel it and are deeply grateful,” he said — and insisted the latest economic package will deliver concrete results.

“The funds invested will have an impact on our daily life,” he said.

The EU investment package represents 7-8% of Greenland’s annual gross domestic product and will make a difference to the local economy, Christian Keldsen, the president of the Greenlandic Business Association, told reporters.

While Trump’s claim to the island “doesn’t sit well,” Keldsen told reporters, “it does present some opportunities.”

Indeed, the diplomatic jockeying over Greenland has spurred a flurry of interest from European governments seeking to deepen ties. Chinese dominance over the world’s critical raw materials has also driven interest in developing Greenland’s reserves.

Denmark last year unveiled a US$250 million infrastructure package for Greenland, and the commission, the EU’s executive arm, has proposed more than doubling financial support for the territory to over €530 million over seven years.

Canada, France and Norway have also opened consulates in Nuuk, underscoring the growing diplomatic competition over Greenland.

Meanwhile, the US is still engaged in secretive talks with Greenland and Denmark over Trump’s insistence that the US should control the territory.

Pressed on whether the latest EU push to strengthen its Greenland ties may irk Trump, Frederiksen said: “We have been under pressure. It has been very clear, and we are very thankful for the great support we have received.”

Still, Frederiksen stressed that Denmark “would like to work closer together with the US on security and defence, but we, of course, would also like to work even closer together with our European allies.”

While the EU has been courting Greenland, it was recently rebuffed by another Arctic country: Iceland. In August, the island nation rejected a referendum to reopen negotiation to join the EU — a blow to the bloc’s desire to prove it’s capable of welcoming new members.

Uploaded by Tham Yek Lee