The European Union has proposed doubling direct aid to Greenland as part of its next budget, coinciding with military exercises in the region. A declaration signed by the EU and Greenland promises a $232 million (200 million-euro) investment package aimed at enhancing local quality of life over the next two years. This initiative comes in response to concerns raised by threats from US President Donald Trump regarding the annexation of the self-governing Danish territory.
European Commission President Ursula von der Leyen announced the investment during her visit to Nuuk, the capital of Greenland, on September 7, 2026. The EU's focus on Greenland is part of a broader strategy to increase cooperation with the Arctic island, especially following Trump's calls for greater US control over the territory, which have led to tensions with both Greenland and Denmark, as well as with NATO allies.
"Greenland’s future is for the people of Greenland and Denmark to decide. No one else," von der Leyen stated. The declaration was signed by von der Leyen, Greenlandic Prime Minister Jens-Frederik Nielsen, and Danish Prime Minister Mette Frederiksen.
The investment will support Greenland’s government in enhancing administrative capabilities and developing programs for sustainable tourism and housing construction. Von der Leyen emphasized the EU's intention to be "more present and more engaged" in the region, proposing to increase direct aid to Greenland to 530 million euros ($616 million) for the 2028–2034 budget period.
Her visit coincided with NATO’s Arctic Shield military exercise, which involves approximately 400 military personnel from 11 NATO countries and runs from September 7 to 18. Prime Minister Nielsen expressed gratitude for the EU's support, stating, "Through these challenging times, your support to us is unfailing. We feel it and are deeply grateful."
Nielsen also remarked, "Greenland needs the European Union, and the European Union needs Greenland."
In January, eight European countries, including Denmark, deployed military personnel to Greenland for exercises aimed at demonstrating support for the island's sovereignty and enhancing Arctic security. In response to these military displays, Trump had threatened tariffs on the involved countries but later backed down after NATO agreed to expand its military operations in the Arctic. During the height of tensions, Trump did not rule out the use of force to take control of the territory, which has a population of 57,000, causing anxiety within the EU and NATO.