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 was signed between the EU and Greenland, promising a $232 million (200 million-euro) investment package aimed at enhancing local quality of life over the next two years. European Commission President Ursula von der Leyen announced the investment during a visit to Nuuk, the capital of Greenland, on September 7, 2026.
This initiative comes in response to repeated threats from US President Donald Trump regarding the potential annexation of Greenland, a self-governing territory of Denmark. Trump's assertions, citing national security concerns, have led to tensions with Greenland and Denmark, as well as strained relations with NATO allies. Von der Leyen emphasized that the future of Greenland should be determined by its people and Denmark, stating, "Greenland’s future is for the people of Greenland and Denmark to decide. No one else."
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 strengthening administrative capabilities and promoting sustainable tourism and housing construction.
Von der Leyen stated that the EU aims to be "more present and more engaged" in the Arctic region, proposing to increase direct EU 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 around 400 military personnel from 11 NATO countries and is scheduled to run from September 7 to 18.
Nielsen expressed gratitude for the EU's support, saying, "Through these challenging times, your support to us is unfailing. We feel it and are deeply grateful." He added, "Greenland needs the European Union, and the European Union needs Greenland."
In January, eight European nations, including Denmark, sent 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 threatened tariffs on the participating countries but later backed down after NATO agreed to expand its military operations in the Arctic. During the height of the tensions, Trump did not rule out the use of force to seize Greenland, causing anxiety within the EU and NATO.