Danish Government Unveils Major Defence Investment in Greenland Amid US Interest in Ownership

The Danish government has unveiled a significant increase in defence spending for Greenland, shortly after US President-elect Donald Trump reiterated his interest in acquiring the Arctic territory.

Danish Defence Minister Troels Lund Poulsen confirmed that the investment, which amounts to a “double-digit billion” figure in kroner, equates to at least $1.5bn (£1.2bn). Poulsen characterised the timing of the announcement as an “irony of fate,” following Trump’s statement on Monday that the ownership and control of Greenland was an “absolute necessity” for the United States.

Greenland, an autonomous Danish territory, hosts a major US space facility and holds strategic importance for the US due to its location on the most direct route to Europe. The island is also rich in mineral and oil reserves.

The planned defence package will fund the purchase of two new inspection ships, two long-range drones, and two additional dog sled teams. It will also support the expansion of staffing at Arctic Command in Nuuk, Greenland’s capital, and the upgrade of one of the island’s three primary civilian airports to accommodate F-35 fighter jets.

Poulsen noted that Denmark had not invested sufficiently in the Arctic in recent years, emphasising that the government is now prioritising a stronger presence in the region. While the precise cost of the package has not been disclosed, Danish media estimates place it at around 12-15bn kroner.

The announcement comes just a day after Trump reiterated on his Truth Social platform that the United States deems Greenland’s control essential for national security and global freedom. In response, Greenland’s Prime Minister Mute Egede firmly stated, “we are not for sale,” though he welcomed continued cooperation and trade, particularly with neighbouring countries.

Analysts suggest that the defence package had been under discussion for some time and should not be seen as a direct reaction to Trump’s remarks. However, they note that Denmark has been slow to expand its military capacity in Greenland, and should it fail to protect the territory’s waters from encroachments by China and Russia, there could be growing US demands for greater control.

Army Major Steen Kjaergaard of the Danish Defence Academy speculated that Trump’s renewed focus on Greenland could have influenced Denmark’s decision. He believes that Trump is using the pressure of international demands to encourage Denmark to enhance its Arctic military capabilities without directly taking control of Greenland, which relies heavily on subsidies from Denmark.

Trump’s previous suggestion in 2019 to purchase Greenland was met with a strong rejection from local leaders, including Danish Prime Minister Mette Frederiksen, who described the proposal as “absurd.” This led to the cancellation of a planned state visit to Denmark. The idea of acquiring Greenland is not new; it was first proposed during President Andrew Johnson’s administration in the 1860s.

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