President of the European Commission Ursula von der Leyen unveiled a €200 million ($232 million) investment package for Greenland on Monday to strengthen ties with the semi-autonomous Danish territory.
“Greenland is much more than a partner for Europe. You are a trusted friend, you are a strategic ally, and a valued member of our wider European family,” said von der Leyen at a ceremony in Greenland’s capital, Nuuk. “We share a future together and it all starts today.”
The investment package focuses on “connectivity, clean energy, and critical raw materials,”von der Leyen said. One core aim is to improve Internet connection in remote areas of Greenland, as outlined in the “Connecting Greenland, Together” project.
There’s also an emphasis on providing funding towards critical mineral and graphite extraction initiatives. The Malmbjerg Molybdenum mining project could generate up to €90 million ($104 million) annually for Greenland as added value, according to von der Leyen. The package will also provide additional funding for new hydropower plants in the semi-autonomous Danish territory as part of its clean energy plan.
At the close of the investment announcements, von der Leyen reemphasized that the E.U. stands in “full solidarity” with Greenland. The public reminder comes against the backdrop of U.S. President Donald Trump’s repeated threats to annex the island.
“We want to be very clear and repeat again here that Greenland's future is for the people of Greenland and Denmark to decide, no one else,” said von der Leyen. “Territorial integrity, sovereignty, the inviolability of borders—these are fundamental principles of international law. And we know that the Arctic has become one of the places where the tectonic plates of geopolitics collide. So we have a direct stake in what happens here.”
The investment package is a strong “signal” that Europe is committed to Greenland’s growth and security, says Katja Bego, senior research fellow at think tank Chatham House’s Europe programme.
“Traditionally, before the situation now with Trump, the E.U. and Denmark itself have been accused of not paying quite enough attention to Greenland, especially not enough to genuinely support economic development there,” Bego tells TIME.
Trump’s threats towards the territory have “put a bit of urgency behind the E.U.'s efforts,” Bego adds, but notes there are also other factors, such as the economic benefits of critical mineral mining.
The emphasis on improving satellite communications in the Arctic region is particularly interesting, experts tell TIME, given Greenland’s previous rejection of Starlink, the satellite internet technology made by Elon Musk’s Space X.
Greenland “has been quite worried about going with a U.S. provider, given the recent geopolitics,” says Bego.
The E.U. support and investment boost also comes as the bloc pursues stronger ties to the Arctic region after Icelandic voters recently opted not to resume accession negotiations with the European Union.
Upon arriving in Nuuk on Sunday, von der Leyen had pointed towards the climate crisis while referencing security in the region.
Remarking on the “visible scars of climate change on the ice sheet,” she said a “new reality is taking shape” as the ice melts. “New trade routes, new security risks, new environmental concerns. Europe stands with Greenland. We will navigate these changes together,” she vowed.
Security in the region has become an increasingly important issue for Europe, with Russia, China, and the U.S. all eyeing up emerging shipping routes in the Arctic and possibly new avenues to critical minerals.
"The E.U. is becoming far more active in the Arctic and also with non-members, and I think that's becoming more visible,” says Bego.
In addition to the investment package, the upcoming E.U. Arctic Summit, set to be held in Finland, next week, will also focus on security in the region.
Read More: Why the Movements of a U.S. Oil Company in Greenland Have Attracted Attention
Trump has long expressed his desire to control Greenland—threats he has ramped up since returning to office last year.
Greenlandic and Danish officials have vehemently pushed back against Trump’s rhetoric.
Leaders in Greenland on Monday were asked if they were concerned about how Trump may react to the E.U.'s financial pledge and what message he should take from the investments.
“We have been under pressure, it has been very clear, and we are very thankful for the great support we have received from our European partners,” said Danish Prime Minister Mette Frederiksen.
“Greenland stood firm and stands firm under enormous pressure, and Europe is firm with you too. This is the basic message,” added von der Leyen.
Greenland's positioning between the U.S., Russia, and Europe makes it a strong geopolitical asset, and Trump has long argued that Denmark cannot be relied upon to protect the island from Russian and Chinese interests.
Trump clashed publicly with NATO allies over the issue earlier this year, and even indicated he may be willing to withdraw the U.S. from the alliance. The row prompted some Republicans to break ranks from Trump, with one GOP lawmaker referring to the annexation threats as “appalling.”
Trump revisited the contentious topic at the NATO summit Ankara, Turkey, in July, insisting that Greenland “should be controlled by the United States, not by Denmark.”
