The EU is to invest €200m (£171m) in Greenland to improve relations with the Arctic island amid tensions caused by Donald Trump's demands that the territory be handed over to the US.
European Commission, President Ursula von der Leyen, announced the EU-Greenland Partnership package, which she said, highlighted its strategic importance to the EU.
Standing alongside Greenland's Prime Minister Jens-Frederik Nielsen and his Danish counterpart Mette Frederiksen in the Greenland capital, Nuuk, on Monday, Ms von der Leyen said: "Greenland can count on the EU."
The EU-Greenland Partnership package "will create new opportunities and a strong and engaged EU in both Greenland and the Arctic. Because Greenland is a strategic ally and a trusted friend", she added.
Funds, which are to be invested this year and in 2027, will be used to improve education and fisheries, internet connectivity, hydropower systems, and the use of critical raw minerals in the country.
Money is also earmarked for better housing, support for small businesses and sustainable tourism, and is designed to bolster ties between the EU and the Arctic.
The EU increased its focus on Greenland, a semi-autonomous territory of Denmark, since Mr Trump began saying that the US should take control of the world's biggest island for security reasons after returning to the White House in 2025.
His persistent claims on the island raised sovereignty concerns and pushback from Greenlandic and Danish leaders and heightened tensions among NATO allies.
Protests were held in Greenland over the proposal.
Denmark and seven of its European allies sent a small group of military personnel to the island in January, publicly for military exercises focused on strengthening Arctic security, but with the intention of showing support for Greenland's sovereignty.
In response, Trump threatened to place new tariffs on them all: Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom.
In a statement, the nations said: "Tariff threats undermine trans-Atlantic relations and risk a dangerous downward spiral. We are committed to upholding our sovereignty."
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The US president eventually backed down after NATO agreed to a security deal in the Arctic region.
Ms Von der Leyen's visit came as 11 NATO countries began military exercises in Greenland on Monday involving around 400 military personnel, including special forces troops trained to operate in Arctic conditions from Canada, Denmark and Finland.
No US troops are taking part in the Arctic Shield drills, which run until 18 September.
(c) Sky News 2026: Greenland to get huge EU investment to improve relations amid Trump tensions
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