Denmark's Prime Minister Mette Frederiksen (L) and Greenland's government leader Jens Frederik Nielsen sign a framework agreement for a self-sustaining Greenland at the Prime Minister's Office in Copenhagen, Denmark, on September 16, 2025. (Photo by Mads Claus Rasmussen / Ritzau Scanpix / AFP)
Copenhagen: Denmark has signed an agreement with Greenland for infrastructure development in the autonomous territory, coveted by the United States, Danish Prime Minister Mette Frederiksen said Tuesday.
In the 2026 budget proposal to parliament, Denmark's government has allocated 1.6 billion kroner ($253 million) for 2026 to 2029.
Since returning to the White House in January, Trump has repeatedly said the United States needs the strategically located, resource-rich island for security reasons, which has sparked diplomatic tensions with Denmark.
At the same time, Copenhagen has sought to strengthen ties with Nuuk -- which in the long term is aiming for independence.
Under the new agreement, Denmark will fund the construction of a new runway in Ittoqqortoormiit, in eastern Greenland, and a new deepwater port in Qaqortoq, in the south, the Danish government said in a statement.
Additionally, Denmark will, in the future, bear the costs of treatment for Greenlandic patients in Danish hospitals.
"This agreement aims to support a self-reliant Greenland through long-term investments, among other initiatives," Greenlandic Prime Minister Jens-Frederik Nielsen said.
Nielsen added that "the challenges in the areas of health and housing, among others, are tremendous and this framework agreement will support our desired development in these and several other areas".
