Greenland 'Ready To Talk' With Trump As 'Status Quo No Longer An Option'
Greenland Prime Minister, Múte Egede, said on Friday that he has not spoken with Donald Trump regarding the President-elect's recent interest in buying the Danish-controlled territory, but that he's 'ready to talk,' as the 'status quo is no longer an option.'
Speaking next to Danish PM Mette Frederiksen at a joint press conference, Egede emphasized the need for investment in resource development as well as diversified industries in order to reduce dependence on Danish subsidies. That said, Egede also said that "Greenland is for the Greenlanders. We don’t want to be Danes. We don’t want to be Americans. We obviously want to be Greenlanders."
Frederiksen, meanwhile, says she has asked to speak with Trump.
"We have suggested a conversation [with Trump] and I expect it will take place," she told reporters Thursday night after meeting with other senior Danish officials about the situation - adding that she doesn't expect any dialogue until after Trump's Jan. 20 inauguration.
Her comments came just 48 hours after Trump declined to rule out military or economic force to gain control of Greenland, however Frederiksen says there is "no reason to believe" that Trump plans to invade Greenland.
Meanwhile, earlier in the week Danish defense minister Troels Lund Poulson admitted that Denmark had "neglected for many years to make the necessary investments in ships and in aircraft that will help monitor our kingdom, and that is what we are now trying to do something about."
Greenland to Play All Sides
Trump’s fixation on Greenland has catapulted the world’s largest island into a position of unexpected influence. What once seemed like a farcical bid in 2019 has found new relevance amid Greenland’s growing push for independence from Denmark. As the territory approaches a pivotal general election, its leaders find themselves navigating a rare moment of leverage - one that pits powerful nations against each other, Bloomberg reports.
According to a statement from the Greenlandic government, they are "open to increased and constructive cooperation with our closest neighbors," adding "Greenland looks forward to discussing the possibilities for business cooperation, the development of Greenland’s mineral sector, including critical minerals and other relevant areas with the US."
The stakes could not be higher. Greenland’s geopolitical significance has surged alongside the melting of its vast ice sheet, transforming the island into a key player in global security and resource extraction. Beyond its role as host to an American military base critical to missile detection and space surveillance, Greenland’s untapped reserves of gold, diamonds, uranium, and rare earth minerals have made it a coveted prize in the competition for dominance over strategic minerals.
According to sources familiar with the matter, Trump’s transition team began consulting private sector experts as early as November on potential ventures in Greenland. Among the ideas floated are rare earth mining projects and a new hydroelectric facility - a nod to the island’s renewable energy potential. These previously undisclosed conversations underscore Washington’s escalating interest in the Arctic as a buffer against Chinese influence.
"Trump is absolutely capitalizing on Greenland’s push for independence," said Jacob Kaarsbo, independent foreign security adviser and former chief analyst at the Danish Defence Intelligence Service. "I can easily see a scenario where Greenland moves away from Denmark after the upcoming elections."
As we noted on Thursday, Blackwater founder Erik Prince said in a recent interview that Trump's 1st administration was closer than anyone knew to securing a groundbreaking agreement with Denmark to take control of Greenland.
"I think what Trump had proposed last time, last administration, was effectively a 50-50 rev share where the US would take over the overhead costs because it costs Denmark tens of billions of dollars a year for the policing, security, and administration of Greenland," said Prince, adding "The US would take that on, but then it would basically split the revenue of any mining or energy development together with Denmark. I think it's a good deal for Denmark and a good deal for the United States."
For Greenland, the attention - though controversial - is fortuitous. The island’s independence movement, long fueled by resentment over Denmark’s colonial past, has gained momentum. Revelations in 2022 about Danish doctors coercing Greenlandic teenagers into birth control programs during the 1960s and 1970s further deepened grievances. Today, many Greenlanders point to ongoing disparities, including reports of racial discrimination by Danes, as evidence of a need for self-determination.
A Turning Point in Greenland-Denmark Relations
Under the current governance framework established in 2009, Greenland has autonomy over domestic affairs such as health care and education, while Denmark retains control over foreign policy and defense. PM Egede, seeking reelection, has made the case for shedding "the shackles of the colonial era," calling for a future where Greenland determines its own destiny.
However, economic dependency remains Greenland’s Achilles’ heel. Denmark’s annual subsidy of $600 million underpins key services - from health care to education - in a nation whose total GDP hovers around $2.4 billion. Without this financial lifeline, independence could become unsustainable unless new partnerships fill the gap.
Enter the United States. “If you want to have control over Greenland or have them closer to the US, it must be done by offering them more money than they currently get from Denmark in subsidies,” said Peter Viggo Jakobsen, a professor at the Center for War Studies at the University of Southern Denmark. "If Trump can offer the Greenlandic people a better deal, I can easily imagine that a majority of the population will declare independence."
Rare Earths and National Security
One promising path for economic diversification lies in Greenland’s vast troves of rare earth elements - crucial for electronic devices, defense systems, and green energy technologies. As the U.S. seeks to curb its reliance on China for these minerals, Greenland’s untapped resources present an opportunity for a strategic partnership.
Meanwhile, Denmark has responded to the shifting dynamics with unprecedented investments in Arctic infrastructure. Shortly after Donald Trump Jr.’s surprise five-hour visit to Nuuk last week, Copenhagen pledged funding for a new hydropower project. The Danish government also rolled out defense upgrades aimed at reinforcing its Arctic presence, signaling a renewed commitment to Greenland’s development.
Symbolism has also played a role. Denmark recently updated its royal coat of arms to feature Greenland prominently and introduced Greenlandic interpreters in parliamentary sessions—moves designed to foster goodwill amid rising tensions.
Free Association?
Should Greenland opt for independence, one potential model is free association - a status where the island could function as a sovereign state while maintaining economic ties with a partner nation, as seen in agreements between the U.S. and the Marshall Islands. This arrangement would grant Greenland control over its natural resources while ensuring continued financial support for public services.
Yet the road to independence is fraught with challenges. Any secession would require protracted negotiations between Copenhagen and Nuuk, culminating in a binding referendum. Both the Danish and Greenlandic parliaments would need to ratify the terms
via zer0hedge
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