There's A Global Tug-Of-War For Greenland's Resources But The New Government Has Its Own Plans

(MENAFN- The Conversation) Greenland's parliamentary election was held on March 11 against a backdrop of repeated calls from the Trump administration for America to annex the island. The poll delivered a momentous shift in Greenland's political landscape as the pro-business Demokraatit (Democrats) emerged as the biggest winners overturning the two left-leaning parties which had formed the previous government.

Securing nearly 30% of the vote and gaining seven seats for a total of ten in the Inatsisartut (parliament), the party now holds the strongest mandate it has ever had. Close behind was the nationalist Naleraq party, which secured 24.5% of the vote and gained four seats, bringing their total to eight.

While both parties are united in their rejection of Trump's ambitions and share a vision of Greenlandic independence, their approaches couldn't be more different. Demokraatit advocates for a gradual, measured process, prioritising economic development. The party considers that economic self-sufficiency and strengthening domestic infrastructure are key preconditions to achieve independence. Naleraq, on the other hand, is pushing for a rapid break from Denmark. Its line is that Greenland will only be able to unleash its potential, economic and otherwise, once independent.

Independence has long been the dominant theme of Greenlandic politics. Ever since the territory gained home rule in 1979, most political parties across the spectrum have championed the idea of full independence from the kingdom of Denmark. Even the two major challengers – the Inuit Ataqatigiit, which lost five seats at the election to drop to seven, and the once-dominant Siumut, which lost six and now holds just four seats – are pro-independence.

But while independence remains a defining issue, the real story of this election is Greenland's economy. The island is sitting on a treasure trove of rare earth elements, uranium, iron and other minerals critical to global industries. Yet despite decades of interest from foreign investors, strict regulations and environmental concerns have often slowed development.

With Demokraatit's rise, that could change. The party is pushing for pro-business policies , including tax incentives, streamlined regulations and reduced state intervention in key industries like mining, fisheries and tourism. If successful, these reforms could transform Greenland into a major player in the global supply chain.

Despite its electoral gains, Demokraatit faces a challenge in implementing its economic vision. The party's potential coalition partner, Naleraq, is deeply sceptical of foreign investment, at least when it comes from Denmark and Europe. While open to partnerships with the US , Naleraq is adamant that Greenland must retain full control over its resources, resisting any foreign influence that could compromise national sovereignty.

This ideological divide could create friction within a potential coalition government. Will Demokraatit's pro-business agenda be tempered by Naleraq's nationalistic stance? Or will the promise of economic growth push both parties toward compromise?

Global powers are watching

Greenland's election came at a time when it was already the focus of world attention. Its strategic location and vast resources have attracted growing interest from global superpowers – none more so than the US . Trump has repeatedly expressed interest in acquiring Greenland, a move widely considered unrealistic, but indicative of Washington's strategic priorities.

American presence in Greenland: Pituffik Space Base. Ritzau/Alamy Stock Photo

American interest in Greenland isn't new . The island is home to the Pituffik Space Base , formerly Thule Air Base, since the 1950s as a critical part of North American missile defence and whose Arctic position makes it a key player in both American territorial defence and Nato's security architecture. Pituffik is the only non-Danish military presence in the territory and is the northernmost American military base.

But the White House's rhetoric has taken a more insistent tone, raising questions about whether the US might attempt to exert greater influence over Greenland's economic and political future. The interest in Greenland seems guided by at least two factors: its strategic position at the centre of the North Atlantic security complex and its economic potential with hard-to-access but abundant resources.

In both cases, the growing involvement of both Russia and China in the Arctic seem to make the US wary of a potentially independent Greenland getting closer to unfriendly great powers.

Denmark's central government is walking a diplomatic tightrope when it comes to responding to the US government's repeated intentions to annex Greenland . Copenhagen has sought to Europeanise the debate, floating the idea of Greenland joining the European Union . Taking this step would provide welcome economic support to the island but could also clash with Greenland's scepticism toward European interference.

Greenland now stands at a crossroads. Domestically, negotiations between Demokraatit and Naleraq will likely shape the trajectory of the island's economic and independence ambitions. Internationally, major powers – including the US, the EU and possibly even China and Russia – are positioning themselves to engage with Greenland's untapped potential.

As the world's focus on Greenland intensifies, one thing is clear: this Arctic nation is no longer a remote outpost. It is fast becoming a key battleground for economic, political and strategic influence in the North Atlantic.

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