The European Commission is working on a “massive” investment plan for Greenland, Ursula von der Leyen has revealed.
The European Commission president has been speaking at the World Economic Forum in Davos in Switzerland.
Europe is in alert mode after US President Trump doubled down on his threat to take over Greenland.
Over the weekend, Trump threatened to impose tariffs on those supporting Denmark, Greenland’s current owners.
Greenland is an autonomous territory of the Kingdom of Denmark.
Von der Leyen said the threat from China and Russia in the Arctic was real, but that it would be better handled if the US and Europe worked together.
“When it comes to the security of the Arctic region, Europe is fully committed. And we share the objectives of the United States in this regard…
Arctic security can only be achieved together. This is why the proposed additional tariffs are a mistake especially between long-standing allies.”
The EU and US made a tariff deal last year limiting Trump tariffs to 15 percent. In return, the EU promised to reduce many of its tariffs to zero.
Given the developments in the last days, the European Parliament is now expected to effectively put that deal on hold.
“In politics as in business – a deal is a deal. And when friends shake hands, it must mean something”, said von der Leyen on what she sees as Trump’s broken promises.
“We consider the people of the United States not just our allies, but our friends. And plunging us into a dangerous downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape.”
If Trump pursues new tariffs, the EU’s response will be “unflinching, united and proportional”, she said.
But at the same time, the European Union will work towards beefing up security around Greenland, she promised.
“We are working on a massive European investment surge in Greenland. We will work with Greenland and Denmark hand in hand to see how we can further support the local economy and infrastructure.”
Despite the major disagreement with Trump, she promised to “work with the US and all partners on wider Arctic security. This is clearly in our shared interest, and we will step up our investment.”
EU officials say that they have been reaching out to the US to try to calm the situation.
Trump is himself due to arrive in Davos tomorrow.
Europe is prepared to have discussions with its “friends and partners”, von der Leyen said.
“Also if necessary with adversaries”, she added.