Denmark allocates $253M in 2026 budget proposal to support Greenland’s infrastructure development

ISTANBUL

The Danish government has allocated a 1.6 billion kroner (approximately $253 million) financial framework in its 2026 budget proposal to support Greenland’s infrastructure development, the government announced in a statement on Tuesday.

"In connection with the proposed Finance Act for 2026, the Danish government has allocated a financial framework of a total of DKK 1.6 billion in the period 2026-2029 for initiatives and investments in Greenland, including financing the framework agreement," the statement said.

The statement came after Danish Prime Minister Mette Frederiksen and Greenland's Prime Minister Jens-Frederik Nielsen signed a framework agreement on new initiatives and investments aimed at improving Greenland's welfare and contributing to its economic development.

According to the agreement, Denmark will fund the construction of a new regional runway in eastern Greenland and a deep-water port in the south.

"It is also agreed that Denmark will, in the future, cover the costs incurred by Greenland for the treatment of Greenlandic patients in Danish hospitals. The agreement also opens up the possibility of exploring longer-term opportunities to contribute to investments in infrastructure, business development, and energy supply security," the statement noted.

Denmark will cover the costs of Greenlandic patients treated in Danish hospitals.

"After several months of discussions, I am pleased that the President of the Government of Greenland and I have today signed an agreement that will strengthen the welfare and economic development in Greenland," Frederiksen further said.

She reiterated their "shared ambition" for the agreement that will "benefit everyone" in Greenland.

"The challenges in, among other things, the health and housing areas are enormous, and this framework agreement will support our desired development in these and several other areas," Nielsen also said.