European leaders are treating Trump’s comments about Greenland as a serious issue, though his ultimate objective remains unclear. They may respond by offering incentives, such as expanding the U.S. military and business footprint on the island. According to Standard Chartered economists Christopher Graham and Philippe Dauba-Pantanacce, a coordinated European approach focused on territorial sovereignty and the role of NATO will be crucial.
Greenland dispute set to strain NATO unity
President Trump has stated that he wants the United States to take control of Greenland on national security grounds, indicating that both economic and military tools could be employed. Any use of force would represent a fundamental challenge to NATO, as Greenland is an autonomous territory of Denmark, a member of both NATO and the EU. However, European leaders may interpret Trump’s remarks differently: some may view them literally, while others may regard them as leverage to expand the U.S. military footprint, secure access to rare-earth resources, or pressure European allies to assume a greater share of defense responsibilities.
Europe is likely to respond through a mix of diplomatic incentives and deterrence. Possible inducements include expanding the U.S. military and commercial footprint in Greenland, potentially granting Washington a right of first refusal over third-party activity there. Europe may also push for a stronger NATO role in Greenland and across the Arctic to address U.S. security concerns and weaken the case for any takeover—while also making any hypothetical U.S. military move more complex. A unified European position will be essential, particularly in clearly communicating to the United States the military and economic consequences of any erosion of NATO.
Sources: Fxstreet
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