The Greenland government indicates several main reasons for budget difficulties. Minister of Finance, Mute B. Egeded, emphasized that The territory records lower fishing profits – the main branch of the economy – and a decrease in income from state -owned business and taxes. In addition, the aging of society causes an increase in social expenditure. Egeded also announced a tightening of the principles of social benefits and pension reform. According to the minister, “healthcare will be affected by cuts as little as possible.”
Social services in Greenland are extremely expensive. The inhabitants of the island live in small fishing deposits, often located in hard -to -reach places, to which travel is possible only by air or sea. In turn, the lack of local doctors and a demanding climate make encouraging foreign medical staff to work on the island is a serious challenge. In the face of this situation, the government plans to increase income and seal the tax system.
The Greenland budget largely depends on Denmark's financial support, which provides about 40 percent. his influence. In addition to targeted subsidies, Copenhagen is responsible for the internal security of the territory, including the presence of armed forces and police activities.
Political changes and independence challenges
In the spring, the Democrats party won the parliamentary elections, gaining power with coalition partners. Democrats, who advocated the future independence of Greenland, emphasize that The key step on the road to sovereignty is to achieve economic independence from Denmark. The government also includes Inuit ataqatigiit, a leftist group, to which the Minister of Finance Egede belongs; Social democratic siumut and conservative Atassut. The opposition remains a party minority of nausea, supporting the immediate announcement of independence and closer cooperation with the USA.
See also: Greenlanders were asked if they wanted to join the USA. The results of the survey leave no doubt
Greenland experts experts
Chairman of the Greenland Economic Council, Danish prof. Torben M. Andersen, a conversation with PAP in June stated that “The future of Greenland is uncertain due to fisheries budget addiction, and in principle depends on fishing, halibut and cod, cash transfers from Denmark, as well as a decreasing population, low education of local population and difficult geography of the island.” The expert, however, indicated potential solutions, such as the use of rich natural resources of Greenland, including rare lands and water energy.
Climate change can favor access to mineral deposits on the island. However, this does not change the fact that investments in this area require significant financial outlays – from port infrastructure to the construction of apartments. The alternative is the development of tourism, which the Greenland government is already implementing. An example of these activities is the recent opening of an international airport in the capital of Greenland, Nuk.
United States in the background of Greenland activities
Greenland remains in the center of US interest. President Donald Trump expressed the need to take over the island several times, indicating its strategic meaning. In April, the US Vice President JD Vance suggested in an interview with Newsmax the opportunity to offer the inhabitants of Greenland financial support greater than current subsidies from Denmark.
