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State of Denmark – Week 3 2025

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We can no longer think of ourselves as being in a time of peace.” Mette Frederiksen, Denmark’s Prime Minister

We are only in the third week of January, yet somehow it feels like the holidays took place ages ago. The world clearly isn’t slowing down just because it’s January. Events surrounding Greenland continue to unfold, potentially posing serious challenges for the Danish economy. Meanwhile, sabotage incidents involving data cables in the Baltic Sea are a stark reminder that we are, in many ways, already seeing signs of war.

Over the last two months, there have been multiple acts of sabotage in the Baltic Sea. Data cables connecting Lithuania and Sweden, Germany and Finland, and most recently Estonia and Finland, have been damaged by a Russian “shadow”fleet”—vessels operating without the Russian flag. In response, NATO plans to deploy swarms of drones, frigates, and maritime patrol aircraft to protect these critical lines of communication.

Despite these troubling developments, Greenland has become perhaps the world’s hottest topic right now. Major global influencers are producing content about—and directly from—Greenland. On one hand, this sudden attention could benefit the Greenlandic economy if the island moves closer to full independence. On the other hand, the financial boost that Greenland truly needs isn’t a few hundred U.S. dollars from enthusiastic Trump supporters handing out cash on the streets of Nuuk. It’s the billions of DKK that Denmark currently provides to support Greenland’s infrastructure and public services.

Interestingly, Greenland isn’t the first autonomous region within the Kingdom of Denmark to explore going its own way. The Faroe Islands attempted to secede around the year 2000. But after a candid conversation with then Prime Minister Poul Nyrup Rasmussen, the Faroese independence delegation realized the plan wasn’t financially feasible. Much like Greenland, the Faroe Islands rely heavily on Danish subsidies and would struggle to replace that support on their own.

Meanwhile, relations between the United States and Greenland have taken a new turn. American officials are meeting directly with Greenlandic politicians, and Greenlandic ministers are publishing opinion pieces in American newspapers, seeking closer ties. Prime Minister Múte B. Egede recently appeared on Fox News, reiterating Greenland’s position: “Greenlanders do not want to be Danes or Americans; they want to be [Greenlanders]… We will always be part of NATO; we will always be a strong partner for the United States. We are close neighbors, and we have cooperated for the last 80 years.”

At the same time, Danish-American relations have become frostier than ever. A phone call between Mette Frederiksen and Trump made it clear that a trade war might be looming. The U.S. is unwilling to back down from its threat to raise tariffs on Danish goods. In response, Frederiksen has already alerted Danish business leaders working with the U.S. market to prepare for the possibility of an exit from American trade.

In these tense circumstances, Greenland’s bid for greater autonomy or full independence intersects with broader geopolitical struggles. As global powers vie for influence in the Arctic—and as Denmark wrestles with potential economic fallout—Greenland’s strategic importance only grows. The coming months may prove pivotal in shaping relationships across the North Atlantic. One thing is certain: it may be early in the year, but these developments are already making 2025 feel extraordinarily eventful.

There are no alternatives to the USA.” Peter Viggo Jakobsen, Associate Professor Danish Defence Academy

Thank you for reading and sharing Last Week in Denmark!

Narcis George Matache
Narcis George Matachehttp://www.narcis.dk
Executive Editor and Founder of "Last Week in Denmark".

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