Monday, 19 January 2026

Germany faces a dilemma: appease or oppose USA on Greenland Issue

Out of the 13 Non-Arctic Members in the Arctic Council, Germany has bigger say in influencing and persuading Denmark regarding the explosive issue raised by Trump over the acquisition of Greenland by America. That boils down to one matrix: appease or oppose.

Here are the hard facts:

1. Russia has the largest share of the Arctic front with a 53% stake. Then comes Canada, Greenland and USA followed by other member countries Finland, Iceland, Norway, and Sweden. Denmark as the possessor of autonomous territory of Greenland has vicarious ownership in Arctic Ocean.

2. Greenland, being the largest Island in the world, has an area of 836,000 square miles, nearly two-third within the Arctic Ocean with a perennial ice cover of 80%. Yet, in terms of fronting Arctic Ocean, she ranks third after Russia & Canada.

3. The value of Greenland lies in her natural resources, strategic position in Northern Sea navigation and security set-up between three powers, namely USA, Europe and Russia.

4. American interest on Greenland dates back to the 19th Century immediately after she has acquired, Alaska from the Russians in 1867.

5. As a post WW II defensive measure the US took over the defence of Greenland in 1946 overriding Denmark. President Harry Truman had the gumption to offer Denmark $100 million in gold for the island, a bid that was turned down immediately.

In terms of strategy amid geoeconomics, Germany has to tread a careful and calculated way when dealing with this divisive issue. Ostensibly, there are two choices: appease America and persuade Denmark to acquiesce to American demand or oppose America and be at crosshairs of the hegemon.

Both have pros and cons. Appeasing brings goodwill from the hegemon but German Chancellor could suffer the fate of Neville Chamberlain, British Prime minister who signed the Munich Agreement in 1938 with Adolf Hitler that backfired, despite bringing temporary respite. Opposing hegemon would lead to further aggravating current economic and geoeconomics troubles. More than that, it could damage Germany’s position as leader of Western Europe

The bottom line: Germany is facing the worst dilemma after she was forced into support Ukraine War which has brought devastation to German political and economic stature since the WW II ended.

Can there be a via-media? This is the question that weigh on Friedrich Merz and his cabinet seriously. German cabinet must treat charting strategy amid geoeconomics as guiding pillar over all other issues in order to survive from this Greenland Crisis! 

 

Cheers!

 

Muthu Ashraff Rajulu

Strategy Adviser

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Strategy Adviser

 

 




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Germany faces a dilemma: appease or oppose USA on Greenland Issue

Out of the 13 Non-Arctic Members in the Arctic Council, Germany has bigger say in influencing and persuading Denmark regarding the explosi...