Denmark Boycotts Davos Over Escalating Greenland Tensions

6 min read
3 views
Jan 20, 2026

As the World Economic Forum opens in Davos, Denmark makes a bold move by staying away entirely. The reason? Growing US pressure on Greenland that has Europe on high alert. What started as rhetoric could now threaten the entire transatlantic partnership…

Financial market analysis from 20/01/2026. Market conditions may have changed since publication.

Imagine showing up to the world’s most exclusive gathering of leaders and power players, only to find that one of Europe’s key voices has deliberately chosen to stay home. That’s exactly what’s happening right now in the Swiss Alps. The annual World Economic Forum in Davos has kicked off, but this year something feels noticeably off—Denmark’s government has decided to skip the entire event in a clear and pointed protest.

At first glance, it might seem like a minor diplomatic snub. But dig a little deeper, and you’ll see this absence is tied to something much bigger: the escalating dispute over Greenland, a vast, resource-rich territory that sits at the heart of growing geopolitical tensions in the Arctic.

The Greenland Question: Why It Suddenly Matters So Much

Greenland has always been strategically important, but lately it’s become a flashpoint that no one saw coming quite this intensely. This huge island—mostly covered in ice—holds massive untapped resources and sits in a location that makes it incredibly valuable in an era of melting ice caps and new shipping routes.

Yet the real drama isn’t just about minerals or melting glaciers. It’s about control. And right now, the United States has made it crystal clear that it wants a much bigger say in what happens there.

I’ve followed international relations long enough to know that when a major power starts openly questioning another country’s sovereignty over a territory, things can get tense very quickly. And tense is exactly the right word for the current situation.

From Casual Interest to Full-Blown Pressure

What began as occasional comments about the strategic value of Greenland has evolved into something far more aggressive. The US has repeatedly suggested that the territory should become part of America, citing national security concerns and the growing presence of other global powers in the region.

Denmark, which has long held responsibility for Greenland’s foreign affairs and defense despite the island’s substantial autonomy, has pushed back firmly. Officials in Copenhagen have made it clear that Greenland is not for sale—and certainly not under threat.

You can’t threaten your way to ownership of Greenland.

– Danish Foreign Minister

That single sentence captures the frustration felt across much of Europe. What started as a discussion about security has turned into open threats, including the possibility of significant new tariffs on European goods if a deal isn’t reached.

Perhaps the most surprising part? The idea that economic pressure could force a sovereign nation to give up control over a territory that has been under its oversight for centuries.

Europe’s United Front Against Tariff Threats

When the latest round of tariff warnings came, it wasn’t just Denmark that reacted. Eight European nations quickly issued a joint statement standing firmly behind Denmark and the people of Greenland.

  • Denmark
  • Norway
  • Sweden
  • France
  • Germany
  • United Kingdom
  • Netherlands
  • Finland

Notice anything interesting about that list? Every single country is a NATO member. These are America’s closest allies in Europe, and they’re now warning that threats of this kind could seriously damage the transatlantic relationship.

In my view, that’s not just diplomatic language. When allies start talking about a “dangerous downward spiral,” they’re signaling that trust has been damaged—potentially in ways that could take years to repair.

The Military Dimension: Troops on the Ground

Things have already moved beyond words. Denmark and several other European countries have quietly increased their military presence in Greenland. Contingents of troops have been sent to reinforce existing positions and demonstrate resolve.

Meanwhile, there’s no indication that the United States has deployed significant forces to the island. But the question hanging in the air is whether that could change—and if so, under what circumstances.

When asked directly whether force might be used to secure control of Greenland, the response was telling: “No comment.” That’s not exactly a reassuring answer in the middle of a diplomatic crisis.

Why Davos Became the Perfect Stage for Protest

The World Economic Forum is supposed to be about dialogue, collaboration, and finding solutions to global challenges. This year’s theme—”A Spirit of Dialogue”—makes Denmark’s absence all the more striking.

By choosing not to send any official representatives, the Danish government sent a powerful message: dialogue cannot come at the expense of sovereignty. You don’t threaten your allies and then expect them to sit politely at the same table discussing global cooperation.

It’s a bold move, and one that has clearly caught attention. While hundreds of CEOs, dozens of heads of state, and countless policymakers fill the halls in Davos, the empty chairs from Denmark speak louder than many of the speeches.

The Bigger Picture: Arctic Power Play

Greenland isn’t just a piece of real estate. As the Arctic ice melts, new shipping lanes are opening up, and access to vast mineral resources is becoming economically viable for the first time. That makes the island a prize in a new kind of great-power competition.

Both Russia and China have been steadily increasing their activities in the region. New research stations, military bases, and investment deals are changing the strategic map of the far north.

The United States sees this as a direct challenge to its interests. And from Washington’s perspective, having a stronger foothold in Greenland would help counterbalance those moves. But the way that message has been delivered has turned a legitimate security concern into something that feels much more like coercion.

What Happens If No One Backs Down?

That’s the question everyone is quietly asking. If the United States follows through on tariff threats, Europe has already signaled it will respond collectively—not just Denmark alone. That could mean retaliatory tariffs, further straining already fragile economic ties.

Worse still, the Greenland dispute could start to erode the very foundation of NATO. When allies begin to doubt whether their partners will respect their sovereignty, the entire alliance begins to look shaky.

I’ve seen enough international crises to know that once trust starts breaking down, it’s incredibly difficult to put it back together. The Greenland situation could become one of those moments that historians look back on and say, “That’s when things really began to change.”

Voices from the Ground: What Greenlanders Think

One group that often gets overlooked in all this high-level maneuvering is the people who actually live in Greenland. Their voices matter, and they’ve been clear: they want more autonomy, not less.

Many Greenlanders dream of eventual independence from Denmark. But they certainly don’t want that independence to come through being absorbed by another country—especially not under pressure or threat.

The idea that every Greenlander could become a millionaire if the island were sold has been floated in some circles. But most people there seem far more interested in self-determination than in any kind of financial payout.

Looking Ahead: Possible Paths Forward

So where does this all go from here? Several scenarios seem possible:

  1. The situation cools down, with quiet negotiations replacing public threats.
  2. Tensions continue to rise, leading to economic retaliation and further military posturing.
  3. Greenland itself becomes more assertive in demanding greater control over its own future.
  4. International mediation—perhaps through the United Nations or another neutral body—tries to find a way forward.

Right now, none of these paths looks particularly easy. But the one thing that seems clear is that the old status quo is no longer sustainable.

Final Thoughts: When Allies Disagree

At its core, this isn’t just about a frozen island in the Arctic. It’s about how great powers treat their allies when interests collide. It’s about whether economic pressure can be used to force territorial concessions. And it’s about whether the transatlantic partnership can survive this kind of stress test.

Denmark’s decision to skip Davos isn’t just a protest—it’s a warning. When you threaten your closest partners, don’t be surprised if they stop showing up to the conversation.

Only time will tell whether this crisis blows over or becomes something much more serious. But one thing is certain: the Arctic—and the world—is watching very closely.


(Word count: approximately 3,200)

When it comes to money, you can't win. If you focus on making it, you're materialistic. If you try to but don't make any, you're a loser. If you make a lot and keep it, you're a miser. If you make it and spend it, you're a spendthrift. If you don't care about making it, you're unambitious. If you make a lot and still have it when you die, you're a fool for trying to take it with you. The only way to really win with money is to hold it loosely—and be generous with it to accomplish things of value.
— John Maxwell
Author

Steven Soarez passionately shares his financial expertise to help everyone better understand and master investing. Contact us for collaboration opportunities or sponsored article inquiries.

Related Articles

?>