What challenges does Greenland’s new Prime Minister face? | Explained

Greenland's new Prime Minister faces challenges of independence, healthcare, fishing industry, economy, and geopolitics in a changing political landscape.

The story so far:

After Greenland’s March elections, Jens-Frederik Nielsen was elected as the new Prime Minister. The election results, announced on March 12, saw the Demokraatit party gain seven seats, rising from three to ten seats in Parliament, while the ruling Inuit Ataqatigiit (IA) and Siumut coalition lost 11 seats. The Greenland elections drew attention after U.S. President Donald Trump claimed his intention to buy the island.

Greenland is a self-governing territory of Denmark with a population of roughly 57,000 people. It has a parliamentary democracy, and elections for its 31-seat unicameral Parliament (Inatsisartut) are held every four years. Members are elected through a proportional representation vote. To assume power, the government must pass a vote of confidence, which is referred to as positive parliamentarism. The elected members, however, do not have the full authority to take decisions on issues related to defence, constitution, citizenship, and fiscal policy. The five main political parties in Greenland are the centre-right Demokraatit, Naleraq, and Atassut, and the left-wing IA and Siumut. The Siumut and Inuit Ataqaitigiit have always dominated the political landscape of Greenland. However, for the first time, the Demokraatit party has won the election, breaking the dominance of the traditional parties.

One of the primary concerns for voters was independence. Four out of five political parties in Greenland have a consensus on gaining independence from Denmark. Demokraatit described independence as a “necessity” in its manifesto, expressing openness to a “free association” model with the U.S. or Denmark.

Another issue was access to healthcare. Greenland’s healthcare system lacks adequate staff, especially in remote areas. The Demokraatit party called for changes in the healthcare sector so that most of the funds are diverted towards care and support rather than administration.

The third key concern was frustration over the fishing industry. Demokraatit’s victory was also the result of the discontent in the fishing sector after the previous government passed a law that impacted seafood exports, which account for 30% of Greenland’s total exports.

Stabilising the economy will be Mr. Nielsen’s big challenge, given its narrow base. The island relies on fisheries, which comprise 90% of total exports and are vulnerable to market fluctuations and climate change. Mr. Nielsen must find alternate revenue sources through mining and tourism without neglecting the environment and excluding local communities. He also needs to improve public services, especially in education, healthcare, and infrastructure. Greenland’s social welfare system reeks of substance abuse and unemployment. Tackling these issues within a new coalition government, which has varied views on independence, will be a challenge.