The reason is they require subsidy to live there. The economy appears to run at a net deficit. The same reason the Vikings gave up on it.
The reason is they require subsidy to live there. The economy appears to run at a net deficit. The same reason the Vikings gave up on it.
Some Swedish regions also have a net deficit relative to other Swedish regions, but that doesn't mean that they don't work out economically. After all, not all economic activity in region is taxed there. A firm in Örnsköldsvik pays their taxes to the Swedish government, and then the Swedish government distributes part back to the region.
It's around 600 million USD per year, on 56836 people. Around $1000 per head. But GDP per capita is $58,498.
Continuing to lose money leads to bankruptcy.
It would probably be fine. Furthermore, I don't think Denmark plans on dropping it. They want reasonably strong government services also in this sparsely populated arctic region.