Copenhagen/Nuuk, Greenland  - In folk festivals around the Arctic island, Greenlanders on Sunday celebrated a new chapter in their history with expanded autonomy removing them a further step from Denmark's colonial rule.

Participating in the festivities in the capital Nuuk were Danish Queen Margrethe II and Greenland's new premier, Kuupik Kleist, as Greenlanders celebrated the upgrading of their political status from "hjemmestyre" (home rule) into "selvstyre" (self-rule).

In addition to that enhanced status for the 56,000 people, Greenlandic - which is closely related to the Inuit languages - became recognized as the official language.

The government in Nuuk had enjoyed semi-autonomy from Denmark since 1979. In the future, Copenhagen will still, in principle, hold decision-making power for Greenland in security, foreign and monetary issues.

But Denmark will in future abstain from any claims on Greenland's huge but as yet untapped, natural resources. Should revenues be forthcoming in the future from these resources, Denmark's subsidies for Greenland would be reduced.

At the moment, Denmark will still provide an annual "block grant" of 3.2 billion Danish kroner (595 million dollars) to Greenland, covering nearly half of all public expenditure.

Kleist was swept into office by his sensational election victory earlier this month over the founders of Greenland's autonomy movement, now decried as corrupt.

Amid the festivities, Greenland still faces massive social ills including a high suicide rate, widespread domestic violence and alcoholism. The Arctic island's chief economic pillar is fishing. (dpa)