Canada has joined the European Union’s Security Action for Europe (SAFE) rearmament initiative, which provides access to $170 billion of loans for the purchase of military equipment.
Canada has joined a billion-dollar EU defense fund, becoming the first non-European country to do so, as Ottawa seeks to diversify its military spending away from the United States.
Canadian Prime Minister Mark Carney said Monday that participation in the EU’s Security Action for Europe (SAFE) initiative will provide Canadian defense companies with “tremendous opportunities” to expand access to the European market in a “dangerous and divided world.”
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“Canada’s participation in SAFE will fill key capability gaps, expand markets for Canadian suppliers and attract European defense investment into Canada,” Carney said in a statement.
“This is the next step in our deepening cooperation and symbolizes the shared priorities of the EU and Canada,” Carney said in a separate joint statement with European Commission President Ursula von der Leyen.
The 150 billion euro ($170 billion) SAFE Rearmament Fund was announced earlier this year amid fears of a possible Russian attack on the EU and concerns among member states over the reliability of U.S. military security.
SAFE has been described as a major effort by the EU to “accelerate defense preparedness”, as the bloc aims to be able to defend itself and defend itself against external threats by 2030.
Canada’s joining the SAFE initiative comes as Carney said he intends to diversify Canada’s procurement and trade partnerships and enhance the country’s ties with the European Union. Carney has also previously said that no more than 70 cents of every dollar of Canadian military capital spending will now go to the US.
Canada’s move comes after US President Donald Trump angered Canadians by launching a trade war earlier this year and suggesting Canada become the 51st state of the US.
According to reports, joint weapons projects under SAFE must have a minimum of 65 percent of their components produced within the 27 EU member states, but partner countries such as Canada may be exempted.
Priority defense spending under SAFE includes procurement of missiles and ammunition, artillery systems, ground combat capabilities, drones and anti-drone systems, and cyber warfare, as well as air and missile defense, maritime forces, electronic warfare, and “space asset protection.”
Talks between the EU and London over the United Kingdom joining the SAFE fund ended without a deal last week.
Negotiations began over money, with Europe demanding more payment from the government for Britain’s participation.
Most of the member states of 🇪🇺 will have projects under 4 major domains proposed by 🇪🇺: Drone Defense Initiative, Eastern Flank Watch, Air Shield and Space Shield.#eudefense
More information on #Safe 🔗 ⬇️https://t.co/RY9lbd6kBA
-Andrius Kubilius (@kubiliusA) 1 December 2025
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