Canada joins key EU defence programme as PM Carney pivots away from US

Canada joins the EU’s Security Action for Europe (SAFE) rearmament initiative, giving access to $170bn in loans for military equipment procurement.

Canada has joined a multibillion-dollar European Union defence fund, becoming the first non-European country to do so, as Ottawa looks to diversify its military spending away from the United States.

Canadian Prime Minister Mark Carney said on Monday that participation in the EU’s Security Action for Europe (SAFE) initiative would give Canadian defence companies “tremendous opportunities” from increased access to the European market in a “dangerous and divided world”.

“Canada’s participation in SAFE will fill key capability gaps, expand markets for Canadian suppliers, and attract European defence investment into Canada,” Carney said in a statement.

“This is the next step in our deepening cooperation and symbolic of the shared priorities of the European Union and Canada,” Carney said in a separate joint statement with European Commission President Ursula von der Leyen.

The 150-billion-euro ($170bn) SAFE rearmament fund was announced earlier this year amid fears of a potential Russian attack on the EU and concerns among member states over the reliability of US military protection.

SAFE has been described as a major effort by the EU to “speed up defence readiness”, as the bloc aims to re-arm and be capable of defending itself from external threats by 2030.

Canada’s joining the SAFE initiative comes after Carney said he intended to diversify Canada’s procurement and trade partnerships and enhance the country’s relationship with the EU. Carney had also previously said that more than 70 cents of every dollar of Canadian military capital spending would no longer go to the US.

The move by Canada comes after US President Donald Trump infuriated Canadians by launching a trade war earlier this year and suggesting that Canada become the 51st state in the US.

Joint arms projects under SAFE must have a minimum 65 percent of their components produced within the EU’s 27 member nations, but partner countries such as Canada could be granted exemptions, according to reports.

Priority defence spending under SAFE involves the procurement of missiles and ammunition, artillery systems, ground combat capabilities, drone and anti-drone systems, and cyber warfare, as well as air and missile defences, maritime forces, electronic warfare and “space assets protection”.

Talks between the EU and London on the United Kingdom joining the SAFE fund ended without agreement last week.

Negotiations foundered over money, with Europe demanding more for the UK’s participation than the government was willing to pay.