August M
Canada is set to join the EU’s €150 billion SAFE defense fund, a move that reflects shifting security calculations on both sides of the Atlantic
A new transatlantic defense partnership is taking shape as the EU and Canada move to align their security spending. Officials on both sides confirmed that an agreement has been reached, opening the door for Ottawa to take part in Europe’s €150 billion SAFE financing system.
The announcement, issued Monday, sets the stage for deeper cooperation at a time when both regions are navigating shifting geopolitical pressures.
Shared priorities
European Commission President Ursula von der Leyen and Canadian Prime Minister Mark Carney said in a joint statement that the deal represented “the next step in our deepening cooperation and symbolic of the shared priorities of the European Union and Canada,” according to DW.
They argued that the SAFE mechanism offers a tool for partners to coordinate defense investments while responding to both immediate threats and structural challenges. “In these geopolitically turbulent times, it (SAFE) is a means to increase cooperation, meet defense targets and spend better, as we address short-term urgency and long-term needs,” the statement said.
The two leaders added that the initiative would help “create resilient defense supply chains between our industries at a crucial time for global security.”
What SAFE provides
DW reported that SAFE, or Security Action for Europe, is designed to offer favorable loans to countries engaging in joint weapons procurement. Those loans are backed by the EU budget and intended to strengthen Europe’s manufacturing capabilities.
The framework was launched amid heightened concerns over Russia’s military posture and growing uncertainty about future US security commitments to Europe. By pooling resources, EU states aim to accelerate production and reduce dependence on external suppliers.
Canada’s participation comes as Ottawa seeks to diversify away from US defense reliance, especially amid tensions with the current Trump administration.
Rules and exceptions
Under SAFE guidelines, jointly purchased systems must contain at least 65% EU-made components. However, DW noted that exceptions could be granted for non-EU states such as Canada.
Britain had earlier expressed interest in joining the program but ultimately withdrew over the required entry contribution.
Sources: DW-TV
