The European Union and Canada announced Monday that a deal has been reached to allow Ottawa to participate in Europe’s €150 billion ($174 billion) SAFE defense financing instrument.
In a joint statement, European Commission President Ursula von der Leyen and Canadian Prime Minister Mark Carney called the agreement “the next step in our deepening cooperation and a symbol of the shared priorities of the EU and Canada.”
What else did EU and Canadian leaders say?
“In these geopolitically turbulent times, this (SAFE) is a means to increase cooperation, meet defense goals, and spend better as we address short-term exigencies and long-term needs,” von der Leyen and Carney said in their statement.
“Together, we will create resilient defense supply chains between our industries at a critical time for global security,” he said.
What does SAFE aim to do?
The SAFE (Security Action for Europe) program aims to provide its members with loans on favorable terms to purchase arms jointly with other partners.
The loan will be secured through the EU budget.
Its establishment comes as the EU seeks to boost its defense industry in response to growing military aggression from Russia, at a time when the US appears to be withdrawing from its long-standing defense solidarity with Europe.
Canada’s move to join the project comes as it also seeks to reduce dependence on its neighbor for defense as it faces growing hostility from the US Trump administration.
Although joint arms purchases facilitated by SAFE must have at least 65% of their components manufactured within the 27-member EU, non-member countries such as Canada may be exempted.
The UK had also announced its desire to join the SAFE programme, but ultimately balked at the entry fees demanded from participating countries.
Edited by: Elisabeth Schumacher