Canada has joined the EU’s Security Action for Europe (SAFE) rearmament initiative, making it eligible for $170 billion in loans to procure military equipment.
Published December 2, 2025
Canada has joined the multibillion-dollar European Union 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 joining the EU’s Security Action for Europe (SAFE) initiative will give Canadian defense companies a “tremendous opportunity” to gain greater access to European markets in a “dangerous and divided world.”
Recommended stories
list of 4 itemsend of list
“Canada’s participation in SAFE will fill a key capability gap, expand the market for Canadian suppliers, and attract European defense investment to Canada,” Secretary Carney said in a statement.
“This is the next step in our deepening cooperation and represents 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 ($170 billion) SAFE rearmament fund was announced earlier this year amid concerns about a possible Russian attack on the EU and concerns among member states about the reliability of U.S. military protection.
SAFE aims to ensure the EU is able to rearm and defend itself against external threats by 2030 and is said to be a major effort to “accelerate defense preparedness”.
Canada’s participation in the SAFE initiative comes after Secretary Carney said he intends to diversify Canada’s procurement and trade partnerships and strengthen Canada’s relationship with the EU. Mr. Carney has also previously said that no more than 70 cents of every dollar in Canadian military capital spending will go to the United States.
Canada’s move comes after US President Donald Trump infuriated Canadians earlier this year by starting a trade war and suggesting Canada become the 51st US state.
Joint weapons projects under SAFE must have at least 65% of their components produced within the 27 EU member states, although exemptions may be granted to partner countries such as Canada.
Defense spending priorities under SAFE include acquisition of missiles and ammunition, artillery systems, ground combat capabilities, unmanned aerial vehicles and counter-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 on the UK’s participation in the SAFE Fund ended last week without an agreement.
Negotiations broke down over money, with Europe demanding more money for British participation than the British government was prepared to pay.
🇪🇺The majority of member states will place projects under the four focus areas proposed by 🇪🇺: Drone Defense Initiative, Eastern Flank Surveillance, Air Shield and Space Shield. #EUDefence
Learn more about #SAFE 🔗 ⬇️https://t.co/RY9lbd6kBA
— Andrius Kubilius (@KubiliusA) December 1, 2025
