Canada joined the European Union’s Security Action for Europe (SAFE) rearmament initiative, which provides access to a $170bn loan to purchase military equipment.
Published on December 2, 2025
Canada has joined a multi-billion dollar European Union defense 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 Monday that participating in the European Union’s Security Action for Europe (SAFE) initiative would give Canadian defense companies “huge opportunities” from increased access to European markets in a “dangerous and divided world.”
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“Canada’s participation in SAFE will fill important capability gaps, expand markets for Canadian suppliers and attract European defense investment to Canada,” Carney said in a statement.
“This is the next step in our deepening cooperation and symbolizes 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 possible Russian attack on the European Union and concerns among member states about the reliability of US military defences.
SAFE has been described by the EU as a major effort to “accelerate defense readiness”, as the bloc aims to be able to defend itself against external threats by 2030.
Canada’s involvement in the SAFE initiative comes after Carney stated his intention to diversify Canada’s diversity Purchasing and Trading Partnerships and enhancing the country’s relationship with the EU. Carney also previously said that more than 70 cents per dollar Canada’s military capital The cost will no longer flow to the US.
Canada’s move comes after US President Donald Trump angered Canadians earlier this year by launching a trade war and suggesting Canada become a country. 51st state in the US.
Joint arms projects under SAFE must have at least 65 percent of their components produced in the EU’s 27 member states, but reports say partner countries such as Canada can be exempted.
Priority defense spending under SAFE includes missiles and ammunition, artillery systems, ground combat capabilities, drone 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 last week without a deal.
Negotiations began over money, with Europe demanding more than the government was prepared to pay for UK participation.
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— Andreas Kubilius (@kubiliusA) 1 December 2025