Canada joins EU defence fund, signaling warmer global ties.
Canada becomes first outsider granted trusted EU defence access.
Canada becomes the first non-EU nation welcomed into the EU’s defence fund, marking a warmer, more collaborative global shift.
Toronto: Canada has taken a striking and symbolic step in reshaping its defence policy by joining a major European Union military financing programme, a move Prime Minister Mark Carney’s office says reflects a historic diversification away from overwhelming dependence on the United States. The announcement marks the most consequential shift in Canada’s defence alignment in decades, aligning Ottawa more closely with European priorities at a moment when global tensions and questions about US reliability continue to rise.
The plan grants Canadian defence companies access to the EU’s massive 150-billion-euro Security Action for Europe fund—better known as SAFE. This programme provides low-interest, EU-backed loans meant to strengthen the bloc’s defence industrial base and accelerate the production of military equipment. With Canada now participating, Canadian firms will be able to apply for this pool of financial support, giving them a competitive advantage in a global market where capital costs and production timelines increasingly determine strategic partnerships.
In his statement, Carney emphasized the practical importance of the decision. His comments highlight a dual goal: strengthening Canada’s own military capacity while at the same time ensuring that Canadian industry has a stronger foothold in European supply chains, particularly as EU nations dramatically expand their defence spending in response to geopolitical uncertainty.
Canada’s admission to the SAFE programme is notable for another reason: it is the first non-EU country granted access. The decision required EU member states to agree that Canada’s strategic interests, regulatory alignment, and industrial reliability make it a trusted partner on par with internal participants. For Brussels, the move signals a readiness to form more flexible defence partnerships with like-minded democracies across the Atlantic, especially those willing to commit resources and align procurement processes with European standards.
For Ottawa, the timing is no accident. Carney has repeatedly warned that Canada’s defence procurement has become excessively dependent on the United States. For years, more than 70 cents of every dollar Canada spent on military capital assets flowed directly into the US defence ecosystem. This tight economic coupling made Canada vulnerable to political volatility in Washington and, in Carney’s view, weakened Canada’s ability to make independently strategic decisions.
His concerns were shaped in part by the turbulent political conditions during Donald Trump’s presidency. Trump’s trade war, which hit Canadian exports hard, and his repeated inflammatory comments—including the suggestion that Canada should become the 51st US state—infuriated many Canadians. These actions deepened the sense that the long-standing security and economic relationship between the two neighbours had grown imbalanced. Carney’s election campaign capitalized on this sentiment, promising to “rebalance Canadian sovereignty” and confront what he described as rising aggression and unpredictability from Washington.
Joining the EU’s SAFE fund is therefore more than an economic decision; it is a strategic reorientation. Carney has positioned it as a central piece of a broader effort to diversify Canada’s defence relationships, reduce risk, and restore what he frames as an independent Canadian defence identity. By seeking closer collaboration with Europe, he aims to ensure that military procurement is not constrained by a single foreign market, especially one whose political direction may change sharply with each election cycle.
The move also aligns with Canadian efforts to modernize military infrastructure and update procurement systems that have long been criticized as slow, fragmented, and overly bureaucratic. Access to the SAFE programme means Canadian firms can become more competitive in producing ammunition, vehicles, aerospace systems, surveillance tools, and cyber-security components—areas where European nations are increasing investment at unprecedented speed.
Meanwhile, the UK’s attempt to join the SAFE fund has encountered significant difficulty. Talks between London and Brussels collapsed last week after negotiations faltered over financial commitments. European officials reportedly demanded higher contributions than the British government was prepared to offer, particularly given domestic fiscal constraints and lingering political sensitivities following Brexit. The contrast between Canada’s successful entry and Britain’s stalled negotiations underscores how political alignment and economic flexibility now play an outsized role in shaping access to Europe’s defence initiatives.
For Canada, however, the moment is both symbolic and practical. It signals that Ottawa is prepared to break patterns that once seemed unchangeable, redefining how the country positions itself within the global defence landscape. As geopolitical tensions shift, Canada is placing a bet that closer ties with Europe will enhance both its industrial strength and its strategic autonomy. And for the EU, welcoming Canada into SAFE marks an opening toward broader cooperation with trusted partners who share democratic values and defence priorities, creating new avenues for collaboration at a time when the world’s security architecture is rapidly evolving.