OTTAWA - Canada has secured an agreement to join the European Union’s 150 billion euro (CAD 244 billion) Security Action for Europe (SAFE) program, becoming the first non-European nation to participate in the continent's major rearmament initiative. The deal, finalized following negotiations that began in June, will allow Canada to access low-interest loans for joint military procurement and bid on projects to supply ammunition, missiles, drones, and artillery systems.
While the overarching agreement is in place, Defense Minister David McGuinty indicated that specific financial terms, including an "entry fee" required to join the program, are still being finalized. Negotiations for the United Kingdom to join SAFE recently collapsed over disagreements about this fee.
The arrangement aims to catalyze private investment in Canada and integrate the country’s industrial base into Europe’s defense supply chain as the continent bolsters its capabilities in response to Russia’s ongoing war in Ukraine.
Poland currently accounts for the largest allocation of SAFE funding at 43.7 billion euros, followed by Romania (16.6 billion euros), Hungary (16.2 billion euros), and France (16.2 billion euros).