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Canada joins EU’s €150B SAFE defence loan program, boosting transatlantic defence ties and reducing U.S. defence spending reliance.
Canada has become the first non-EU nation to join the European Union’s €150 billion SAFE defence loan programme, enabling Canadian companies to access low-interest financing for military procurement and boosting transatlantic defence cooperation.
The move, driven by geopolitical concerns and a desire to reduce reliance on U.S. defence spending—where over 70% of funds previously went—marks a strategic pivot, with Canada now aiming to spend no more than 30 cents of every defence dollar on U.S. suppliers.
The agreement allows Canada to bid on EU defence projects and includes provisions on component sourcing and intellectual property.
Meanwhile, UK talks to join the programme have stalled over financial disagreements.
Canadá se une al programa de préstamos de defensa SAFE de 150 mil millones de euros de la UE, impulsando los lazos de defensa transatlánticos y reduciendo la dependencia del gasto de defensa de los Estados Unidos.