Canada joins EU’s €150 billion SAFE defense program

December 2, 2025, by Fatima Bahtić

The European Union (EU) and Canada have concluded negotiations granting Canada participation in the new defense procurement instrument, Security Action for Europe (SAFE).

Courtesy of the European Commission; Photo by Mauro Bottaro

The agreement, announced in a joint statement by the Canadian Prime Minister Mark Carney and President of the European Commission Ursula von der Leyen, opens the door for Canadian defense companies to take part in EU-backed procurement projects.

“In these geopolitically turbulent times, it is a means to increase cooperation, meet defence targets and spend better, as we address short-term urgency and long-term needs. The conclusion of SAFE negotiations builds on our commitment to joint defence cooperation, as set out in the Security and Defence Partnership signed at the successful Canada-EU Summit earlier this year,” the officials said in a joint statement.

Under the agreement, Canada becomes a partner in SAFE’s joint procurement framework, enabling Canadian-made defense technologies and systems to be considered alongside European ones in major procurement projects. The move also aims to deepen industrial and strategic cooperation between Canada and the EU, and strengthen transatlantic defense supply chains.

“This is the next step in our deepening cooperation and symbolic of the shared priorities of the European Union and Canada. Together, we will create resilient defence supply chains between our industries at a crucial time for global security. In strengthening our respective industrial bases, we will create more jobs, more growth and more opportunities which are crucial for our defence readiness,” it was added.

SAFE, the EU’s new defense instrument

SAFE) entered into force on the 29th of May 2025, following its publication in the Official Journal of the European Union. Member States can submit national plans to access funding and begin implementing procurement projects aligned with EU priorities.

On November 30, 2025, 19 Member States submitted their National Defence Investment Plans.

SAFE is designed to mobilize up to €150 billion in competitively priced, long-maturity loans for urgent and large-scale investments in defense capabilities. Specifically, the program aims to shore up the European defense industrial base by financing procurement of priority defense products through joint acquisitions, involving multiple participating states, but also permitting single-state procurements during a transitional period to ensure rapid delivery.

The scope includes ammunition, missiles, drones, artillery systems, infantry weapons, strategic enablers, and other critical defense capabilities. It will also cover maritime surface and underwater capabilities, as well as artificial intelligence and electronic warfare.

While only Member States can obtain SAFE loans, the following countries may participate in common procurement:

EU acceding, candidate, and potential candidate countries;
Countries that have signed Security and Defence Partnerships with the EU such as Albania, Canada, Japan, Moldova, North Macedonia, Norway, South Korea, and the United Kingdom.

Additional bilateral or multilateral agreements may be concluded to broaden participation and eligibility.

To preserve the integrity of the European defense industry, procurement contracts under SAFE must ensure that no more than 35 % of component costs originate from outside the EU, EEA-EFTA, or Ukraine. Based on the submitted National Defence investment plans, 15 member states will undertake projects with Ukraine.

For the EU, opening SAFE to Canada enhances the credibility and scope of the initiative by including a G7 partner, potentially strengthening transatlantic ties and reinforcing the bloc’s defense supply chains amid growing geopolitical uncertainty.