SAFE will offer up to 244 billion dollars in loans to EU Member States for large-scale procurement of defence capabilities. With all 27 EU countries increasing defence spending, Canada’s participation is expected to open wider access for Canadian manufacturers to supply European partners.
Officials said the agreement will help reinforce Canada’s sovereignty while creating high-paying jobs for Canadian workers. It will also support NATO Allies by accelerating the delivery of defence capabilities more efficiently and at lower cost.
Participation will be supported by the new Defence Investment Agency, which will streamline approvals and strengthen industrial capacity. Canada and the EU will now move quickly to ratify the bilateral agreement to allow formal participation in the coming weeks.
Prime Minister Mark Carney said: “In a dangerous and divided world, Canada and Europe are elevating our defence partnerships to rapidly procure new equipment and technology, accelerate NATO targets, and catalyse tremendous opportunities for our defence manufacturers. Canada’s participation in SAFE will fill key capability gaps, expand markets for Canadian suppliers, and attract European defence investment into Canada.”
Defence Minister David J. McGuinty stated: “SAFE is a force multiplier for Canada. Our participation in SAFE unlocks unprecedented opportunities for Canadian manufacturers to build what our Allies need and what our Forces can rely on. This partnership accelerates our own rearmament while showcasing the world-class capabilities of Canadian workers, engineers, and innovators.”
International Trade Minister Maninder Sidhu said: “Canada’s participation in SAFE is a generational opportunity for our defence sector. As our European Allies rearm at historic levels, Canadian companies will be at the forefront, building the technologies, capabilities, and high-skilled jobs that keep Canadians safe. By working hand in hand with the EU, we are strengthening our Armed Forces, expanding Canada’s industrial capacity and ensuring that our workers and innovators help shape the future of global security.”
Secretary of State for Defence Procurement Stephen Fuhr added: “Today marks the beginning of an even stronger future in the relationship between Canada and Europe. With a Security Action for Europe agreement, Canada’s defence industry will have unprecedented access and involvement in the future for a strong and secure Europe. With this agreement, we will strengthen our collective security and create new opportunities for Canadian businesses and workers.”
The agreement follows the Security and Defence Partnership signed at the Canada-EU Summit in June 2025. That partnership consolidated defence cooperation under a single political framework as part of Europe’s Readiness 2030 plan.
