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Canada has officially agreed to join the European Union’s $175 billion SAFE defense fund in an effort to diversify its military partnerships and reduce reliance on the United States.
Some shit you should know before you dig in: Shortly after Trump returned to office, Canadian officials began openly calling for a shift to reduce the country’s reliance on the United States for defense and procurement, citing growing national security concerns. The push for diversification gained urgency after Trump’s rhetoric suggesting that Canada should become the 51st US state, framing the idea as a way to “streamline” defense and trade under American control. Canadian leaders rejected the idea, interpreting it as a threat to national sovereignty and a signal of deteriorating trust in long-standing bilateral defense commitments. In response, Prime Minister Mark Carney and defense officials said there was a need to build independent capabilities.
What’s going on now: Canadian Prime Minister Mark Carney confirmed that Canada has officially joined the European Union’s €150 billion ($175 billion) Security Action for Europe (SAFE) defense fund, marking the first time a non-EU nation has gained access to the bloc’s flagship military procurement program. Designed to strengthen Europe’s defense posture by 2030, SAFE provides low-interest, EU-backed loans to its members for joint purchases of critical defense systems including drones, ammunition, cyber capabilities, and missile defense. Canada’s entry opens the door for its defense firms to compete for billions in contracts, while also positioning the country as a strategic partner in Europe’sbroader security infrastructure.
Carney described the deal as a “tremendous opportunity” for Canadian defense suppliers, stating, “Canada’s participation in SAFE will fill key capability gaps, expand markets for Canadian suppliers, and attract European defence investment into Canada.” He framed the move as a deliberate step to modernize Canada’s defense strategy while strengthening economic ties with European allies.
EU officials echoed Carney’s sentiments, with European Commission President Ursula von der Leyen praising Canada’s decision. “When like-minded partners join forces on security and defence in a turbulent world, our countries grow stronger, our industries benefit, and our citizens are safer,” she said.
Despite SAFE typically mandating that 65% of system components be sourced from EU member states, Canada is expected to receive specific exemptions due to its third-country status.
