Canada Officially Joins EU Defence Procurement Financing Program

Minister of National Defence David McGuinty responds to questions at the Liberal caucus meeting in Edmonton on Sept. 10, 2025. The Canadian Press/Amber Bracken

Canada’s Defence Minister David McGuinty says Ottawa has officially joined the European Union’s Security Action for Europe (SAFE) program that offers loans to member states to boost their military capabilities.

It comes about a year after Prime Minister Mark Carney signed a strategic defence and security partnership agreement with the EU, and just over two months since Canada’s role in the program was finalized. In a joint statement issued in December, Carney and President of the European Commission Ursula von der Leyen said that Canada joining the SAFE program was “symbolic of the shared priorities” of the EU and Canada.

After his recent visit to Europe, McGuinty said in a Feb. 15 news release announcing Canada has joined SAFE that his meetings with allies reinforced the importance of unity between Canada and its partners in Europe.

“The agreement strengthens our collective security, supports the development of key defence capabilities, and gives Canadian industry access to European defence markets while contributing to European and Ukrainian security,” McGuinty said in a statement to media outlets.

He added that the EU–Canada cooperation was “advancing a more resilient and secure Euro-Atlantic region.”

Ottawa said that, with the conclusion of the SAFE agreement, it has “made important progress on closer defence cooperation with the EU.”

McGuinty said that Canada was supporting the development of “key defence capabilities” to “enhance international security.”

SAFE provides up to 150 billion euros ($242 billion) in “long-maturity loans” to member countries to support “urgent and large-scale procurement efforts,” according to the European Commission website.

McGuinty said that the agreement allowed for the Canadian defence sector to be able to participate in SAFE contracts with up to 80 percent Canadian content, which will help “integrate” Canadian components into European supply chains.

The SAFE program was adopted by the Council of the European Union in May 2025.

In December, it was revealed that Canada will pay 10 million euros ($16 million) as a “one-off contribution” to join SAFE. The fee is considered proportionate to the scale of contracts countries are expected to gain for their domestic industry. In comparison, the UK has been asked to pay 4 billion–6.5 billion euros to join SAFE.

Canada’s financial contribution will be reassessed at a later date, EU spokesman Thomas Regnier told reporters on Dec. 2, saying the same methodology was being used for all potential agreements with non-EU countries to join SAFE.

Global Affairs Canada confirmed the amount, saying it would pay an administrative contribution of 2.5 million euros, and 7.5 million euros as an “upfront annual participation contribution.”

The Council of the EU announced in January the first countries that have been approved for loans, including Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal, Romania, Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland.

Jennifer Cowan contributed to this report.