Canada joins Europe's 150 billion euro defense program

This marks the first time a third country has officially participated in the EU's flagship joint arms procurement initiative. The decision follows months of complex negotiations between Ottawa and Brussels.

The announcement was made during the EU Foreign Affairs Council meeting on Monday, December 1. EU Defense Commissioner Andrius Kubilius informed delegations that negotiations with Ottawa were concluded.

Canada's entry into the SAFE program, which finances arms through a loan-for-weapons scheme, provides access to jointly funded defense projects and allows Canadian companies to participate in EU-backed procurement tenders.

For Brussels, involving a G7 partner enhances the credibility of the SAFE program and helps coordinate long-term demand for arms while supporting the development of the European defense industry.

Under the program, partner countries can finance up to 35% of equipment costs, but Canada may secure a larger share by paying a fee "commensurate with the benefits the partner country and its entities are expected to derive".

Negotiations also covered intellectual property controls and restrictions on using non-EU components in sensitive systems, including drones, missile defense systems, and strategic support equipment.

Canada's accession comes as all 19 EU member states submitted their spending plans, financed by SAFE preferential loans, with 15 members including multi-billion-euro support for Ukraine.

The agreement opens new opportunities to strengthen defense cooperation between Europe and Canada and boosts the SAFE program's status as a key EU security initiative.

Separately, the Netherlands will allocate an additional €250 million in US weapons for Ukraine. Last month, Northern and Baltic European countries announced a joint $500 million aid package to strengthen the Ukrainian army.