Chicago – December 02, 2025
Canada has become the first non-EU nation to join the European Union’s €150 billion ($170 billion) Security Action for Europe (SAFE) defense loan program, announced Monday by Prime Minister Mark Carney’s office.
This move allows Canadian defense firms to access affordable EU-backed loans for military equipment procurement, aiming to fill capability gaps, expand supplier markets, and attract European investments. Carney emphasized diversifying procurement away from the US, capping American spending at under 70 cents per military dollar, amid tensions from President Donald Trump’s trade war and statehood remarks. Canada commits to NATO’s spending target by early next year.
European Commission President Ursula von der Leyen welcomed Canada, calling it a step in deepening cooperation against Russian threats and US uncertainties. UK talks stalled over fees, unlike Canada’s deal. SAFE prioritizes missiles, drones, cyber, and air defenses for EU readiness by 2030.
