As Canada’s new government rebuilds, rearms, and reinvests in the Canadian Armed Forces, we are focused on providing the women and men in uniform with the equipment they need, when they need it. With the right tools in their arsenal, we will reinforce Canada’s sovereignty, create high-paying new careers for Canadian workers, and strengthen our defence partnerships with Allies. As part of this mission, Canada signed a Security and Defence Partnership with the European Union (EU) earlier this year, and launched negotiations toward Canada’s participation in Security Action for Europe (SAFE), a key pillar of the EU’s Readiness 2030 plan. For Canada and the EU Member States who are NATO Allies, this will help deliver on defence capability targets more quickly and economically.
Today, the Prime Minister, Mark Carney, announced the conclusion of negotiations for Canada’s participation in SAFE – unlocking billions of dollars in potential defence opportunities for Canadian businesses. SAFE provides up to $244 billion in loans to EU Member States to support large-scale defence projects, including acquiring critical capabilities such as ammunition, missiles, drones, artillery systems, and infantry weapons. As all 27 EU Member States increase defence investments, greater cooperation on procurement opens massive new opportunities for Canadian manufacturers to build and export Canadian-made technologies and capabilities.
As EU countries strengthen their defence capabilities through SAFE, Canadian participation will give our defence industry expanded access to the European market, attract new reliable suppliers for the Canadian Armed Forces, and catalyse massive private investment in Canada – creating higher-paying careers, growing Canadian industries, and bolstering transatlantic defence readiness. With this agreement, Canada will become the only country outside of Europe with preferential access.
Canada’s participation in SAFE will be facilitated by the new Defence Investment Agency, which will remove red tape, centralise review and approval, and bolster industrial capacity. With negotiations now concluded, Canada and the EU will work to swiftly ratify the bilateral SAFE agreement, with the goal to officially launch Canada’s participation in SAFE in the coming weeks.
Quotes
“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.”
— The Rt. Hon. Mark Carney, Prime Minister of Canada
“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.”
The Hon. David J. McGuinty, Minister of National Defence
“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.”
The Hon. Maninder Sidhu, Minister of International Trade
“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 Hon. Stephen Fuhr, Secretary of State (Defence Procurement)
Quick facts
- Unveiled earlier this year, Readiness 2030 is the European Commission’s plan to boost defence funding in Europe, including through SAFE. In total, it aims to leverage up to $1.3 trillion to strengthen Europe’s defence capacity, including over $244 billion from the SAFE instrument.
- SAFE is the EU’s financial instrument designed to provide financial support to EU Member States, Ukraine, and European Economic Area-European Free Trade Association countries (EEA-EFTA) for rearmament purposes. It will speed up defence readiness by allowing urgent and major investments in support of the European defence industry, with a focus on closing critical capability gaps.
- On June 23, 2025, at the 20th Canada-EU Summit, Canada and the EU signed the Canada-EU Security and Defence Partnership (SDP). The SDP is a non-legally binding partnership that reaffirms and regroups our security and defence activities with EU Member States under a single political framework.