Canada has agreed to join in the European Union’s Security Action for Europe (SAFE) defence financing initiative, becoming the first non‑European country to secure such status under the programme, Canadian and EU officials said in late December.

Under the agreement, Ottawa will gain access to joint procurement mechanisms designed to support large‑scale defence investment across allied forces. This will include loans for critical equipment such as missiles, drones and other priority capabilities.

SAFE, backed by up to €150 billion, was created to help EU member states boost military purchases and industrial capacity under a shared framework, spreading the cost and encouraging supply chain integration.

Canadian Prime Minister Mark Carney said participation will give Canadian defence firms “expanded access to the European market,” help fill capability gaps and attract European investment into Canadian defence industries.

Canada’s participation builds on a Security and Defence Partnership agreed with the EU in June.

The agreement, subject to consent by the EU Parliament and Council, will link Canadian and European defence networks at a time of caution on US defence supply chains.

Negotiations for the UK to join the scheme appear to have broken down after financial terms could not be agreed by a 30 November 2025 deadline.