Defence: EU countries give final go-ahead for Canada’s participation in SAFE funding

Brussels – Canadian companies and products will be able to bid for contracts under the Security Action for Europe (SAFE), the European Union’s instrument providing for loans of up to €150 billion, raised on the financial markets, to be allocated to defence spending. The decision, which formally concludes the agreement signed on 14 February, was adopted today (15 June) by the Council of the European Union, making Canada the first non-European country to participate in SAFE. “Canada is one of the European Union’s closest allies,” and “its accession to SAFE underscores our deep mutual trust and sets an important precedent for the EU’s collaboration with key strategic partners to safeguard our collective future,” commented Vasilis Palmas, Defence Minister of Cyprus, the country currently holding the six-month presidency of the EU Council. 

The agreement, signed on 14 February 2026, reflects the shared commitment of the EU-27 and Ottawa to deepen ties in security and defence and to further strengthen joint cooperation, as set out in the Security and Defence Partnership signed at the Canada-EU Summit on 23 June 2025. 

SAFE is an EU financial instrument designed to support Member States wishing to invest in industrial production in the defence sector through joint procurement, with a focus on priority capabilities. It funds urgent, large-scale investments in the European Defence Technological and Industrial Base (EDTIB), with the aim of increasing production capacity, ensuring the timely availability of defence equipment and addressing existing capability gaps. Under SAFE, Ukraine and EFTA/EEA countries may participate in joint procurement. Candidate countries, potential candidate countries and countries that have signed Security and Defence Partnerships with the EU may also participate in joint procurement and contribute to the aggregate demand. From today, Canada will also be part of the group of participating countries.