MILAN \u2014 Canada has become the first non-EU country to join the bloc\u2019s flagship rearmament program, Security Action for Europe (SAFE), whose funds could support Ottawa\u2019s fighter jet and submarine procurement.<\/p>\n\n\n\n
Canadian Prime Minister Mark Carney announced this week that his government struck a deal to join the EU\u2019s \u20ac150 billion initiative that provides loans for joint military procurement to boost readiness.<\/p>\n\n\n\n
\u201cParticipation in SAFE will unlock billions of dollars in potential defense opportunities for Canadian businesses, attract new reliable suppliers for our Armed Forces, and open massive new opportunities for national manufacturers to build and export Canadian-made capabilities,\u201d Carney said in a statement.<\/p>\n\n\n\n
Canada is in a review stage of its next-generation fighter jet purchase. It has committed funds for 16 initial F-35s, but is assessing the possibility of a mixed fleet where the Swedish-made Gripen aircraft is also a top contender.<\/p>\n\n\n\n
Many details regarding the North American country\u2019s involvement in the SAFE program still need to be hashed out over the coming weeks. Ottawa and the EU are currently working on ratifying a bilateral agreement that will expedite the process and may exempt the country from certain rules. <\/p>\n\n\n\n
Under SAFE regulations, no more than 35% of a project\u2019s component costs can originate from outside the European Union, the European Economic Area or Ukraine to be eligible for funding. However, nations can buy their way in, through a financial contribution in exchange for more access. <\/p>\n\n\n\n
It remains unclear how much Canada has agreed to provide and whether the entry-fee is a one-time payment or tied to procurement commitments. Issues around this clause were responsible for stalling negotiations for the United Kingdom to join the program last month. <\/p>\n\n\n\n
In that case, parties were unable to agree on the size of London\u2019s financial support. The EU\u2019s proposal was that the amount could range between \u20ac4 billion and \u20ac6.5 billion, while the U.K. was ready to commit only around \u20ac200 million to \u20ac300 million.<\/p>\n\n\n\n
As Ottawa has big-ticket procurement targets underway, Roger Hilton, a Canadian defense fellow at the Bratislava-based think tank GLOBSEC, said financing could extend to next-generation fighter aircraft, conventional submarines and maritime domain awareness systems. <\/p>\n\n\n\n
He expects that the country is also likely to explore SAFE options for drones, anti-submarine warfare platforms and secure satellite communications. <\/p>\n\n\n\n
SAFE-funded projects also require at least two partners, generally two member-states, or one member country and Ukraine or an EFTA\/EEA nation, a pool that includes all EU nations plus Norway, Iceland, Liechtenstein and Switzerland.<\/p>\n\n\n\n
According to Hilton, Canada is likely to team up with European partners based on specific considerations, including countries that are ideologically open to its involvement in the program and share overlapping strategic priorities such as Arctic security and North Atlantic defense. <\/p>\n\n\n\n
\u201cIt is very probable that it will also gravitate towards states with the deepest aerospace and naval industries \u2013 notably France, Germany, Italy, Sweden, and Spain, as they have the industrial mass, design authority, and consortium models that SAFE favors,\u201d Hilton said.<\/p>\n","protected":false},"excerpt":{"rendered":"
The admission into the bloc’s loan scheme comes after Canadian leaders pushed to get closer to the European Union, as ties with Trump’s USA have soured.<\/p>\n","protected":false},"author":7,"featured_media":119739,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":46,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,46,11,36,48],"tags":[],"coauthors":[3487],"class_list":["post-72436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-europe","category-global","category-newsletters","category-the-americas"],"acf":{"subheadline":"","legacy_arc_id":"CJ7LHUBFKZFDRCA3ZWNFAW2MWQ","arc_canonical_url":"\/global\/europe\/2025\/12\/03\/canada-could-use-eu-loans-for-next-gen-warplane-submarine-purchases\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"\n