Canada has officially become the first non-European Union (EU) country to join the bloc’s prominent rearmament program, known as Security Action for Europe (SAFE). This decision, announced by Prime Minister Mark Carney, positions Canada to access a portion of the EU’s €150 billion initiative aimed at enhancing military procurement and readiness.
By joining SAFE, Canada intends to leverage potential funding opportunities that could support its ongoing efforts to procure next-generation fighter jets and submarines. Carney highlighted the significance of this participation, stating, “Participation 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.”
As Canada reviews its next-generation fighter jet purchase, it has already committed funds for 16 initial F-35 aircraft. The government is also considering a mixed fleet that includes the Swedish-made Gripen as a strong contender. In the coming weeks, further details regarding Canada’s integration into the SAFE program are expected to be clarified. Ottawa is currently engaged in ratifying a bilateral agreement with the EU that aims to streamline the process and potentially exempt Canada from certain regulatory constraints.
Under SAFE’s framework, to qualify for funding, less than 35% of a project’s component costs can come from outside the EU, European Economic Area, or Ukraine. Yet, nations can gain access through financial contributions, although the specifics of Canada’s commitment remain ambiguous. Negotiations for the UK’s entry into SAFE were recently stalled due to disagreements over the required financial contributions, with the EU proposing a range of €4 billion to €6.5 billion, while the UK was prepared to invest only around €200 million to €300 million.
Looking ahead, Canada has ambitious procurement goals that may include next-generation fighter aircraft, conventional submarines, and maritime domain awareness systems. According to Roger Hilton, a Canadian defense fellow at the think tank GLOBSEC, Canada may also investigate SAFE options for drones, anti-submarine warfare platforms, and secure satellite communications.
In order to qualify for SAFE funding, projects must involve at least two partners, typically comprised of EU member states or one member state and Ukraine, or a nation from the European Free Trade Association (EFTA) or European Economic Area (EEA). Hilton suggests that Canada is likely to collaborate with European nations that are ideologically aligned and share strategic interests, particularly regarding Arctic security and North Atlantic defense.
He noted, “It is very probable that it will also gravitate towards states with the deepest aerospace and naval industries – notably France, Germany, Italy, Sweden, and Spain – as they have the industrial mass, design authority, and consortium models that SAFE favors.”
As discussions progress, Canada’s participation in the SAFE initiative could potentially reshape its defense landscape, fostering stronger ties with European partners while enhancing its military procurement capabilities.
