Europe Canada joins EU loan fund for defense projects
Canada is joining an EU program worth up to 150 billion euros for low-cost loans for the joint procurement of military equipment.
02.12.2025, 05:58
SDA
The financing instrument is a way to strengthen cooperation "in these geopolitically turbulent times", explained EU Commission President Ursula von der Leyen and Canadian Prime Minister Mark Carney in a joint statement. The aim is to fulfill defence policy objectives, make better use of existing resources and coordinate more closely on armaments issues.
The background to the project, called Safe, is the armament efforts in Europe: they are intended to deter Russia from possibly attacking an EU state after Ukraine. Intelligence agencies assume that Russia will be in a military position to start another war by 2030 at the latest.
Canada wants to reduce dependence on the USA
For Nato partner Canada, the appeal of closer ties with the EU in the armaments sector is also likely to lie in reducing its dependence on the USA as the country's most important ally. President Donald Trump had offended Canada by repeatedly suggesting that the neighboring country should simply be integrated into the USA as the 51st state.
The joint statement on Monday said that participation in the loan program was "the next step in our intensifying cooperation and symbolic of the shared priorities of Canada and the European Union". Like most EU states, Canada is a staunch supporter of Ukraine, which is under attack from Russia.
The Safe Project loans, which are secured through the EU budget, are intended to enable member states to invest in joint armaments projects at very favorable financing conditions - for example, to purchase additional air defense systems or ammunition. According to the EU, joint procurement projects should also lead to lower prices through volume advantages. In addition, this should ensure that the armed forces of the partner countries can work together better, i.e. increase their so-called interoperability.
Germany does not want to take advantage of discounted EU loans
In contrast to other large EU countries such as France, Italy and Spain, Germany does not want to take advantage of the loans for the time being, as it can obtain loans on the financial markets at very favorable conditions even without EU support. However, German companies could receive orders financed through the program.
