Canada Secures Access to EU’s Landmark Arms Procurement Program
Brussels – Canada has successfully negotiated its inclusion in the European Union’s SAFE (Security Assistance for Ukraine and Europe) program,opening the door for Canadian companies to participate in considerable defense procurement opportunities,Defence Minister Bill Blair announced today. While the exact financial terms are still being finalized, officials confirm the participation fee will be in the millions, not billions, of dollars.
The SAFE program, launched by the EU in March as a response to russia’s war in Ukraine, aims to bolster European defence capabilities through loans and collaborative procurement. Nineteen of the 27 EU member states have already applied for funding, wiht Poland receiving the largest allocation to date – €43.7 billion ($71 billion Cdn). Romania (€16.6 billion / $27 billion Cdn), Hungary, and France (€16.2 billion / $26.3 billion Cdn) have also secured critically important portions of the initial €150 billion.
Canada’s entry into the program comes after the UK’s negotiations recently stalled over disagreements regarding the participation fee. Without a finalized agreement on the fee, companies woudl have faced limitations on their potential contributions to projects.
“We’re in the tent to build this relationship and participate in very large opportunities for procurement. The details in terms of costs, percentages are being ironed out,” Blair stated.
The initial deadline for bids on the first wave of loans – November 30th – has passed, raising questions about the impact on Canadian companies. It remains unclear whether they will now have to wait until 2027 for the next funding cycle. Though, sources indicate Canada is primarily focused on the larger opportunities expected within the EU’s upcoming multi-year fiscal framework negotiations.
“This is the real prospect. What are we going to collaborate on [in defence procurement] with the European Union over the next five-year, multi-year, fiscal framework cycle?” explained defence analyst David Leprecht.
The move aligns with a broader strategy,previously highlighted by former Bank of Canada Governor Mark Carney,to rebuild both the Canadian military and its domestic industrial base through international partnerships.This emphasis on industrial benefits had previously caused some concern within European diplomatic circles,who worried the program’s potential benefits may have been overstated in Canada.
The federal goverment recently allocated an additional $81.8 billion over five years to bolster the Canadian military, framing the budget as a “blueprint” to defend Canada’s ”sovereignty.” Minister Blair acknowledged the difficulty in predicting whether Canada will meet its NATO defence spending targets.
