Canada is joining an EU program worth up to 150 billion euros for cheap loans for the joint procurement of defense equipment.
12/02/2025, 07:3712/02/2025, 07:37
The financing instrument is a way to strengthen cooperation “in these geopolitically turbulent times,” said EU Commission President Ursula von der Leyen and Canadian Prime Minister Mark Carney in a joint statement. It’s about meeting defense policy goals, making better use of existing resources and coordinating more closely on arms issues.
Under Prime Minister Mark Carney, Canada wants to become more independent from the USA and work more closely with Europe.Image: keystone
The background to the project called Safe is the rearmament efforts in Europe: They are intended to deter Russia from possibly attacking another EU state after Ukraine. Secret services assume that Russia will be militarily capable of starting another war by 2030 at the latest.
Canada wants to reduce dependence on the USA
For NATO partner Canada, the appeal of a somewhat closer connection to the EU in the defense sector may also 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 federal state.
Monday’s joint statement said participation in the loan program was “the next step in our strengthening cooperation and symbolic of the shared priorities of Canada and the European Union.” Like most EU states, Canada is one of the steadfast supporters of Ukraine, which was attacked by Russia.
The Safe Project loans, secured through the EU budget, are intended to enable member states to invest in joint defense projects on very favorable financing terms – 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 is intended to ensure that the armed forces of the partner countries can work together better, i.e. their so-called interoperability is increased.
Germany does not want to take advantage of reduced 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 the Federal Republic can get loans on the financial markets at very favorable conditions even without EU support. However, German companies could receive orders financed through the program. (sda/dpa)