Canada and the European Union have signed a major defense and security agreement just one day ahead of the NATO summit in The Hague, marking a significant step in transatlantic military cooperation and strategic alignment. The deal allows Canada to participate in the EU’s newly established SAFE initiative (Security Action for Europe), a €150 billion fund dedicated to joint defense procurement among EU member states and close partners.
The agreement, signed during Prime Minister Mark Carney’s visit to Brussels, grants Canada access to EU-financed military purchases, including missiles, drones, and advanced munitions. It also opens the door to Canada’s participation in the broader ReArm Europe initiative, which is expected to mobilize up to €800 billion in collective defense spending. The pact reflects Ottawa’s evolving defense posture, emphasizing deeper European cooperation at a time of growing global instability and increasing pressure on NATO members to meet collective obligations.
Speaking at the signing, Prime Minister Carney called the agreement “a new era of partnership,” noting that it aligns Canada with Europe’s defense modernization efforts while diversifying away from an almost exclusive reliance on U.S.-based weapons systems. The move comes amid growing concerns in Canadian policy circles over Washington’s shifting foreign policy priorities and threats from some U.S. lawmakers to condition military cooperation on increased spending or policy alignment.
Under the new agreement, Canadian defense firms will be eligible to compete for contracts funded through EU procurement programs. Although EU rules typically prioritize domestic suppliers, this deal includes language allowing allies like Canada to take part in joint projects, especially when aligned with NATO or mutual strategic goals.
The timing of the deal—just hours before NATO leaders meet in the Netherlands—underscores its significance. Canada has recently pledged to reach NATO’s target of spending 2% of GDP on defense by 2026. The SAFE agreement complements that commitment, enhancing Canada’s ability to modernize its forces while contributing to Europe’s defense industrial capacity.
To finalize full participation, Canada will need to sign a complementary framework agreement with the European Commission. That process is expected to be completed in the coming months, formalizing Ottawa’s access to shared EU defense platforms and future co-development initiatives.
Analysts say the deal represents a tangible shift in North America-Europe defense relations, providing new pathways for collaboration on cyber defense, space security, and emerging technologies. It also reflects the EU’s broader push to deepen its military capacity in the face of long-term threats from Russia and instability in other regions.
As the NATO summit begins, the Canada–EU pact sends a message of alignment and renewed commitment to collective defense, positioning both sides for a more integrated and responsive transatlantic security framework.
