Canada becomes first non-European country to join EU's SAFE defense initiative

By Melike Pala

BRUSSELS (AA) - Canada is set to become the first non-European country to participate in the European Union's Security Action for Europe (SAFE) defense initiative after EU member states' representatives endorsed a bilateral agreement on Friday.

The agreement opens the EU's €150 billion ($175 billion) SAFE instrument to Canada, allowing Canadian entities to take part in joint defense procurement projects aimed at strengthening defense industrial production and addressing priority capability gaps across the bloc, according to a statement by the EU Council.

SAFE supports EU members that wish to invest collectively in defense equipment, with the goal of boosting Europe's defense readiness and reinforcing the European defense technological and industrial base.

Under SAFE rules, procurement contracts must ensure that components originating outside the EU, EEA-EFTA states and Ukraine do not exceed 35% of the estimated cost of the final product.

The agreement with Canada eases these eligibility conditions to allow broader participation by Canadian legal entities, subject to a financial contribution by Canada to the instrument.

The next step will see the EU Council invited to authorize the formal signature of the agreement following legal review. After the signing, the European Parliament will be asked to give its consent before the EU Council can formally approve the deal.

SAFE is the first pillar of the EU's ReArm Europe Plan/Readiness 2030, presented by the European Commission to strengthen Europe's defense capabilities. Other pillars include boosting national defense spending, increasing flexibility in EU funding instruments, enhancing the role of the European Investment Bank, and mobilizing private capital.

The initiative also plays a key role in supporting Ukraine's closer integration with the European defense industrial base and strengthening Europe's collective defense in response to growing security challenges.

So far, 19 participating countries have submitted their national defense investment plans under SAFE, which are currently under review by the European Commission.