SAFE: member states endorse agreement on the participation of Canada
Press Release
Member states’ representatives endorsed today the bilateral agreement with Canada under the ‘Security action for Europe’ (SAFE) regulation.
Canada will be the first non-European country to participate inthe SAFE instrument, the €150 billion defence instrument that supports those EU member states that wish to invest in defence industrial production through common procurement, focusing on priority capabilities.
This reflects the shared ambition of the EU and Canada to deepen their security and defence ties and to further strengthen joint defence cooperation, as set out in the Security and Defence Partnership signed at the Canada-EU Summit on 23 June 2025.
Details of the agreement
Under the SAFE instrument, procurement contracts will have to ensure that the cost of the components originating outside the EU, EEA-EFTA states and Ukraine is not higher than 35 % of the estimated cost of the components of the end-product. The agreement with Canada opens these eligibility conditions to allow for a greater participation of Canadian legal entities. The agreement foresees that such participation is subject to the payment by Canada of a financial contribution.
Next steps
The Council will be invited to authorise the formal signature of the agreement after legal scrubbing. Following the signature, the European Parliament will be requested to give its consent. Once the European Parliament has given its consent, the Council will be able to formally approve the agreement.
Background
In its conclusions of 6 March 2025, the European Council stressed that Europe must become more sovereign, and more responsible for its own defence and better equipped to act and deal autonomously to cope with immediate and future challenges and threats. At that European Council, all member states committed to strengthening their overall defence readiness, reducing strategic dependencies, while addressing critical capability gaps and strengthening the EDTIB accordingly so that the EU is in a position to better supply equipment in the quantities and at the accelerated pace needed.
SAFE is the first pillar of the ReArm Europe Plan/Readiness 2030 presented by the European Commission. The other pillars are: boosting national defence funding by activating the Stability and Growth Pact's national escape clause; making EU instruments such as the cohesion funds more flexible to allow greater defence investment; complementing public funding with contributions from the European Investment Bank; and mobilising private capital.
SAFE is also an important instrument to support Ukraine’s closer integration with the European defence industrial base, accelerating capability development, and enhancing Europe’s collective defence readiness in response to shared security threats.
19 participating countries submitted their National Defence Investment Plans under SAFE before the 30 November 2025 deadline. These plans are currently under review by the Commission.
The SAFE Regulation provides that the Union may conclude bilateral or multilateral agreements inter alia with third countries with which the Union has entered into a Security and Defence Partnership, in order to open the Regulation’s eligibility conditions to these countries.
The EU and Canada signed a Security and Defence Partnership on the occasion of the 23 June 2025 EU-Canada summit.
Noah Note: Step one is done. No details yet, obviously, but this marks the first part to ratifying Canada’s position in SAFE. The next steps are laid out and we should be getting more details in the coming weeks.
great news...carney understands the stakes
Cautiously optimistic that fellow democratic states will rally together! Canada has resources and an ambitious and well educated population. Europe has the industrial know how, giant well of intellectual knowledge and deep pockets!