Canada joins the EU’s €150 billion defense fund, seeking to reduce its dependence on US defense.

On December 1, 2025, local time, the office of Canadian Prime Minister Mark Carney announced that the country had officially joined the EU’s core defense fund, Security Operations Europe (SAFE), becoming the first non-EU country to be granted access. This move marks a key step in Canada’s strategy to diversify its military spending and reduce its dependence on the United States.

The SAFE fund, with a scale of €150 billion, reportedly supports the procurement and research and development of military equipment through low-interest, long-term loans, covering areas such as missiles, drones, and air defense systems, and requiring that 65% of components be produced domestically in participating countries. Canadian defense companies will leverage this to obtain EU-subsidized loans, deeply participate in the European defense industry chain, and expand their international market access.

Previously, approximately 70%-75% of Canada’s defense spending went to the United States, and its equipment procurement was highly dependent on the US-made system. The Carney government had previously pledged to reduce its reliance on US purchases and is currently reviewing its F-35 procurement contract with Lockheed Martin, exploring alternatives using European equipment.