Europe Asia News

Canadian Prime Minister Mark Carney said in a separate statement: “Canada’s participation in SAFE will fill gaps in our core capabilities, expand markets for Canadian suppliers, and attract European defence investment to Canada.”

The fund, established in May, has borrowed €150 billion for defence investments in participating countries. This allows loans to be issued at lower interest rates compared with countries borrowing individually.

According to the BBC, 19 of the EU’s 27 member states have so far applied for loans from the fund. Poland received the largest loan—about €44 billion—followed by Romania, France and Hungary, each with slightly more than €16 billion.

Canadian Defence Minister David McGuinty told CBC that some details, including how much Canada will contribute, have not yet been finalized.

The BBC reported that negotiations between the EU and the United Kingdom regarding possible UK participation stalled last week due to disagreements over the entry fee, but talks may resume.

Participation is critical in determining how much national companies can benefit from defence projects. At least 65% of a project’s value must come from companies in participating countries.

Carney said earlier this year that Canada would no longer allow U.S. companies to secure 75% of its defence procurement. The government is also considering purchasing Swedish Gripen aircraft instead of American F-35s to reduce dependence on the United States.