Canada Joins European Union Defense Fund

Canada has entered a major European Union defense financing program, Prime Minister Mark Carney’s office announced Monday, as Ottawa works to shift part of its military procurement away from the United States. The move grants Canadian defense firms access to Security Action for Europe, a 150-billion-euro (about $170 billion USD) EU loan facility that offers low-cost, EU-backed financing for military equipment purchases, according to the AP. Canada is the first non-EU nation invited to participate.

Membership will allow Canadian companies to compete for EU-funded defense contracts, the Globe and Mail reports. It also opens the door for joint weapons purchases with European partners, enabling Canada to save money by joining larger, multinational orders. “Canada’s participation in SAFE will fill key capability gaps, expand markets for Canadian suppliers, and attract European defense investment into Canada,” Carney said in a statement. He has emphasized his goal of broadening Canada’s procurement options and strengthening ties with Europe, noting that he no longer wants more than 70 cents of every defense-procurement dollar flowing to the U.S.

Political tensions stemming from President Trump’s actions—including launching a trade war and suggesting Canada should become the 51st U.S. state—angered many Canadians and helped create the climate that boosted Carney’s rise to the prime ministership, after he campaigned on pushing back against what he called growing U.S. aggression. His government is still reviewing Canada’s planned purchase of U.S.-made F-35 fighter jets to assess alternative options. Sweden’s Saab, for example, has proposed local assembly and maintenance of its Gripen fighter if Canada chooses that aircraft.

Carney’s administration has reiterated that Canada will meet NATO’s military spending target by early next year.

original source

About Post Author

Detroit City Limits

See author's posts