Canada has officially joined the European Union’s Security Action for Europe (SAFE) program, marking a significant step in its military procurement strategy. Canadian Prime Minister Mark Carney announced this development during a press briefing in Milan, detailing how the initiative could enhance Ottawa’s capabilities in acquiring next-generation warplanes and submarines.
Investment in Defense Capabilities
The SAFE program features a budget of €150 billion, aimed at providing loans for joint military procurements across EU member states. Carney expressed optimism about the benefits of this partnership, stating, “Participation in SAFE will unlock billions of dollars in potential defense opportunities for Canadian businesses, attract new reliable suppliers for our Armed Forces, and open massive new opportunities for national manufacturers to build and export Canadian-made capabilities.”
At present, Canada is evaluating its next-generation fighter jet acquisition. The government has allocated funding for 16 initial F-35s but is also considering a mixed fleet that includes the Swedish-made Gripen aircraft. Details concerning Canada’s specific contributions to the SAFE program are still being negotiated, with officials from Ottawa and the EU working on a bilateral agreement to streamline the process and potentially exempt Canada from certain funding regulations.
Understanding the SAFE Framework
Under the SAFE framework, no more than 35% of a project’s component costs can come from outside the European Union, the European Economic Area, or Ukraine. While nations can secure access through financial contributions, the specifics of Canada’s commitment remain unclear. Previous negotiations with the United Kingdom faced hurdles due to disagreements over financial support levels, which ranged from €4 billion to €6.5 billion, while the U.K. was prepared to contribute only between €200 million and €300 million.
As Canada embarks on substantial procurement initiatives, experts believe SAFE funding could be directed towards various military capabilities, including next-generation fighter jets, conventional submarines, and maritime domain awareness systems. Roger Hilton, a Canadian defense fellow at the think tank GLOBSEC, indicated that Canada may also investigate SAFE options for drones, anti-submarine warfare platforms, and secure satellite communications.
Participation in SAFE mandates that funded projects involve at least two partners, either two EU member states or a combination of a member state and Ukraine or an EFTA/EEA nation. Hilton noted that Canada is likely to align with European partners that share similar strategic interests, particularly regarding Arctic security and North Atlantic defense. He stated, “It is very probable that it will also gravitate towards states with the deepest aerospace and naval industries – notably France, Germany, Italy, Sweden, and Spain, as they have the industrial mass, design authority, and consortium models that SAFE favors.”
This new partnership not only enhances Canada’s military procurement capabilities but also signifies a broader integration of Canadian defense initiatives within European frameworks. As discussions progress, the implications of this collaboration will likely unfold, shaping Canada’s military landscape for years to come.
