BRUSSELS: The EU and Canada on Monday announced an agreement allowing Ottawa to join a 150-billion euro ($174-billion) European defense financing program called SAFE.

"In these geopolitically turbulent times, it (SAFE) is a means to increase cooperation, meet defense targets and spend better, as we address short-term urgency and long-term needs," European Commission chief Ursula von der Leyen and Canadian Prime Minister Mark Carney said in a joint statement.

They welcomed the accord, giving Canada the right to participate in the program, calling it "the next step in our deepening cooperation and symbolic of the shared priorities of the European Union and Canada."

"Together, we will create resilient defense supply chains between our industries at a crucial time for global security," they said.

The SAFE (Security Action for Europe) program aims to provide loans to participating countries on favorable terms to jointly purchase weapons alongside other partners.

Those taking part have to contribute financially to the scheme.

That proved a stumbling block last week for Britain, which had also wanted to join SAFE but disagreed with the entry fee being asked.

London announced last week its efforts to be part of SAFE — which would have been lucrative for UK arms manufacturers — had failed.

The joint arms projects under SAFE must have a minimum of 65% of their components produced within the European Union's 27 member nations, but partner countries such as Canada could be granted exemptions.

The EU is looking to bolster its defense industry to counter a mounting military threat from Russia, alongside a US disengagement from Europe.

Articles tagged with "EU Canada"

EU agrees on Canada joining European defense program