Anand says joining SAFE defence borrowing pact will help Canadian firms compete

The European Parliament has formally welcomed Canada into the SAFE defence borrowing agreement, something Foreign Affairs Minister Anita Anand says is an important step for the country.

The parliament passed a final vote today that effectively greenlights Canada’s participation in a defence borrowing pact worth the equivalent of C$240 billion.

Canada would be the first non-European country to join the Security Action for Europe agreement, commonly known as SAFE.

Anand says this means Canadian companies will be able to participate in procurement competitions typically open only to European companies.

The program, which allows member countries to access low-interest loans for military hardware, is part of a broader initiative called ReArm Europe aimed at reducing the continent’s military reliance on the United States.

President Donald Trump’s administration said earlier this month it will draw down some 5,000 American troops from Europe by cancelling deployments to Poland and Germany.

This report by The Canadian Press was first published May 20, 2026.