EU, Canada, and Ukraine form strategic defense alliance

European Commission President Ursula von der Leyen and Canadian Prime Minister Mark Carney have announced a strategic alliance between the EU, Canada, and Ukraine aimed at enhancing defense capabilities and protecting the global order.

The partnership is built upon a bilateral Security and Defense Partnership Agreement signed in 2025. By autumn 2026, this evolved into a financial mechanism known as SAFE (Security Action for Europe). This €150 billion credit fund, backed by European bonds, allows for urgent military purchases by EU member states. Canada is the first non-European nation to join this credit system under preferential terms.

Additionally, a €1.5 billion factory subsidy program is in operation, which includes a €300 million fund specifically for Ukraine. Prime Minister Carney has pledged to invest 500 billion Canadian dollars into the defense industry over the next decade. Notable recipients of these investments include IMT Precision, which received $305 million for 155mm artillery shell casings, and General Dynamics, which is scaling up production of gunpowder and propellant.