site.btaEU Approves Talks with UK and Canada on Defence Procurement Programme

The Council of the EU decided on Thursday to begin talks with Canada and the United Kingdom on their participation in the defence development programme SAFE. 

The negotiations, led by the European Commission, will set terms for British and Canadian companies’ involvement in joint procurement projects within the European defence program.

In response to the current geopolitical climate and the urgent requirement for increased defence investment, the EU will allocate funding to countries according to their national military capability development plans. EU Member States and participating partner countries engaged in joint initiatives will have access to long-term, low-interest loans amounting to EUR 150 billion.

The programme permits participation by countries seeking EU membership or EU partners in security and defence. Ukraine, Iceland, Liechtenstein, Norway, and Switzerland are eligible under the same conditions.

Following Thursday's decision, the European Commission may begin negotiations. Any agreements reached will require approval from the European Parliament.

The European joint defence procurement programme is a component of the Europe Re-armament Plan extending to 2030, with a projected budget of EUR 800 billion. The EU has also allowed Member States to temporarily access more favourable State aid conditions for defence activities and to reallocate cohesion funds for this purpose.