The Decibel The future of Canada’s military and joining Europe’s defence fund
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Dec 5, 2025 In this discussion, Steven Chase, a Senior Parliamentary Reporter at The Globe and Mail, dives into Canada's new military procurement partnership with Europe. He outlines the significance of Canada’s entry as a first non-European member of the EU’s defence fund. Chase explores how this shift aims to diversify military spending away from U.S. suppliers, boost Canada’s defence industry, and tackle historical funding challenges. He also highlights political hurdles and the importance of a coherent defence strategy moving forward.
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Door Opened To European Defence Market
- Joining the Security Act for Europe opens a buyer's-club and procurement market for Canada with EU countries.
- Canadian firms gain preferential access to contracts financed by the €150B pool but not direct access to the loans.
Membership Needs Active Follow-Through
- The value of membership depends on follow-through: finding joint purchase partners and winning procurement contracts.
- Canada must actively pursue cooperative buys to turn the agreement into tangible savings and market access.
Politics Will Shape Procurement Wins
- Politics and industrial rivalry will shape outcomes, not just finance.
- Canada may need to award business to European firms to secure reciprocal treatment for its contractors.