BRUSSELS (Chatnewstv.com) — The European Union agreed Thursday to launch negotiations with the United Kingdom and Canada on their participation in the bloc’s new €150 billion defence loan program, part of a wider push to strengthen Europe’s military readiness.
The Council of the EU authorized the European Commission to begin talks on how British and Canadian companies could take part in procurements under the Security Action for Europe (SAFE) funding instrument.
“In today’s geopolitical climate, Europe must mobilize massive investment in its defense,” the Council said in a statement.
“SAFE will help member states equip themselves quickly while ensuring transparency and fair competition.”
SAFE, the first pillar of the EU’s ReArm Europe Plan — also known as Readiness 2030 — will provide long-maturity, competitively priced loans to member states to finance national defence plans. The program could disburse up to €150 billion in the coming years.
While the UK and Canada are not EU members, both have signed security and defence partnerships with Brussels, making them eligible to join common procurements. Negotiations will focus on the terms under which their industries could be granted access.
Ukraine and EEA-EFTA countries will be treated on the same terms as EU member states, meaning they can join procurements and have their defence industries participate equally.
Once talks with London and Ottawa are concluded, agreements will require approval by the European Parliament.
SAFE is designed to anchor a broader €800 billion ReArm Europe Plan that includes greater flexibility in EU funding rules, expanded European Investment Bank contributions, and efforts to mobilize private capital.
Editor: Gabriel Ani
