[Canada] Canadian Politics Redux

[Zoupa]

The decoupling has begun.

Canada clinches deal to join Europe's €150B defense scheme

The deal concludes months of tough talks and will allow Ottawa to take part in procurements financed by the EU's SAFE program.

Canada has reached a final agreement to join the EU's €150 billion Security Action for Europe program, two EU diplomats told POLITICO, marking the first time a third country will formally participate in the bloc's flagship joint procurement initiative.

The agreement was later confirmed by the European Commission.

"This is the next step in our deepening cooperation and symbolic of the shared priorities of the European Union and Canada," it said in a joint statement with Canada.

The breakthrough follows months of technically complex negotiations and was communicated directly to ministers taking part in Monday's Foreign Affairs Council; Defense Commissioner Andrius Kubilius informed delegations that negotiations with Ottawa had concluded.

Canada's accession to the loan-for-weapons SAFE scheme gives Ottawa access to jointly financed defense projects and allows Canadian companies to bid into EU-supported joint procurement projects. For Brussels, securing a G7 partner strengthens the credibility of SAFE as it seeks to coordinate long-term weapons demand and ramp up Europe's defense industrial base.

"Welcome to SAFE, Canada!" Commission President Ursula von der Leyen said on social media. "When like-minded partners join forces on security and defence in a turbulent world, our countries grow stronger, our industries benefit and our citizens are safer."

Under SAFE, third countries can account for a maximum of 35 percent of the value of a weapons system paid for by the scheme; Canada will be able to have a larger share but it will have to pay a fee "commensurate with the benefits the Partner Country and its entities are expected to derive," factoring in GDP, industrial competitiveness and the depth of cooperation with European manufacturers.

Other issues tackled in negotiations covered conditions on intellectual property control and limits on non-EU inputs for sensitive systems including drones, missile-defense assets and strategic enablers.

Similar talks with the U.K. broke down on Friday.
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The timing aligns with a major SAFE milestone: Kubilius announced on X that all 19 participating EU countries had submitted their spending plans that will be financed by low interest SAFE loans.

He added that 15 members included support for Ukraine in their plans, involving "billions, not millions" — something the Commission has been keen to encourage.

[Grey Fox]

Canada is willing to pay the price while it sounds like the UK is not.

[Zoupa]

The UK is under a double delusion:

• the special relationship is still (or ever was) relevant
• their defence industry is up to snuff

UK procurement has been an absolute disaster for decades. Latest in a long line is the Ajax AFV.

[Syt]

They were an Empire, dammit. They don't need help.  

[garbon]

Zoupa misrepresenting something so he can feel smug?

https://www.politico.eu/article/eu-uk-talks-on-defense-deal-break-down/

...

Under SAFE, third countries can account for a maximum of 35 percent of the value of a weapons system paid for by the scheme; the U.K. was negotiating for a higher percentage, which would benefit the country's large arms industry.

The negotiations have been tough, with London and Brussels clashing over how much the U.K. would have to pay to participate in joint procurements financed by SAFE. The U.K. was offering only millions of euros, while the EU slashed its initial request for London to pay between €4.5 billion and €6.5 billion to a lower €2 billion.

A U.K. official stressed London sought to "base our offers on a clear, rigorous methodology" but there "was just too big a gap" with Commission expectations.

Even without an agreement, the U.K. can still take part in joint procurements under the 35 percent threshold.

...