Image Credentials: Image Title: Cyprus Welcomes EU–Canada Defence Agreement as SAFE Programme Expands. Source: (chatgpt.com) Date: June 2026. Attribution: This image was created using AI-generated imagery (chatgpt.com) by Open Chronicle and does not depict a real-world scene.
By Open Chronicle with agencies
Cyprus has welcomed the European Union’s decision to deepen defence cooperation with Canada, after the Council of the European Union approved an agreement allowing Canadian companies and defence products to participate in procurement projects under the bloc’s €150 billion Security Action for Europe (SAFE) programme.
Cypriot Defence Minister Vasilis Palmas praised the move, describing Canada as one of the European Union’s closest and most trusted partners. He said the agreement demonstrates the growing strategic relationship between Europe and like-minded allies at a time of increasing global instability.
“Canada is one of the European Union’s closest allies. Having Canada join SAFE highlights the deep trust between us and sets a strong precedent for how the EU can collaborate with key strategic partners to safeguard our collective future,” Palmas said.
The agreement marks a milestone for the SAFE initiative, with Canada becoming the first non-European country to gain access to the programme. The European Parliament approved the arrangement three weeks ago, paving the way for the Council’s final endorsement.
The SAFE programme, launched to strengthen Europe’s defence industrial base and promote joint procurement of advanced military capabilities, is primarily open to the European Union’s 27 member states. It also includes participation from the four European Free Trade Association countries, Iceland, Liechtenstein, Norway, and Switzerland, as well as Ukraine. Canada’s inclusion broadens the initiative’s international dimension and strengthens transatlantic defence cooperation.
Canadian Prime Minister Mark Carney has described the agreement as a response to a more uncertain security environment. According to Carney, the partnership will enable Canada and Europe to jointly acquire new military equipment and technologies more rapidly, support NATO capability targets, and create new opportunities for defence manufacturers on both sides of the Atlantic.
He added that Canada’s participation in SAFE would help close critical supply chain and procurement gaps, expand export opportunities for Canadian defence companies, and encourage greater European investment in Canada’s defence sector.
For Cyprus, the development carries particular significance. Earlier this month, the Cypriot government signed a loan agreement with the European Commission that will provide the country with more than €1 billion in funding through the SAFE mechanism. Cyprus became the sixth EU member state to finalize such an agreement, joining Poland, Lithuania, Croatia, Romania and Belgium.
Palmas has previously said the funding will allow the Cypriot National Guard to acquire priority military equipment and modernise its capabilities through to 2030. He argued that the programme arrives at a critical moment, as Europe seeks to address long-standing defence shortfalls and respond to a rapidly evolving security landscape.
“The €150 billion which will be invested by member states in the joint procurement of high-tech weapons systems is expected to be the trigger for a new promising era for European defence, with the ultimate goal of autonomy, technological dominance and resilience,” he said.
With the Council’s latest decision, Cyprus and other participating nations will now be able to use SAFE funding to purchase eligible Canadian defence technologies and military hardware. The agreement is expected to strengthen Europe’s defence industry while reinforcing cooperation with key allies beyond the continent.