Canadian firms will be able to access loans under the EU's SAFE defense program worth 150 billion euros, with a limit of 80% of the value of the equipment purchased, Euractiv reports, citing a draft agreement, writes UNN.
Details
The European Commission and Canada announced on December 1 that they had reached an agreement on the terms under which Canadian defense manufacturers would gain broader access to procurement through this instrument. However, the final text has not yet been agreed upon, and the European Commission has repeatedly stated that technical experts are putting the finishing touches on it before submitting it to EU ambassadors for approval.
From the very beginning of negotiations, before any agreement was reached, the EU executive body stated that it would work on clear and limited exceptions, restricting Canada's participation to 50% of the value of components of equipment purchased with loans. According to the draft proposal, Canadian manufacturers will be able to produce up to 80% of the value of components of any final product financed by loans within the 150 billion euro SAFE program.
Under the SAFE program, manufacturers from third countries can usually produce slightly more than 35% of the value of components of the final product.
Earlier, Euractiv reported that Canada would have to pay an entry fee of 10 million euros. This includes an initial financial contribution of 7.5 million euros, to be paid within 60 days from the date of the request for funds, and an administrative fee of 2.5 million euros.
However, Ottawa's entry fee may increase. The EU will review the country's contributions to the program annually until February 2031.
Today, experts from the bloc's countries are meeting at a working group meeting of the EU Council on defense industry issues to discuss the terms of the agreement between the EU and Canada within the SAFE program. However, it is unclear whether this proposal will be presented to the ambassadors at the Coreper meeting, which is scheduled to take place in the evening.
Canada joins EU SAFE security program with €150 billion contribution01.12.25, 22:53 • [views_4779]