Canada has joined the EU Defence Fund, marking a significant shift in its defense strategy as Prime Minister Mark Carney seeks to reduce the country’s reliance on the U.S. for military spending, which currently accounts for over 70% of its budget. This partnership provides Canadian defense companies access to a €150 billion EU loan program, aimed at enhancing European defense capabilities through collaborative projects. As Canada explores alternative procurement options, including renegotiating the F-35 deal and considering the Swedish SAAB Gripen, this move signifies an effort to diversify its defense supply chain and strengthen ties with Europe. Ultimately, this shift could lead to increased opportunities for growth in Canada’s defense manufacturing sector and contribute to higher-paying jobs domestically.