Canada Eyes European Defense Pact as U.S. Statehood Offer Sparks Controversy
Ottawa, May 27, 2025 — Canada is poised for a major shift in its defense and foreign policy, as Prime Minister Mark Carney’s government announced plans to join a sweeping European military initiative while facing an unprecedented and provocative offer from the United States.
Canada Moves Toward European Defense Partnership
In Tuesday’s throne speech, delivered by King Charles III in Parliament, the Canadian government confirmed its intention to join the European Union’s new ReArm Europe plan—a massive defense procurement project designed to ramp up arms production across the continent and reduce dependence on U.S. military equipment. The plan, announced by the EU in March, earmarks up to C$1.25 trillion over five years, including a $235 billion loan program called Security Action For Europe (SAFE), which enables joint arms purchases and production among EU members and close partners like Canada.
King Charles, speaking on behalf of the Carney government, emphasized the need to “protect Canada’s sovereignty by rebuilding, rearming, and reinvesting in the Canadian Armed Forces,” highlighting the importance of strengthening Canada’s defense industry and presence in the North in response to emerging threats. The throne speech repeatedly referenced national sovereignty and pride, with the King declaring, “the true North is indeed strong and free”.
Prime Minister Carney, in an exclusive interview, outlined his ambition for Canada to sign onto the European defense pact by July 1, aiming to swiftly reduce the nation’s reliance on U.S. arms. “Seventy-five cents of every dollar allocated for defense spending goes to the United States. That’s not wise,” Carney said, underscoring the urgency of diversifying Canada’s defense partnerships.
U.S. Statehood Proposal Stirs Debate
The government’s pivot toward Europe comes amid heightened tensions with the United States. President Donald Trump has publicly floated the idea of Canada becoming the 51st U.S. state, offering so-called “Golden Dome” missile defense protection in exchange, or alternatively, a $61 billion price tag for continued security guarantees. The proposal, widely seen as a provocation, has sparked a wave of nationalistic sentiment and debate in Canada, but has not yet received an official response from Ottawa.
King Charles’ address was widely interpreted as a direct message to Washington, reinforcing Canada’s independence and signaling a firm rejection of annexation threats. “Canada is the ‘true north, strong and free,’” he stated, echoing the national anthem and underlining the country’s commitment to sovereignty. Prime Minister Carney, for his part, has reportedly told President Trump that “Canada is not for sale, ever” during a recent Oval Office meeting.
Strategic and Economic Implications
Canada’s participation in the ReArm Europe plan is expected to bring significant contracts to Canadian defense manufacturers and open new markets, especially as trade relations with the U.S. remain uncertain. The move also aligns with a broader trend among traditional U.S. allies, who are seeking to deepen independent security ties in response to the unpredictability of American foreign policy.
The government’s strategy comes at a critical moment, as NATO considers raising its defense spending target and as Canada faces what King Charles described as “unprecedented challenges in a world that’s never been more dangerous”. With the new parliamentary session underway, the Carney administration is betting on transatlantic cooperation to navigate a shifting geopolitical landscape.
Outlook
As Canada accelerates talks with Europe and weighs its future security commitments, the government’s moves signal a decisive step away from U.S. military dependence and a renewed assertion of national sovereignty. The coming weeks will be crucial as Ottawa finalizes its role in the European defense initiative and responds to the ongoing debate over its relationship with the United States.