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Canada Secures First EU SAFE Defense Contract With Polish Radio Deal 

Marconi Technologies has secured a contract to supply tactical radios to the Polish military, becoming the first Canadian company to win business under the European Union’s Security Action for Europe (SAFE) framework, CBC reported.

Valued at more than 10 million Canadian dollars ($7.1 million), the contract will see Marconi partner with Polish defense company Enamor International, with deliveries scheduled to begin this year and continue through 2030.

Brussels’ 150-billion-euro ($174 billion) SAFE initiative is designed to finance defense procurement through EU-backed low-interest loans while strengthening Europe’s defense industrial base. 

Poland is expected to have access to up to 43.7 billion euros ($50.7 billion) in SAFE financing, the largest potential share among participating countries.

The European Commission last month announced a pre-financing tranche of around 6.5 billion euros ($7.6 billion) for Warsaw, positioning the country to become the first to access funding under the scheme. 

Ottawa formally joined SAFE earlier this year, giving Canadian companies access to eligible procurement opportunities alongside European partners in exchange for a 10-million-euro ($11.5 million) participation fee. 

SAFE Mechanism

SAFE covers a broad range of defense capabilities, including ammunition, drones, cyber systems, and military mobility.

It also supports procurement for air and missile defense, maritime platforms, electronic warfare, and space-related technologies.

Beyond Canada, SAFE is open to a number of non-EU partners that have established security and defense cooperation frameworks with Brussels.

These include India, Japan, South Korea, the UK, Norway, Moldova, North Macedonia, and Albania.

To strengthen regional supply chains, SAFE-funded contracts are subject to localization requirements.

No more than 35 percent of component costs may originate from outside the EU or Ukraine.

The exemption also applies to countries within the European Economic Area and the European Free Trade Association, including Norway, Iceland, Liechtenstein, and Switzerland.

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