The European Council has approved the commencement of negotiations with the UK and Canada concerning their involvement in the €150bn ($176bn) Security Action for Europe (SAFE) defence loan instrument. Enacted by the council in May 2025, SAFE is a financial tool aimed at assisting EU member states in enhancing their defence capabilities through collective procurement. The loans provided under SAFE will be available to interested member states upon request and based on their national plans. This includes acceding countries, candidate countries, potential candidates, and nations that have entered into Security and Defence Partnerships with the EU, such as the UK and Canada. In May 2025, the UK government stated that a new agreement with the EU “will pave the way” for Britain’s defence industry to participate in the SAFE defence fund.