Readiness 20230: DEFENCE EXPORTS
Arming Europe, Engaging Canada: The Readiness 2030 Opportunity
BY JAMES CARELESS
Readiness 2030 is the European Union’s ambitious initiative to rearm Europe in response to ongoing Russian aggression. This C$1.3 trillion project is seeking a wide range of weaponry, equipment, and materiel, and Canada has been invited to participate. Here is what Canadian defence companies need to know about Readiness 2030 — including how to take part.
WHAT IS READINESS 2030?
For a brief overview of Readiness 2030, CDR turned to Goran Samuel Pesic. He is President & CEO of Samuel Associates, and Chairman of the Policy Insights Forum (PIF).
“Readiness 2030 is Europe’s overarching plan to restore military readiness and close critical capability gaps by the end of this decade,” said Pesic. “It stems from the European Commission’s ReArm Europe Plan and its broader White Paper for European Defence, mobilising nearly €800 billion in investment and using the SAFE [Security Action for Europe] loan instrument (€150 billion) to accelerate joint procurement. The goal is simple yet ambitious: to ensure Europe is interoperable, well-equipped, and secure by 2030.”
For an official explanation of Readiness 2030, CDR consulted the European Commission. It is the driving force behind Readiness 2030, and the authoritative voice that needs to be listened to.
“The Commission and the High Representative presented the White Paper for European Defence and the ReArm Europe Plan/Readiness 2030 as an ambitious defence package providing financial levers to EU [European Union] Member States to drive an investment surge in defence capabilities,” said Thomas Regnier, EU Commission spokesperson for Tech Sovereignty, Defence, Space and Research. “Europe faces an unprecedented level of security threat, combined with geopolitical unpredictability. This aims to respond to the short-term urgency of supporting Ukraine and to address the long-term need to boost Europe’s security and defence. “
WHAT EUROPE NEEDS
After decades of sheltering under the now-unreliable U.S. military umbrella, Europe is moving to shore up its defences under the Readiness 2030 program. “Based on the defence capability gaps already identified by Member States, this White Paper sets out seven priority areas which are critical to build a robust European defence,” said the EU’s Regnier. The priority capability areas are the following: • Air and missile defence; • Artillery systems; • Ammunition and missiles; • Drones and counter-drone systems; • Military mobility; • AI, Quantum, electronic warfare; • Strategic enablers and critical infrastructure.
“These requirements align closely with areas where Canadian companies excel, including munitions, advanced materials, ISR and cyber solutions, and space technologies,” noted Pesic.
CANADA’S ROLE IN READINESS 2030
To date, the federal government has made some progress in opening up the Readiness 2030 project to Canada’s defence industry. But more needs to be done before these companies can start selling their products and services to Europe’s rearmament effort. Here are the all-important details.
“On June 23, 2025, Canada and the EU signed a Security and Defence Partnership (SDP), which establishes the framework for Canadian firms to participate in European defence programs, including those under Readiness 2030,” Pesic told CDR. “This agreement also contemplates a bilateral arrangement under SAFE [the Security Action for Europe funding instrument] and an administrative arrangement with the European Defence Agency (EDA). What remains is operational: defining program-by-program participation rules, aligning procurement processes, and ensuring Canadian firms can access joint procurement opportunities alongside European primes.”
The signing of the SDP was welcomed by the Canadian Association of Defence and Security Industries (CADSI). “Today’s announcement is a needed first step toward Canada’s defence industry participating in the ReArm Europe/Readiness 2030 initiative,” said CADSI President and CEO Christyn Cianfarani after the signing took place. “Coupled with the increase in defence spending announced by the Prime Minister on June 9, it is a strong signal that the federal government is serious about defence industrial renewal.”
The European Commission also views the Canada-EU SDP as a good first step. “The signature of the EU-Canada Security and Defence Partnership marks an important milestone,” said Regnier. “It will provide a coherent, high-level political framework for our joint efforts in this field and will strengthen and widen the scope of cooperation and dialogue between the EU and Canada. It will address: international peace and crisis management, including peacekeeping operations and CSDP [Common Security and Defence Policy] missions and operations, military mobility, security support to Ukraine and other partners, maritime security, space security, cyber issues, emerging and disruptive technologies, countering hybrid threats and strengthening preparedness and resilience, as well as other areas.”
“Further to the SDP, Canada and the European Commission have agreed to explore an additional bilateral treaty under the EU’s SAFE regulations that may provide Canadian companies with improved market access and national treatment to European joint procurement opportunities financed by the SAFE Instrument,” said Samantha Lafleur, a spokesperson with Global Affairs Canada. “This bilateral treaty may also facilitate joint procurement opportunities for Canada with our European partners.”
To be precise, a September 18, 2025 EU news release reported that SAFE negotiations are now underway with Canada and the UK. “The [EU] Council adopted today a decision authorising the opening of negotiations with the UK and with Canada, respectively, on their participation in the €150 billion SAFE defence loan instrument,” the EU news release said. “Negotiations will be conducted by the Commission and will centre in particular on the conditions under which British and Canadian companies and products may be involved in procurements under the Security Action for Europe (SAFE) funding instrument.”
Here are the details about the SAFE funding that Canadian defence firms hope to access: “In response to the current geopolitical situation and urgent need for massive investments in defence equipment, the EU will provide through SAFE up to €150 billion that will be disbursed to interested member states upon demand, and on the basis of national plans,” the EU news release said. “The disbursements will take the form of competitively priced long-maturity loans, to be repaid by the beneficiary member states.”
In plain language, “The SAFE instrument potentially opens important additional avenues for EU-Canada defence industrial cooperation,” said Regnier. “With the adoption of the Security and Defence Partnership with the EU, Canada will be able to buy defence products together with EU Member States, Norway and Ukraine, under the SAFE regulation.”
Goran Samuel Pesic is impressed by this progress, but believes that Canada needs to do more to strengthen its ties with the EU. To do this, “Canada should be petitioning the European Union—especially the European Defence Agency—to create an ‘observer member’ designation,” he told CDR. “Such a status does not currently exist, but it would provide Canada with a more deliberate and formalised framework for engaging with the EU on defence, industry, and security matters.”
DOING BUSINESS WITH THE EU
The details of doing business with the European Union are too extensive for a single issue of CDR to cover. But here are some important quick points to ponder, as provided by Pesic: • Localisation: Most programs require 65% or more European/EEA/Ukraine content. Establishing an EU production footprint is critical. Partner early with EU primes and suppliers. • Procurement: Governed largely by Directive 2009/81/EC, which allows negotiated procedures led by national ministries or consortia. Understand the procurement frameworks and national variations. • Security & compliance: Canadian companies must meet EU requirements for security of supply, export controls, and classified information handling. • Monitor the policy climate carefully: reciprocity and “Buy European” pressures are growing and will shape procurement outcomes.
Worth noting: “If Canada seeks to associate its industrial entities beyond 35%, as set in the SAFE regulation, it will require a second bilateral agreement between Canada and the European Commission to define the terms and conditions under which Canadian entities and products could participate in such procurement,” said Regnier. “We have agreed to work towards this end at the last EU-Canada summit. Meanwhile, the possibility for Canadian controlled entities based in the EU to participate in the EU defence program remains valid — similarly to what is currently the case under the European Defence Fund and other programs.”
CANADIAN DEFENCE COMPANIES WANT IN
Given the billions of dollars that Europe is about to spend on rearmament, and the fact that such sales could open up new markets on an ongoing basis, Canadian defence firms want to take part in Readiness 2030.
“Geopolitical tensions, increased defence spending, and military personnel shortages all point to readiness gaps, and current market conditions are creating global opportunities for defence companies,” said Daniel Lauzon, CAE‘s Senior Director, Public Affairs and Policy. “As with other initiatives such as NORAD modernization, Readiness 2030 is providing an opportunity to align our capabilities to address these challenges, and meet the requirements being prioritized by our allies, in addition to expanding our presence there through partnerships and joint ventures.”
“The EU has a strong manufacturing base, and many primes that are supported by their national governments,” said Jordan Miller, Calian Group’s Director of Brand Strategy & Government Relations. “Our advantage lies in providing immersive simulation-based training for high-readiness units and personnel. Our solutions are scalable and configurable to prepare for a range of scenarios, from local crises to nuclear deterrence and everything in between. There is also a need for cybersecurity, emissions control, and space technologies to ensure rapid, secure data flows.”
So, what could Canadian defence companies sell to European clients? “Electrical Interconnect solutions,” said Cleeve Technology International.
“Bombardier Defense offers aircraft platforms that are ideally suited to various airborne defence missions, including Surveillance, Airborne Early Warning (AEW), Maritime Patrol, Head of State transport, Medevac, Search and Rescue, and more,” said Pierre Puyn, the company’s Vice-President of Government Affairs. “Bombardier Defense is actively engaging with stakeholders in the EU to communicate our readiness and willingness to help European nations reach their defence goals.”
Kognitiv Spark also sees a role for their products in Europe. Specifically, “We provide a dual-use software technology which provides an augmented reality remote reach back capability with AI integration to sustain operations in the field and ensure equipment availability to the mission,” said Iain Whyte, Director, Defence Solutions.
As for CAE? “Our broad capabilities are a strategic asset in advancing security and operational readiness,” Lauzon told CDR. “With the proven capacity to execute and deliver complex training and mission support programs, CAE is uniquely positioned to meet evolving defence needs through the following: Live Flight Training, Integrated Live-Virtual-Constructive (LVC) Training, Ground-Based Training Systems, and Proven Mission Readiness Training Tools and Applications.”
CDR received similar positive feedback from Thales on the subject of Readiness 2030 and how Canadian companies can fulfill European defence needs. “As a Canadian defence company with a European headquartered parent company, Thales is engaged with European stakeholders,” said Ian Krepps, President & CEO of Thales Canada.” Asked if he foresees Readiness 2030 playing a major role in Thale Canada’s activities going forward, Krepps replied, “We certainly hope so and are planning for it to be a key part of our business activities. [But] Until we have more clarity from the government on their roadmap and priorities, it is difficult to say how much and when, but we’re ready when the government gives us the direction.”
Krepp’s last point is echoed by other companies that CDR interviewed for this article — namely that the federal government has to actively support Canadian firms in their efforts to take part in Readiness 2030. A case in point: “As a small-medium business, with an office in the UK, but not on the European mainland, we would be looking for assistance on supporting travel to Europe, attending key events, and potentially services akin to the Canadian Commercial Corporation,” said Kognitiv Spark’s Whyte.
“We know that European countries provide far greater support for their defence industrial bases than Canada does, traditionally,” Calian’s Miller said. “We would like to see greater support from Canada (trade commissioners, embassies, and liaison officers) to connect Canadian companies with European governments to understand the ReArm priorities and how the Canadian defence industrial base can support those priorities.”
The answers provided by Advanced Flight Simulators got right to the point. Asked what they need from the Canadian government to take part in Readiness 2030, Sonia Wiechec, General Manager of Advanced Flight Controls replied, “$750,000 to help secure R&D projects and build turnkey simulators.” Asked if the company had received such help from Ottawa, she answered, “Not yet.”
A GREAT OPPORTUNITY
There is no doubt that Readiness 2030 will be a substantial business-booster for the defence firms who make it into the process successfully. “The initiative could be transformative,” Pesic told CDR. “For those who adapt quickly, it opens access to Europe’s multi-year, multi-billion-euro demand pipeline and strengthens Canada’s role in NATO and EU supply chains. For those who do not, ‘Buy European’ pressures and localization requirements could limit access. The impact will depend on how proactively Canadian firms position themselves.”
“Canada has an important opportunity to deepen transatlantic cooperation by actively seeking a formalized role with the European Defence Agency, even through a new observer-member status,” he added. “Such a designation would strengthen Canada’s ability to contribute to Readiness 2030 and beyond.”
Fortunately, the Canadian defence sector does have what it takes to succeed in Europe, as long as the industry and the federal government can coordinate their efforts. “By leveraging its industrial defence base, aerospace clusters, and global presence of Canadian firms such as CAE, Canada can become Europe and NATO’s training partner of choice,” said Lauzon. “The key to addressing these challenges is a strong partnership between the private and public sectors, which can’t be underestimated given the complex challenges that we’re currently navigating. Having both sectors work together more closely in a true partnership breaks down barriers, creates efficiencies, and promotes a mutual understanding that allows innovation to flourish.”
Conclusion: Readiness 2030 represents a once-in-a-lifetime opportunity for the Canadian defence sector to open up new markets and secure new revenue streams. At a time when Canada-U.S. trade is fraught with tariffs and other problems, this is an opportunity not to be missed.
James Careless is CDR’s Ottawa Bureau Chief
