Canada is in discussions to support an EU-led €90 billion loan package aimed at bolstering Ukraine’s economy, as Prime Minister Mark Carney seeks to strengthen transatlantic relations and reduce Canada’s reliance on the United States. The negotiations focus on determining Canada’s financial contribution ahead of an upcoming EU summit scheduled to take place in Montreal at the end of next month, according to sources familiar with the talks.
Carney’s outreach is part of a broader effort to align Canada with like-minded liberal democracies committed to upholding the multilateral international order, which he has criticized as being disrupted under the administration of U.S. President Donald Trump. By participating in the Ukraine Support Loan, Canada hopes to further demonstrate its commitment to European allies. Currently, the United Kingdom is the only other non-EU country involved in the financial support scheme for Ukraine.
The Canadian prime minister is scheduled to visit Europe this week, attending European Commission President Ursula von der Leyen’s State of the Union address in Strasbourg, followed by a meeting with UK Prime Minister Andy Burnham in Liverpool. Canada has already provided approximately C$6.5 billion (US$4.7 billion) in military aid to Ukraine. Recently, Carney and Ukrainian President Volodymyr Zelenskyy formalized a “100-year partnership” between their nations, underscoring long-term collaboration amid Kyiv’s growing budgetary challenges arising from the ongoing conflict with Russia.
In parallel to the Ukraine loan discussions, Canada is also pursuing expanded cooperation with the EU in trade and technology. Ottawa plans to join an EU supercomputing network to foster collaboration on artificial intelligence and is negotiating a digital trade agreement with Brussels. These initiatives come as Canada faces economic tensions with the United States following the collapse of bilateral trade negotiations last month. Carney has characterized the dispute in stark terms, stating that Canada was “at war” after being economically “attacked.”
Behind the scenes, Carney has proposed an ambitious "association membership" model with the EU, though European officials have tempered expectations, noting that the bloc prioritizes existing arrangements with countries such as Norway, Turkey, and the UK. Canada and the EU have agreed to focus cooperation on six key areas: trade, security and regulations, critical raw materials, energy and clean technologies, visa liberalization, and financial systems.
Carney has expressed confidence that the future international order will be restored, emphasizing Europe’s central role in its reconstruction. Mark Camilleri, president of the Brussels-based Canada EU Trade and Investment Association, acknowledged that while relations between Canada and the EU are deepening, no comprehensive partnership agreement is imminent. He suggested that closer economic security cooperation could serve as a template for similar partnerships with other democracies like the UK, Norway, Japan, and Australia.
Nevertheless, EU officials have signaled that Canada is unlikely to receive the same level of market access accorded to countries such as Norway and Switzerland, which contribute financially to the EU budget. “We need to be realistic and pragmatic and manage Canada’s expectations,” one official said, indicating that while cooperation is progressing, fundamental differences remain in the nature of Canada’s relationship with the EU.