“In these geopolitically turbulent times, it (SAFE) is a means to increase cooperation, meet defence targets and spend better, as we address short-term urgency and long-term needs,” European Commission chief Ursula von der Leyen and Canadian Prime Minister Mark Carney said in a joint statement.

They welcomed the accord giving Canada the right to participate in the programme, calling it “the next step in our deepening cooperation and symbolic of the shared priorities of the European Union and Canada”.

“Together, we will create resilient defence supply chains between our industries at a crucial time for global security,” they said.

The SAFE (Security Action for Europe) programme aims to provide loans to participating countries on favourable terms to jointly purchase weapons alongside other partners.

Those taking part have to contribute financially to the scheme.

That proved a stumbling block last week for Britain, which had also wanted to join SAFE but disagreed at the entry fee being asked.

London announced last week its efforts to be part of SAFE – which would have been lucrative for UK arms manufacturers – had failed.

The joint arms projects under SAFE must have a minimum 65% of their components produced within the European Union’s 27 member nations, but partner countries such as Canada could be granted exemptions.

The EU is looking to bolster its defence industry to counter a mounting military threat from Russia, alongside a US disengagement from Europe.