Canada and EU launch alliance open to like-minded countries

Canada and the EU have unveiled the Alliance for the Future, a partnership open to other like-minded countries seeking greater stability amid geopolitical uncertainty. Meeting in Montreal, Canadian prime minister Mark Carney and European Commission president Ursula von der Leyen outlined plans for closer markets, fewer trade and travel restrictions, and expanded educational opportunities. Canada also agreed to contribute to a €90bn support loan for Ukraine.

The partnership reflects Canadian concerns about dependence on American suppliers, particularly in defence and AI, as a trade war with the United States drives Ottawa to seek new partners. Carney highlighted the planned merger of Canada’s Cohere and Germany’s Aleph Alpha, with headquarters in Berlin and Toronto. Canada’s federal government has announced a stake in Cohere worth up to C$1.6bn. A separate agreement would bring Canada into Europe’s supercomputing network, providing access to machines for training AI models.

Leaders framed deeper cooperation as a way to strengthen supply chains, expand consumer choice and shield households from economic pressure. They also revived the prospect of Canadian associate membership of the EU, with a clearer definition expected at a 2027 summit. The proposed designation remains contentious: some EU members fear a legally meaningless status could confuse countries pursuing membership, while Germany and other states sought to remove the phrase from the summit statement.