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Canada and Europe share challenge of diversifying without antagonizing US and China

30 October 2026 at 02:51

MONTREAL — There’s one thing the European Union and Canada want to avoid with their new alliance: stoking new fury from Washington and Beijing.

Officials have been under pressure to check off everything they said they would do at the last summit and on Friday will unveil the areas they plan to focus on over the next year, as they intensify their transatlantic cooperation. But don’t expect a parade of new deals.

“Canada has objectives where they need our technology — so you can build a beautiful relationship if you focus on it,” one senior EU official told POLITICO about shared challenges in diversifying away from the U.S. and China. The official was granted anonymity to speak candidly about sensitive diplomatic negotiations between Brussels and Ottawa.

One of the core EU interests in Canada, the official explained, is a chance for the bloc to diversify its supply of critical raw materials and sources of energy to further reduce its dependence on China and Russia, respectively.

“They have most of what we need,” the official said about Canadian minerals. “There’s also a huge opportunity to bring Canadian fossil fuels and gas to the EU.”

Prime Minister Mark Carney dismissed the controversy over whether the EU should label the relationship with Canada as an “associate membership,” saying on Thursday it was a sideshow to what’s been billed as a landmark summit.

Earlier this week, Germany, France, Greece and other countries opposed the definition in a joint EU-Canada statement to be issued in Montreal. That came after European Commission President Ursula von der Leyen put forward the “associate membership” label in September. 

But Carney told reporters on Thursday that the new alliance wasn’t “a marketing exercise” and that the name doesn’t matter. “What matters is that the complementarities of our two jurisdictions strengthen our sovereignty, strengthen Europe’s sovereignty, various strategic autonomies, critical minerals, energy, other aspects — AI,” he said.

A tricky political road lies ahead as Carney and von der Leyen make moves to draw the EU and Canada closer in a partnership that doesn’t include its southern neighbor. They’ll need to tiptoe forward with an “association without accession” work plan in the last years of the U.S. President Donald Trump’s time in office. 

Diplomatic balance

Montreal’s historic Fairmont The Queen Elizabeth hotel was a hub of summit activity on Thursday, beginning with a morning spectacle of von der Leyen heading out of the hotel in runners, taking staff out for a walking meeting. EU commissioners and Canadian Cabinet ministers sailed in and out of the hotel’s perfumed lobby, greeting colleagues. 

Jet-lagged Europeans, along with Canadian officials and lobbyists, commiserated over what they saw as poor summit organization, spread across multiple locations.

The debate over membership semantics became a luncheon laugh line when European Council President António Costa endorsed Von der Leyen’s offer to Canada before joking the final designation is “subject to revision”

EU foreign policy chief Kaja Kallas signs the EU-Canada Host Country Agreement with Canadian Foreign Affairs Minister Anita Anand in Montreal on Oct. 29, 2026. | Christinne Muschi/POOL/AFP via Getty Images

Then, between servings of frisée salad and roast salmon, Costa struck a diplomatic balance.

“Tomorrow, the European Union and Canada will launch an alliance for the future of Europe,” he said, invoking German Chancellor Friedrich Merz’s preferred label and a term Carney has also used to describe the relationship. But Costa also backed von der Leyen’s “ambition” of Canada as an “associate member” of the EU, admitting the term might not matter in the end.

By mid-afternoon, Carney seemed to come around to the term, recognizing the work underway to deepen relations as “an alliance for the future, with Canada as an associate member, between Canada and the European Union.”

The two sides are expected to announce a wrap on talks on a new digital trade agreement on Friday, ending negotiations that were launched in the spring. Other anticipated outcomes include an agreement between the European Investment Bank and Canada, geared to allow the bloc to fund Canadian critical minerals projects. 

Eleven EU commissioners in town to “further an agenda” is no small accomplishment, Canadian Finance Minister François-Philippe Champagne told reporters. “It’s a historic moment that we need to seize.”

AI and energy companies are expected to be major beneficiaries of an enhanced EU–Canada relationship, making the absences of European Energy Commissioner Dan Jørgensen and Canadian Energy and Natural Resources Minister Tim Hodgson noteworthy.

Zoya Sheftalovich contributed to this report from Montreal.

Carney frames C$1.6B AI investment as national security imperative

29 October 2026 at 19:21

MONTREAL — Prime Minister Mark Carney is positioning Ottawa’s C$1.6 billion investment in Canadian artificial intelligence company Cohere as a downpayment on his country’s national security. 

“We’re not waiting for the future of AI to be decided somewhere else by those we don’t know or … don’t trust,” Carney said Thursday in Montreal ahead of the start of the Canada-EU summit.

Carney framed the upcoming congress, which includes meetings Friday with European Commission President Ursula von der Leyen and European Council President António Costa, as a shared endeavor to build a stronger transatlantic alliance in the face of global disruption.

“Sovereignty now requires secure access to semiconductors, critical minerals, payment systems, clean energy technology, vaccines, space-based communications and artificial intelligence,” Carney said. “Canada is taking a major step forward in artificial intelligence.”

In a pre-summit speech earlier Thursday in Montreal, von der Leyen cited April’s multi-billion dollar merger between Cohere and German counterpart Aleph Alpha as a key piece of the deepening Canada-EU cooperation that is set to unfold at Friday’s talks on AI.

“Both Canada and Europe believe this technology should serve people. So we will work together to tackle head-on the safety and security issues of runaway AI. We will develop together rules and standards and strong global governance,” she said.

Carney said Canada was making a commercial investment alongside private investors including Nvidia, Bell and Germany’s Schwarz Group.

Cohere co-founder and CEO Aidan Gomez announced the initial close of its Series E funding round on Thursday, which is targeting up to C$7 billion at a C$35.7 billion valuation.

Gomez joined Carney at Mila, the Quebec Artificial Intelligence Institute, for the Canadian portion of the funding announcement. 

“We believe that artificial intelligence would become one of the defining technologies of this century, and that Canadians should help build it, shape it and benefit from it,” Gomez said, standing next to the Canadian leader. 

The Canada-EU summit is unfolding against the backdrop of economic threats by U.S. President Donald Trump against both transatlantic partners.

Carney dismissed suggestions Thursday that the summit could draw reprisals by Trump against the participants. “This is a process which we’re doing absolutely in the interest of the Canadians, but ultimately the U.S. will see that,” he said.

Von der Leyen touts ‘associate member’ status for Canada over objections of EU capitals

29 October 2026 at 16:18

MONTREAL, Canada — European Commission President Ursula von der Leyen said Thursday she aims to bring EU-Canada relations to the “highest level possible,” touting potential associate member status in the bloc for Ottawa despite capitals having rejected the term a day earlier.

Von der Leyen’s overture comes on the eve of a landmark EU-Canada summit in Montreal where she and Prime Minister Mark Carney are due to announce plans for deeper cooperation against a backdrop of rising autocracy globally and unpredictable relations with U.S. President Donald Trump.

“Canada cannot become a full-fledged member of the EU because of geography, but we both want to bring our relationship to the highest level possible,” von der Leyen said in a speech hosted by the C.D. Howe Institute. “This is why we are discussing the idea of Canada becoming the first associate member of the European Union.”

No sooner had von der Leyen finished speaking than German Chancellor Friedrich Merz issued a statement saying that the EU and Canada were establishing an “Alliance for the Future” — without mentioning the associate member status. Germany has led the opposition to using the term, according to EU diplomats.

“We are fighting each other about a few words which von der Leyen pulled out of thin air,” one of those EU diplomats told POLITICO on Wednesday. “It’s a bit silly while we should have ambition and focus on other things. This is not our proudest moment.”

In a speech hours later on the sidelines of the summit, European Council President António Costa sought to bridge the divide by playing down the importance of the term.

“Tomorrow, the European Union and Canada will launch an Alliance for the Future of Europe,” he said in a nod to Merz’s statement and using the term preferred by Carney to describe the relationship.

“President von der Leyen has even put forward the bold idea of making Canada an ‘associate member’ of the European Union,” he said, noting “I share her ambition.”

“Whether that ends up being the term or not, one thing is clear: our partnership will be the closest, deepest and most unique of its kind,” he added.

The Commission president said in her speech that talks about associate membership would focus on deeper cooperation across AI, climate and energy policy, as well as bolstering shared work between the European Commission and the Canadian government as well as “Parliament to Parliament” and “Court to Court,” a reference to the European Court of Justice and Canada’s Supreme Court.

Such a status, she said, would be open “only to our closest partners outside of Europe, who are ready to open a new frontier together — and to chart the course together, to think beyond the terms of our partnership today, toward the most ambitious vision we can build.”

Von der Leyen’s use of the term associate membership — which she first mentioned in September — is likely to rub some EU capitals the wrong way after a group of countries led by Germany objected to including a reference to the term in a joint EU-Canada statement that was seen by POLITICO and is due to be published on Friday.

After days of talks, EU countries opted for softer language to describe the two sides’ future relations, including the “Alliance for the Future” — the term used by the Canadian side — as well as an “even closer association … short of full membership.”

EU diplomats have told POLITICO that while capitals support the broader aim of closer ties with Canada, they are wary of offering a status that has never been proposed before and whose legal contours remain undefined. Berlin had previously floated associate member status for Ukraine, including specific privileges such as observer status in the European Commission, but that effort was rejected.

Reacting to reports that EU countries would drop the “associate member” term, Carney said on Tuesday: “The good news is it doesn’t matter about specific names or nomenclature. What matters is the difference that it will make to the lives of Canadians … and Canada as a whole becoming a more independent, more sovereign nation, so we can live our lives as we choose.”

Both Carney and von der Leyen have cast this week’s summit as part of a broader effort to deepen ties at a time when both Ottawa and Brussels have clashed with the Trump administration, with von der Leyen warning in her speech about “deeper decay in the international order.”

“Alliances and assumptions that have enabled our prosperity and security are changing rapidly, and each nation or region is looking at how to secure its own interests and its own independence,” she said. “We can no longer let ourselves be shackled by the limits of the old-world order.”

This story has been updated. Camille Gijs contributed reporting from Brussels.

Canada to join EU network of supercomputers

29 October 2026 at 15:34

BRUSSELS— The European Union and Canada are teaming up on compute power — a key element for training artificial intelligence models — with Canada set to join the EU’s supercomputer network.

European Commission president Ursula von der Leyen said on Thursday Canada “will now become part of this network”, confirming a POLITICO report from earlier this week that both sides were discussing the country’s entry into the European supercomputing network.

Canada joining “enables Canadian industry, startups and researchers to access European supercomputing,” von der Leyen said. “Paired with Canada’s pioneering AI industry, this would allow us to develop highly competitive, innovative and safe AI systems.”

The EU’s supercomputing network is run by the EuroHPC Joint Undertaking, an EU public-private vehicle with an €8.2 billion budget. The network consists of 14 supercomputers (some ranked in the global top 10), 19 AI-focused AI factories and 10 quantum computers.

The vehicle will also run seven massive AI data center hubs, known as AI gigafactories, set to be built next year with a total investment cost of €30 billion.

Experts praised a possible EU-Canadian compute power team-up, but warned it’s only the start.

“Compute cooperation is one of the most obvious short-term ‘middle power’ cooperation plays in AI,” said Anton Leicht, technology and international affairs fellow at Carnegie Endowment for International Peace.

But he added that for now “it doesn’t put a dent into the actual dependence” on the U.S.

“As long as the U.S. builds gigawatt-scale clusters, no amount of cooperation that doesn’t result in massive buildouts will help,” he said.

Canada’s engagement in the EU’s supercomputer network builds further on Canada’s previous partial involvement in the EU’s flagship research and development program, Horizon Europe.

Horizon Europe partially funds EuroHPC.

To date, 38 countries have participated in the EU’s supercomputing network: 27 EU member countries plus non-EU countries including Norway, Switzerland, the United Kingdom, Israel and Turkey.

UK’s Streeting to visit Berlin for defense talks with Pistorius

28 October 2026 at 10:39

BERLIN — German Defense Minister Boris Pistorius will host his British counterpart Wes Streeting in Berlin on Monday, Nov. 2, for talks on NATO, Ukraine and bilateral defense cooperation, Germany’s defense ministry announced Wednesday.

Streeting, who took over as Britain’s defense secretary in July, will make his inaugural visit to Berlin in his new role as part of the German-British Defence Ministerial Council.

The two ministers will meet at the defense ministry’s headquarters, where Streeting will be received with military honors before laying a wreath at the Bundeswehr memorial.

According to the ministry, discussions will focus on the international security situation, the two countries’ contributions to NATO, military support for Ukraine and closer defense-industrial cooperation.

The visit comes as Berlin and London seek to deepen their defense partnership under the landmark Trinity House Agreement signed in October 2024 and the broader Kensington Treaty concluded in 2025.

The meeting follows an E5 gathering of Europe’s five major defense powers — Germany, Britain, France, Italy and Poland — in Paris on Monday, where ministers pledged to assume greater responsibility for European security while maintaining close cooperation with Washington.

EU prosecutors still have questions for von der Leyen over Pfizergate

28 October 2026 at 04:00

To read the full Q&A with Laura Codruța Kövesi, click here.

ATHENS — Ursula von der Leyen has not yet provided an in-person statement to the European Public Prosecutor’s Office for its investigation into the procurement of coronavirus vaccines, according to an individual involved in the effort who was granted anonymity to speak freely.

In 2024, EPPO took over the Belgian-led probe into alleged criminal wrongdoing in connection with vaccine negotiations between the European Commission chief and Pfizer CEO Albert Bourla. Prosecutors have been investigating von der Leyen for “interference in public functions, destruction of SMS, corruption and conflict of interest,” according to legal documents seen by POLITICO.

Asked to respond to the assertion that von der Leyen has failed to provide a statement on the so-called Pfizergate affair, Commission spokesperson Thomas Regnier said: “The Commission has demonstrably cooperated extensively with EPPO to clarify facts and assess events.”

“This was always done on behalf of and with the full support of the President. The President has always been, and continues to be, very cooperative in answering to any open questions — within the limits of her duties and her availability as President of the Commission.”

In an interview with POLITICO, EPPO chief prosecutor Laura Codruța Kövesi, who wraps up her seven-year tenure on Friday, said she has on multiple occasions dealt with EU officials who refused to answer summons from her office. “Some politicians think that they are above the law,” she said. “If you are called in for a statement, you have to come.”

She added: “I will not be shy to tell you that especially when important people are involved in the investigation — be it high-profile politicians or rich people who are connected to the political class, we have difficulties in exercising our competence.”

When asked whether von der Leyen was one of the officials in question, Kövesi said she wouldn’t comment on specific investigations.

Killing EPPO softly

EPPO, set up in 2017 and operational since 2021, is tasked with rooting out crimes involving EU funds. As head of the organization, Kövesi said she has faced repeated attacks and attempts to undermine the institution and its work.

“As I leave my office, I think of this famous Danish TV show, Borgen. There is a very famous saying there: ‘In Brussels, no one can hear you scream,’ and unfortunately, this is true,” she said, in a nod to the Ridley Scott blockbuster Alien. “I am concerned that the EPPO is going to be killed softly because it’s doing its job.”

Kövesi cited three main factors undermining the institution’s work: chronic underfunding, delays in the revision of the organization’s legal framework and the complexity of its bureaucratic architecture, which she said leads to “endless discussion about how to complicate the life of the prosecutors.”

Asked what she would do differently if she could start over again, the chief prosecutor said she “would do the same things, but maybe the others should change their behavior,” adding that the biggest challenge her successor, German prosecutor Andrés Ritter, will face is keeping EPPO “independent and credible.”

Greece’s ‘blatant’ intimidation

Kövesi said that during her tenure, “the most blatant attempt” to intimidate EPPO prosecutors was in Greece, which was hit by a farm funding scandal last year — leading to the resignation of ministers and deputy ministers. The cases of four MPs from the ruling New Democracy party are currently being heard in court. They all plead innocent.

Last May, EPPO sent a formal complaint to the Commission regarding moves by the Greek government to block EU prosecutors from investigating Greek lawmakers. It also complained about the Greek Supreme Judicial Council’s refusal to renew the mandate of European-delegated prosecutors for five years at EPPO’s request. Kövesi warned that this could result in EU funding cuts for Greece under Article 16 of the EPPO Regulation.

The cooperation between EPPO and the Greek government has been difficult, with Prime Minister Kyriakos Mitsotakis hinting at a political agenda by EPPO by complaining of “selective leaks.”

“All the noise was created to blame EPPO that we play politics instead of discussing what happened in reality,” said Kövesi. “Some politicians speak about an independent and efficient judiciary, until you touch them and until you go close to their inner circle. In that moment, the prosecutors are abusive, they have a political agenda, they are not needed.”

Some Greek government officials have suggested that Greece could simply opt out of the EU institution, but Kövesi said this is “almost impossible.”

The chief prosecutor also raised concerns about the impact of budgetary restrictions on EPPO’s work elsewhere in the bloc. The organization is currently setting up its operations in Hungary, which officially became a participating member of EPPO in August 2026 — but Kövesi is skeptical about how successful it will be.

“We explained exactly what we need to do our job, but the Commission proposed half of [the budget] we need,” she said, adding that EPPO’s “credibility is at stake” in countries like Poland, where “expectations were huge” but the organization has not been able to deliver on its promises.

EPPO is also investigating the alleged misuse of more than €4 million by the Identity and Democracy group, a defunct political grouping in the European Parliament whose debts Patriots for Europe could be forced to repay. The latter group includes France’s far-right National Rally, led by Marine Le Pen, the frontrunner ahead of France’s 2027 presidential elections.

“If you ask EPPO to abstain and to not do anything because there are elections in Europe, we will not work at all,” said Kövesi.

Mari Eccles contributed to this report.

Serbian opposition landslide exposes cost of EU’s bet on ousted Vučić

28 October 2026 at 04:00

BELGRADE — Brussels has lost its man in Belgrade.

The opposition Student List’s landslide victory on Sunday ended Aleksandar Vučić’s 12-year run as the EU’s key interlocutor in Serbia. For more than a decade, every step of the candidate country’s accession process and trade negotiations had to pass through him.

“Aleksandar Vučić acted like the go-to person for everything while ignoring all the laws in the country, including the constitution,” Jugoslav Gašić, an assistant professor in medicine at several universities and soon-to-be MP, said in an interview.

When POLITICO reached him, Gašić was in the middle of grading student papers — a fitting snapshot of a new parliamentary majority made up largely of professors, doctors and other political novices.

The Student List won an outright parliamentary majority at the weekend: a stunning result for a leaderless movement born out of protests.

The party’s first order of business will be undoing much the legacy of Vučić and his Serbian Progressive Party (SNS), starting with reversing years of rule-of-law rollbacks. But it will also reset Serbia’s relationship with Brussels, which the Student List argues the former leader managed more as a transactional tool than a genuine path to EU membership.

“Ultimately, [Vučić] always represented his own interests and not the interests of Serbia,” said Gašić.

Representatives for the SNS didn’t immediately respond to a request for comment.

Even among Serbia’s most committed pro-Europeans, Brussels’ willingness to route all progress through Vučić personally has left a bitter aftertaste.

“The key lesson that should be drawn from the case of Serbia is that the EU can very easily lose credibility and integrity if it ignores the causes of democratic backsliding in a country,” said Srdjan Majstorović, chairman of the governing board of the European Policy Center (CEP), a think tank.

According to CEP data published earlier this year, as many 41.6% of citizens believe the EU is more interested in pursuing its own political and economic interests in the region than improving the state of democracy and the rule of law in the country.

For years, anytime non-governmental organizations, journalists or activists argued that Brussels should try to include other voices in the EU negotiation process, they were told “that there was no alternative to the regime in Serbia,” Majstorović continued.

Ilija Srdanovic, the first person on the Student’s List, celebrates at the Student’s List headquarters in Belgrade after Aleksandar Vučić conceded the elections. | Andrej Ivanov/Getty Images

The Student List’s election program casts the EU as Serbia’s most important economic partner and pledged to deepen Belgrade’s existing strategic partnerships with EU members such as Greece, Italy, Hungary and France, while seeking closer bilateral ties with other European capitals.

It does not, however, explicitly name EU membership as an immediate goal.

Gašić wouldn’t be drawn on concrete aims for the Serbia-EU relationship, but said: “We don’t want to be cut off by Europe. We don’t want to be an isolated island.”

“I respect how well-ordered they are, the rule of law and democratic principles,” he added. “Yet I think we need to reset our priorities with the EU, where we consider Serbia’s interests first. A one-sided approach doesn’t foster long-term cooperation.”

The Student List grew out of a mass protest movement sparked by a 2024 railway station roof collapse that killed 16 people. Students blamed the deaths on corruption in state construction contracts and began blockading universities, and within months the protests had swelled into the largest Serbia had seen in decades.

Brussels’ response was muted as students marched across the country, with EU officials largely avoided criticizing Vučić directly. EU flags were conspicuously absent from the demonstrations.

The European Commission didn’t respond to a request for comment for this article.

“The Commission must first restore its long-lost credibility after years of propping up Vučić,” said Djordje Bojović, a foreign policy advisor for Greens in the European Parliament.

He said that Serbia has long been demonized and struggled to reinvent its image since the 1990s, an image “only further cemented by Vučić’s repressive authoritarianism.”

Despite those concerns, Serbia’s economic ties with Europe flourished during Vučić’s time in power, with the country becoming one of the region’s leading destinations for foreign investment.

Under Vučić, Serbia went from about €750 million in foreign direct investment in 2012 to more than €30 billion over the following decade, more than the rest of the Western Balkans combined.

In Brussels, figures such as Bojović and representatives of the opposition parties would plead with institutions such as the Parliament and the Commission to meet with them or take their concerns seriously.

“Vučić had convinced all of them that the opposition is not worth talking to and that they’re not credible,” Bojović said.

Now, with SNS firmly relegated to the opposition, Brussels will need to rethink how it works with Serbia. To many Serbians, the EU has 12 years of looking the other way to answer for first.

EIB to sign framework deal with Canada on critical raw materials

27 October 2026 at 15:00

The European Investment Bank is due to sign a framework agreement with Canada this week that will pave the way for investments into critical raw materials and other areas, a Bank official told POLITICO.

The deal with the long-term lending arm of the European Union is expected to be signed on the sidelines of an EU-Canada summit on Thursday in Montreal, said the official who was granted anonymity to discuss internal preparations.

Such a deal would mark a concrete step toward closer ties amid broader discussions about cooperation on arctic security and the EU’s potential offer of “associate member” status to Canada. The summit will aim to highlight deepening ties between like-minded partners.

The signing follows a September visit to Ottawa by EIB President Nadia Calviño, during which she took the first steps toward establishing a permanent Canadian presence for the bank.

The imminent framework agreement is significant given that the EIB typically operates only in developing countries or members of the EU or the European Economic Area.

Earlier this year, Canada offered G7 members “priority access” to its critical raw minerals stockpile, according to a letter seen by POLITICO. Canadian Prime Minister Mark Carney has also said he wants to boost EU-Canada cooperation on critical raw materials.

Quebec’s new separatist government wants a bigger role in EU ties

26 October 2026 at 18:55

BRUSSELS — Quebec’s new separatist government is treating this week’s EU-Canada summit in Montreal as the start of a wider diplomatic push to get the province in the room whenever Ottawa and Brussels strike deals that concern its powers.

The separatist Parti Québécois returned to power this month at the head of a minority government in the province, promising to assert greater control over Quebec’s affairs and eventually hold another referendum on independence. 

“Quebec has to be at the table, and Canada understands that very well,” Hélène Drainville, the province’s delegate general to the Benelux and the EU institutions, said in an interview in Brussels.

Prime Minister Mark Carney hosts Commission President Ursula von der Leyen and European Council President António Costa on Thursday and Friday for a summit the two sides have billed as a step change in relations, driven by Donald Trump’s tariffs and a shared need for new partners. Von der Leyen has even proposed to make Canada an “associate member” of the EU — an offer that goes too far even for some of the bloc’s member countries. 

Early drafts of a joint summit declaration include a digital trade deal, a pact to let the European Investment Bank finance Canadian critical minerals projects, and a consignment of Canadian water bombers for Europe’s emergency services.

While Canada is responsible for negotiating the text, much of it lands in areas where its 10 provinces have extensive powers, such as over natural resources, education and health. Quebec is the second-largest province by population after Ontario and has a territory more than twice the size of France — with which three-quarters of its people share French as their mother tongue.

“Canada negotiates the umbrella agreement, and where we come in is when what’s negotiated touches our areas of jurisdiction,” said Drainville, who has been in post for a year. Natural resources are a provincial matter, she added, noting that Quebec has deposits of 22 of the 34 minerals on the EU’s critical list.

The province is already talking to the European Investment Bank and DG GROW, the European Commission’s industry department, about the bank’s entry into Canada, she noted. 

Asked whether Quebec’s interests line up with those of Ottawa, Drainville said federal and provincial officials have already set up joint working groups to implement the summit’s outcomes. “Right now, all the signals are green,” she said.

New arrival

The cooperation comes at an unusual moment. Quebec’s new premier, Paul St-Pierre Plamondon, won power on Oct. 5 while promising a third referendum on sovereignty, though not as long as Trump is in the White House. His cabinet includes the new position of minister for “accession to independence.”

However, support for independence in the province is the lowest it has been for three decades, around 29% in a poll from earlier this year — hardly a popular mandate for the project.

The Parti Québécois has nevertheless pledged to double Quebec’s 34 offices abroad. A party blueprint published last year would raise the number of countries with a Quebec office from 19 to 38 and, if the referendum delivers a “yes” to sovereignty, would turn those delegations into embassies and consulates.

“Quebec is going to start to exist and shine everywhere in the world,” St-Pierre Plamondon said last year, describing the representative network as a prerequisite for independence.

Drainville said the new government, which has been in office for three weeks, has not yet set its line on Europe. 

“Our political leaders haven’t taken a position yet, which is normal,” she said. “But if they decide to double [the network], it’s because they believe in this partnership.” As for the associate-member label, she declined to engage: “We’re not really into semantics. That’s Canada.”

What Quebec does want from the EU, she said, is “win-win partnerships,” noting that the province and Ottawa complement each other and are stronger together when it comes to relations with Europe.

It hasn’t always been so amicable. 

Quebec’s diplomatic ambitions date back to the 1960s, when the provincial government asserted the right to pursue international relations in areas under its constitutional jurisdiction.

Its international aspirations became politically contentious when French President Charles de Gaulle publicly embraced Quebec’s independence movement in 1967 — ending a speech in Montreal by proclaiming: Vive le Québec libre! (“Long live free Quebec!”) 

The Brussels office opened in 1972, and the province now counts 10 posts in Europe, which Drainville called the most of any Canadian province.

Quebec never consented to the constitutional changes Canada enacted in 1982, and its 1995 independence referendum failed by the narrowest of margins (49.4% to 50.6%). A decade ago, Quebec lobbied Europe for a seat at the table in negotiations on the CETA EU-Canada trade deal.

Canada and Europe want to reshape the global order. But whose vision will prevail?

25 October 2026 at 18:00

Canada and Europe want to reshape the global order. But whose vision will prevail?

Mark Carney’s push for a middle-powers alliance meets Ursula von der Leyen’s bid for influence.

By ZI-ANN LUM, SEBASTIAN STARCEVIC
and CAMILLE GIJS

Illustration by Natália Delgado/POLITICO

Mark Carney’s pursuit of a global alliance of middle powers has a Europe problem.

Canada’s prime minister wants to help build a new world order that can counterbalance the power of the United States and China. But his vision depends on a new relationship with a Europe that doesn’t see itself as a middle power at all. 

European Commission President Ursula von der Leyen has a different vision: a Brussels-centered bloc that extends the EU’s economic and geopolitical influence, starting with Canada. The idea, according to senior European lawmaker Siegfried Mureșan, is to create an opportunity for the EU to become the “global center of gravity for liberal democracies.” 

The competing visions will be tested this week when Carney and von der Leyen meet in Montreal for a summit intended to chart a new course for transatlantic relations. Both want to demonstrate they can prosper in a world upended by U.S. President Donald Trump. But they have different ideas about their curious new alliance — and face political resistance that could limit how far the partnership can go. 

Von der Leyen’s offer of “associate membership” in the EU surprised officials on both sides of the Atlantic. Four diplomats told POLITICO they were not consulted before she floated the idea in the State of the Union. The officials added that they don’t understand the label, which has yet to be defined. Germany has since led pushback on the plan.

“We’ve definitely put the cart before the horse,” one of the diplomats said. “We’re announcing something and then figuring out how to flesh it out.”

Trump called the membership idea “laughable,” but also threatened “very serious tariffs” should it come to be — a reminder that leaders in pursuit of Washington workarounds must avoid provoking the White House. 

The leaders are under pressure to leave Montreal with more than a liberal democratic photo-op. For starters, they need to decide what “associate membership” means — and disarm resistance in the EU capitals blindsided by von der Leyen’s plan.

Canada’s Ambassador to the EU Jonathan Wilkinson told POLITICO last month that people got too hung up on a label that was revealed prematurely. Carney called the Canada-EU relationship an “alliance for the future” when he addressed European lawmakers in Strasbourg.

Wilkinson said the Canada-EU project will show other democratic nations how to deepen partnerships. “It ties into very much what [Carney] talked about at Davos — and after Davos.”

Carney, von der Leyen and European Council President António Costa have two days to chart what’s next while American foreign policy continues to stress test geopolitical relationships in midterm campaigns that will shape Trump’s last two years in office.

The economic divide 

Ottawa considers the EU an obvious partner in its push to diversify trade away from the U.S. There’s already a free-trade agreement that both sides view as being underutilized. 

Leaders gathering in Montreal this week will celebrate the 10th anniversary of the Canadian-EU trade agreement, nicknamed CETA. But nine EU member countries have yet to ratify the deal, underscoring the challenge of turning rhetoric into reality. 

“We have shared challenges and many more shared opportunities,” Canadian International Trade Minister Maninder Sidhu told reporters last week in Dublin, where he was invited to participate in an informal meeting of EU trade ministers, a preview of what a more integrated Canada could look like. “Canada wants to be Europe’s most reliable partner.”

Sidhu said CETA utilization rates in EU member countries range from 60% to 80%, making a point about room for improvement and perennial challenges. “We know there’s room to grow.”

Von der Leyen’s associate membership plan “has been coldly received by member states,” a senior EU official said. “It [the summit] is more about what we do, how we can use the real potential of the CETA agreement.” CETA has been provisionally in force since 2017.

Trade talks between Canada and the bloc read like a lengthy transatlantic grievance list.

At a meeting between Brussels and Ottawa last October, the EU complained about Canadian taxes it says disproportionately hit European carmakers, opaque cheese-import quotas, cumbersome rules on cosmetics and what it considers discriminatory provincial taxes and markups on European wines and spirits.

Canada, meanwhile, warned that the EU’s deforestation rules could burden its exporters, questioned the impact of Brussels’ carbon border tax and pressed for greater recognition of Canadian standards in areas including AI.

The senior EU official described the relationship as constrained by “irritants and unfulfilled promises” that must be resolved if the two sides are to make progress.

Canadian Prime Minister Mark Carney shakes hands with European Commission President Ursula von der Leyen, next to European Parliament President Roberta Metsola, in Strasbourg, eastern France, on September 17, 2026. | Jean-Christophe Verhaegen/ AFP via Getty Images

There are hurdles ahead. Even as Canada and the EU imagine a deeper economic and security partnership, both are pursuing industrial policies that could shut the other’s companies out of lucrative public contracts — death by compounded trade barriers.

Brussels has concerns about Ottawa’s “Buy Canadian” initiatives and their compatibility with the EU-Canada free trade agreement. “Some member states didn’t like the ‘Buy Canada’ thing from Carney,” the official added.

Canada is likewise uncertain whether its companies will qualify for the EU’s proposed “Made in Europe” preferences foreseen in a major industry bill that would seek to channel public procurement spending to European companies. The EU is divided over whether to extend those preferences to trusted trading partners, a topic that is expected to come up in Montreal.

Canadian business leaders recognize the domestic appeal of “Buy Canadian” in the face of Trump’s threats, but warn there will need to be concessions.

“It’s something that will have to be resolved in order to move the relationship deeper, particularly with respect to industrial cooperation or collaboration,” Mark Camilleri, president of the Canada EU Trade and Investment Association, told POLITICO.

Camilleri likened the 10-year-old CETA deal to a garden overgrown with weeds. “It pains me to see market access being eroded through Canadian and European preferences,” he said.

Pressure is on

European and Canadian leaders are under pressure to deliver wins this week that demonstrate that “non-hegemons” — a descriptor Carney used in his Davos speech — can survive and thrive in an age of great-power rivalry.

Canadians currently support closer ties with Europe. But the EU faces political headwinds of its own, from fraught budget negotiations within the bloc to right-wing populist movements that are picking up momentum in some of its biggest economies.

One likely deliverable is a new digital trade agreement. Talks launched in March and were still underway last week. But the agreement lacks substantive text on artificial intelligence, leaving the two sides to find other places to cooperate, potentially through the EU’s proposed Cloud and AI Development Act. That proposal seeks to reduce reliance on U.S. tech giants, raising the risk of a new row with Washington. 

The European Commission is also pushing for Canada to join Erasmus+, the bloc’s student exchange program, according to one EU official. Carney has already publicly expressed interest. 

But Brussels has bigger ambitions for the partnership. The EU is pressing Canada to increase its funding for Ukraine, a test of Canada’s willingness to take on more of the security burden. 

For von der Leyen, securing that commitment would be a win. So would leaving the summit with a pledge from Carney to explore her offer of an “associate membership” — or whatever they end up calling it.

Zi-Ann Lum reported from Toronto, Sebastian Starcevic from Brussels and Camille Gijs from Dublin.

EU to press Canada and UK for more Ukraine funding

21 October 2026 at 04:00

BRUSSELS — The EU is preparing to try and persuade Canada and the U.K. to increase their support for Ukraine as part of efforts to plug the €70 billion funding gap Kyiv faces next year.

The EU-Canada summit on Oct. 29-30 and the EU-U.K. summit on Nov. 20 will give Brussels a chance to make the case at the highest level. With Kyiv’s financing needs rising and U.S. backing uncertain, Brussels is increasingly looking to non-EU allies to contribute more, five EU officials, including two from the European Commission, and two EU diplomats told POLITICO.

The EU and its member countries provide 80 percent of Ukraine’s external aid, Commission President Ursula von der Leyen said Friday. “We urgently need other partners to step up.”

European Council President António Costa told the European Parliament on Wednesday morning that “international partners have to intensify and step up financial support to Ukraine.”

The EU has committed to a €90 billion loan for 2026 and 2027, intended to cover about two-thirds of Ukraine’s needs. Brussels had expected other partners — including Canada, Japan, South Korea, Australia and Norway — to provide another €45 billion, but much of that money has been slow to arrive as other governments have yet to firm up or disburse the support Brussels expected.

While calls to help Ukraine defend itself are not new, the projected 2027 bill has grown as Russia intensifies its assault, the U.S.-Israeli war with Iran drives up costs and Washington shifts toward positions more favorable to Moscow — leaving Europe and other allies to shoulder more of the cost of keeping Kyiv afloat.

Brussels is heading into negotiations about closer economic and defense ties with London and Ottawa. Diplomats and EU officials said they do not expect a formal bargain, but that support for Kyiv from the EU’s partners is likely to shape the political climate around the talks. Like others in this article, they were granted anonymity to speak about the sensitive diplomacy.

European Council President Antonio Costa, Ukraine president Volodymyr Zelenskyy and European Commission President Ursula von der Leyen at the European Council Summit in Brussels on Oct. 16. | Nicolas Maeterlinck/Belga/AFP via Getty Images

The EU has also raised Ukraine’s 2027 financing needs at meetings of the International Monetary Fund, the G7 and the G20, as well as with Gulf Cooperation Council countries.

“During my meetings in Bangkok, the need to secure financial support for Ukraine in 2027 was a prominent topic,” European Economy Commissioner Valdis Dombrovskis told POLITICO, referencing last week’s IMF and World Bank Group meetings. He said he called for “broad burden sharing and stressed the importance of international partners each doing their part as Ukraine continues fighting Russian aggression.”

All the EU officials and diplomats stressed that the push was not a criticism of the U.K. or Canada, both of which are strong supporters of Ukraine. The point, they said, is that Kyiv’s needs have grown.

The U.K. says it has committed a total of £25 billion for Ukraine and Canada has promised the equivalent of €5.4 billion in military assistance and €8.2 billion in direct financial support.

The EU and its member countries say they have contributed over €231 billion since Russia’s full-scale invasion, including military aid, budget support and guarantees, support for Ukrainians hosted in the bloc, and proceeds from immobilized Russian assets — an amount one senior EU diplomat described as already “over and above.”

How to meet Ukraine’s financial needs has become “a central discussion in every single meeting” with partners supporting Kyiv, a Commission official said.

The push to secure Ukraine’s financial needs comes as support for Kyiv will be tested in a series of elections across Europe next year. In France, far-right front-runner Marine Le Pen has vowed to end aid if elected president in 2027, while in Italy, Prime Minister Giorgia Meloni faces a challenge from Russia-friendly Roberto Vannacci ahead of next year’s election.

The looming votes, combined with the unpredictability of Washington’s backing for Kyiv, mean European countries need to look beyond their own budgets, the senior diplomat said. “We need to think wider and broader.”

The EU is also urging the Ukrainian government to secure more support from non-EU backers. “This is the first next step that they need to secure from their partners,” the Commission official said.

Not ‘pulling a Trump’

EU ambassadors are set to talk about the upcoming Canada and U.K. summits tomorrow, with Ukraine funding expected to form part of the discussions, the two diplomats said.

Brussels, “without pointing the finger,” wants to use the run-up to the meetings to press for broader support, the senior diplomat said. But the EU “won’t be pulling a Trump” and explicitly linking favorable treatment to contributions to Ukraine, they added.

The Commission has not set out what it will ask partners for or how any request might connect to trade and defense talks. The diplomat said the EU still needed to work out “how much will translate in joining those dots.”

Ukraine’s Foreign Affairs Minister Andrii Sybiha greets British Prime Minister Andy Burnham upon his arrival by train in Kyiv for indepence commemorations on Aug. 24. | Henry Nicholls/WPA Pool/Getty Images

Von der Leyen proposed making Canada the EU’s first “associate member” in her State of the Union speech last month. The October summit in Montreal is an opportunity to develop the idea.

Ottawa will participate in the EU’s SAFE program, which finances joint defense procurement, giving Canadian companies preferential access to SAFE-funded contracts. Closer defense cooperation and industrial access could form part of the wider conversation about support for Kyiv, one of the diplomats said.

In a statement to POLITICO, Kathryn Serieux, a spokesperson for Canada’s Privy Council Office, said Ottawa “is and has been a steadfast supporter of Ukraine,” with Canada committing nearly C$26 billion in military, financial development and humanitarian assistance.

“Canada continues to stand by Ukraine and remains engaged with international partners on Ukraine’s needs,” Serieux said.

The U.K. summit is expected to advance Prime Minister Andy Burnham’s promised reset with the bloc, including agreements on youth mobility, food and emissions trading. Burnham has said the status quo is “not good enough” and wants Britain to move closer to the EU.

London wants U.K. companies to count as European under the proposed Industrial Accelerator Act, which would give preference to goods made in Europe in public contracts and industrial support. British officials worry U.K. firms could lose out despite close links between British and European supply chains.

Three U.K. officials said Tuesday they had not heard of a request for Britain to provide more support for Ukraine in exchange for letting its companies qualify under the act. A fourth EU official said Ukraine was expected to feature in the summit declaration with the U.K., but that it would reflect both sides’ efforts to help Kyiv, rather than a Brussels demand for more support.

The EU is also pressing Japan to increase its contributions, with one senior EU official saying it was lagging in 2026. A person familiar with the thinking in Tokyo pushed back on the idea that Japan was not pulling its weight, saying Tokyo had already given around $20 billion in support to Kyiv — but there could be room for more if Ukraine requested it.

Tokyo is also seeking assurances that Japanese companies will retain access to the EU market, following concerns the Industrial Accelerator Act’s “Made in Europe” preferences could put its firms at a disadvantage.

The Mission of Japan to the EU didn’t respond to a request for comment.

Australia says it has not yet received a request for more funding for Ukraine for 2027. Canberra is likely lower on the list, if it is on it at all, because its prime minister and foreign minister met Ukrainian President Volodymyr Zelenskyy at the U.N. General Assembly last month and announced additional funding and a security agreement, an Australian official said.

Dan Bloom contributed reporting from London. Amanda Copp contributed reporting from Canberra. Mike Blanchfield contributed reporting from Ottawa. Gregorio Sorgi contributed reporting from Brussels.

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