Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsEconomyCarney and Merz lay foundations for a new transatlantic alliance'This is a major strategic project that will bind Canada, Germany, and Norway together for decades'Author of the article:Last updated 53 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.In a now famous speech in Davos, Mark Carney argued that middle powers like Canada and members of the European Union need to work together to defend their common interests. Photo by Omer Messinger/Getty ImagesA multi-billion dollar deal to build as many as 12 new submarines for Canada promises a badly needed boost for Germany’s ailing economy. It also represents a down payment on the new transatlantic relationship.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorOn Monday, Canadian Prime Minister Mark Carney announced that he’s awarding the submarine contract to a German-Norwegian bid led by Thyssenkrupp Marine Systems as he prepared to travel to a summit of NATO leaders in Ankara.The deal is a sign that Carney is making good on his pledge to build a new, deeper relationship with Canada’s European allies as a bulwark against the instability of President Donald Trump’s second term.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try again“Ahead of the NATO summit beginning tomorrow, the Canadian government is sending a strong signal of transatlantic and European cooperation in the defence industry,” Chancellor Friedrich Merz said in a statement Monday night. “This is a major strategic project that will bind Canada, Germany, and Norway together for decades.”As a result of the deal, Germany, Canada and Norway may eventually be able to deploy a fleet of up to 24 identical submarines, particular designed to boost their presence in the Arctic. It’s Canada’s biggest-ever defence deal.In a now famous speech in Davos, Carney argued that middle powers like Canada and members of the European Union need to work together to defend their common interests because the most powerful countries no longer respect the rules-based order.Since then, Germany has agreed to buy one million metric tons of LNG a year from Canada for 20 years from the early 2030s and Carney met with Merz at a NATO exercise in Norway. Canada is also the only non-European country to join the EU’s military procurement program known as SAFE. Canadian Prime Minister Mark Carney and German Chancellor Friedrich MerzThe timing for the submarine announcement appears designed to underline Canada’s commitment to its European allies at a moment when the United States is dialing back its presence on the continent. NATO Secretary General Mark Rutte on Tuesday unveiled a raft of defence contracts designed to demonstrate to Trump that European nations are delivering on their pledge to ramp up their capabilities.Merz’s relations with the U.S. president have proven bumpy despite a promising start after the both took office early last year. The two leaders held a phone call last Friday after Trump had accused Germany of not doing enough for its defence. The chancellor made clear to him that Trump was basing his criticism on outdated numbers, the chancellery said.“We are building a European NATO so that NATO can remain transatlantic,” Merz said before his departure at the Berlin airport. “And this is welcome news — not only from an economic perspective.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.