E fundit!

08:42 TODAY

The saga of trial delays by Veliaj/ What will be the alibi for today's session at the GJKKO?

The next hearing is scheduled for today at the Special Cou...

Canada awards Germany billion-euro submarine contract

2026-07-07 07:46:00, Kosova & Bota CNA

Canadian Prime Minister Mark Carney, before leaving for the NATO summit in Turkey, announced that Canada has signed a multi-billion euro contract with German shipbuilding company ThyssenKrupp Marine Systems (TKMS) to build a series of submarines.

“As part of our commitment to defending Canada and supporting our allies, I am pleased to announce that Canada has selected TKMS as the preferred supplier for the Canadian Patrol Submarine Project,” Carney said, adding that the purchase would be the largest in Canadian history without specifying a price. TKMS beat out South Korean company Hanwha Ocean for the contract. The announcement comes ahead of a summit of NATO leaders in the Turkish capital, Ankara, where defense spending is expected to be high on the agenda.

Merz says the agreement sends a strong transatlantic signal

ThyssenKrupp's Model 212CD submarine was developed for the German and Norwegian navies and is described as a way to combine stealth with long-range weapons payloads and flexibility.

The German shipbuilder said its submarines strengthen interoperability because many NATO allies already operate its conventionally powered ships.

German Chancellor Friedrich Merz said the agreement was a strong signal for Germany's European and transatlantic partnership and thanked Carney for his confidence.

Merz has put building up Germany's defense industry at the center of his plan to revive Germany's economy.

According to information obtained by the German news agency DPA, the submarines and support are expected to cost around 20 billion euros ($22.8 billion). The value of the deal was not immediately disclosed by Canada and TKMS.

The submarines will be produced at the TKMS shipyards in Kiel and Wismar in northern Germany, where the shipbuilder plans to create up to 1,500 jobs.

A key pillar of NATO's strategy

Before departing for Ankara, German Defense Minister Boris Pistorius said the agreement represented a historic moment for transatlantic security and would become a key pillar in NATO's strategy in the North Atlantic and the Arctic.

He added that the future submarine fleet of three nations, now including Canada, Germany and Norway, makes a significant contribution to burden-sharing within the alliance, the center-left SPD politician declared before the start of the NATO summit.

"Together, we will build the largest and most modern fleet of conventional submarines in the world. We will be able to quickly share, analyze and use the information that our 24 submarines will collect in the North Atlantic, the Arctic and the High North," Pistorius said.

In a statement, Carney said: "Together with our German and Norwegian allies, we will build rapidly and at scale to expand our strategic capabilities and create greater strategic autonomy."

Canada said it aims to put the first submarines into service by 2035.

"Today's decision will provide the Royal Canadian Navy with a critical capability, ensuring that we can protect and secure Canada's vast coastline," said Canadian Defence Minister David McGuinty.

Germany put strong pressure on order

Last November, Pistorius visited Canada alongside his Norwegian counterpart, Tore Sandvik, for talks that included an attempt to convince Canada to join the German-Norwegian submarine project.

At the time, Canada had just signed a strategic and economic partnership, while the US under President Donald Trump shook up the transatlantic alliance.

Trump's rhetoric about cutting ties with Europe, combined with the threat of Russia, gave new impetus to closer defense cooperation among NATO allies.

"Russia's ambition will not stop in eastern Ukraine or the eastern flank," Pistorius said during a visit to Ottawa in November 2025.

"Civil and military lines of communication across the North Atlantic are vital to our economy and our defense alliance with Canada and the United States."

Germany, Canada and Norway entered into a maritime security partnership in July 2024 that also covers defense cooperation. Denmark has since joined the alliance.