Germany and Canada Deepen Strategic Ties on Defence, Energy and AI as Merz Speaks With Carney

German Chancellor Friedrich Merz and Canadian Prime Minister Mark Carney spoke this week to advance one of the more understated but increasingly consequential relationships taking shape on the international stage: a deepening strategic partnership between Berlin and Ottawa, built around defence, energy security and next-generation technology. The call, confirmed by both governments, underscored how quickly the two countries have moved from periodic cooperation to something closer to a structured alliance over the course of a single year.

According to readouts from both sides, the two leaders focused their conversation on expanding cooperation across defence, security, energy and artificial intelligence, four areas that have become central to how middle powers are attempting to hedge against an increasingly unpredictable global environment. Officials familiar with the discussions described the tone as constructive and forward-looking, with both governments keen to translate a year of incremental agreements into a more formal and durable framework.

A Year of Quiet Groundwork

The Merz-Carney call did not emerge from nowhere. Over the past twelve months, Germany and Canada have signed a string of agreements covering artificial intelligence, quantum computing and battery technology, areas widely seen as central to the next phase of industrial competitiveness. They have also launched what has been dubbed the Sovereign Technology Alliance, a joint initiative aimed at reducing dependence on any single foreign supplier for critical technologies, and secured more than half a dozen new partnerships covering critical minerals, the raw materials that underpin everything from electric vehicle batteries to advanced semiconductors.

That flurry of activity reflects a broader recalibration taking place across Western capitals. As global supply chains face repeated disruption, from pandemic-era shortages to geopolitical flashpoints affecting energy and rare earth exports, both Berlin and Ottawa have concluded that diversifying trusted partnerships is no longer optional but essential to economic and national security. Canada, with its vast reserves of critical minerals and stable democratic institutions, has increasingly positioned itself as a natural partner for European economies looking to reduce reliance on suppliers in less predictable regions.

Defence and Energy at the Core

Defence cooperation featured prominently in this week’s discussion, consistent with Germany’s broader push under Merz to expand its military capabilities and diversify its network of defence partnerships beyond its traditional European and American alliances. Germany has been notably vocal about the need to modernise its armed forces and strengthen collective deterrence in response to Russia’s continued war in Ukraine, and Canada’s defence industrial base offers Berlin another avenue for procurement and joint development.

Energy cooperation, too, remains a live issue. European economies have spent recent years working to reduce dependence on Russian energy supplies, and Canada’s liquefied natural gas and critical minerals sectors have drawn growing interest from German industry as it seeks stable, long-term alternatives. Officials have previously discussed potential frameworks for expanding Canadian energy exports to European markets, a topic likely to have featured again in this week’s conversation given its relevance to both countries’ economic security agendas.

Artificial Intelligence as a Shared Priority

Perhaps the most forward-looking element of the Germany-Canada relationship concerns artificial intelligence. Both countries have signalled ambitions to become serious players in AI development and governance, and the agreements signed over the past year suggest a shared interest in coordinating research, standards and infrastructure rather than competing in isolation. For Germany, AI cooperation with Canada also fits within its wider European context, where Brussels has been simultaneously tightening its own regulatory oversight of the sector even as it seeks to encourage homegrown innovation.

Building Toward a Formal Partnership

The two governments have previously confirmed that formal negotiations are underway toward a comprehensive strategic partnership agreement, a document that would give structure and permanence to what has so far developed through a series of individual agreements and working-level cooperation. Neither side has offered a firm timeline for concluding those negotiations, but officials describe the process as advancing steadily, with this week’s leader-level call intended to maintain political momentum behind the technical work being carried out by ministries on both sides.

Why It Matters Beyond Berlin and Ottawa

For observers watching the broader reshaping of global alliances, the Germany-Canada relationship offers a useful case study in how middle powers are responding to an era of heightened geopolitical uncertainty. Rather than relying solely on long-standing alliance structures, both countries appear to be building a denser web of bilateral and multilateral partnerships covering the technologies and resources most likely to define economic and strategic competitiveness in the years ahead.

Whether this translates into a genuinely transformative partnership or remains a useful but secondary relationship alongside each country’s other alliances will depend on how quickly the current momentum can be converted into binding commitments. For now, the message from both Berlin and Ottawa is one of steady, deliberate progress, built on a shared assessment that defence, energy and technological cooperation are too important to leave to chance in an increasingly contested world. Also Read