OTTAWA — The European Union says Canada will need to pay 10 million euros — the equivalent of C$16 million — to join a defence procurement agreement with the continent, a price tag that is raising questions about how much investment the pact will generate.

Canada this week officially joined the $245 billion Security Action for Europe program, SAFE. It’s part of the ReArm Europe initiative to make the continent less reliant on American defence technology and funding.

Defence Minister David McGuinty announced Monday the deal had been finalized but was circumspect when asked how much Canada would need to pay, telling reporters on Parliament Hill that “we’ll have more to say about that in due course.”

EU spokesman Thomas Regnier revealed the fee during a press briefing Tuesday in Brussels

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