Canada and EU Eye Closer Ties Amid Economic Comparison
The European Union has expressed interest in making Canada an associate member, as part of efforts to broaden trade ties beyond the United States. This move would see Canada strengthen its trade relationship with Europe.
European Commission President Ursula von der Leyen said that the EU and Canada must 'urgently reimagine' their partnership, moving beyond a free-trade agreement. Prime Minister Mark Carney welcomed the closer ties, emphasizing that sovereignty requires resilience - the ability to withstand shocks.
In terms of economic performance, data from the OECD shows that Canada's GDP per capita is in the middle of the pack compared to EU countries. While not lagging behind, many EU nations fall below the OECD average. When it comes to inflation, Canada has a two percent rate in 2025 - lower than many EU members.
However, if Canada were an EU member, its total debt-to-GDP ratio would be among the highest in the bloc, trailing only behind France, Italy, and Greece. The International Monetary Fund previously highlighted this issue, suggesting that lowering the ratio should be a main target in fiscal planning.