Germany eyes major Canadian submarine order on eve of NATO summit

The German government is hoping to significantly strengthen its defence cooperation with Canada ahead of this week's NATO summit by finalizing a multi-billion-euro submarine deal.

Canada is looking to purchase up to 12 submarines, with German shipmaker TKMS competing with South Korea's Hanwha Ocean for the order.

Canadian daily The Globe and Mail reported on Monday, citing sources, that the Canadian government was set to award the contract to Germany. There was no official confirmation.

Canadian Prime Minister Mark Carney had announced that he would speak in Halifax later in the day about his country’s defence policy, before leaving for the summit in the Turkish capital.

"If we succeed, it will bind Canada to us for decades," German government sources said on Monday, a day before the two-day gathering in Ankara is set to begin.

"That would be a very good starting point for strategic cooperation," they said, adding that it would be "a very positive signal" if the decision were announced "in the context" of the NATO summit.

Neither Canada nor TKMS has provided details on the exact value of the contract. According to Canadian media reports, the total value - including maintenance and operation over the coming decades - could amount to around €100 billion ($114 billion).