In a significant policy shift, Canada has reportedly pledged to increase its defense spending to meet NATO’s target of 2% of GDP sooner than previously planned.
Prime Minister Mark Carney announced this decision during a speech at the University of Toronto on Monday, citing the need to address “multiplying” threats from hostile nations, terrorist groups, and cybercriminals.
Carney, who took office earlier this year, acknowledged that Canada has been “too reliant” on the United States for its defense needs.
He expressed concern over Washington’s diminishing contributions to collective security and emphasized the urgency of bolstering Canada’s military capabilities in the face of growing aggression from countries like Russia and China.
In his address, Carney described the current global landscape as a “hinge moment,” reminiscent of the post-World War II era, and called for immediate action to enhance national security.
He criticized the previous government’s timeline, which projected reaching the 2% target by 2032, stating that Canada would now achieve this goal by March 2026.
Currently, Canada spends approximately 1.4% of its GDP on defense. The new commitment reflects a cash increase of C$9.3 billion (about $6.5 billion) for the current fiscal year, which Carney indicated would enable the country to meet NATO’s threshold.
This funding will support investments in new submarines, aircraft, ships, armored vehicles, and drones, as well as enhance surveillance capabilities in the Arctic.
Carney’s announcement comes just ahead of the G7 Summit, which Canada will host from June 15 to 17, highlighting the importance of defense discussions among allied nations.
He outlined a strategy centered on four key pillars: increasing investment in personnel and equipment, expanding military capabilities, strengthening the domestic defense industry, and diversifying defense partnerships.
The Prime Minister’s remarks also addressed criticisms of the current defense procurement process, which has been plagued by delays and inefficiencies.
To streamline this process, Canada plans to establish a new defense procurement agency aimed at expediting decision-making and enhancing domestic capacity.
Opposition leader Pierre Poilievre welcomed the increase in defense spending but criticized the Liberal government for failing to adequately fund the military over the past decade.
He called for more decisive action to ensure that Canada can effectively meet its defense obligations.
As NATO Secretary General Mark Rutte prepares to advocate for an increased defense spending target of 3.5% of GDP at the upcoming summit, Carney’s announcement signals a crucial shift in Canada’s defense policy.
By committing to a more robust military strategy, Canada aims to reinforce its role within NATO and address the pressing security challenges of the modern world.
The implications of this policy change will likely resonate as global tensions continue to rise, shaping the future of Canada’s defense posture and its relationships with allies.
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