Carney fast-tracks $9.3 billion military boost to meet NATO goal five years ahead of Trudeau’s timeline
Canada will meet NATO’s two percent defence spending target by the end of the current fiscal year—five years earlier than the timeline set by the previous government—after announcing an additional $9.3bn in funding, according to BNN Bloomberg.
Prime Minister Mark Carney confirmed the accelerated timeline in a speech at the Munk School in Toronto, citing “threats from a more dangerous and divided world” and the urgent need to act “with urgency, force, and determination.”
As per the BBC, Carney said this move comes in response to multiplying threats from hostile states, terrorist groups, and cyber criminals.
According to supplementary estimates tabled on Monday, the new spending includes salary increases for the Canadian Armed Forces, investment in new equipment, and efforts to reduce reliance on the United States by diversifying defence partnerships.
As per BNN Bloomberg, part of the spending includes Canada’s participation in the US$234bn ReArm Europe initiative.
Carney said this would support diversification with “reliable European partners” and stated that “we should no longer send three quarters of our defence capital spending to America.”
Reuters reported that Carney’s plan also includes the creation of a new defence procurement agency intended to “move more quickly in making procurement decisions” and address ongoing delays, cost overruns, and bureaucratic bottlenecks.
This follows a June 2024 parliamentary committee report that cited concerns about Canada’s ability to equip its forces “in a timely and cost-effective manner.”
The prime minister said investments would be directed at new submarines, aircraft, ships, armoured vehicles, and artillery.
Carney added there would be funding for radar, drones, and sensors to monitor Arctic and seafloor activity.
However, as per BNN Bloomberg, the government has not provided specifics on procurement costs or timelines.
Carney also said Canada’s equipment had aged, hindering military preparedness.
According to the BBC, only one of the country’s four submarines is seaworthy, and less than half of its maritime and land vehicles are in working order.
He announced that Canada would immediately begin developing a new defence policy, just 14 months after the previous government's release of “Our North, Strong and Free.”
As reported by the BBC, Carney outlined four pillars for the new strategy: investing in soldiers and equipment, expanding military capability, strengthening the domestic defence industry, and diversifying international partnerships.
He described the current era as a “hinge moment,” drawing comparisons to the end of the Second World War, and warned of a “new imperialism” where middle powers must act or risk being “on the menu.”
The federal government stated that the $9.3bn investment will bring Canada above the NATO threshold based on NATO’s own calculation method.
BNN Bloomberg noted that the parliamentary budget officer had previously estimated Canada would need to spend $81.9bn to meet the two percent goal by 2032–33, but the government disputes the PBO’s formula.
Carney told reporters that “none of it is going to be creative accounting.”
Canada spent 1.45 percent of its GDP on defence in 2024, according to NATO figures cited by BNN Bloomberg.
Twenty-two out of 32 NATO countries currently meet or exceed the two percent benchmark.
National Defence projects Canada’s 2025–26 spending will reach $52.3bn.
As per Reuters, Carney’s move comes ahead of a NATO summit later this month in The Hague.
At the summit, Secretary General Mark Rutte is expected to propose a new five percent defence spending goal—3.5 percent for core military and 1.5 percent for infrastructure and other related investments.
Rutte recently stated that NATO needs a “400 percent increase in air and missile defence” to maintain credible deterrence.
At a press conference, Conservative Leader Pierre Poilievre voiced support for reaching the target quickly, according to BNN Bloomberg.
He urged the government to table a budget that includes the defence spending and cuts elsewhere to avoid burdening taxpayers.
“All of this will require a budget,” he said, calling for reductions in “bureaucracy, consultants, foreign aid, corporate welfare and other areas.”
Carney responded by promising that a federal budget will be introduced in the fall. He has ruled out tax cuts, citing efforts to trim spending while increasing military investment.
