Canada to hit NATO defence spending target in 2025, five years early, marking shift from US reliance

Time of India

a day ago

Canada Prime Minister Mark Carney walks Chief of the Defence Staff, General Jennie Carignan and Minister of National Defence David McGuinty, right, as he prepares to make an announcement at Fort York Armoury in Toronto, Canada, on Monday, June 9, 2025. (Chris Young/The Canadian Press via AP)
Canada will meet NATO's 2% defence spending target this fiscal year, five years ahead of schedule, Prime Minister Mark Carney announced. The move marks a strategic shift in Canada's defence posture, with a focus on modernising military infrastructure and reducing reliance on the United States. The government plans to invest in new equipment, boost troop pay, and explore European defence partnerships. Carney's announcement reflects growing geopolitical tensions and a call for Canada to assert greater independence on the global stage.
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Billions committed to military overhaul
Ageing equipment and recruitment struggles
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A strategic shift away from the United States
NATO allies eye higher spending targets
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Turning to Europe for defence partnerships
A new era of Canadian defence policy
Canada will hit NATO's defence spending target of 2% of GDP this fiscal year, Prime Minister Mark Carney confirmed on Monday. The announcement, made during a speech at the University of Toronto, marks a major policy shift and accelerates the timeline by five years from the previous Liberal government's plan.'I am announcing today that Canada will achieve NATO's 2% target this year — half a decade ahead of schedule,' Carney said. 'Now is the time to act with urgency, force, and determination.'The government will inject CA$9 billion into defence this year, raising total spending to CA$62.7 billion. This includes CA$2.5 billion allocated to defence-related activities in other departments, such as the Canadian Coast Guard, which will now be integrated into the military.Carney laid out a sweeping plan to modernise Canada's armed forces. 'We will invest in new submarines, aircraft, ships, armed vehicles and artillery, as well as new radar, drones and sensors to monitor the seafloor and the Arctic,' he said.Canada's military has long faced operational challenges. 'Only one of our four submarines is seaworthy. Less than half of our maritime fleet and land vehicles are operational. More broadly we are too reliant on the US,' Carney said.A large portion of this year's spending will go toward repairing broken equipment and improving pay and benefits for military personnel. The aim is to address a severe recruitment crisis and restore operational readiness.'We will repair and maintain our ships, our aircraft and infrastructure that for too long we allowed to rust and deteriorate,' Carney added.Carney's speech signalled a clear pivot in Canada's defence posture. He warned that the world is becoming more dangerous and that Canada must reduce its reliance on the United States.'In a darker, more competitive world, Canadian leadership will be defined not just by the strength of our values, but also by the value of our strength,' he said.He criticised the evolving role of the U.S. under President Donald Trump. 'The United States is beginning to monetise its hegemony: charging for access to its markets and reducing its (relative) contributions to our collective security. We should no longer send three-quarters of our defence capital spending to America.'Carney also addressed the historical alliance. 'We stood shoulder to shoulder with the Americans throughout the Cold War and in the decades that followed, as the United States played a predominant role on the world stage. Today, that predominance is a thing of the past,' he said in French.He added that after the fall of the Berlin Wall, the U.S. became the global hegemon and Canada's dominant trading partner. But that era, he suggested, is ending.Carney's announcement comes as NATO allies consider raising the bar. NATO Secretary-General Mark Rutte said last week that most U.S. allies support Trump's call for members to spend 5% of GDP on defence.'We are meeting 2%. And that is the NATO target as it is today,' Carney said at a later news conference. 'We will need to spend more.' He confirmed that discussions on increased spending and timelines will take place at the upcoming NATO summit.Canada is actively seeking to diversify its defence procurement. Carney's government is reviewing the planned purchase of U.S.-made F-35 fighter jets and exploring European alternatives.'We should no longer send three-quarters of our defence capital spending to America,' Carney reiterated. Canada is in talks with the European Union to join a broader EU initiative aimed at reducing security dependence on the U.S.The shift aligns with a wider trend. Since Russia's full-scale invasion of Ukraine in February 2022, European allies and Canada have ramped up investments in weapons, ammunition, and military infrastructure.Carney's rise to power was fuelled in part by his promise to confront what many Canadians see as growing aggression from the Trump administration. Trump's past remarks suggesting Canada should become the 51st U.S. state have stirred national outrage.'The long-held view that Canada's geographic location will protect Canadians is increasingly archaic,' Carney said. 'A new imperialism threatens.'As told to CNN, defence analysts have welcomed the announcement. Margaret McCuaig-Johnston, a senior fellow at the University of Ottawa, called it 'a long-overdue announcement' and noted the challenge ahead. 'This significant commitment is remarkable given how quickly they're going to have to move to make 2% by the end of the fiscal year,' she said.Still, she cautioned that more funding will be needed to fully realise the government's ambitious plans.(With inputs from Reuters, AP)