Latest news with #ReArmEurope
Yahoo
2 days ago
- Business
- Yahoo
Canada to join major European rearmament deal as early as June 23: sources
Prime Minister Mark Carney plans on joining a sweeping European plan in Belgium this month to rearm the continent and provide more military aid to Ukraine, CBC News has learned. Last month, Carney signalled to CBC's Power & Politics that he hopes to sign on to the new defence initiative by Canada Day as he tries to move away from relying on the United States for weapons and munitions. Now sources with knowledge of the matter say Carney is expected to join the rearmament deal as early as June 23, when he meets with European leaders in Brussels at the EU-Canada summit. Carney hinted on Monday this summit will "be more important than ever." "Canada will arrive at this summit with a plan to lead, with new investments to build our strength in service of our values," Carney said. WATCH | Why ReArm Europe would want Canada: The prime minister has said he's been in talks with European countries for months about closer defence co-operation. Carney wants to build up Canada's defence capabilities and expand its military suppliers beyond the U.S. as President Donald Trump wages a trade war on Canada and most of the world. "Over 75 cents on every dollar of capital spending for defence goes to the United States. That's not smart," Carney told Power & Politics host David Cochrane on May 27. Carney said it would be better to "spend more at home" with "diversified partnerships." CBC News is not naming the sources because they were not authorized to speak publicly about the deal. European Union President Ursula von der Leyen first proposed the plan called ReArm Europe in March to bolster the continent's military capabilities during global threats, Russia's ongoing invasion in Ukraine and uncertainty with the United States. The plan, renamed Readiness 2030, includes boosting European defence spending by up to 800 billion euros, including a 150-billion euro loan program to pay for more military technology and weapons. It's unclear how much money Canada would contribute. CBC News asked the Prime Minister's Office for details about the spending commitment and has yet to receive a response. Carney announced more than $9 billion in new military spending this fiscal year on Monday — and said Canada must further increase defence spending in the years to come. Once Canada joins the European deal, the government will have to decide what initiative it wants to launch and which countries it will partner with. The list of potential projects includes air and missile defence, drones and anti-drone systems, artificial intelligence and electronic warfare. "The first step is joining the club. The next step is deciding what projects you want to work on with other club members," said Dave Perry, president of the Canadian Global Affairs Institute. Ahead of the EU-Canada summit, Carney is also expected to announce more support for Ukraine. As part of Carney's promise to increase defence spending this year, supplementary estimates this week show the government has earmarked $2 billion for military aid to Ukraine and to expand defence partnerships. A source told CBC News the government is expected to reveal how much of that money will go toward Ukraine at the G7 meeting in in Kananaskis, Alta., next week. Carney is hosting this year's summit and invited Ukrainian president Volodymyr Zelenskyy, who hopes to urge Trump to move forward with a stronger sanctions package on Russia. WATCH | Carney says Three years into Russia's full-scale invasion of Ukraine, it continues to push forward in the Donbas region where Ukrainians are progressively losing "more and more" territory, Perry said. Ukraine needs armoured vehicles, artillery systems, ground-based air defence systems and munitions, he said. "They need help repairing all of the critical infrastructure the Russians are going after," he said. "They need the funding to basically keep the government of Ukraine solvent … they need a whole range of things."
Yahoo
3 days ago
- Business
- Yahoo
Barclays sees 5-10% upside for U.S. defense on stronger European budgets
-- Barclays analysts anticipate that "US Defense could see [a] 5-10% benefit from higher European budgets," as Europe is now "targeting higher defense budget growth of approximately 70% to >$800B." The bank's note comes as European defense stocks have outperformed U.S. counterparts. 'They trade at double the valuation of the US on average,' wrote Barclays. With the upcoming NATO summit, Barclays expects member countries to target defense spending at "5% of GDP," including 3.5% on core defense and 1.5% on defense-related infrastructure. Barclays estimates that "all Europe members meeting 3.5% of GDP on core defense would represent an additional cumulative $335B in spending with total spending increasing to >$800B annually." This substantial increase follows a decade where European defense spending has already risen from approximately $260 billion to around $490 billion annually. U.S. defense companies are poised to benefit from this surge, as they are "approximately 7% exposed to Europe on average." Barclays notes that specific companies like Lockheed Martin (NYSE:LMT) have 11% exposure, while L3Harris Technologies (NYSE:LHX) and Northrop Grumman (NYSE:NOC) have 7%, and RTX has 6% of total revenue. Europe constitutes approximately "one-third of the U.S. companies' total international exposure." Barclays also highlights the "ReArm Europe plan" from March, which aims to increase EU defense spending by more than "$200B annually over four years." Additionally, the U.K. plans to increase spending to "2.5% of GDP by 2027 and 3% of GDP by 2035." Barclays estimates that "full participation in ReArm Europe + UK defense plans represents an additional $255B, or ~50% increase from current levels in total across Europe." However, constrained production capacity from past consolidation could limit how quickly these higher budgets translate into revenue growth for U.S. companies. Related articles Barclays sees 5-10% upside for U.S. defense on stronger European budgets Activist investor Palliser Capital reportedly builds 5% stake in WH Smith Citi highlights sector opportunities based on recent flows
Montreal Gazette
3 days ago
- Business
- Montreal Gazette
Kheiriddin: Finally, Canada is making defence a priority
By Damn the torpedoes! The Liberal government is taking aim at defence — and it's about time. This week, Prime Minister Mark Carney announced that Canada will hit the NATO benchmark of two per cent of GDP on defence spending this year, instead of waiting for 2032, deploying an additional $9 billion in 2025-2026. Ever the banker, he's also deploying some accounting manoeuvres, shifting $16 billion from the ledgers of other departments to the defence budget to bring it up to the required amount. But that is in line with the tabulations of other NATO countries — and is something predecessor Justin Trudeau should have done, so that Canada would have appeared to be less of a defence laggard for the last decade. But better late than never — and perhaps, just in time. Carney's announcement comes just ahead of next week's G7 summit he is hosting in Kananaskis, Alta., and a meeting of NATO leaders later this month in The Hague. The change sends a message to U.S. President Donald Trump and EU allies that Canada means business on defence. Together with the government's border security bill announced this week, Carney is paving the way for a trade deal, or at least some relief from tariffs, with the United States. His spending boost will sit well with his recent pledge to join ReArm Europe, in light of upcoming NATO demands that members spend five per cent of GDP in coming years, instead of two. Carney also gets a gold star for actual change. The government will beef up salaries, recruitment and retention of troops, finally acknowledging that new equipment is pointless without skilled personnel. Ottawa will also overhaul the procurement process, a boost for the Canadian defence industry which could offset some of the costs to taxpayers through job creation and revenue. That could also help sell future spending hikes: While polling shows two-thirds of Canadians support spending two per cent on defence, there's not much appetite for five. But as always, a landmine looms on the horizon: in this case, the infamous F-35 program. On Tuesday, Auditor-General Karen Hogan dropped a bombshell. Canada's planned fleet of 88 F-35 jets is now projected to cost nearly 50 per cent more — from $19 billion in 2022 to a staggering $27.7 billion in 2025. And that's before factoring in infrastructure upgrades, weapons and inflation. Hogan's audit was brutal: the Department of National Defence relied on outdated cost estimates, ignored improved data and has no coherent contingency plan in place. Infrastructure to house the jets is running three years behind schedule, with some bases not expected to open until 2031. The RCAF is also short on qualified pilots — something it knew back in 2018, but which for the previous government was presumably not a priority. Canada needs stealth fighters. We don't, however, need another lake of red ink. Instead of sticking with 88 F-35s at $27 billion-plus for the fleet, Canada should look at Sweden's Gripen, Boeing's Super Hornet or a mix of planes. If Carney approves the F-35 as-is, that failure will become the focus, instead of his ambitious plans to rearm. Defence Minister David McGuinty hasn't committed to a review of the project, saying only that he'd ensure that the auditor general's recommendations will be 'fully integrated' into his department. But he should, especially now that Canada is also building stronger ties with Europe, be considering where some of these planes could be sourced. The reality of modern warfare is also changing, pivoting from planes to drones and battlefields to cyberspace. While the proposed spending spree would drop money on both, the trend to smarter spending versus splashing out big shiny toys could help keep costs down. Ukraine has made significant use of $300 drones, recently taking out $100 million Russian bombers in a daring assault. That's the kind of smart thinking Canada's government should copy as it rebuilds our military for the future — one that looks increasingly grim.
Calgary Herald
4 days ago
- Business
- Calgary Herald
Tasha Kheiriddin: Liberals finally making Canada's defence a priority
Damn the torpedoes! Canada's Liberal government is taking aim at defence — and it's about time. Article content This week, Prime Minister Mark Carney announced that Canada will hit the NATO benchmark of 2 per cent of GDP on defence spending this year, instead of waiting for 2032, deploying an additional $9 billion in 2025-2026. Ever the banker, he's also deploying some accounting manoeuvres, shifting $16 billion from the ledgers of other departments to the defence budget to bring it up to the required amount. But that is in line with the tabulations of other NATO countries — and is something predecessor Justin Trudeau should have done, so that Canada would have appeared to be less of a defence laggard for the last decade. Article content Article content Article content But better late than never — and perhaps, just in time. Article content Article content Carney's announcement comes just weeks ahead of both the G7 summit he is hosting in Kananaskis, Alberta and a meeting of NATO leaders later this month in The Hague. The change sends a message to both U.S. President Donald Trump and E.U. allies that Canada means business on defence. Together with the government's border security bill announced earlier this week, Carney is paving the way for a trade deal, or at least some relief from tariffs, with the United States. Article content His spending boost will sit well with his recent pledge to join ReArm Europe, in light of upcoming NATO demands that members spend 5 per cent of GDP in coming years, instead of two. Carney also gets a gold star for actual change. The government will beef up salaries, recruitment and retention of troops, finally acknowledging that new equipment is pointless without skilled personnel. Ottawa will also overhaul the procurement process, a boost for the Canadian defence industry which could offset some of the costs to taxpayers through job creation and revenue. That could also help sell future spending hikes: while polling shows two thirds of Canadians support spending 2 per cent on defence, there's not much appetite for five. Article content Article content But as always, a landmine looms on the horizon: in this case, the infamous F-35 program. Article content Article content On Tuesday, Auditor-General Karen Hogan dropped a bombshell. Canada's planned fleet of 88 F-35 jets is now projected to cost nearly 50 per cent more. It has ballooned from $19 billion in 2022 to a staggering $27.7 billion in 2025, and that's before factoring in infrastructure upgrades, weapons and inflation. Hogan's audit was brutal: the Department of National Defence relied on outdated cost estimates, ignored improved data, and has no coherent contingency plan in place. Infrastructure to house the jets is running three years behind schedule, with some bases not expected to open until 2031. The RCAF is also short on qualified pilots — something it knew back in 2018, but which for the previous government was presumably not a priority. Article content Canada needs stealth fighters. We don't, however, need another lake of red ink. Instead of sticking with 88 F-35s at $27 billion-plus for the fleet, Canada should look at Sweden's Gripen, Boeing's Super Hornet, or a mix of planes. If Carney approves the F-35 as-is, that failure will become the focus, instead of his ambitious plans to rearm. Defence Minister David McGuinty hasn't committed to a review of the project, saying only that he'd ensure that the auditor general's recommendations will be 'fully integrated' into his department. But he should, especially now that Canada is also building stronger ties with Europe, be considering where some of these planes could be sourced.
Yahoo
5 days ago
- Business
- Yahoo
Most Canadians want increase in defence spending: Poll
OTTAWA — Spending an extra $20 billion to bring defence spending to its mandated NATO minimum is something Canadians approve of, say new poll numbers. Released on Tuesday, the new Angus Reid survey suggests two-thirds of Canadians support Prime Minister Mark Carney's announcement Monday to boost Canada's defence spending to two per cent of our GDP — a minimum requirement under NATO that Canada has never achieved since the alliance introduced the benchmark in 2006. That plan, Carney said Monday, will ensure 'Canada is strong at home and reliable abroad,' and prioritize made-in-Canada manufacturing and supply chains. Sixty-eight per cent of those polled are in favour of increasing Canada's defence spending — with 51% wanting Canada to stop at two per cent, while 17% say they'd like to see spending go even higher. Twenty-three per cent want to keep spending where it is — currently 1.37% of GDP — while just 10% want defence spending reduced. Broken down by party, 71% of Liberal supporters and 76% of Conservatives want defence spending increased, dropping to 55% for Bloc Quebecois voters, and 51% for NDP supporters. Unsurprisingly, NDP supporters were most likely to want defence spending decreased at 21%. With word this week that NATO's considering increasing defence spending benchmarks as high as five per cent, 47% say a spending increase that high would take away from other priorities, while 36% described it as a fair target. Canada will meet 2% NATO spending pledge this year: Carney Tories support Liberal defence spending hike, but still want a budget Despite this, a plurality of Canadians aren't confidence the extra money will result in a stronger military. Forty-six per cent say they're not that confident the Liberal government will make significant progress in strengthening our armed forces, compared to 44% who say they do. Canada's efforts to distance itself from the United States also includes Canada signing onto the ReArm Europe defence plan, a deal Carney is hoping to ink by Canada Day. Sixty per cent described this plan as a good idea, while just 23% said Canada should remain close to the United States. Canada, Carney said on Monday, needs to find ways to stop sending three-quarters of our defence capital spending to the United States. The poll was conducted among 4,067 Canadian adults between June 2 and June 8, 2025 via the Angus Reid Forum. As margins-of-error cannot be applied to online panels, a comparable probability sample would yield one no greater than ±1.5%, 19 times out of 20. bpassifiume@ X: @bryanpassifiume
