PM Carney commits big billions to military spending, says Canada to hit Nato target this year

Canada will meet the North Atlantic Treaty Organization’s (Nato) defence spending target of 2 per cent of its GDP this fiscal year, Prime Minister Mark Carney said Monday (June 9), committing billions of dollars in additional military investment much earlier than previously planned.

The move marks a significant shift for Canada, which has long faced pressure from the United States and other Nato allies to increase its defence budget. Canada currently spends about 1.4 per cent of its gross domestic product on defence.

“Now is the time to act with urgency, force, and determination,” Carney said during a speech in Toronto.

The previous Liberal government had pledged to reach the 2 per cent benchmark by 2032, but Carney said the new investment package would accelerate that timeline. The additional funding will go toward raising military salaries and acquiring new submarines, aircraft, ships, artillery, armed vehicles, radar systems, drones and seabed and Arctic sensors.

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Nato weighs higher targets amid Russian threat

The announcement comes as Nato Secretary General Mark Rutte prepares to urge a sweeping upgrade of the alliance’s defences, including a proposed 400 per cent increase in air and missile systems to counter threats from Russia.

In prepared remarks for a speech at Chatham House in London, Rutte said Nato needs “a quantum leap in our collective defence” to maintain credible deterrence.

“We see in Ukraine how Russia delivers terror from above, so we will strengthen the shield that protects our skies,” he said. “The fact is, we need a quantum leap in our collective defence.”

Rutte has previously proposed that alliance members increase defence spending to 3.5 per cent of GDP and contribute another 1.5 per cent to broader security needs — a response to U.S. President Donald Trump’s push for a 5 per cent total commitment.

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Trump and other American officials have criticized Canada and other allies for failing to shoulder a greater share of Nato’s defence burden, particularly amid rising global tensions.

Carney’s announcement is expected to bolster Canada’s standing within the alliance ahead of upcoming Nato meetings.