Prime Minister of Canada Mark Carney announced on June 7, 2025, that Canada will achieve NATO’s 2% GDP defense spending target by year’s end, a significant milestone for the government.
Speaking at a NATO economic forum in Brussels, Carney detailed a CAD 15.8 billion boost to defense, focusing on Arctic security, cybersecurity, and F-35 jet acquisitions. The commitment, driven by pressure from allies like the U.S. and UK, addresses Canada’s historical shortfall, which stood at 1.4% of GDP in 2024, amid rising global threats from Russia and China.
The increase, part of Canada’s 2025 budget, funds NORAD modernization and troop deployments in Latvia, where Canada leads a NATO battlegroup. Defense Minister Bill Blair emphasized readiness to counter Arctic incursions, with new radar systems and icebreakers planned. The move, welcomed by NATO chief Jens Stoltenberg, contrasts with domestic criticism from Conservative Leader Pierre Poilievre, who called it “long overdue” amid economic strain.
Public opinion, per CBC polls, is divided, with 52% supporting the hike but 40% citing healthcare underfunding. Carney, a former Bank of England governor, framed the spending as an economic stabilizer, boosting jobs in Quebec’s aerospace sector. The commitment, aligning with NATO’s 2014 pledge, positions Canada as a stronger alliance partner, as global security tensions mount.