Canada has announced a significant increase in its defence spending aimed at meeting NATO’s target of 2% of Gross Domestic Product (GDP) by March 2024, several years earlier than previously planned. Mark Carney, the newly appointed Prime Minister, revealed a stunning roadmap in a recent public address. He continued by emphasizing the alarming need to raise military readiness in face of global threats.
Canada currently spends around 1.4% of its GDP on defence. Beyond the integrity of the Academy does exist a larger concern – the national military readiness of our country. Justin Trudeau’s last administration had Canada on track to hit the NATO spending target by 2032. But under Carney’s government, they have changed that timeline significantly, committing to reach that target as early as next year.
This is a crucial time for Canada, Carney stated. Therefore, if they’re not at the table, they’re on the menu.
The updated policy raises Canada’s defence budget substantially – through a direct injection of cash of C$9.3 billion (over $6.5 billion or £4.8 billion). This funding brings the budget up to meet NATO demands for the current fiscal year. This surge goes a long way to rectifying chronic shortages in Canada’s military kit, much of which has languished past its benefits, crippling operational effectiveness.
Carney pointed out that only one of Canada’s four submarines is currently seaworthy, and less than half of its maritime fleet and land vehicles are in optimal condition. The administration has finally begun to respond to this dangerous gap. Their plans include new generation submarines, aircraft, ships, armored vehicles, artillery, drones and sensors to track activity through the Arctic and along Canada’s seafloor approaches.
Indeed, the Prime Minister himself pointed to the urgent necessity for these investments. He underscored this urgency in light of growing aggressions by Russia and China, as well as the growing threats to Arctic security. He stressed that maintaining a strong military presence in the Arctic is crucial for Canada’s sovereignty and security.
Along with the infusion of cash and new equipment, Carney’s administration will create a new defence procurement agency. This new initiative aims to create a faster, more streamlined procurement process. It responds to the concern that the existing system is bureaucratic and slow.
Former Bank of England governor Mark Carney warned of deep economic storm clouds blowing in from the US. He called out Washington for attempting to “monetise its hegemony” by raising the cost of access to its markets to its allies.