QUESTION PERIOD — National Defence
North Atlantic Treaty Organization
June 10, 2025
Senator Gold, here is another defence question.
Canada just yesterday committed to implementing the goal of 2% of GDP spending on defence this year. However, our NATO partners, such as the United States, are calling for 5%. NATO Secretary General Mark Rutte also proposed a 5% goal but added a compromise that would require an increase of core defence spending to 3.5% of GDP, while the remaining 1.5% would be made up of defence-related expenditures.
NATO partners are expected to discuss raising the defence spending budget at the upcoming NATO summit in The Hague later in June. What is Canada’s position, or what will Canada’s position be, regarding these new, higher benchmarks that are seemingly being set? Thank you.
Thank you for your question.
As the Prime Minister and the Minister of National Defence have announced and been clear about, the government’s intention is to increase and accelerate its investments in defence, which build upon previous commitments. This plan, as I understand it, includes a cash increase of over $9 billion — 8.3 on an accrual basis — in defence investment in fiscal year 2025-26. That brings us to the 2%.
To deliver upon this plan, the government will make foundational investments in the Canadian Armed Forces, it will expand and enhance existing and emerging military capabilities, strengthen our relationships with the defence industry and diversify our partnerships in this area.
With regard to your specific question, I understand there are active and productive discussions going on with regard to NATO’s current and projected spending targets.
Canada is currently spending about 1.37% of GDP on defence. How will the government address the very significant fiscal — and we’ve heard about procurement — challenges to scale up to the 2% goal this year as well as any higher goals that may also be on the table? Thank you.
The Prime Minister has been very clear about his commitment to maintaining the social programs that are in place to help Canadians who are the most vulnerable. He has been equally clear about his commitment to controlling the growth of government spending and his commitment to investing in our defence so that we can defend ourselves and be a reliable partner. He will continue to act in that direction.
