PM Carney announces 10-year military spending plan to meet NATO demands

Prime Minister Mark Carney announced Wednesday a ten-year military spending plan to meet NATO’s new 5 per cent defence spending benchmark.

Carney is proposing military and security spending in Canada that would be almost four times what it is now.

“We must invest in our strength, because Canada’s leadership must be defined not just by the strength of our values, but by the value of our strength,” said Carney.

The prime minister shied away from specific figures, saying a lot can change over the next ten years.

But after reaching 2 per cent of GDP military spending this year, he’s aiming for 5 per cent by 2035.

In today’s dollars, that would go from $40 billion a year to $150 billion a year, expanding the military and Canadian industry.

“That means ports, airports, infrastructure to support the development of critical minerals, communications and emergency preparedness systems,” said Carney.

Jane Boulden, a defence strategist and professor with the Royal Military College and Queen’s University, said the spending would help improve Canada’s reputation in the world and Canada’s view of the military.

“It’s really hard to put into words: it would have a very positive impact, something the Canadian military hasn’t seen since post-World War II, and Korea – it’s that kind of jump,” said Boulden. “The hope that this will finally bring the Canadian military back into recognition in Canadian society as a desirable and laudable career choice for people.”

The billions in spending could mean higher taxes or borrowing, but Colin Mang, a McMaster University economics professor, says it could still pay off.

“By investing in new infrastructure, that’s going to improve our workplace productivity,” said Mang, “it’s going to raise living standards here in Canada.”

“It may actually end up paying for itself, because as people’s incomes rise naturally, the amount of tax revenue increases as well,” said Mang.

Mark Rutte, the secretary general for NATO, says the 5 per cent spending figure for its members is going to be tough, but it has to be done.

“Given the threat from the Russians, given the international security situation, there’s no alternative – we’ve got to do this,” said Rutte.

U.S. President Donald Trump has been calling for this level of defence spending and calls these decisions by NATO members like Canada a “big win.”

In Canada, there’s the question of whether people are going to go along with putting billions into the military instead of hospitals, schools or roads.

Carney said there will be a review and possibly an “adjustment” of this spending in 2029, along with a conversation about what Canadians should spend their money on.

That review could come up when Trump is no longer the U.S. president.

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