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Home World News Asia

Canada’s PM Carney announces billions in defence spending to hit NATO target

August 9, 2025
in Asia
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Canada’s PM Carney announces billions in defence spending to hit NATO target
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Canadian Prime Minister Mark Carney stands alongside Gen. Jennie Carignan, Chief of the Defence Staff, during a major national defence announcement event at CFB Trenton in Trenton, Ontario, Canada, on August 8, 2025.
| Photo Credit: Reuters

Canada’s Prime Minister Mark Carney on Friday (August 9, 2025) announced a multi-billion-dollar military spending package, affirming his government’s plan to hit NATO’s two percent defence spending target this year.

Since taking office in April, Mr. Carney has repeatedly warned that Canada’s military is not equipped to confront the growing threats facing the country.

Also read: NATO leaders agree to hike military spending, restate ‘ironclad commitment’ to collective defence

He has cited the prospect of Russian aggression undermining Canadian sovereignty in the Arctic and the United States’ increasingly uncertain role in shaping global security, among other risks.

“The international order built after the Second World War, and reshaped following the Cold War, is under pressure,” Mr. Carney said Friday (August 9, 2025) in a speech at a military base.

“We have taken our security for granted for too long,” he added.

Mr. Carney announced CAN$2 billion ($1.5 billion) to boost soldiers’ pay, including a substantial 20% salary raise for the military’s lowest ranking personnel.

Those funds are part of CAN$9 billion in new military investments planned for this year, Mr. Carney said, vowing to invest in combat vehicles, drones and other hardware.

U.S. President Donald Trump has demanded that NATO allies commit to spending five percent of their GDP on defence and warned the United States could refuse to protect countries that do not devote what he considers to be adequate funds towards their military.

Mr. Carney affirmed Friday (August 9, 2025) that Canada would hit NATO’s two percent target this year and would plan to meet “the new defence investment pledge of five percent of annual GDP over the next decade, by 2035.”

Published – August 09, 2025 12:21 pm IST

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