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Jun 24, 2025 7:57 PM - Connect Newsroom

Canada may have to spend $150-billion on defense alone under NATO's new target

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NATO is a cornerstone of global security and defence - I’m here at the Leaders’ Summit to reinforce Canada’s commitment to it — so we can better protect our people, our sovereignty, and our Allies. (PM Mark Carney's post on X)

Canada may have to spend $150-billion annually on defense alone under NATO's new target. Prime Minister Mark Carney said this in an interview during a NATO meeting in the Netherlands.

The prime minister said he hopes that a meeting of NATO leaders on Wednesday, which will also be attended by President Donald Trump, will agree to give 10 years to reach this target.

The prime minister also said that he will not spend indiscriminately and hopes that NATO will review this target. It is noteworthy that in Wednesday's meeting, NATO countries are expected to increase military spending to 5 percent of GDP from the current two percent target.

Prime Minister Carney has said that Canada will meet the current target of two percent this fiscal year, but the new target will require a 10-year grace period.

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