Prime Minister Mark Carney has announced that Canada, alongside other NATO allies, will commit to spending 5% of its GDP on defence by 2035—an ambitious pledge that will require billions in additional annual funding.
The agreement was made by all 32 NATO member states during the alliance’s annual leaders’ summit held Wednesday in The Hague.
The 5% commitment will be divided into two parts: 3.5% will be allocated to core military capabilities such as aircraft and weapons, while the remaining 1.5% will go toward defence-related investments, including infrastructure projects.
“In a world that is increasingly dangerous and divided, Canada must bolster its defences to safeguard our sovereignty, our national interests, and support our Allies,” Carney said in a statement.
Earlier this month, Carney announced that Canada would boost its defence budget by $9.3 billion and finally meet NATO’s earlier target of spending 2% of GDP on defence in the current fiscal year—a goal the country had pledged in 2014 but never achieved.
On Tuesday, Carney stated that meeting the new 5% target would require approximately $150 billion in annual spending.
“It is a lot of money,” he acknowledged in remarks to the media.
