Carney, NATO allies to debate new defence spending target today
By Canadian Press on June 25, 2025.
THE HAGUE — NATO leaders are expected to decide today whether to more than double the alliance’s defence spending target.
Prime Minister Mark Carney is among the leaders around the table at the annual leaders’ summit in The Hague, where a proposal is being discussed to increase the target to five per cent of annual GDP, up from the current two per cent.
NATO Secretary-General Mark Rutte’s proposal would break that into two parts. The first 3.5 per cent would be for core defence needs including jets and weapons, and the remaining 1.5 per cent on defence-adjacent investments including infrastructure and cybersecurity.
Carney told CNN International on Tuesday that Canada will reach the target in part by developing deposits of critical minerals and that some of the work will be done in partnership with the European Union, EU member states, the U.K. and other allies.
He also said five per cent of GDP would mean a $150 billion defence budget for Canada. NATO said in 2024 Canada spent $41 billion.
All 32 NATO member states have to agree on a new spending target and will also have to debate the timeline for its implementation.
U.S. President Donald Trump left Washington for The Hague on Tuesday. Even before his arrival, Trump had a major effect on the summit.
Earlier this year, Trump suggested the U.S. might abandon its commitments to the alliance if member countries don’t meet their defence spending targets.
The president generated more uncertainty Tuesday when he said his commitment to the mutual defence guarantee in the NATO treaty “depends on your definition” of that guarantee.
Pressed later by reporters, NATO Secretary-General Mark Rutte said he has no doubt about the U.S. commitment to NATO and Article 5, the portion of the NATO treaty which says an armed attack on one member is an attack on all.
Trump, who has long accused the alliance of not paying its fair share toward the cost of its defence, is also the key driver behind the plan to hike members’ defence spending target.
At a dinner event with NATO leaders Tuesday, Rutte thanked Trump for pushing for a spending hike and getting Europe to “truly step up.”
Kerry Buck, the former Canadian ambassador to NATO, told The Canadian Press that it’s in the interests of Canada and European allies to keep the U.S. in NATO as “deep and as long as possible.”
“Whatever we can do to get through this NATO summit with few public rifts between the U.S. and other allies on anything, and satisfy a very long-standing U.S. demand to rebalance defence spending, that will be good for Canada because NATO’s good for Canada,” Buck said.
Britain, France, the Netherlands and Germany have all committed to the five per cent goal. NATO nations closer to the borders of Ukraine, Russia and its ally Belarus have also pledged to do so.
But some are balking, including Spain and Slovakia.
Rutte warned Monday that no country can opt out of the target and that progress made toward the new target will be reviewed in four years.
— With files from The Associated Press
This report by The Canadian Press was first published June 25, 2025.
Catherine Morrison, The Canadian Press
23-22
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