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NATO leaders — including Canada — have approved a plan to dramatically increase defence spending across the Western alliance to five per cent of gross domestic product over the next decade, a decision that has given U.S. President Donald Trump a significant policy victory.
NATO leaders have approved a plan to dramatically increase defence spending across the Western alliance to five per cent of gross domestic product over the next decade, a decision that has given U.S. President Donald Trump a significant policy victory.
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Carney said the move to five per cent of gross domestic product — 3.5 per cent for core military spending and 1.5 per cent for defence-related infrastructure — will take place over the next 10 years, but will be reviewed in 2029 to ensure those targets still align with the threats Canada is facing.
That is a compromise for allies — including Canada — who are finding such a big increase hard to swallow.
Carney revealed on Monday during an interview with CNN that meeting the new defence spending goal of five per cent of GDP would cost the federal treasury $150 billion per year.
That translates into roughly $107 billion in direct military spending, with the rest earmarked for defence infrastructure, such as ports, bases and airfields.
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When asked what sacrifices Canadians will have to make to meet this funding commitment, Carney said there will be trade-offs — but he noted certain sacrifices are already being made.