Canada to Reach 2% NATO Target Within a Year – June 9, 2025

·28 min·2 clips

Canada pledges to hit NATO's 2% defence spending target this year, not by 2030, adding $9 billion immediately.

The episode opens with host Andrew Thompson announcing the government's new pledge to reach NATO's 2% defence spending target this year, not by 2030, involving $9 billion in new spending. The plan includes better pay for troops, more spending on aircraft and ammunition, increased Coast Guard funding, and boosting Canada's defence industry. Conservative Shadow Minister for National Defence James Bazan is interviewed, expressing support for meeting the NATO commitment faster but raising questions about the Coast Guard's civilian-to-military transition, procurement delays like the F-35 review, and the need for a detailed budget. Bazan also criticizes past Liberal governments for using creative accounting to inflate defence spending figures without real increases. Defence expert David Perry of the Canadian Global Affairs Institute then analyzes the announcement, noting it should bring Canada close to the 2% target but comes late in the fiscal year. Perry highlights that the spending focuses on more executable areas like maintenance, pay raises, and existing procurement top-ups. He discusses the broader NATO context, including a potential new 5% spending target, and how today's move improves Canada's standing with allies and the U.S. The episode shifts to Bill C-5, the government's economic bill aimed at removing interprovincial trade barriers and speeding up major project approvals. Economist Pedro Antunes of the Conference Board of Canada discusses the bill, calling internal trade barrier removal overdue but warning it won't quickly counteract U.S. tariff impacts. Antunes notes challenges like skilled labour shortages, low business confidence, and the need for streamlined approvals while maintaining provincial and First Nations involvement. He concludes by cautioning about fiscal capacity given new defence spending and other pressures.

As heard by us

Canada's faster defence spending plan is tested against money, procurement, and NATO pressure.

Canada's accelerated defence plan gives the episode a firm political and fiscal spine. The government says it will reach NATO's 2% GDP target this fiscal year, with defence-related spending rising by more than $9 billion to nearly $63 billion.

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Why you'd press play

You can hear Canada's NATO promise tested against procurement delays, lapsed spending, and the hard arithmetic of deficits.

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