“We need to rebuild our armed forces”: Canadian finance minister promises defense overhaul while admitting country is NATO’s worst spending offender

Canada’s Finance Minister François-Philippe Champagne has signaled a significant shift in the country’s approach to military spending, indicating that defense will become a national priority amid increasing pressure from international allies, particularly the United States.

According to Politico, the move comes as NATO Secretary-General Mark Rutte announces that the alliance’s current spending target of 2 percent of GDP is likely to increase to 5 percent at next month’s NATO summit in The Hague. Canada currently spends only 1.37 percent of its GDP on defense, making it one of the lowest contributors among NATO members.

“We need to rebuild our armed forces. We need to rebuild the infrastructure. We need to build new defense systems, but we need to do that where we support Canadian industry, Canadian workers, and Canadian autonomy,” Champagne told POLITICO during an interview in his office.

NATO spending targets could rise to 5 percent as global tensions increase

The push for increased defense spending has been a long-standing issue, with both Republican and Democratic U.S. administrations urging Canada to increase its military budget. Former Prime Minister Justin Trudeau had previously indicated to NATO officials that Canada would never meet the 2 percent target, according to leaked Pentagon documents.

U.S. President Donald Trump and Ambassador Pete Hoekstra have been particularly vocal about Canada’s need to increase its defense spending. The pressure comes as global security concerns continue to rise, with ongoing conflicts and changing geopolitical dynamics requiring NATO members to strengthen their military capabilities.

Champagne, who has served in various senior Cabinet positions including international trade, foreign affairs, and industry, emphasized the government’s commitment to swift action. The finance minister indicated that the upcoming budget, planned for early fall, would provide more clarity on defense spending plans after the NATO summit in June.

The proposed changes aim to not only strengthen Canada’s military capabilities but also rebuild the country’s defense industrial base. Champagne stressed the importance of smart procurement and investment approaches that would simultaneously protect Canadian sovereignty while supporting domestic industry and workers.