Cape Breton Island 
Canada has reached a long-debated benchmark in defence spending, hitting NATO’s 2 percent of GDP target earlier than expected. Prime Minister Mark Carney made the announcement Thursday in Halifax, framing it as a turning point after years of underinvestment.
Prime Minister Mark Carney walks past national flags as he arrives for the Coalition of the Willing meeting at the Élysée Palace.
Photo: Lars Hagberg/PMO
Back in 2014, Canada was spending just 1 percent of its GDP on defence, well below NATO expectations. Now, after what the government describes as a rapid ramp-up over the past 10 months, more than $63 billion has been committed across departments. The result is a target met five years ahead of schedule.
Carney positioned the milestone as a starting point rather than a finish line. Canada is now aiming for a broader goal tied to NATO’s updated expectations, including 3.5 percent on core defence and an additional 1.5 percent on related investments by 2035.
Alongside the announcement, the federal government outlined more than $3 billion in new spending across Atlantic Canada, with a heavy focus on infrastructure and operational readiness.
In Nova Scotia, the largest share includes $1.2 billion to upgrade utilities and power systems at CFB Halifax’s dockyard and Stadacona. Another $648 million will fund new aviation facilities at 14 Wing Greenwood to support modern aircraft fleets. Additional projects include over $180 million for a naval training centre, $82.5 million for a 475-acre waterfront site known as Halifax Gate, and $60 million for a 140-unit housing complex near 12 Wing Shearwater.
Neighbouring New Brunswick is also set to see significant investment. More than $1 billion will go toward modernizing training infrastructure at CFB Gagetown, along with $20.2 million to improve transition services for military members moving into civilian life.
Defence Minister David J. McGuinty described the 2 percent mark as a “foundational step,” emphasizing readiness and reliability. Meanwhile, Sean Fraser highlighted the regional impact, pointing to jobs and industry growth in Atlantic Canada.
Looking ahead, the government says it plans to invest roughly half a trillion dollars in defence over the next decade, spanning equipment, infrastructure, and industrial capacity.
