Mark Carney, the former Governor of the Bank of England, is now on a very different journey to Europe’s. His new mission is to tackle security and defense challenges at home and streamline defense collaboration among NATO allies. His visit comprises high-level meetings with top leaders in the Netherlands, Belgium, and Nordic countries. This is indicative of Canada’s larger focus on boosting defense spending in general while re-examining procurement approaches.
While in the Netherlands, Carney will meet with His Majesty the King of the Netherlands. They will debate key issues of Arctic and transatlantic security. He should meet with Belgian Prime Minister Bart De Wever. He will engage with the top of the institutional triangle including European Council President António Costa and European Commission President Ursula von der Leyen. Canada, not the US, is the country most on track to meet the NATO defense spending target of 2% of their GDP in Canada’s case by 2025. This target has not been achieved since the late 1980s.
Former Canadian ambassador to NATO, Kerry Buck, noted that today’s geopolitical environment stokes an “uncertainty engine.” He pointed particularly to the impact made by former U.S. President Donald Trump. Specifically, Trump has indicated that the US might reconsider its mutual defense pledge to NATO. This is why he has called on member countries to increase their defense spending to prevent this reassessment. Buck emphasized the shifting national security environment, stating, “The national security environment has really, really shifted.”
As for the numbers, in 2014 Canada spent around $20.1 billion on defense, just 1.01% of its GDP. Yet global threats are outpacing us every day. First, NATO allies are under growing pressure to meet their fiscal obligations and defend collective security. Buck warned of the risks posed by insufficient defense spending: “There is a high risk that the U.S. would undercut NATO at a time where all allies are increasingly vulnerable.”
Canada is trying to avoid being too dependent on U.S. procurement on its major defense projects. A Canadian official, speaking on background, confirmed that a first deal is done. This agreement will allow Canada to join other NATO allies in participating in select joint procurement initiatives. Any new spending target would first have to be approved by all 32 NATO member states. This requirement complicates negotiations even further.
Besides these diplomatic meetings, Carney wants to honor the legacy of Canadian soldiers who served in historic wars. He will be making a stop at the Antwerp Schoonselhof Military Cemetery in Brussels. His visit will mark the memory of 348 Canadian soldiers buried there.
Seldom has that need been greater than now, as Carney gets ready for what promises to be his most consequential trip yet. Buck remarked on the significance of achieving consensus during this NATO summit: “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 defense spending, that will be good for Canada because NATO’s good for Canada.”
The result of Carney’s conversations could have long-term consequences for how Canada approaches its defense priorities and redefines itself within NATO. This expected boost to defense spending dovetails with Canada’s overall efforts to reinforce the foundation of our collective security in an increasingly hostile international environment.
