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Canada among NATO members that could face penalties for lack of military spending

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From the Daily Caller News Foundation

By J.D. Foster

Trump should insist on these measures and order that unless they are carried out the United States will not participate in NATO. If Canada is allowed entry to the Brussels headquarters, then United States representatives would stay out.

Steps Trump Could Take To Get NATO Free Riders Off America’s Back

In thinking about NATO, one has to ask: “How stupid do they think we are?”

The “they,” of course, are many of the other NATO members, and the answer is they think we are as stupid as we have been for the last quarter century. As President-elect Donald Trump observed in his NBC interview, NATO “takes advantage of the U.S.”

Canada is among the “they.” In November, The Economist reported that Canada spends about 1.3% of GDP on defense. The ridiculously low NATO minimum is 2%. Not to worry, though, Premier Justin Trudeau promises Canada will hit 2% — by 2032.

quarter of NATO’s 32 members fall short of the 2% minimum. The con goes like this: We are short now, but we will get there eventually. Trust us, wink, wink.

The United States has put up with this nonsense from some members since the collapse of the Soviet Union. That is how stupid we have been.

Trump once threatened to pull the United States out of NATO, then he suggested the United States might not come to the defense of a NATO member like Canada. Naturally, free-riding NATO members grumbled.

In another context, former Army Lt. Gen. Russell Honore famously outlined the first step in how the United States should approach NATO: Don’t get stuck on stupid.

NATO is a coalition of mutual defense. Members who contribute little to the mutual defense are useless. Any country not spending its 2% of GDP on defense by mid-year 2025 should see its membership suspended immediately.

What does suspended mean? Consequences. Its military should not be permitted to participate in any NATO planning or exercises. And its offices at NATO headquarters and all other NATO facilities should be shuttered and its citizens banned until such time as their membership returns to good standing. And, of course, the famous Article V assuring mutual defense would be suspended.

Further, Trump should insist on these measures and order that unless they are carried out the United States will not participate in NATO. If Canada is allowed entry to the Brussels headquarters, then United States representatives would stay out.

Nor should he stop there. The 2% threshold would be fine in a world at peace with no enemies lurking. That does not describe the world today. Trump should declare the threshold for avoiding membership suspension will be 2.5% in 2026 and 3% by 2028 – not 2030 as some suggest.

The purpose is not to destroy NATO, but to force NATO to be relevant. America needs strong defense partners who pull their weight, not defense welfare queens. If NATO’s members cannot abide by these terms, then it is time to move on and let NATO go the way of the League of Nations.

Trump may need to take the lead in creating a new coalition of those willing to defend Western values. As he did in rewriting the former U.S.-Mexico-Canada trade agreement, it may be time to replace a defective arrangement with a much better one.

This still leaves the problem of free riders. Take Belgium, for example, another security free rider. Suppose a new defense coalition arises including the United States and Poland and others bordering Russia. Hiding behind the coalition’s protection, Belgium could just quit all defense spending to focus on making chocolates.

This won’t do. The members of the new defense coalition must also agree to impose a tariff regime on the security free riders to help pay for the defense provided.

The best solution is for NATO to rise to our mutual security challenges. If NATO can’t do this, then other arrangements will be needed. But it is time to move on from stupid.

J.D. Foster is the former chief economist at the Office of Management and Budget and former chief economist and senior vice president at the U.S. Chamber of Commerce. He now resides in relative freedom in the hills of Idaho.

armed forces

Canada’s Military Can’t Be Fixed With Cash Alone

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From the Frontier Centre for Public Policy

By Lt. Gen. (Ret.) Michel Maisonneuve

Canada’s military is broken, and unless Ottawa backs its spending with real reform, we’re just playing politics with national security

Prime Minister Mark Carney’s surprise pledge to meet NATO’s defence spending target is long overdue, but without real reform, leadership and a shift away from bureaucracy and social experimentation, it risks falling short of what the moment demands.

Canada committed in 2014 to spend two per cent of its gross national product on defence—a NATO target meant to ensure collective security and more equitable burden-sharing. We never made it past 1.37 per cent, drawing criticism from allies and, in my view, breaching our obligation. Now, the prime minister says we’ll hit the target by the end of fiscal year 2025-26. That’s welcome news, but it comes with serious challenges.

Reaching the two per cent was always possible. It just required political courage. The announced $9 billion in new defence spending shows intent, and Carney’s remarks about protecting Canadians are encouraging. But the reality is our military readiness is at a breaking point. With global instability rising—including conflicts in Ukraine and the Middle East—Canada’s ability to defend its territory or contribute meaningfully to NATO is under scrutiny. Less than half of our army vehicles, ships and aircraft are currently operational.

I’m told the Treasury Board has already approved the new funds, making this more than just political spin. Much of the money appears to be going where it’s most needed: personnel. Pay and benefit increases for serving members should help with retention, and bonuses for re-enlistment are reportedly being considered. Recruiting and civilian staffing will also get a boost, though I question adding more to an already bloated public service. Reserves and cadet programs weren’t mentioned but they also need attention.

Equipment upgrades are just as urgent. A new procurement agency is planned, overseen by a secretary of state—hopefully with members in uniform involved. In the meantime, accelerating existing projects is a good way to ensure the money flows quickly. Restocking ammunition is a priority. Buying Canadian and diversifying suppliers makes sense. The Business Council of Canada has signalled its support for a national defence industrial strategy. That’s encouraging, but none of it will matter without follow-through.

Infrastructure is also in dire shape. Bases, housing, training facilities and armouries are in disrepair. Rebuilding these will not only help operations but also improve recruitment and retention. So will improved training, including more sea days, flying hours and field operations.

All of this looks promising on paper, but if the Department of National Defence can’t spend funds effectively, it won’t matter. Around $1 billion a year typically lapses due to missing project staff and excessive bureaucracy. As one colleague warned, “implementation [of the program] … must occur as a whole-of-government activity, with trust-based partnerships across industry and academe, or else it will fail.”

The defence budget also remains discretionary. Unlike health transfers or old age security, which are legally entrenched, defence funding can be cut at will. That creates instability for military suppliers and risks turning long-term procurement into a political football. The new funds must be protected from short-term fiscal pressure and partisan meddling.

One more concern: culture. If Canada is serious about rebuilding its military, we must move past performative diversity policies and return to a warrior ethos. That means recruiting the best men and women based on merit, instilling discipline and honour, and giving them the tools to fight and, if necessary, make the ultimate sacrifice. The military must reflect Canadian values, but it is not a place for social experimentation or reduced standards.

Finally, the announcement came without a federal budget or fiscal roadmap. Canada’s deficits continue to grow. Taxpayers deserve transparency. What trade-offs will be required to fund this? If this plan is just a last-minute attempt to appease U.S. President Donald Trump ahead of the G7 or our NATO allies at next month’s summit, it won’t stand the test of time.

Canada has the resources, talent and standing to be a serious middle power. But only action—not announcements—will prove whether we truly intend to be one.

The NATO summit is over, and Canada was barely at the table. With global threats rising, Lt. Gen. (Ret.) Michel Maisonneuve joins David Leis to ask: How do we rebuild our national defence—and why does it matter to every Canadian? Because this isn’t just about security. It’s about our economy, our identity, and whether Canada remains sovereign—or becomes the 51st state.

Michel Maisonneuve is a retired lieutenant-general who served 45 years in uniform. He is a senior fellow at the Frontier Centre for Public Policy and author of In Defence of Canada: Reflections of a Patriot (2024).

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Mark Carney Thinks He’s Cinderella At The Ball

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And we all pay when the dancing ends

How to explain Mark Carney’s obsession with Europe and his lack of attention to Canada’s economy and an actual budget?

Carney’s pirouette through NATO meetings, always in his custom-tailored navy blue power suits, carries the desperate whiff of an insecure, small-town outsider who has made it big but will always yearn for old-money credibility. Canada is too young a country, too dynamic and at times a bit too vulgar to claim equal status with Europe’s formerly magnificent and ancient cultures — now failed under the yoke of globalism.

Hysterical foreign policy, unchecked immigration, burgeoning censorship and massive income disparity have conquered much of the continent that many of us used to admire and were even somewhat intimidated by. But we’ve moved on. And yet Carney seems stuck, seeking approval and direction from modern Europe — a place where, for most countries, the glory days are long gone.

Carney’s irresponsible financial commitment to NATO is a reckless and unnecessary expenditure, given that many Canadians are hurting. But it allowed Carney to pick up another photo of himself glad-handing global elites to whom he just sold out his struggling citizens.

From the Globe and Mail

“Prime Minister Mark Carney has committed Canada to the biggest increase in military spending since the Second World War, part of a NATO pledge designed to address the threat of Russian expansionism and to keep Donald Trump from quitting the Western alliance.

Mr. Carney and the leaders of the 31 other member countries issued a joint statement Wednesday at The Hague saying they would raise defence-related spending to the equivalent of 5 per cent of their gross domestic product by 2035.

NATO Secretary-General Mark Rutte said the commitment means “European allies and Canada will do more of the heavy lifting” and take “greater responsibility for our shared security.”

For Canada, this will require spending an additional $50-billion to $90-billion a year – more than doubling the existing defence budget to between $110-billion and $150-billion by 2035, depending on how much the economy grows. This year Ottawa’s defence-related spending is due to top $62-billion.”

You’ll note that spending money we don’t have in order to keep President Trump happy is hardly an elbows up moment, especially given that the pledge followed Carney’s embarrassing interactions with Trump at the G7. I’m all for diplomacy but sick to my teeth of Carney’s two-faced approach to everything. There is no objective truth to anything our prime minister touches. Watch the first few minutes of the video below.

Part of the NATO top-up we can’t afford is more billions for Ukraine which is pretty much considered a lost cause. NATO must keep that conflict going in order to justify its existence and we will all pay dearly for it.

The portents are bad. This from the Globe:

We are poorer than we think. Canadians running their retirement numbers are shining light in the dark corners of household finances in this country. The sums leave many “anxious, fearful and sad about their finances,” according to a Healthcare of Ontario Pension Plan survey recently reported in these pages.

Fifty-two per cent of us worry a lot about our personal finances. Fifty per cent feel frustrated, 47 per cent feel emotionally drained and 43 per cent feel depressed. There is not one survey indicator to suggest Canadians have made financial progress in 2025 compared with 2024.

The video below is a basic “F”- you to Canadians from a Prime Minister who smirks and roles his eyes when questioned about his inept money management.

He did spill the beans to CNN with this unsettling revelation about the staggering numbers we are talking about:

Signing on to NATO’s new defence spending target could cost the federal treasury up to $150 billion a year, Prime Minister Mark Carney said Tuesday in advance of the Western military alliance’s annual summit.

The prime minister made the comments in an interview with CNN International.

“It is a lot of money,” Carney said.

This guy was a banker?

We are witnessing the political equivalent of a vain woman who blows her entire paycheque to look good for an aspirational event even though she can’t afford food or rent. Yes, she sparkled for a moment, but in reality her domaine is crumbling. All she has left are the photographs of her glittery night. Our Prime Minister is collecting his own album of power-proximity photos he can use to wallpaper over his failures as our economy collapses.

The glass slipper doesn’t fit.

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