What We’re Watching: Canada is defensive … about spending

Canadian Foreign Minister Melanie Joly, MN Justin Trudeau, and Minister of Defense Anita Anand arrive at the NATO summit in Madrid, Spain.
Canadian Foreign Minister Melanie Joly, MN Justin Trudeau, and Minister of Defense Anita Anand arrive at the NATO summit in Madrid, Spain.
Blondet Eliot/ABACA via Reuters Connect

The fallout continued this week from the leak of a Pentagon assessment of Canada’s NATO contributions, which has embarrassed the Trudeau government. The documents say that Trudeau has told NATO officials that Canada does not plan to meet the 2%-of-GDP funding target that NATO members are supposed to reach and that the cash-strapped Canadian military has disappointed its allies by not being able to contribute to the alliance.

The leak came on the heels of an open letter from Canadian officials and politicians who are worried that Canada is not doing enough on national defense. Joe Biden’s ambassador to Canada, David Cohen, tried to calm the waters, but grumbling continues.

As the war in Ukraine drags on, there are concerns that the allies may grow less patient with Canada’s unwillingness to ante up. There is also a fresh outcry that the government is not doing enough to protect the Arctic. An op-ed by former top civil servant Kevin Lynch and two co-authors noted on Wednesday that the “gap between government promises and the execution and delivery of these commitments is becoming a chasm.”

Canadian Defense Minister Anita Anand recently sat down with GZERO’s Ian Bremmer to discuss the war in Ukraine and the power of NATO. Anand says Canada has seen an unprecedented increase in defense spending, and she notes that her country has NATO’s sixth-largest defense budget. She also points out that NATO’s monthly meetings entail the examination of each country’s capability, and that “we seek to complement each other.”

So will Canadian grumbling for more defense spending lead to a policy shift? We have our doubts, since Canada has already stepped up spending on jets, NORAD, and Ukraine, and there are traditionally few votes to be had in military spending in Canada.

Also, as Paul T. Mitchell, of the Canadian Forces College, points out, there is a long tradition of Canada being content to hide in Uncle Sam’s shadow and spend money on butter, not guns. He notes how a Canadian politician, back in 1875, observed: “situated as we are, not likely to be involved in war, and having a large demand upon our resources for public improvements, it was highly desirable to have our military affairs conducted as cheaply as possible.”

Plus ça change …

More from GZERO Media

Listen: On the GZERO World Podcast, we’re taking a look at some of the top geopolitical risks of 2025. This looks to be the year that the G-Zero wins. We’ve been living with this lack of international leadership for nearly a decade now. But in 2025, the problem will get a lot worse. We are heading back to the law of the jungle. A world where the strongest do what they can while the weakest are condemned to suffer what they must. Joining Ian Bremmer to peer into this cloudy crystal ball is renowned Stanford political scientist Francis Fukuyama.

President-elect Donald Trump appears remotely for a sentencing hearing in front of New York State Judge Juan Merchan in his hush money case at New York Criminal Court in New York City, on Jan. 10, 2025.
REUTERS/Brendan McDermid/Pool

President-elect Donald Trump was sentenced in his New York hush money case on Friday but received no punishment from Judge Juan M. Merchan, who issued an unconditional discharge with no jail time, probation, or fines

Paige Fusco

In a way, Donald Trump’s return means Putin has finally won. Not because of the silly notion that Trump is a “Russian agent” – but because it closes the door finally and fully on the era of post-Cold War triumphalist globalism that Putin encountered when he first came to power.

Venezuelan opposition leader Maria Corina Machado greets supporters at a protest ahead of the Friday inauguration of President Nicolas Maduro for his third term, in Caracas, Venezuela January 9, 2025.
REUTERS/Leonardo Fernandez Viloria

Regime forces violently detained Venezuelan opposition leader María Corina Machado as she left a rally in Caracas on Thursday, one day before strongman President Nicolás Maduro was set to begin his third term.

Paige Fusco

Justin Trudeau is leaving you, Donald Trump is coming for you. The timing couldn’t be worse. The threat couldn’t be bigger. The solutions couldn’t be more elusive, writes GZERO Publisher Evan Solomon.

- YouTube

Is international order on the precipice of collapse? 2025 is poised to be a turbulent year for the geopolitical landscape. From Canada and South Korea to Japan and Germany, the world faces a “deepening and rare absence of global leadership with more chaos than any time since the 1930s,” says Eurasia Group chairman Cliff Kupchan during a GZERO livestream to discuss the 2025 Top Risks report.

During the Munich Security Conference 2025, the BMW Foundation will again host the BMW Foundation Herbert Quandt Pavilion. From February 13th to 15th, we will organize panels, keynotes, and discussions focusing on achieving energy security and economic prosperity through innovation, policy, and global cooperation. The BMW Foundation emphasizes the importance of science-based approaches and believes that the energy transition can serve as a catalyst for economic opportunity, sustainability, and democratic resilience. Our aim is to facilitate solution-oriented dialogues between business, policy, science, and civil society to enhance Europe’s competitiveness in the energy and technology sectors, build a strong economy, and support a future-proof society. Read more about the BMW Foundation and our Pavilion at the Munich Security Conference here.