Canada is under pressure to meet its NATO defence spending target by the end of the fiscal year — and doing so could help reshape the country’s economy, military, and role on the world stage.
According to Stephen Fuhr, Secretary of State (Defence Procurement) and MP for Â鶹AV, the federal government is “going to get it done.”
“My immediate concern is getting us to two per cent (of GDP) by the end of the fiscal year,” he said. “That’s a big responsibility I have on my plate. We’ve mapped it all out, and we know what to do.”
On June 9, the federal government announced that . The investment for 2025-26 will be over $9 billion.
Fuhr recently returned from a high-level delegation trip to Brussels with the Prime Minister and the Ministers of National Defence and Foreign Affairs. During the visit, Canada signed a new defence and security agreement with the European Union and took part in NATO meetings.
Fuhr said spent on defence by 2035.
He explained that the goal includes two parts: 3.5 per cent in traditional military spending, and 1.5 per cent in areas like infrastructure and economic development related to defence — areas that Canada plans to leverage.
“Part of that defence and security agreement had a portion of it where Canada and the EU would work together on stockpiling critical minerals, and we have an abundance of that. The problem is we just don’t have access to it. So if the Canadian government builds out that access, that’ll employ Canadians, and it will more than likely create revenue for the Government of Canada.”
The spending on critical minerals and energy infrastructure would count toward Canada’s defence contribution.
“We’re building out the Canadian economy in a way in which it hadn’t been built out before,” he said. “The rest of it (3.5 per cent), we’ll look in 2029 to see if the capabilities NATO is asking us for are being met with the spend, and we’ll evaluate it then.”
Fuhr noted government has already made significant investment.
“The previous Liberal government had doubled defence spending since 2015,” he pointed out. “When (Stephen) Harper went out, the defence spending was below one per cent GDP. I think right now it’s around 1.45 percent.”
Canada, he said, is being recognized as a reliable partner — and potentially a leader.
“I would look at it as a re-emerging middle power. The United States seems to want to pull back, and I think it’s creating a bit of a vacuum — and other middle powers are looking for leadership. And I think Canada can fill that space.”
Fuhr also touched on Canada’s evolving relationship with the U.S.
“We’re always going to have a relationship with the United States—but it’s going to be a different relationship. I think the PM was pretty clear about that. We’ll work with the U.S. where we can and we’ll go our own way where we have to. And we have lots of friends.”
That, he said, is backed by the optimism and goodwill he experienced in Europe.
“I can’t express how positive it was to come out of that with just such overwhelming sentiment towards Canada from our European friends. We were treated well and respected. Everybody there was really looking forward to working with Canada.”
Fuhr, a retired Air Force officer, acknowledged that one of the biggest obstacles to military readiness is personnel.
“We need to get our numbers up—that’s a big part of moving forward,” he noted. “We need about, I think it’s13,000 more folks to bolster our numbers up to where we want to be.”
Despite the shortfall, he said Canada continues to be a highly respected military partner.
“Canada is still very, very respected. We bring good capability to the relationships that we have. If there’s a coalition of people out there, the team wants Canada to be there. That hasn’t changed.”
Fuhr sees Canada at a crossroads.
“I think it’s at a point now, and Canada has an opportunity, where we can start to fill a leadership role in the world where the States have just decided they want to step back. So I think that’s very positive for us.”