After many years of not living up to a mutual promise NATO countries made to spend two per cent of their economic outputs on their militaries, Canada has hit that threshold, Prime Minister Mark Carney said in Halifax. A new NATO report shows that in constant dollars, Canadian defence spending has risen from just under $32 billion in 2021 to an estimated figure of nearly $55 billion in 2025, with most of that increase in the past year. (The Logic)

Talking point: Raises for Canadian Armed Forces members, hefty contracts to replace vehicles and weapons, and massive investments in bases and other infrastructure—in the same speech, Carney announced $3 billion in renovations and upgrades to several in Atlantic Canada—have all contributed. The two per cent line is significant but NATO has already moved it: members have agreed to spend 3.5 per cent of their GDPs on core defence budgets, and another 1.5 per cent on things like cybersecurity and strengthening defence industries, by 2035.