DATA & FIGURES
The deal is estimated to be worth over $12bn for the submarines, with the total contract potentially exceeding $70bn when including maintenance costs over roughly half a century. Canada has committed to increasing its defence spending to 5% of its gross domestic product (GDP) by 2035, with the current spending at 2% of GDP
THE SCENARIO
The submarine deal is part of Canada's broader effort to enhance its defence capabilities and deepen its relationships with European contractors, reducing its reliance on the US. This move is also seen in the context of Canada's interest in purchasing 72 Saab-made Gripen war planes, which could create up to 12,600 jobs in Canada
DIRECT QUOTE
"The members of the alliance are about to announce billions in new contracts, calling it the “crucial kit we need to deter and defend”" — Mark Rutte, Secretary General of Nato
BBN INSIGHT
The Positive Side: This deal is expected to create jobs and stimulate economic growth in Canada, particularly in the defence sector. The new submarines will also enhance Canada's ability to conduct surveillance and defence operations in the Arctic, which is increasingly important for the country's national security. The Negative Side: The high cost of the deal, potentially exceeding $70bn, may put a strain on Canada's budget and could be seen as a significant investment in military capabilities at a time when other priorities, such as healthcare and education, may also require funding