Canada Pushes G7 to Back New Defence Bank Initiative

Canada is urging G7 nations to support the creation of a new multilateral defence bank aimed at financing small and medium-sized defence companies. Foreign Minister Anita Anand said the proposal will be presented during the G7 foreign ministers’ meeting in France, as countries face rising security challenges linked to ongoing conflicts and geopolitical uncertainty.

The proposed Defence and Security Resilience Bank is part of Prime Minister Mark Carney’s broader strategy to strengthen cooperation among allies, including NATO partners. Canada has been hosting discussions in Montreal to develop the bank’s framework, with the city also positioning itself as a potential headquarters. The initiative aims to pool capital and improve access to funding for defence firms struggling to meet increasing demand.

However, the proposal faces mixed support, with some countries like Germany declining participation and others exploring alternative financing plans. Anand emphasized that lessons from the Russia-Ukraine War highlight the need for faster procurement and better coordination in defence supply chains. She added that discussions will continue in the coming months, with more countries encouraged to join the initiative.

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