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flag Canada's 2025 budget allocates $80B for defence but delays funding for 12 new submarines despite urgent fleet needs.

flag Canada’s 2025 federal budget allocated over $80 billion for defence but excluded funding for the Royal Canadian Navy’s planned purchase of 12 new conventional submarines, despite urgent fleet needs. flag With only one of four aging submarines operational and all at risk of obsolescence by 2035, the government has narrowed the procurement to Germany’s ThyssenKrupp and South Korea’s Hanwha Ocean but has not committed funds. flag Defence Minister David McGuinty said acquisition financing will be addressed later, linking the project to NATO spending goals. flag A new Defence Investment Agency will oversee the process, which could exceed $100 billion, mostly for maintenance. flag The navy requires Arctic-capable, stealthy submarines with strong industrial benefits, and both bidders have existing production lines, with Hanwha offering delivery before 2035. flag No decision is expected before year-end.

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