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Canada's 2025 budget allocates $80B for defence but delays funding for 12 new submarines despite urgent fleet needs.
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.
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.
Defence Minister David McGuinty said acquisition financing will be addressed later, linking the project to NATO spending goals.
A new Defence Investment Agency will oversee the process, which could exceed $100 billion, mostly for maintenance.
The navy requires Arctic-capable, stealthy submarines with strong industrial benefits, and both bidders have existing production lines, with Hanwha offering delivery before 2035.
No decision is expected before year-end.
El presupuesto de 2025 de Canadá asigna $ 80B para la defensa, pero retrasa la financiación para 12 nuevos submarinos a pesar de las necesidades urgentes de la flota.