Prime Minister Mark Carney said increasing defence spending to meet NATO targets could come with benefits for Canadians, but also potential 'trade-offs.'

Prime Minister Mark Carney is among the leaders around the table at the annual leaders' summit where the proposal is being discussed.

While the main talks on NATO defence spending won't take place until Wednesday, Prime Minister Mark Carney is expected to discuss the issue during bilateral discussions.

The five per cent goal is made up of two parts, including agreeing to a hike pure defence spending to 3.5 per cent of GDP, up from the current target of at least two per cent,

Prime Minister Pedro Sánchez wrote in a letter that “committing to a five per cent target would not only be unreasonable, but also counterproductive."

David McGuinty said the federal government will have more to say "very soon" about its alliance spending commitments and will be "making announcements in this regard."

The approval in the Bundestag gives chancellor-in-waiting Friedrich Merz a windfall of hundreds of billions of euros to ramp up investment after two years of economic contraction.

NATO's secretary-general said as the U.S. proceeds on Ukraine peace talks with Russia, the alliance will work to ensure Moscow never tries to attack Ukraine again.

Trump also said he wants NATO members to spend at least five per cent of their GDP on defence, more than double the current two-per cent target.

Experts see Trump's choice of Matt Whitaker, a lawyer with no foreign policy or diplomacy experience, as a sign Trump will pursue hardline tactics.

Analysts say Canada should be front-and-centre for talks on Arctic and Indo-Pacific security, but its failure to meet defence spending targets may get in the way.

NATO Secretary-General Jens Stoltenberg called on Canada to continue increasing defence spending, saying new investment plans are a good start but more is needed.

Defence Minister Bill Blair has unveiled Canada's long-promised defence policy update with a focus on enhancing Arctic and cyber security.

President Andrzej Duda's appeal comes at Poland marks the 25th anniversary of its accession to NATO, along with the Czech Republic and Hungary, on March 12, 1999.