Jimothy McGill

1. Canada has a G7 economy 2. Canada has an AAA sovereign rating from S&P (only other G7 country with an AAA rating is Germany) 3. Canada's net debt is approx half that of the US or France 4. Canada's borrowing costs are (as a result) lower than the US, UK, France, etc 5. Canada has plans to reach 4% GDP defense spending (by NATO definition) by 2030 and 5% by 2035 6. Canadian defense spending has increased and is increasing rapidly which is why Canada is now tied with Italy and Poland for the 4th largest defense budget of US allies in NATO only behind Germany, the UK and France 7. Due to its strong fiscal capacity, and the very weak fiscal capacity of France, Canada is projected to match or even slightly surpass French defense spending within the next 4-5 years in absolute terms, which would make it the 3rd largest defense spender in non American NATO only behind Germany and the UK 8. There is broad support in Canada for higher defense spending due to (1) Russia's invasion of Ukraine, (2) growing threats from China, (3) belligerent, hostile behavior from Trump, and (4) the ability to do so without severe fiscal tradeoffs due to the fiscal capacity mentioned above. 9. It is not hard for a G7 country with a high GDP per capita and robust fiscal capacity and a rapidly rising defense budget to fund an air force that operates 2 types of fighters. In fact many countries with comparable levels of fiscal capacity operate or will soon operate *three* different types of combat aircraft. And many countries that are much weaker than Canada fiscally operate 2 or more in a mixed fleet. 10. If Canada pursues a mixed fleet then its Gripens would be built *in Canada* and even more Gripens would be built in Canada for 3rd country export (Saab is open about seeking partner industrial capacity for Gripen production). So the defense industrial, economic and labor benefits would be substantial, which is why only looking at the literal cost of the aircraft is quite myopic. 11. Canada is and long has been a country that prioritizes air and naval power for obvious reasons. Even more so today and in the future than in the world war or cold war period (due to changes in defense technology and rise of Sino-Russian threat). So yes lots of $ will be available for fighter jets, ASW aircraft, attack subs and destroyers. Hence acquisition of 15 river class destroyers, 12 german-norwegian 212CD SSKs, 14+ American P8s, and a large # of fighters. Airpower is a core pillar of Canadian national security. It will be funded as such.