**Canada's Budget Reflects Shifts in Global Relations**

Prime Minister Mark Carney's government has presented a federal budget that highlights Canada's evolving role in a transformed global landscape. The budget, which features a $78.3 billion deficit, marks the third highest in Canadian history. However, the absence of certain details may provide more insight into the government's perspective on international relations.

Carney has acknowledged significant changes in Canada’s trade relations with the United States, describing the current era as an "age of disorder." He noted a "rupture" in Canada-U.S. relations and the broader global economic order. In a recent address to Asian leaders in Korea, Carney stated, "The old world is gone."

To adapt to these new realities, the Liberal government plans to invest $81 billion over the next five years to meet NATO's target of spending five percent of gross domestic product on military initiatives. This includes the establishment of a Defence Investment Agency aimed at developing a military-industrial complex focused on technology, recruitment, and Arctic defense.

Notably absent from the budget is any mention of the proposed Golden Dome, a conceptual integration of continental defense systems that U.S. President Donald Trump has suggested could cost Canada $61 billion. Additionally, there are no new commitments for Ukraine's defense beyond what Carney pledged in August. The existing plan includes a mix of military aid, financial support, humanitarian assistance, and loans totaling approximately $22 billion, which also covers the Canadian Forces' deployment in Latvia.

The budget does not address the potential risk of another $22 billion in Canadian dollars being allocated to Russian President Vladimir Putin. This amount is part of the $300 billion in Russian Central Bank reserves frozen in Western currencies following Russia's invasion of Ukraine in February 2022. The U.S. holds a minor portion of these frozen reserves and has not committed new funds for Ukraine's defense since Trump returned to office in January.

Currently, about half of Russia's frozen foreign currencies are held in trust by Euroclear, a Belgian securities depository. Euroclear is in discussions with the European Commission regarding the transfer of these funds to Ukraine as part of war reparations. However, Belgium is concerned about the legal implications of such a significant expropriation. The European Union faces challenges in renewing its sanctions against Russia every six months, with Hungary's alignment with Trump posing a potential threat to the sanctions regime.

Carney's leadership has seen Canada take a proactive stance in NATO regarding the release of frozen Russian assets for Ukraine's benefit. Recently, he has aligned with the Canadian Security Intelligence Service in identifying China as a primary geopolitical threat, particularly in the Arctic and in relation to its support for Russia's actions in Ukraine. However, this stance appears to be shifting. Last month, Foreign Affairs Minister Anita Anand returned from a meeting with Chinese Foreign Minister Wang Yi, stating that China is no longer viewed as a "disruptive global power."

As Canada navigates these complex international dynamics, the implications of the budget and the government's strategic decisions will be closely monitored both domestically and abroad.