I believe it's time the politicians in Canada make the hard decision. Either increase defence spending now or decrease the size of the armed forces.
Better to have a smaller force that is well funded for it's size allowing to to be properly equipped then a larger force having to duct tape cold war era crap togethor to make work.
How much smaller should our armed forces be assuming the pollies want to keep spending at 1% of GDP? The RCAF has about 14,000 members and the RCN has 13,000 sailors. Both these services require the most capital expenditures. The army has 55,000 members. Cutting army numbers will mean bases being closed so there will be lots of provincial whining. The RCAF has responsibilities for all aviation assets including SAR,maritime patrol, RCN aviation, transport aircraft, and all combat aircraft. Short of elimating capability in these areas, there aren't any reduction possibilities.
The most vulnerable service is the RCN as it recapitalization costs are the going to be the largest. If pollies were to cut the frigate program then the AORs would no longer be required. The resulting savings could be used for a modernized submarine fleet and leftover savings could go towards RCAF recapitalization. Even if the government decided to get out of the fast jet business the resulting savings wouldn't be enough to save the RCN. As always, any decision will be based on electoral blowback (both federal and provincial) as well as pressure from allies.
Would NATO prefer a really good RCAF or RCN or three barely functioning services?
A GDP 2% on defence is only possible with trade threats (CETA and NAFTA) or an actual military threat. With our pollies, even this might lead to nothing.