Posted originally on May 5, 2026 by Martin Armstrong |  

Mark Carney’s decision to make Canada the first non-European nation ever invited into the European Political Community summit tells you everything about where Ottawa is heading politically. Canada is desperately trying to reposition itself away from the United States because Carney fundamentally views the Trump administration as a threat to the entire postwar global order that people like him spent decades building.

The summit in Armenia was never simply about diplomacy. It was about constructing a new bloc of so-called “middle powers” aligned against the growing nationalist shift coming out of Washington. Carney has been openly pushing this idea for months, arguing that countries like Canada and Europe must deepen cooperation because the “old order” is breaking apart. That is globalist language for saying the United States is no longer willing to carry the system financially or militarily the way it once did.

What Carney and the European leadership fail to understand is that Europe itself is collapsing economically underneath the surface. The European Political Community was launched by Emmanuel Macron after the Ukraine war began because Brussels realized confidence in the European Union was weakening badly. The EPC was effectively designed as a parallel geopolitical structure tying together EU states, NATO partners, former Soviet republics, and pro-European governments under one umbrella.

Now Canada wants in. That alone tells you how desperate Ottawa has become to diversify away from the United States economically and politically. Reuters reported that Carney specifically sees Europe as part of a new alliance structure after the deterioration in relations with Washington under Trump.

Canada’s economy is tied overwhelmingly to the United States geographically, financially, culturally, and structurally. Roughly three-quarters of Canadian exports still flow into the American market. Canada cannot simply replace the U.S. economy with Europe. That is fantasy politics.

Europe itself is entering a depressionary phase into 2028 according to our ECM models. Germany’s industrial base is weakening, France is drowning in debt, southern Europe never recovered from the euro crisis properly, and Britain remains economically unstable despite Brexit. The euro itself failed because Europe created a monetary union without consolidating sovereign debt. Northern Europe protected its banking system while southern Europe absorbed austerity and economic collapse.

Carney’s summit appearance also reflects a broader ideological alignment between Canada’s political establishment and Brussels. Both support centralized governance, climate policies, digital regulation, ESG frameworks, expanded financial oversight, and increasingly aggressive speech regulation. Europe and Canada now resemble each other politically far more than either resembles the United States under Trump.

That is why Carney fits naturally into these European summits. He spent years inside the central banking system, running both the Bank of Canada and the Bank of England. He was one of the loudest advocates globally for climate finance structures, ESG investing, and coordinated global financial governance. Europe views him as one of their own intellectually.

Meanwhile, the geopolitical timing could not be worse. The summit agenda reportedly focused heavily on Trump’s planned troop reductions in Germany, the Iran war, Russia, energy instability, and Europe’s broader security concerns. Europe is becoming increasingly militarized because leaders understand NATO’s future is uncertain if Washington continues shifting inward politically.

The irony is extraordinary because Canada spent decades benefiting enormously from proximity to the United States while underinvesting militarily itself. Now Ottawa fears becoming too dependent on Washington while simultaneously attaching itself to a Europe facing its own sovereign debt and demographic crisis.

Carney is essentially betting Canada’s future on closer integration with declining globalist structures just as voters across the Western world increasingly revolt against them politically.

The fragmentation of the West is accelerating. Europe fears abandonment by Washington. Canada fears economic dependency on the United States. Germany fears industrial collapse. France fears social unrest. Britain fears irrelevance. The alliances that dominated the postwar era are beginning to crack under debt, migration, energy instability, war pressures, and collapsing public confidence. The EPC summit itself is really a symptom of that fracture.