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They should buy both. Stealth is indispensable when needed, but for most tasks the Canadian Air Force performs the Gripen would be perfect.
It clearly seems the right thing to do. I guess the devil is in the details?
Who's the adversary? That's the main question. If the US is, then a better choice of fighters won't make much difference. Most likely it's russia, and it's arctic warfare.

The smart move, both for canada and EU nations isn't to build up conventional military (although nothing wrong with that, if done in parallel), but to build up a nuclear force. First strike capabilities. ICBMs, ICBM deterrents, submarines and trans-continental bombers.

France and the UK have nuclear capability already, it will cost a lot, but it isn't impossible to achieve in less time than it would take to bootstrap military force that can conventionally take on either the US, China or even Russia.

The problem is, unlike Iran and North Korea, Europe and Canada don't yet see themselves as vulnerable as they really are. If a madman like current madman decided to attack the US's allies, nukes are not off the table. Matter of fact, not only do the insane people in the US with power crave such levels of carnage, they crave it. And in their minds, taking out a small city in europe or canada will save lives in the long run and is a quick way to achieve victory.

There is a reason the current dictator in the US is trying to bring the 'golden dome' and "dominating our hemisphere". I suspect in the long run, these people will really want to invade europe and "purify it" from those "pesky" brown people, after they're done with the US. ICBM capable (and by the numbers too) Europe and Canada is the most peaceful outcome for everyone involved. If denmark had nukes, there wouldn't have been any talk of invading greenland.

Currently, the US provides nuclear capability for nato to the most part. but if self-defense against the US and Russia is the priority for europe, preparing for land and aerial attacks makes little sense. A standing continental military for europe, or even a capable military for canada costs a lot of money, the US spends $800B, and China like $300B on military, that's going to hurt!

No one has ever even attempted the invasion of a nuclear capable country. If canada had nukes, they hardly need ICBMs, they could probably use trebuchet from across the border and attack seattle and new york state probably (just kidding of course)

Canada shouldn't buy the F35. The Saab is a less capable plane, for sure, but it doesn't leave Canada (and it's defense) dependent on the US at a time when the president is openly floating the idea of "acquiring" Canada.
To clarify my thinking on this, I don't expect that we are going to end up in an air OR land war with the USA anytime soon (and honestly hope we won't). I do expect that Trump, for as long as he occupies office, is going to exploit anything and everything that he perceives as a source of leverage. If he can manufacture a pretext to force a renegotiation on maintenance, parts, software updates, and any/all other operational costs once we sign a delivery contract, then that's what he'll do.

The F35 also leaves Canada vulnerable to US policy, in as much as we're risking autonomy around any decision we make that isn't aligned with US interests, as long as we're dependent on their planes.

What is ndp and who is Carney?
Let's be real, it really doesn't matter what jets Canada buys if US wants to annex Canada. For NORAD duties, US can sortie F35s out of Alaska, Canada on paper better off with some Gripens for cheap performative arctic patrols. But F35s cooler than Gripens for airshows, which US provides anyway.

Look just buy some F35s and park it in the Eaton Center for the gram.

As a Swede I'm obviously all for this but doesn't the Gripen still use a ton of US-sourced parts they could easily deny? Like the GE engines.