THURSDAY, March 28, 2024
nationthailand

Trudeau names Freeland as Canada's finance minister

Trudeau names Freeland as Canada's finance minister

Justin Trudeau named Chrystia Freeland as Canada's new finance minister, the first woman to hold the position, and is expected to suspend parliament in an attempt to reset his government's agenda.

Freeland, 52, was sworn in Tuesday in Ottawa, replacing Bill Morneau, who stepped down on Monday amid growing divisions between his department and the prime minister's office.

Freeland, a former journalist, has arguably been Trudeau's most successful minister, lauded for her negotiation of a new North American free trade agreement with President Donald Trump's administration.

As Trudeau's intergovernmental affairs minister, Freeland played a key role dealing with hostile provincial governments in the oil-rich provinces of Alberta and Saskatchewan. While Freeland represents a Toronto district as lawmaker, she is the daughter of an Alberta canola farmer.

Her appointment was welcomed by economists and the business community. She will have the difficult task ensuring fiscal policy supports the recovery while also containing deficits once the covid-19 crisis eases. The government projects it will run a record deficit of 16% of gross domestic product this year.

"The choice of Deputy Prime Minister Chrystia Freeland will reassure financial markets, given her prominent stature and seniority," Doug Porter, chief economist at Bank of Montreal, said in an email. "Given that this is clearly not a 'placeholder' candidate, and as someone who can be expected to stand her ground on key issues, her choice will provide some confidence." Freeland's appointment was reported first by CTV News.

The cabinet shuffle comes at a critical moment for Trudeau as his government prepares a plan for economic recovery amid historically high unemployment. CBC News reported that Trudeau will prorogue, or suspend, the current session of parliament, which would give him a respite from a House of Commons investigation into his links to a Toronto charity that was given a government contract. Parliament would resume in October with a reshuffled cabinet, CBC said; a formal budget or economic update would follow.

"She would be a strong choice with seasoned experience on domestic and international policy issues along with a record for forging consensus across different views," Rebekah Young, an economist at Bank of Nova Scotia, said by email. "Pushing back on further spending requests will be part of the job and she's been proven to be a tough but effective negotiator."

Morneau announced his resignation at a press conference in Ottawa after a rift with Trudeau proved impossible to repair. He said he told the prime minister earlier Monday that he doesn't intend to run in the next election.

"Like any job, there's a time where you're the appropriate person in the role, and there's a time when you have to decide when you're not the appropriate person in the role," Morneau said Monday night. He said he would put his name forward to be secretary general of the Organisation for Economic Co-operation and Development.

The two men met on Monday at Rideau Cottage, Trudeau's residence, for about 30 minutes, according to a person familiar with events.

The Trudeau-Morneau rift burst into full view after Bloomberg reported on Aug. 10 that former Bank of England governor Mark Carney is advising the prime minister on an economic recovery plan. Trudeau released an extraordinary statement the following afternoon stating his "full confidence" in Morneau, as speculation grew over whether the minister would be replaced.

Multiple officials told Bloomberg that divisions between the prime minister's office and Morneau's finance department grew over how to design the government's response to Covid-19. Points of debate have included how much unemployed workers should receive under the government's flagship covid-19 income support program and whether to increase a wage subsidy for businesses affected by the pandemic.

Morneau was also caught by surprise by Carney's recent involvement, according to one person familiar with the situation.

"A finance minister needs to have a compelling vision for the economic future of the country and be empowered to achieve it," said Jean-Francois Perrault, chief economist at Bank of Nova Scotia.

The controversy over a CA$43.5 million government student grant contract had also strained the relationship. Trudeau and Morneau are both under investigation by the government's ethics watchdog over potential conflict of interest in the awarding of the contract to the WE Charity, which has used Trudeau's mother, brother and wife as paid speakers at events and employed Morneau's daughter. Both men appeared before parliamentary committees over the matter.

"Every step of the way, Bill and I have worked closely together, along with our team of cabinet ministers and caucus members to help Canadians navigate this challenging time," Trudeau said in a statement. "Our number one priority has been supporting Canadian families and businesses the best and fastest way possible."

RELATED
nationthailand