In a surprising move, Deputy Prime Minister and Finance Minister Chrystia Freeland announced her resignation from Cabinet on Monday after Prime Minister Justin Trudeau said he no longer wanted to serve in the top business post.
After several hours of confusion, Dominique LeBlanc, Trudeau’s longtime ally and senior cabinet minister, replaced her as finance portfolio manager in a ceremony at Rideau Hall on Monday afternoon.
In Freeland’s absence, Government Leader Karina Gould delivered the Government’s long-awaited Autumn Economic Statement to the House of Commons without a speech on the second and final day of the Autumn sitting of the House of Commons. In 2023-2024, the deficit was $61.9 billion.
This massive upheaval and the political uncertainty it has caused has led to renewed calls from other party leaders and within the caucus for Prime Minister Trudeau to resign. Sources say the Prime Minister is now said to be considering not only his options as party leader but also the possibility of suspending his sentence in parliament.
Prime Minister Trudeau spoke with his party caucus for about an hour starting at 5:30 p.m. ET. As reporters crowded outside, he could be seen giving a speech through the glass of a special room where members of Congress had gathered.
Exactly what Trudeau had to say remains unclear as he has not yet faced questions from reporters. But Trudeau finally addressed the tumultuous day Monday night, speaking at a holiday party for top Liberal Party donors.
“It’s obviously been an eventful day. It hasn’t been an easy day, but I wanted to be here tonight and talk to all of you dedicated and dedicated Liberal members, because not me or any other politician. , because you’re getting your heart pumping about this movement,” Trudeau said.
“It is the absolute privilege of my life to serve as the prime minister of our country,” he added, to cheers and applause.
Prime Minister Trudeau also urged Liberal supporters to enjoy the holiday, recharge and prepare to show Canadians that “we have a serious, positive vision for the future of this great country that is worth fighting for.” He begged them to do so.
Freeland says Trudeau offered ‘another position’
Freeland said in a letter posted on social media Monday morning that she made the decision to leave the top cabinet portfolio after Trudeau offered her “another position in the cabinet.” Ta.
“After much consideration, I have concluded that the only honest and viable path forward is for me to resign from the Cabinet,” Freeland said in the bombshell letter. “To be effective, ministers must speak with complete confidence on behalf of the prime minister.”
“In making the decision, you have made it clear that I no longer enjoy that confidence,” she added, addressing the Prime Minister directly.
The two sides “are at odds about the best path forward for Canada,” she wrote, but in recent days there have been reports of renewed tension between the two Liberal Party leaders. She tried to downplay the allegations.
Recent grievances between the two governments reportedly stem from disagreements over measures such as the two-month GST/HST moratorium and the stalled $250 worker benefit checks, as well as compliance with fiscal anchors. This is said to be related to disagreements over the government’s ability to do so.
In his letter, Freeland cited the looming threat of tariffs from President-elect Donald Trump, which is why Canada needs to “stay on top of our finances” and that the government must “avoid costly political maneuvers.” It should be done,” he argued. We can’t afford it, and Canadians are wondering if we recognize the gravity of this moment. ”
Mr Freeland said he intended to remain a Liberal MP and was “committed” to running again in the next election.
“I have always been grateful for the opportunity to serve in government, and I have always been proud of the work it does for Canada and Canadians,” she said.
The move came hours before Freeland was due to deliver her fall economic report, and it immediately sparked confusion about what would happen next.
In mid-afternoon, after several hours of uncertainty for reporters and economic experts gathered at the lock-up site, Canada’s Treasury officials proceeded with an embargoed reading of a key economic blueprint.
The 270-page document charges: “Reducing daily costs and increasing wages” The bill, developed by Freeland, touts “the government’s prudent fiscal management,” but also shows the budget deficit is far larger than what Freeland anticipated in last spring’s budget.
“Prime Minister Justin Trudeau has just learned what it’s like to be thrown under the political bus,” pollster Nick Nanos said in an interview on CTV News Channel.
“It’s hard to imagine what Prime Minister Justin Trudeau can do right now to fix this.”
‘We can’t continue like this’: Political backlash floods
Trudeau’s sweeping departure from the premiership comes ahead of a cabinet reshuffle that is widely expected to take place as early as this week.
The moves to fill LeBlanc’s significant vacancy include moving from co-chair to chair of the Select Cabinet Committee on Canada-U.S. Relations, while also moving several hot spots across current and new cabinet portfolios. You will have to manage files.
Asked how he plans to make ends meet, LeBlanc said: “I’ll probably start early in the morning, work until late at night, and I won’t have much time off on the weekends.” “It’s a great time to have these responsibilities, and I don’t for one moment take the job before us lightly.”
Asked if he thought Trudeau should resign, LeBlanc said the prime minister is focused on his future endeavors, citing the cost of living under the incoming Trump administration as an example.
LeBlanc was asked in French if he knew whether the prime minister was considering taking over the finance portfolio two and a half weeks ago, when Trudeau and Trudeau traveled to Mar-a-Lago to meet with President Trump. .
“Not at all,” he replied.
And when asked when he was selected as finance minister, was it something that was being prepared and he was the first choice, or was it because no one else wanted the job? , Mr. Leblanc did not answer directly, instead saying that it was a matter for the prime minister, the minister.
News of Mr Freeland’s resignation comes just as another top cabinet minister, Sean Fraser, announced his resignation, joining several others who have said they will not seek re-election.
At a press conference on Parliament Hill, the Nova Scotia lawmaker said it was for family reasons, but he quickly asked reporters what these successive resignation decisions mean for the fortunes of the minority Trudeau government, which is in trouble. I was faced with a series of questions about whether I would do so.
“It’s very difficult to assess what that means because we don’t know her own take on the reasons behind that decision, but my sense is that she’s an excellent person to work with. I think he’s a team member,” Fraser said. “I can only speak for myself…For me, the motive has nothing to do with the government or the prime minister.”
Several of Freeland’s cabinet colleagues, reached for comment on the way to a pre-scheduled cabinet meeting on Parliament Hill, spoke positively of her.
“Let me just say that Chrystia Freeland is a good friend…This news has been very shocking to me. I will refrain from further comment until I have time to process it,” Treasury Board President said. said Anita Anand, also Minister of Transport.
“I wish her the best. Look, these are difficult and very personal decisions. And you know, obviously she made that decision and I respect her for that decision.” said Patty Hajdu, Minister of Indigenous Services.
NDP Leader Jagmeet Singh, who was the first to respond with a statement and remains the only federal political leader whose parliamentary votes continue to support Trudeau’s government, said Freeland’s resignation was “an “It shows how deeply entrenched Liberal government members are in internal conflict.”
Singh gave no indication in his statement that the NDP was prepared to help call an early election, but within hours, Singh appeared before reporters and called for Trudeau to resign. He said that
Asked if he would vote for a no-confidence motion in the government, he said: “All options are on the table.”
Conservative Party leader Pierre Poièvre also reiterated his call for a “carbon tax election” to reporters on Monday.
“Justin Trudeau is losing control, but he’s still clinging to power,” Poilievre said, adding, “Ms. Freeland has been Trudeau’s most trusted cabinet minister for 10 years, nine years. She knows Mr. Trudeau better than anyone, and she knows he is out of control.”
In an accompanying statement, Poièvre said the country “cannot continue as it is.”
Freeland was Prime Minister Trudeau’s deputy
Freeland worked as a journalist and author before entering politics, and has served as Canada’s deputy prime minister since 2019 and finance minister since 2020.
He took the high post as the country faced a housing affordability crisis and high interest rates, and he maintained a firm grip on the economy amid pushback from some economists who criticized what he called inflationary federal spending.
Tensions between the prime minister’s office and Mr. Freeland’s office were first reported this summer by the Globe and Mail, with senior officials in Mr. Trudeau’s office raising concerns about a breakdown in Mr. Freeland’s economic communications. He cited an anonymous source who said he had done so.
At the time, Prime Minister Trudeau said he had “full confidence” in Freeland, but also acknowledged that he had lobbied former Bank of Canada and Bank of England president Mark Carney about joining federal politics at the time. .
A few months later, the Liberals announced that Mr. Carney would join as a special adviser to chair the leader’s task force on economic growth.
In some ways, Freeland’s resignation coincides with that of former Finance Minister Bill Morneau in 2020 amid the WE Charity scandal. At the time, leaks from the PMO pointed to a growing rift between Mr. Morneau and Mr. Trudeau, who claimed at the time that discussions had run out over how to spend COVID-19 relief money. Ta. .
Prime Minister Trudeau said at the time that he supported Morneau’s continued role as finance minister, but Morneau resigned just six days later and Freeland took over the portfolio. Trudeau also said he is in talks with Prime Minister Carney about playing a key economic role in a Liberal government.
Freeland’s political start
Freeland has been an MP since 2013, when he left journalism and ran for political office from Toronto Center during a high-profile by-election to replace former Liberal MP and current Canadian Ambassador to the United Nations Bob Rae.
She was considered a potential star at the time, having written books that focused on foreign affairs, income inequality, and Eastern Europe, and one of which became a New York Times bestseller.
When Prime Minister Trudeau’s Liberal Party won the 2015 general election, Freeland was elected with support from Rosedale College and joined the cabinet as Minister of International Trade. In this portfolio, she played a key role in the NAFTA renegotiation, contributing to years of economic growth. -Concluded a free trade agreement with Canada and the European Union.
After a cabinet reshuffle in 2017, Freeland became foreign minister.
After the 2019 election, Freeland also became minister of intergovernmental affairs, making him the first deputy prime minister since 2006.
“I think it’s a very Freeland-like role,” Trudeau said at the time when asked about his expectations for the title.
Mr. Freeland has been considered one of Mr. Trudeau’s most loyal supporters since he was elected to parliament and appointed to the cabinet, and was once widely touted as a possible successor to Mr. Trudeau.
With files from CTV News’ Spencer Van Dyke