The summer of major decisions for Mark Carney

(Ottawa) Mark Carney has not been unemployed since he became the leader of the Liberal Party. In addition, reached the post of Prime Minister. Consequently, After federal elections in April that he triggered three weeks after winning a leadership race. In addition, he quickly settled in power and imposed his credo on the management of state affairs.

If the last months have been marked at the run. For example, the next ones will distinguish themselves by the nature of the decisions heavy with consequences that his government will have to take on two fronts: national unity and relations between Canada and the summer major decisions mark carney United States.

A first budget under the seal of austerity – Summer major decisions mark carney

The Minister of Finance. However, François-Philippe Champagne, is preparing the first budget of the Carney government, which should be filed in October. Nevertheless, Already. Meanwhile, this budget will be marked in the seal of austerity, thus ending an increase in expenses of the federal government around 9 % per year since 2015. For example, Mark Carney wants to bring this annual increase to 2 %.

Last month. For example, Minister Champagne sent all of his colleagues from the cabinet a letter in which they asked them to carry out an exhaustive expenditure examination of their respective ministry in order to eliminate the duplications and programs which no longer have their reason for being today.

He gave them two months to refine a plan to reduce expenses spread over three years and which would lead to cuts of 7.5 % for financial financial year 2026-2027, 10 % for the following financial financial year and 15 % for the financial year 2028-2029.

During the years of power of the Liberals of Justin Trudeau, all budgets were written in red ink. Meanwhile, This year, the deficit could curl $ 70 billion, according to some economists. Therefore,

The increase in the budget devoted to defense. Furthermore, the summer major decisions mark carney drop in taxes and taxes declared by the Carney government in June and the uncertain economic context explain this shortcoming increase.

In this exercise of restrictions, Mark Carney promised to save transfers to the provinces and individuals. In addition, But the fact remains that the compressions envisaged over the next three years will not be able to be painless. Unions representing federal officials are already going up to barricades.

The abandonment of certain programs risks causing mobilization of groups and organizations that could lose achievements. The opposition parties could take advantage of this austerity era which points to the horizon.

Green light to a new pipeline?

Summer major decisions mark carney

In his quest for reducing Canada’s dependence on the American market. Prime Minister Mark Carney has promised to transform the summer major decisions mark carney Canadian economy at all. His recipe: eliminate barriers to trade between the provinces. export more goods to Europe and Asia, and quickly approve the major projects deemed of national interest.

The list of these major projects will be approved by the federal firm. will be known at the latest in the fall. This list could include infrastructure such as highways. railways, ports, airports, pipelines and gas pipelines, mines, nuclear installations and electricity transport networks.

In this regard, Mark Carney has met his provincial counterparts three times in summer major decisions mark carney recent months. And the expectations of the provinces are high. In the west. Alberta highly claims the construction of a new pipeline to British Columbia which would allow it to increase its exports of oil and natural gas to Asian markets. Prime Minister Danielle Smith also sees a good eye the construction of a second pipeline that would connect her province to the port of Churchill. Manitoba. Saskatchewan also supports this project.

In the East. the Legault government wants Ottawa to give a financial boost to the construction of an electricity transport line between Quebec and Newfoundland and Labrador whose bill is valued at $ 7 billion.

The choices that the Carney government will make will be most important. For example. if the project of a new pipeline is dismissed by Ottawa, the discontent could gain momentum in Alberta where summer major decisions mark carney a separatist movement is agitated. In addition. First Nations dispute the new federal law to accelerate the approval of major projects and accuse Ottawa of wanting to flout their constitutional rights.

The future of the F-35 contract

In March. Prime Minister Mark Carney caused a surprise by asking the Minister of Defense to re-evaluate the acquisition project of 88 F-35 fighter planes of the American company Lockheed Martin.

More specifically. Minister David McGuinty must assess whether this contract represents the best investment for Canada or if there are better options. This examination should be completed during the summer.

Legally. Canada must take possession of 16 F-35 planes from next year, but for the rest of the order of 72 other devices, no contract has been signed.

Canada could therefore turn to the Swedish company Saab to buy Gripen combat aircraft. Moreover, Saab arrived second in 2023 following the call for tenders to replace the aging fleet of CF-18s.

In his submission. SAAB undertook to assemble and maintain planes in Canada, probably in the Montreal region, and to transfer intellectual property to the Canadian government. The Swedish company had also promised to build a research and excellence center in the metropolis.

Mark Carney advocates military rapprochement with the European Union. But to give summer major decisions mark carney up buying the F-35 built by Lockheed Martin could raise the ire of the Trump administration. which does not hesitate to use customs duties from all sauces to tear off dealerships in Canada.

Retractive measures or not?

Should Canada precisely impose reprisal measures to reply to Donald Trump’s “unjustified” customs duties? The debate has been raging since the American president brought the customs duties on Canadian steel. aluminum exports from 25 % to 50 % on June 4.

Last week. Canada and the United States failed to conclude an agreement that would restore full free free trade between the two countries. Donald Trump has rather decided to increase customs duties on Canadian goods that do not comply with the Canada-United. States-Mexico Agreement from 25 % to 35 %.

So far, summer major decisions mark carney the Prime Minister has judged that restraint is the best option to avoid climbing. He therefore did not announce the taxation of new customs duties.

But the pressures are accentuated on his government. especially on the part of the Prime Minister of Ontario, Doug Ford, so that he is working equivalent to the damage that Donald Trump’s pricing war causes neuralgic industries like those of steel, aluminum, automobile and forestry, among others. This pressure could increase if Ottawa cannot agree with Washington in the coming weeks.