Roundup: PM Carney’s first day

At around 1030 yesterday morning, Justin Trudeau formally submitted his resignation to the Governor General, and for the next thirty or so minutes was the interregnum period during which *gasp!* His Majesty had nobody to advise him. Shortly after eleven, Mark Carney took the oath, and became prime minister, followed by oaths sworn by his entire Cabinet (save Mélanie Joly, who was still at the G7 ministerial, and would be sworn-in later in the afternoon, missing the “family photo.”) (Photos of the Cabinet arriving at Rideau Hall here).

The Cabinet was indeed decidedly smaller, and not quite gender-balanced—thirteen men, not counting Carney, and eleven women, and there was no one from Alberta or PEI in Cabinet, with only two ministers west of Thunder Bay—Terry Duguid and Jonathan Wilkinson. Carney also did not include the Leader of the Government in the Senate (which is a mistake), and the fact that he jammed Women and Gender Equality under Stephen Guilbeault in “Canadian Identity” sends a signal, as does putting both labour and employment under “Jobs,” considering that they serve very different interests. Chrystia Freeland was given the post of transport minister and internal trade (now that Anita Anand has done the heavy lifting on that file), while Karina Gould was excluded. There was some rumbling that Carney was signalling a more rightward shift with these choices, but Nate Erskine-Smith is definitely very progressive, as is Patty Hajdu.

https://bsky.app/profile/jrobson.bsky.social/post/3lkdzo5jjqc2o

During his brief media scrum after the swearing-in, Carney resurrected the hateful phrase from Stephen Harper, circa 2006-08 of “Canada’s New Government™.” Nope. Stop it. He was asked about his assets and he only confirmed that they are in a blind trust, and pivoted to pointing out that much of it came from work in the private sector, which Poilievre hasn’t done, and later pivoted another response to Poilievre’s lack of a security clearance. Carney also confirmed that he will be heading to London and Paris early next week to meet with European allies and not to Washington to meet with Trump, but would not confirm when he plans to call the election.

From there, the Cabinet headed to West Block for a meeting, during which Carney put on a show of signing a piece of paper that claims to effectively end the consumer carbon levy, ostensibly by signing an Order-in-Council to set the rate to zero…but that was not an Order in Council. So, our oh-so-serious banker is performing stunts for the camera. *siiiiiiiiiiigh* He also said the rebates would still be going out for this quarter, but the whole thing has been vague (just like Carney’s entire leadership campaign). Carney claimed that the levy “failed,” but it didn’t. What failed was the government’s ability communicate their way out of a wet paper bag in that they couldn’t defend it against either the lies of the Conservatives, or the shitty job of the Parliamentary Budget Officer in his reports (that bordered on mendacity), or in getting an actual message across to the media rather than expecting the media to learn the policy and fact-check the lies, which they were absolutely never going to do. So now we will have a costlier and less efficient climate policy that will pass along costs to consumers who won’t get a rebate. Brilliant job, everyone. Slow clap.

Here are some quick quotes in reaction to the transition. The Conservatives’ front-bench spent the entire day shitposting and trying to make mean memes, because that’s where we are in Canadian politics, in spite of everything that is going on around us. Oh, and Scott Moe forwarded a list of demands to Carney, because of course he did. Zeus help us.

Ukraine Dispatch

A Russian missile attack hit a residential area of Kryvyi Rih, injuring at least a dozen people. After an appeal by Trump, Putin says he’ll spare any Ukrainian soldiers still in Kursk region if they surrender (and we know how well Russians have been treating their prisoners, and how readily he’ll keep his word). Ukrainian drones hit two Russian gas compressor stations.

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Roundup: The heresy of well-wishes

It began with Anita Anand writing that she was not only going to stay out of the Liberal leadership race (which was a surprise given that she had previously been organizing an effort before the job was even open), but was also not going to be running again in the next election—which is a shame, because she was not only an extremely competent minister, but probably the best defence minister the country has had in a couple of decades at least. Former Conservative leader Erin O’Toole did the classy and dignified thing and saluted her work.

https://twitter.com/erinotoole/status/1878482424193073181

That simply wasn’t going to be on.

https://twitter.com/jenni_byrne/status/1878513929229320380

Whether Byrne misgendered O’Toole by accident or deliberately (because Conservatives thought it was hilarious to call Trudeau “Justine” and feminise him at every single opportunity), or if she was referring to Anand, it almost doesn’t matter because this is the kind of toxic, purity-test bullshit that she thinks the party really needs—and make no mistake, she is running the party. (If people thought it was bad that Katie Telford was running the PMO, should Poilievre win it’ll be Byrne doing the same). There’s a reason why Conservative MPs aren’t allowed to travel with anyone from other parties anymore, or why Byrne is attacking O’Toole for showing a modicum of human decency is praising someone from the other side—because in her conception of the world, they are not rivals or people who disagree on matters of policy, but rather they are the enemy, and if you don’t realise that you are a heretic and the problem. This is going to make Canadian politics even more toxic the more this takes hold.

This in turn led to people praising O’Toole for being a decent Conservative, which is in and of itself revisionist history, and ignores his own behaviour during his leadership contest and right up until his ignoble ouster as leader, where he lied about everything under the sun, and acted imperiously with his own caucus, going so far as to kick Senator Batters out of caucus for daring to challenge him. That, in his retirement, he did the classy thing to wish Anand well, doesn’t change his prior behaviour, and it makes me feel like I’m taking crazy pills that everyone else has memory-holed his actual record.

Ukraine Dispatch

Russian forces shelled Kherson, targeting power systems that left tens of thousands without power. Russia also claims it captured Shevchenko, near Pokrovsk. South Korean intelligence says that North Korean troops captured by Ukrainians in Kursk haven’t expressed a desire to defect. It is believed there have been there have been more than 3000 North Korean fatalities to date (which includes suicides to avoid capture).

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Roundup: Trudeau’s slow exit

And Monday morning, the inevitable happened. Prime minister Justin Trudeau summoned the media outside of Rideau Cottage, and first announced that he had been granted a prorogation until March 24th, and then stated that he had told his children and the president of the Liberal Party that he intends to resign as leader and prime minister once a successor has been chosen in a robust national competition. While he was tinged with sadness, there were still some elements that rankled—he blamed the decision on “internal divisions” in the party rather than a self-aware recognition that he was dragging them down, and that his time had come (or had come months ago and he refused to listen). When asked about Chrystia Freeland, he implied that her version of events was not what happened and that he offered her a chance to work on the most important file but she turned him down (and no, a portfolio with no department, staff, or levers of power, is not a promotion). When asked about his biggest regret, he said that it was that he couldn’t implement ranked ballots (which he never actually tried to do during the whole bloody Electoral Reform Committee process).

Response from other parties was quick. Jagmeet Singh was first out the door with a statement devoid of class or graciousness, and Pierre Poilievre soon followed on with the same. In a video message shortly thereafter, Singh said that he plans to vote non-confidence no matter who the leader is, but well, his mind changes with the cycles of the moon and the phases of the tide. Poilievre also delivered an absolutely psychotic video message about how the “dark days” are nearly over, and near sweet Rhea, mother of Zeus, that is absolutely divorced from reality.

The party now has to come to decisions about the length of the contest, the rules, and how they plan to deal with the potential for any foreign interference that comes with such an open system that doesn’t even have paid memberships (which, I will reiterate, was always a stupid move, and the Alberta Liberal Party, which instigated this kind of scheme, is now pretty much extinct). Those rules will help determine the shape of the race, and who may throw their hat into the ring, to take what could very well be a poisoned chalice.

Here is a high-level look over Trudeau’s political career. The Star has assembled a list of possible candidates for the job, but that’s going to start changing rapidly. There are concerns about what this will do with the response to Trump tariffs.

In reaction, Emmett Macfarlane sees no issues with the prorogation call (which is not unexpected). Susan Delacourt looks back over Trudeau’s political career and the air of inscrutability he has cultivated around himself. Althia Raj wonders about where the party goes next after Trudeau, and if they have enough runway to make a difference. Paul Wells lays out the four main challenges that Trudeau’s announcement has unleashed.

In case you missed it:

My weekend column on Poilievre and the lessons he seems to be eager to take from the “tech broligarchy” that is flexing its muscles around Trump.

My column on how Poilievre’s plan for a “massive crackdown on crime” is predicated on repealing laws that don’t do what he claims.

My weekend column on why there’s no such thing as an “interim” prime minister, and how the Liberals need to consider their next steps in replacing Trudeau.

My Loonie Politics Quick Take points out that the Conservatives’ plan to use the Public Accounts committee to call for non-confidence is a non-starter.

My year-end column on the four main political lessons that we’ve learned (or in some cases, refused to learn) over 2024.

My weekend column on the considerations around prorogation, now vs 2008, and what’s changed and what hasn’t since them.

Ukraine Dispatch

Russian forces claim to have taken the stronghold of Kurakhove, but Ukraine says they are still fighting. The fighting appears to have intensified in the Kursk region of Russia with a possible new Ukrainian offensive, and they are saying that Russia and North Korea has suffered 38,000 casualties, with nearly 15,000 of those dead.

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Roundup: The shuffle and the kabuki responses

The Cabinet shuffle happened, and four ministers had a change in portfolio, with eight new faces joining the ranks. Nothing is too much of a surprise here—David McGuinty did get public safety, Nathaniel Erskine-Smith got housing as was expected and that means he is going to run again. Anita Anand is now solely transport but also got “interprovincial trade,” which is interesting. There is no minister from Alberta, as George Chahal remains tainted (and has been vocal in calling for a secret ballot in caucus on Trudeau’s future), so Terry Duguid from Winnipeg is pretty much it for the prairie representative. In some respects, this may be a “caretaker” Cabinet as the leadership question remains in the air, or it could have a short shelf-life, as threats of non-confidence circle ever-closer. It doesn’t solve any problems, it doesn’t really put a fresh face on government, and the only thing that can do that is for Trudeau to make as graceful an exit as possible, because the number of MPs who are publicly against him continues to grow, and he could very well be pushed by the next caucus meeting.

Amidst this, Jagmeet Singh decided to publish an open letter to say that he was ready to vote non-confidence in the government, but…blamed them for things that are completely within provincial jurisdiction, like healthcare and building housing. But more to the point, this is more performance art after he got called out by absolutely everyone for his “all options are on the table” equivocation, and this letter also didn’t specify that he would seek to vote them out at the first opportunity, so he has wiggle room. Trudeau may yet prorogue (but most likely if he does decide to step down), and if a new leader is chosen before Parliament comes back, Singh can always prevaricate and equivocate yet again about giving said new leader a chance, or something else like that. This is just more of the kabuki theatre that Canadian politics has descended into.

And then to top it all off (and possibly to try and call Singh’s bluff), Pierre Poilievre called a press conference to say that he wrote a letter to the Governor General so that she can “reconvene” parliament and demand a confidence vote. Erm, except we’re not prorogued, so Parliament is merely adjourned and not suspended, and it’s at the call of the Speaker to recall the House on a non-sitting week, not the Governor General. Never mind that the government just survived a series of confidence votes, this is deliberate obfuscation and confusion of our system, and no doubt he will attack the GG if she doesn’t accede to his request (which she can’t, because it’s not in her powers to do so). Poilievre is deliberately misleading people about how our system operates so that he can claim that constitutional safeguards are illegitimate if anyone tries to use them against him. Aspiring autocrats love to weaken the guardrails, and Poilievre is engaged in a very concerted effort to do that right now.

Programming Note: This is it for 2024, barring some major news happening. Loonie Politics content will continue on its usual schedule, but the blog is on holiday because the burnout is real. Thanks for sticking with me all year, and we’ll see you in 2025.

Ukraine Dispatch

A Russian missile struck Kyiv in the morning rush hour, killing at least one person and damaging a historic cathedral. Ukrainian forces needed to pull back from two locations in the eastern Donetsk region, lest they become encircled. Here is a look at some of the people staying in Pokrovsk, in spite of Russia’s advance.

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Roundup: Can you “reflect” without a sense of self-awareness?

If there’s a theme in the fallout from Chrystia Freeland’s resignation, it’s a complete lack of self-awareness as to what is going on. While Justin Trudeau apparently spent the day “reflecting,” he gave a speech at the big Liberal Christmas party that…was basically his usual stump speech, prefaced with the line “Like most families, sometimes we have fights around the holidays. But of course, like most families, we find our way through it.” It’s completely tone-deaf for what just happened, and pretends that he didn’t reward his deputy with betrayal and telling her that he was going to replace her with Mark Carney when that apparently wasn’t even fully lined up (which would have been incredibly unworkable as Carney doesn’t have a seat, and would be waaaaaay too busy as finance minister at this particular moment to run in a by-election, particularly given that the Liberals no longer have safe seats). Trudeau is bad with contrition, but this is next level. Oh, and then he cancelled all of his year-end interviews with news outlets, so he doesn’t want to face any questions for everything that went down either, whether that’s because he wants to convince himself that everything is still fine, or he knows it’s not and doesn’t want to he reminded of it. Either way, it’s just one more sign of how the wheels have come off, and it’s time to go.

https://twitter.com/journo_dale/status/1869165335854923954

Meanwhile, there are MPs and former party operatives who think that Freeland should be the leader, because she is an intellectual heavyweight, and while I don’t disagree that she has the brains, she has proven to be a charisma black hole, and lacks the retail politics instinct that leadership requires. (And for the record, I don’t think that Mark Carney possesses the retail politics qualities either, or the patience to lead the party through the wilderness of opposition years and rebuilding).

And it wasn’t just Trudeau and the Liberals who are without any self-awareness. Poilievre held a press conference in Mississauga, and gave the line “if you hire clowns, you get a circus.” I mean, has he looked at, or listened to himself or his caucus? Ever? We are so screwed as a country.

Ukraine Dispatch

Russia has been intensifying their attacks both in the parts of Kursk region that Ukraine occupies, and along Ukraine’s Donetsk region. Ukrainian intelligence apparently killed a Russian general responsible for the use of chemical weapons in a “special operation.” Ukraine also says they uncovered twelve agents working for Russia trying to determine the locations of their F-16 fighters and other air defences. And NATO is taking over coordination of military aid for Ukraine from the US, before Donald Trump comes to power.

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Roundup: Freeland drops a grenade

The day began with a grenade. Chrystia Freeland published her resignation letter on social media, pulled the pin, and let it explode in Trudeau’s lap. Just hours before she was supposed to deliver the fiscal update, she very publicly disagreed with his “political gimmicks” and the fact that it became clear that he was looking out more for his political survival than the good of the country, and said that he told her he wasn’t going to keep her in the portfolio but offered her another one, which she decided to decline.

It’s hard to fathom just how absolutely boneheaded Trudeau’s move was, to have her accept a demotion but still read a political document whose direction she had concerns with. And as for the portfolio he was going to give her, it was apparently a “Canada/US relations” portfolio with no department attached, meaning no levers of power to actually do anything in the role—it would be strictly ceremonial, and she was perfectly within her rights to reject that as a slap in the face after everything she has done for Trudeau, and been loyal this whole time.

Her departure, and the way she did it, sent the government scrambling. There was supposed to be a lock-up for journalists for the Fiscal Update, but it ended up being postponed while the Cabinet figured out what the hell to do, and if someone was going to read the document in the Commons. The rumours were that the back-up finance minister (according to the Order of Precedence), François-Philippe Champagne refused, as did Anita Anand, but I’m not sure what to think of those. In the end, there was no speech, merely a document tabled by the House Leader (who had just spent 45 minutes eating shit on Trudeau’s behalf in QP), and Dominic LeBlanc was shuttled over to Rideau Hall for an emergency swearing-in to add finance to his already too-long list of portfolios. From there, Trudeau went to an emergency caucus meeting as several of his MPs were renewing vocal calls for him to step down. In the end, he didn’t, but apparently the question remains open and he plans to “reflect” over the holidays. Oh, and all that talk about Mark Carney? Yeah, it’s not happening (because it never made any gods damned sense), so maybe stop talking about him already.

And as if that wasn’t enough, Trudeau then headed to the annual holiday party of the Laurier Club—the party’s top donors—and somewhat shrugged off the day’s events, repeatedly saying that Canada is the best country in the world. We’re in for some rough waters ahead, and I don’t know how Trudeau can possibly stay on at this point.

Throughout all of this, Jagmeet Singh took the opportunity to beclown himself, by demanding that Trudeau step down, but when asked if he would vote non-confidence, stated that “all options are on the table.” In other words, his party is not ready for an election, and will swallow themselves whole to prevent one while they try and look tough while they shit-talk the government at every opportunity. It’s farcical, but what do you expect from the current state of Canadian politics?

The fiscal update

After all of the drama, the update was released, albeit with no speech in the Chamber, which the Conservatives caterwauled mightily about. There weren’t many surprises, other than the fact that last year’s deficit was larger than expected because the government booked a bunch of legal settlements—primarily for the Indigenous communities—onto last year’s books (which is probably also why the Public Accounts have been delayed). These were one-time costs, so that means the deficit can continue to decline in the future, and economist Armine Yalnizyan noted that this was essentially a gift to the next government because it’s off their books, and they can make it look like they were more prudent managers when that’s not necessarily the case. Nevertheless, the government didn’t try to tease or hint that this was coming, which really makes you wonder about whoever is trying to decide on their communications strategy.

The Logic has a good summary of the document, and it is confirmed that Terry Fox will be on the new $5 banknotes, while Laurier will be shuffled up to the $50 (and I believe Sir John A Macdonald will take over the $100). The NDP, meanwhile, are disappointed there are no new social programmes in said budget, because of course they are.

Ukraine Dispatch

Ukrainian and American intelligence both say that North Korean troops have been killed alongside Russians in fighting in the Kursk region. A Ukrainian drone has destroyed a Russian ammunition depot in the occupied parts of Donetsk region. Ukraine is claiming that they have a laser weapon that can down aerial weapons at a range of 2 km.

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QP: In the aftermath of Freeland’s grenade

In the wake of the chaos of Chrystia Freeland’s grenade-esque departure from Cabinet, and the uncertainty around the fiscal update, QP eventually got underway at its usual time, with Trudeau absent but the other leaders mostly all present and salivating. Pierre Poilievre led off in French, and decried how Trudeau is “clinging to power,” that he has “lost control” of his Cabinet, and with Freeland’s resignation, demanded an election. Karina Gould noted the Economic Statement was upcoming, and took a moment to thank Freeland for all the work she did for this government. Poilievre turned to English to repeat the same question, and Gould repeated the same again in English. Poilievre oh-so-cleverly said that he directed the question to the finance minister, and asked who Gould was. Gould plastered a smile on her face and recited the “good news” about the GST “holiday.” Poilievre returned to French, and demanded to know who the finance minister is, and said that after Freeland’s resignation, it should have been François-Philippe Champagne (per the Order-in-Council that lists back-ups to ministers) and that he apparently refused it (not sure that’s right), and noted that after him in the line of precedence was Randy Boissonnault, so again demanded to know who it was. Gould offered the standard line about the same line about the upcoming statement, and that while Poilievre was focused on them, they were in Canadians. Poilievre retuned to English, who repeated his same unserious claims about Champagne and Boissonnault, and demanded an immediate confidence vote. Gould recited that there were plenty of measures to help Canadians in the upcoming fiscal update. 

Alain Therrien led for the Bloc, noted the resignations, and demanded an election. Gould repeated again that they are focused on Canadians. Therrien declared that Quebeckers don’t want the “political handouts” and demanded a vote rather than continued “sabotaging” of the economy. Gould recited how important the GST “holiday” was for Canadians.

Jagmeet Singh rose for the NDP, declared that people “literally” cannot afford groceries or homes, and that the PM was more focused on himself and infighting, and demanded his resignation. François-Philippe Champagne declared that this is not a time for slogans or jokes, but for standing up for Canadians. Singh repeated the same script in French, and got much the same response. 

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Roundup: A grubby way to extend a non-story

The Globe and Mail’s ongoing pursuit of this story of alleged “tensions” between Chrystia Freeland and the PMO amidst the courting of Mark Carney continue to confound. While none of the substance of these stories actually make sense if you think about it for more than twenty seconds, as I point out in my weekend column, what I find particularly grubby is the way the Globe has been carrying on the story.

To recap, they started with this rather bullshit non-story about these “tensions,” which weren’t actually news because there are always tensions between a PM or Cabinet and a finance minister, because they have to say no to all kinds of grand spending plans. It as a non-story based on gossip and some “strategic” leaks that don’t actually serve any purpose, but they insisted this had ten sources, so it must be credible, but it’s hard to get a sense of what they actually said that would make this something that is actually news. The Globe then followed up with a story saying there’s a fresh attempt to recruit Mark Carney amidst these “tensions,” and the Conservatives put two and two together, and created this delusional scenario about Trudeau somehow throwing Freeland “under the bus” before he replaces her, which was not in the story, but they created this fever dream while simultaneously policing feminism, belittling Freeland while claiming Trudeau was bullying her (and also claiming that they don’t do tokenism in their party, which is laughable). It was pretty gross to watch.

So, what does the Globe do? Write up these fevered delusions as though they’re actually news, and then sends reporters to Freeland’s presser to have her respond to these bizarre, delusional accusations the Conservatives dreamed up, extending the non-story even further. In essence, they set the cat among the pigeons and then spend days writing about the aftermath, all of which is chasing phantoms, rumours, delusions, and frankly, misogynistic outbursts. I have a really hard time with this kind of “journalism,” which feels more masturbatory than it does ethical or in the service of educating the public. I get that they’re doing this for clicks, but it’s pretty icky, especially given how much misogyny has flowed from it.

Ukraine Dispatch

Russia launched a massive aerial attack on Ukraine on Friday, with 93 cruise and ballistic missiles, and more than 200 drones, targeting more critical infrastructure. Russian forces are also continuing their march toward strategic city of Pokrovsk. Ukrainian drones hit a fuel storage facility in central Russia, while the new head of Ukraine’s ground forces says he plans major improvements to troop training, management, and recruitment to help deal with manpower shortages. Ukraine also announced it was planning to send food aid to Syria because Russia has cut them off from the aid they were providing.

https://twitter.com/DefenceU/status/1867521042912325739

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QP: Policing feminism as a gross concern troll

Neither the prime minister or his deputy were present today, and neither were most of the other leaders either. Andrew Scheer led off today, and he raised today’s Globe and Mail story that says Trudeau has made more outreaches to Mark Carney to get involved in politics, which Scheer interpreted as a plot to replace Freeland with Carney, and that he is somehow orchestrating the larger deficit spending. Arif Virani took this, for some reason, and he praised the work Freeland has been doing for Canadians, which yesterday’s Bank of Canada rate cut apparently reflected, and then praised their GST “holiday.” Scheer claimed the rate cut was because the economy is performing so poorly—which is not what the governor said in his remarks—and again claimed that Carney was pulling all the strings before replacing Freeland, concern trolling for Freeland’s future. Virani quoted Tiff Macklem’s remarks about inflation being tamed. Scheer disputed this, and quoted other Liberal MPs who wanted more fiscal discipline and demanded they get a “free vote,” to which Virani cited IMF economic growth projections and our status as having the lowest debt and deficit in the G7. Dominique Vien took over in French, and she too concern trolled about Freeland’s future and called Trudeau a “fake feminist,” this time François-Philippe Champagne deployed his “take no lessons” line before praising the Bank of Canada lowering rates, and the upcoming GST “holiday.” Vien repeated the claim that Trudeau was about to replace Freeland with Carney, and called him a hypocrite for his speech at Equal Voice about being a proud feminist. Diane Lebouthillier responded by wondering how a woman from Quebec could attack a woman like Freeland who brought in child care, and the Speaker called for order, she dismissed the men heckling because women are the ones who handle men head on.

Claude DeBellefeuille led for the Bloc, and worried about the Senate voting on their Supply Management bill, and wondered if the government contacted each of their appointments to tell them how to vote. Marie-Claude Bibeau reminded her that senators are independent. DeBellefeuille wanted each party leader to tell senators to support the bill in its original form, and Bibeau repeated her same point.

Alexandre Boulerice led for the NDP and demanded the government improve access to healthcare in Quebec, which is a provincial responsibility. Mark Holland praised the investments they have made with the provinces. Brian Masse demanded the government consult with workers before a Trump plan, and demanded a “Buy Canada” plan (which is utterly boneheaded in a trade-dependent economy). Mary Ng said that all voices matter in this issue.

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Roundup: Healthy tensions made dramatic

The Globe and Mail had one of those stories that sets the cat among the pigeons, where they got a number of sources to describe the tensions between PMO and the department of finance over their spending plans, and in particular that the PMO was adamant that they wanted to do that stupid GST “holiday”/rebate cheque programme, while Chrystia Freeland was trying to keep a lid on spending because she had fiscal anchors that she was trying to stick to.

As for those anchors, Freeland had her usual Tuesday economic good news press conferences yesterday, and very deliberately said that the Fiscal Update next Monday will show that the debt-to-GDP ratio fiscal anchor would be met—but steadfastly refused to mention the other two fiscal anchors she spoke of in the spring, being a cap on the size of the deficit, and a target for the deficit to be less than one percent of GDP by 2026-27. Freeland repeatedly said that the debt-to-GDP ratio was the one that mattered and that we would see on Monday that it was continuing to decline, but the interpretation of that statement is essentially that the deficit will indeed by higher than $40.1 billion, but that overall GDP grew enough that the higher number is less of an issue. We’ll have to see on Monday, but she very much appeared to be telegraphing lowered expectations.

As for those tensions, if anyone has been around Parliament Hill for any length of time, this should be normal. PMO wants to do things that are politically expedient, and that usually involves spending money, which finance tries to rein in as much as they can. This appears to be little different from that very ordinary standard operating procedure. This, of course, didn’t stop Pierre Poilievre from pouncing on this in QP as proof that the PM has “lost control” of his Cabinet (which is risible on the face of it), and every journalist was trying to get some kind of comment on it (when they weren’t trying to get a comment on Trump’s latest slights). Maybe I’ve been up here too long but “PMO wants to spend money, finance tries to say no” isn’t really news. That’s a day that ends in y. Maybe we don’t need to be so breathlessly dramatic about everything all the time?

Ukraine Dispatch

A Russian missile hit a clinic in Zaporizhzhia on Tuesday, killing at least six and injuring at least 22. A missile attack also damaged an industrial facility in Taganrog the same night. President Zelenskyy says that he used his meeting with Trump in Paris to raise the issue of security guarantees.

https://twitter.com/zelenskyyua/status/1866509325197316109

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