MNI BRIEF: Carney Wins Liberal Contest To Replace PM Trudeau
MNI (OTTAWA) - Mark Carney won the contest to become Canada’s next Liberal Party leader and replace Justin Trudeau as prime minister, and the former BOE and BOC governor will soon be thrust into negotiations with Donald Trump and an election where polls show he's erasing a deficit with the Conservatives.
Carney beat out candidates like former Finance Minister Chrystia Freeland, taking 86% of votes announced Sunday. He joins a long list of former Goldman Sachs bankers moving into political life, and former central bankers such as Janet Yellen and Mario Draghi.
With the handover of power expected in a few days Carney could call a snap election before Parliament returns March 24, with opposition parties pledging a non-confidence motion forcing an election ahead of one due in October. There's urgency to form a government with a mandate to respond to Trump's calls for 25% tariffs and domination of Canada, and to tackle frustration with a cost-of-living squeeze.
"My government will keep our tariffs on until the Americans show us respect, Carney said. "In trade, as in hockey, Canada will win."
His proposals include killing a carbon tax and shifting from social spending to investment, and continuing budget deficits. He’s also pledged to put tariff revenue back into the economy.
Carney’s BOC term began in 2008 and his prestige soared as Canada avoided banking carnage seen in the U.S. and Europe. He made history as a foreigner brought to the BOE amid the Libor scandal and concerns about other market weaknesses. He was also dubbed an unreliable boyfriend around his economic signals and raised eyebrows during Brexit while laying out potential costs.
It's a quick rise to political power for Carney, who’s never held elected office. He’s admitted he’s not yet a natural communicator especially in the country’s second official language of French.