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Chrystia Freeland was widely considered as one of Trudeau’s closest allies and most powerful cabinet ministers, but a rift between them has increased in recent weeks.
Chrystia Freeland’s resignation comes as Trudeau faces declining popularity in Canada. (Reuters)
In a big setback for Justin Trudeau, Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland announced on Monday that she will resign from the Cabinet as the Prime Minister deals with declining popularity.
Freeland was long considered Trudeau’s most powerful minister. In a lengthy resignation letter to the Canadian PM posted on X, she said Trudeau had told her on Friday that he no longer wanted her to serve as finance minister and that he offered her another role in the Cabinet.
“Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet. To be effective, a Minister must speak on behalf of the Prime Minister and with his full confidence. In making your decision, you made clear that I no longer credibly enjoy the confidence and possess the authority that comes with it,” she further wrote.
“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” Freeland told Trudeau. The Prime Minister’s Office is yet to respond publicly to her resignation.
Freeland Attacks Trudeau’s ‘Political Gimmicks’
Freeland was widely regarded as Trudeau’s close ally and her resignation is expected to hurt the Canadian PM ahead of the government’s economic statement scheduled for Monday (local time). She also spoke of “grave challenges” Canada faces, including US President-elect Donald Trump’s threat of tariffs.
“We need to take that threat extremely seriously. That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, which we can ill-afford and which make Canadians doubt that we recognise the gravity of the moment,” she added.
According to local media reports, tensions between Freeland and Trudeau had swelled over a proposed government package including tax breaks and new spending measures. The government’s $6.28 billion plan included tax breaks on toys, alcohol and food and a promised $250 rebate for working people earning $150,000 or less.
The Finance Department saw the plan as fiscally unwise, sources told The Globe and Mail, and officials described a proposed GST holiday as making little economic sense. Freeland had reportedly pledged to keep the fiscal deficit below $40.1 billion as Canada faces rising inflation and cost of living.
Who Will Be Freeland’s Successor?
Freeland’s resignation came as a shock for many in Canada’s political circles. Following her exit, former Bank of Canada governor Mark Carney is being touted as a possible successor, although he would require a seat in the House of Commons before assuming the cabinet position.
Housing Minister Sean Fraser, who announced his own resignation from cabinet on Monday, was caught off guard by Freeland’s announcement, coming as he was making his own. ““I found her to be professional, supportive of me as a Member of Parliament, and I consider her a friend, and that friendship will continue long after my time in politics,” he said.
Freeland was about to outline economic measures to address key issues like inflation, borrowing costs and a growing deficit. First elected to parliament in 2013, Freeland joined Trudeau’s cabinet two years later when the Liberals swept to power, overseeing several key posts including as trade and foreign minister, and leading free trade negotiations with the EU and United States.
(with agency inputs)
