Canadian Prime Minister Mark Carney is delivering a major speech ahead of his first budget to be
- The US has fundamentally changed its approach to trade
- It’s not a smooth transition, it’s a rupture
- The decades-long process of economic integration with the US is over
- Our relationship with the United States will never be the same
- Now is not the time to be cautious
Carney reportedly met with opposition leader Pierre Poilivre earlier and described Carney’s proposals as “very reasonable” but called for lower deficits. Estimates for the deficit range from C$50-$100 billion. Canada’s debt is relatively manageable with deficits about half of those in the US vs GDP and total debt to GDP at about 42%.
The budget is slated to be delivered November 4 and he said it will be about:
- Building
- Taking control
- Winning
Carney said they will be making ‘generational investments’.
- There is no prosperity without security
- Promises largest defense spending in generations
- Mentions high-speed rail
- Our next tranche of major projects will be announced before Nov 16
- 80% of European steel is manufactured in Europe but only 40% of the steel we use is made here
- Budget will include prioritizing Buy Canadian provisions on steel, aluminum and other industries
- We will be our own best customer
- Federal spending has risen 7% y/y for the past decade
More to come, as we update live.