Finance Minister Chrystia Freeland resigns ahead of economic update #CanadaFinance

Article content

OTTAWA — Finance Minister Chrystia Freeland shockingly resigned her cabinet position on Monday as she was set to deliver an economic update that was expected to be soaked in red ink.

Article content

Article content

In a letter addressed to Prime Minister Justin Trudeau posted on social media, Freeland said the prime minister offered her a different cabinet position on Friday but that she decided “the only honest and viable path for me is to resign from 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 that confidence and possess the authority that comes with it,” she wrote.

Freeland’s letter describes a disagreement between her and the prime minister about the best way to respond to threats of tariffs from U.S. President-elect Donald Trump, with Freeland arguing for “eschewing costly political gimmicks” and “keeping our fiscal powder dry.”

“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” wrote Freeland.

Article content

The news came as a complete surprise for her cabinet colleagues and MPs of all stripes.

Housing Minister Sean Fraser was himself announcing that he would not be seeking re-election during a press conference on Monday when he found out about Freeland resigning from cabinet.

“This is news to me,” said Fraser.

NDP MP Charlie Angus reacted to the news with “what the f-ck?”

“How was this allowed to unfold the way it is on the day of the fall economic statement? This is a total unmitigated disaster,” he said.

President of the Treasury Board Anita Anand looked visibly shaken by the news in her way to a cabinet meeting Monday morning.

She said Freeland is a “good friend” and someone with whom she has working very closely in her role.

“This news has hit me really hard, and I’ll reserve further comment until I have time to process this,” said Anand.

Minister of Indigenous Services Patty Hajdu said that Freeland has come to a decision and “I respect her for it,” she said.

Already, some Liberal MPs are asking for an urgent caucus meeting to discuss the situation.

“Trudeau picked a fight with the wrong minister. Within cabinet, Freeland is one of the smartest at the table and the most strategic of all,” said a senior Liberal staff member, who underlined the fact that Freeland remains in the Liberal caucus. She mentioned in her letter she would continue to serve as a Liberal MP and said she is committed to running again in the next federal election.

Article content

Article content

The resignation comes after weeks of tension between Freeland and the prime minister. The two had reportedly butted heads over the $250 cheques promised to Canadians, and the National Post revealed it would not be part of the fall economic update.

To promise those cheques would have added billions more to an already bloated federal deficit, Freeland having already signaled that it could be much larger than the $40 billion limit she promised last year. Observers have even mused the deficit could go up to $60 billion.

It was unclear in the immediate aftermath of Freeland’s resignation from cabinet whether or not the government could table its economic document. Freeland’s office has been redirecting questions about the fall economic statement to Trudeau’s office or the Department of Finance. The embargoed media lock-up, meanwhile, was set to start at 10 a.m. EST but has been postponed to a time that has yet to be determined.

Technically speaking, the fall economic statement could still be tabled by another minister. According to orders in council, if Freeland were to be unable to perform her duties, Industry Minister Francois-Philippe Champagne could take over. Former Employment Minister Randy Boissonnault would have been the third choice, but he resigned after the National Post dug into his shifting claims about his Indigenous heritage.

Article content

NDP MP Heather McPherson said she is more concerned about whether or not the fall economic statement is coming forward

“This feels to me like, again, the Liberals focusing on themselves and not focusing on Canadians.”

— with files from Rahim Mohamed.

More to come…

National Post

Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what’s really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here.

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our politics newsletter, First Reading, here.

Article content