Zürcher Nachrichten - 'Swing for the fences': Carney promises bold budget as US threat grows

EUR -
AED 4.111994
AFN 73.898457
ALL 91.620804
AMD 405.604997
ANG 2.00462
AOA 1026.738091
ARS 1707.418259
AUD 1.613196
AWG 2.018207
AZN 1.909501
BAM 1.947635
BBD 2.253463
BDT 137.553329
BGN 1.8849
BHD 0.421751
BIF 3375.379387
BMD 1.119671
BND 1.43191
BOB 13.442943
BRL 5.838415
BSD 1.118864
BTN 108.392035
BWP 15.467982
BYN 3.370037
BYR 21945.550652
BZD 2.250177
CAD 1.598856
CDF 2586.43971
CHF 0.929405
CLF 0.027775
CLP 1096.728682
CNY 7.50689
CNH 7.512757
COP 3696.078598
CRC 512.673589
CUC 1.119671
CUP 26.85115
CVE 109.807591
CZK 24.427805
DJF 199.234527
DKK 7.473602
DOP 66.802922
DZD 149.628586
EGP 58.501796
ERN 16.795064
ETB 182.744632
FJD 2.522953
FKP 0.845646
GBP 0.847373
GEL 2.916774
GGP 0.845646
GHS 13.140264
GIP 0.845646
GMD 82.296507
GNF 9842.177695
GTQ 8.550269
GYD 234.035114
HKD 8.785705
HNL 30.03841
HRK 7.537852
HTG 146.512964
HUF 368.623646
IDR 20086.896872
ILS 3.419856
IMP 0.845646
INR 107.756516
IQD 1465.694572
IRR 1955549.546975
ISK 137.215567
JEP 0.845646
JMD 177.127702
JOD 0.793782
JPY 176.636491
KES 145.288555
KGS 97.915681
KHR 4538.197229
KMF 490.416122
KPW 1007.704212
KRW 1504.434941
KWD 0.346213
KYD 0.932316
KZT 502.686035
LAK 25131.314186
LBP 100192.081691
LKR 369.998751
LRD 191.310523
LSL 18.706975
LTL 3.306097
LVL 0.677278
LYD 7.165313
MAD 11.115697
MDL 19.99416
MGA 4943.539879
MKD 61.640289
MMK 2351.141228
MNT 4026.64146
MOP 9.04323
MRU 44.709559
MUR 54.371419
MVR 17.309678
MWK 1940.070515
MXN 20.393233
MYR 4.57495
MZN 71.534663
NAD 18.706975
NGN 1486.307467
NIO 41.169243
NOK 10.814241
NPR 173.432655
NZD 2.001681
OMR 0.430514
PAB 1.118834
PEN 3.87715
PGK 5.066984
PHP 70.232427
PKR 309.891932
PLN 4.387643
PYG 6545.878953
QAR 4.078158
RON 5.338473
RSD 117.435577
RUB 93.828875
RWF 1657.049272
SAR 4.19459
SBD 9.044782
SCR 15.709455
SDG 673.461876
SEK 11.280988
SGD 1.434406
SHP 0.845386
SLE 27.549114
SLL 23478.93093
SOS 639.4563
SRD 42.336438
STD 23174.928092
STN 24.398801
SVC 9.789222
SYP 14557.961998
SZL 18.70359
THB 37.706598
TJS 10.298563
TMT 3.918848
TND 3.333868
TOP 2.695899
TRY 55.045218
TTD 7.586398
TWD 35.585942
TZS 2952.741336
UAH 50.343739
UGX 4464.403293
USD 1.119671
UYU 45.091364
UZS 13196.031236
VES 969.050743
VND 29108.645565
VUV 133.892581
WST 3.122327
XAF 655.957
XAG 0.018296
XAU 0.000270062157
XCD 3.025967
XCG 2.016401
XDR 0.791665
XOF 655.957
XPF 119.331742
YER 264.565557
ZAR 18.692067
ZMK 10078.389493
ZMW 21.984912
ZWL 360.53359
SSP 6396.222792
MXV 2.305943
  • JRI

    0.1300

    10.9

    +1.19%

  • BCE

    -0.1900

    19.73

    -0.96%

  • CMSC

    0.0800

    20.24

    +0.4%

  • BCC

    0.2900

    74.99

    +0.39%

  • RIO

    1.3400

    94.21

    +1.42%

  • RBGPF

    0.0900

    65.09

    +0.14%

  • NGG

    0.7900

    76.12

    +1.04%

  • RYCEF

    0.1200

    19.42

    +0.62%

  • RELX

    -0.0700

    33.42

    -0.21%

  • CMSD

    0.0900

    20.43

    +0.44%

  • VOD

    0.4400

    16.82

    +2.62%

  • BTI

    0.2849

    52.64

    +0.54%

  • GSK

    -0.1500

    47.03

    -0.32%

  • AZN

    -0.8000

    156.9

    -0.51%

  • BP

    0.2900

    44.79

    +0.65%

'Swing for the fences': Carney promises bold budget as US threat grows
'Swing for the fences': Carney promises bold budget as US threat grows / Photo: Arif Kartono - AFP

'Swing for the fences': Carney promises bold budget as US threat grows

Canada's new Liberal government unveils its first budget on Tuesday, with Prime Minister Mark Carney saying "bold risks" are needed to reform an economy facing unprecedented economic threats from the United States.

Text size:

US President Donald Trump's trade policies have hit Canada hard, driving up unemployment and squeezing businesses in crucial tariff-hit sectors like autos, aluminum, and steel.

Carney, a former central banker who only entered politics in January, has warned Canadians that the Trump-era disruptions in US-Canada relations are not a passing phase.

"Our relationship with the United States will never be the same as it was," he told students at the University of Ottawa in a pre-budget speech last month.

Carney said his government would propose a budget that addresses the stark new geopolitical realities facing Canada.

Among the headline items will be major increases in defense spending to bring Canada in line with NATO targets.

Funds will also be allocated to a series of national projects that Carney has said are key to Canada's economic sovereignty, given the "rupture" in economic ties with the United States.

These range from port expansion to energy production and the infrastructure needed to boost extraction of critical minerals from remote areas.

"We used to take big, bold risks in this country. It is time to swing for the fences again," he said in the Ottawa speech.

"This is what this upcoming budget will be about: building, taking control, and winning."

Carney and Finance Minister Francois-Philippe Champagne have flagged that spending increases will be partly offset by cuts to government operating budgets.

But those savings will not cover all the new costs.

University of Ottawa public policy expert Genevieve Tellier told AFP she expects the deficit to be "very large."

"I wouldn't be surprised if it were around CAN$100 billion ($71 billion)," she said.

- Confidence vote -

Carney's April election win left his Liberals three seats short of a majority in Canada's parliament. That means the government needs opposition support -- or abstentions -- to pass its budget.

Because the budget is a confidence vote, its defeat would trigger fresh elections.

"Anything is possible," said McGill University political scientist Daniel Beland, stressing the Liberals will "try everything" they can to pass the budget.

Polling suggests Carney's popularity has softened since the election.

He told voters that his broad international experience in leadership roles in global finance made him the ideal leader to negotiate with Trump.

But opposition parties have hammered Carney over his failure so far to secure a tariff-easing trade deal with the United States.

Trump has suspended trade talks over an anti-tariff advertisement produced by Ontario's provincial government, which quotes former Republican US president Ronald Reagan.

Carney has said he is willing to restart trade negotiations whenever Trump is ready.

Defending his record, the prime minister has reminded Canadians that Trump is adhering to an existing North American trade deal, meaning roughly 85 percent of cross-border commerce remains tariff-free in both directions.

Tellier said she sees "little chance" of the government falling over the budget vote.

She predicted a flurry of last-minute negotiations before a decisive vote is called several days after the budget is presented to parliament.

There is also no clear indication that opposition parties would benefit from snap elections.

"Maybe it would even benefit the government to have elections," Tellier said.

"They are just three votes short of a majority, and the government is still popular."

X.Blaser--NZN