Canada’s Finance Minister Chrystia Freeland resigns after policy clash with PM Trudeau

OTTAWA - Canada's Finance Minister Chrystia Freeland unexpectedly resigned on Dec 16, saying she was no longer on the same page with Prime Minister Justin Trudeau about the best path forward for Canada.

Ms Freeland quit just hours before she was due to present a fall economic update to Parliament, a document widely expected to show the Liberal government had run up a much larger 2023/2024 budget deficit than planned.

"For the last number of weeks, you and I have found ourselves at odds over the best path forward for Canada," Ms Freeland said in a letter to Mr Trudeau posted on X.

Ms Freeland, seen as one of Mr Trudeau's closest allies in Cabinet, also served as deputy prime minister.

Domestic media reports said Ms Freeland and Mr Trudeau had clashed over a government proposal for temporary tax breaks and other spending measures.

"On Friday, you told me you no longer want me to serve as your finance minister and offered me another position in the Cabinet," Ms Freeland said in a letter addressed to Mr Trudeau.

"Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet."

There was no immediate reaction from Mr Trudeau's office.

One potential replacement could be former Bank of Canada governor Mark Carney, who already serves as an economic adviser to Mr Trudeau.

Mr Carney though is not a legislator and tradition dictates he would need to run for a seat in the House of Commons elected chamber. REUTERS