NDP Ends Support Deal with Liberals in Major Canadian Political Shake-Up That Could Spark Snap Election
“The deal is done,” Singh declared, confirming that the agreement, initially set to last until 2025, had been terminated.
In a dramatic political shift, Canada’s New Democratic Party (NDP) has withdrawn its support for Prime Minister Justin Trudeau’s Liberal minority government, ending a pivotal two-year “confidence-and-supply” agreement that had kept the Liberals in power. NDP leader Jagmeet Singh made the announcement on social media, citing frustration with Trudeau’s handling of key issues, particularly his perceived concessions to corporate interests.
Confirming that the agreement, initially set to last until 2025, had been terminated, Singh declared:
“The deal is done.”
This decision has major implications for the Canadian political landscape, as it weakens the Liberal government’s ability to pass critical legislation and sets the stage for heightened political tensions ahead of the next federal election.
A Historic Agreement Comes to an End
The confidence-and-supply agreement, forged in March 2022, was a first-of-its-kind deal at the federal level in Canada. It allowed Trudeau’s Liberals to rely on the NDP’s support for crucial votes in exchange for pushing forward progressive policies, including dental care, pharmacare, and a ban on replacement workers during strikes. With these key achievements accomplished, Singh now argues the government has failed to meet broader needs, particularly in addressing rising costs of living and housing affordability.
Singh said in his video statement:
“Justin Trudeau has proven again and again he will always cave to corporate greed. The Liberals have let people down. They don’t deserve another chance from Canadians.”
Singh’s remarks underscore a growing disillusionment among voters who have seen inflation and housing crises worsen in recent years.
The deal is done.
The Liberals are too weak, too selfish and too beholden to corporate interests to stop the Conservatives and their plans to cut. But the NDP can.
Big corporations and CEOs have had their governments. It’s the people’s time. pic.twitter.com/BsE9zT0CwF
— Jagmeet Singh (@theJagmeetSingh) September 4, 2024
Source: Jagmeet Singh X
Political Instability and the Road Ahead
This move by the NDP doesn’t immediately trigger a federal election, but it does increase the likelihood of political instability in the coming months. For Trudeau, the loss of NDP support means navigating a challenging political environment, where every parliamentary vote could be a potential flashpoint. Conservative Party leader Pierre Poilievre, a key opponent of both Trudeau and Singh, has been vocal in his criticism of the agreement, labeling Singh’s announcement as a “media stunt” and accusing him of delaying necessary action on economic issues.
LIVE: Sellout Singh’s Stunt https://t.co/ilopAhyQBT
— Pierre Poilievre (@PierrePoilievre) September 4, 2024
Source: Pierre Poilievre X
Despite this, Singh has framed the split as a necessary step to stop what he describes as the growing threat of Conservative policies under Poilievre. “There is another, even bigger battle ahead,” Singh warned, claiming Poilievre’s approach would “cut from workers, retirees, young people, and families” to benefit large corporations.
Trudeau Faces New Challenges
The timing of this political rupture is significant, as the next federal election is not due until October 2025. However, with Trudeau’s popularity waning and the Conservatives leading in recent polls by nearly 18 points, the political landscape remains uncertain. Both the Liberals and NDP will now face the challenge of galvanizing voters in a climate of economic frustration and political skepticism.
Trudeau, meanwhile, responded diplomatically to the announcement, stating, “I’m focused on Canadians; I’ll let the other parties focus on politics,” signaling his intent to continue governing while navigating the complexities of leading a minority government without the NDP’s backing.
Canadian Stock Market Activity
News of the political shake-up and potential snap election saw the TSX Composite Index ($TXCX) rise 0.08% today, last trading at 23,058.21.
The TSX Venture Composite Index ($JX) last traded at 553.45, down 0.3% on the day.
The CSE Composite Index ($CSEC) last traded at 151.51, up 0.04% today.
View TSX Composite Chart on Barchart
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