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Market Chatter: Canada's New Democrats Cancel Deal to Support the Minority Liberal Government
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Market Chatter: Canada's New Democrats Cancel Deal to Support the Minority Liberal Government
Sep 6, 2024 12:32 PM

01:55 PM EDT, 09/04/2024 (MT Newswires) -- Canada's left-wing New Democratic Party (NDP) on Wednesday walked away from a 2022 deal to support the minority Liberal Party in Parliament until June, 2025, the Canadian Press reported.

NDP Leader Jagmeet Singh posted on the X social-media site, formerly Twitter, that "the deal is done", and will no longer automatically support the governing Liberals, who do not have a parliamentary majority, against the opposition Conservative Party, which have been consistently ahead of the Liberals in national polling.

"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," Singh said in his post. "Big corporations and CEOs have had their governments. It's the people's time."

The NDP signed the Supply and Confidence Agreement in March, 2022, as the Liberals promised to introduce programs like $10.00 per day daycare, dentalcare and pharmacare, all of which are in stages of national development, in return for supporting the government in Parliament.

However the report said the party began re-examining its support for the deal last month, when Labour Minister Steve MacKinnon ordered an end to an employee lockout by the country's two major railways and forced their unions to return to work even though they wanted to strike.

The report said Singh considered the ordered return to work as a "line in the sand".

The decision will not immediately cause an election. The NDP, which holds the third most seats, will support Liberal initiatives on a case by case basis.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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