08:08 AM EDT, 05/26/2025 (MT Newswires) -- The last time a British monarch read Canada's Speech from the Throne to mark a new session of parliament was nearly half a century ago, noted Scotiabank.

Canadian Prime Minister Mark Carney has resurrected the tradition, as King Charles III will read it on Tuesday at around 11 a.m. ET for up to half an hour.

Support for the monarchy in Canada is "mixed at best," said the bank. The symbolism of ties to the British Empire as insurance against United States President Donald Trump's assaults was weakened by United Kingdom PM Keir Starmer's extension of open arms to Trump.

Regardless, some will question the message that kind of seems like 'hey, we're not a 51st state, we're still a colony!' The challenge to Canadians lies in asserting their identity in the modern era by not merely enslaving it anew to someone else, stated Scotiabank.

Others may point to how the last time a British Monarch delivered this Speech -- Queen Elizabeth II in 1977 -- the context was partly around sovereignty on the path toward repatriating the Constitution in 1982, although the government of PM Pierre Trudeau wasn't especially enamoured of the monarchy.

Nevertheless, the Speech is a generally worded wish list that is high on platitudes and short on specifics in terms of the new session's goals, pointed out the bank. Scotiabank expects it to contain a symbolic nod of support to the former colony, and maybe there will be a focus on the King's wardrobe and token Canadiana accoutrements. This is a good piece on the process and timing steps for the duration of the current sitting of parliament that expires on June 20.

There is only so much that the Carney administration has committed to delivering in the short term before delivering a full Budget in the vaguely defined window of sometime this fall, added the bank. It's possible that fiscal stimulus equates to 1%+ of gross domestic product, thereby substituting fiscal policy easing for monetary policy easing.

Ways and means legislation is expected to deliver Carney's promised 1% tax cut to the lowest income bracket. Fiscal numbers have to be updated in the Government Expenditure Plan and Main Estimates and approved before skipping out for summer; they will lay out funding needs and plans before the grander package of initiatives later.

That means that the outlines of policy priorities in the Speech are likely to be general in nature before presenting bills, debating them, and then passing them by the fall. The bank sees generalities on interprovincial trade barriers and broad fiscal policy plans.

A key emerging uncertainty is the plan for defence spending and how it fits into the government's desire to strike a new economic and security arrangement with the U.S., added Scotiabank. The clear goal here is to tie Canada more closely to the U.S. despite the rhetoric of how everything has fundamentally pivoted away from the U.S,. Carney has committed Canada to achieving the NATO agreement of 2% of GDP spent on defence by 2030.

What's unclear is whether this also includes recent 'Golden Dome' discussions with the Trump administration. Canadians have a right to know much more about the reliability of the technology behind an elaborate space-based missile defence system, the likely efficacy now and against future technologies, whether or not it would escalate geopolitical risks including through a new arms race or worse, and the costs, according to the bank.