Gwyn Morgan: We’re heading toward another failed government in Ottawa

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFP CommentGwyn Morgan: We’re heading toward another failed government in OttawaThe pivot toward a declining Europe, the staggering federal deficit, the secular sag in investment: these are all bad long-term signsLast updated 0 minutes ago The Carney government would like us to believe our problems are all caused by Donald Trump. The reality is that Canada was in self-inflicted decline well before he became U.S. president. Photo by Jean-Christophe VERHAEGEN/AFP via Getty ImagesThe breakdown of trade discussions between the United States and Canada has resulted in Prime Minister Carney turning to expanded trade with Europe. That raises two fundamental questions:THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountFirst, Canada already has a free trade agreement with the EU: the Canada-European Comprehensive Economic and Trade Agreement (CETA). Canada also has the Trade Continuity Agreement (TCA) with Britain, and an agreement with European Free Trade Association (EFTA), whose members include Iceland, Lichenstein, Norway and Switzerland. Given that we have these agreements with virtually all of Europe, what does “turning to Europe” mean exactly?This advertisement has not loaded yet, but your article continues below.If it means becoming an EU member, it’s important to understand that membership involves much more than trade. The EU is a political confederation in which the European Parliament has powers superior to the governments of member countries. That’s what drove Britain to exit the EU via “Brexit” in 2016.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe second fundamental question is why Canada would want closer relations with Europe. It is, in the words of former European Central Bank President Mario Draghi, “a society facing a slow agony of decline… (I)f the stagnation continues, the continent will progressively lose the ability to fund the core functions of a modern state.” Given this dire description from one of the EU’s most experienced officials, it’s understandable that European Commission President Ursula von der Leyen wants to regain some semblance of credibility by having Canada become an “Associate Member.” But signing on with the dysfunctional, collapsing EU would be like boarding a cruise ship that’s already sinking.Not surprisingly, the president of the country whose trade with Canada dwarfs Europe’s reacted strongly to reports that Canada was considering EU membership. Donald Trump said: “If they do that and if I think it’s a hostile act, I will put very serious tariffs or stop trading with Europe on many things.” No doubt Canadian officials will have explained to their American counterparts that becoming an associate member of the EU would be largely ceremonial and likely have little to do with trade, but it’s difficult change Trump’s mind about almost anything.This advertisement has not loaded yet, but your article continues below.Back in Canada, the Carney government is focused on attracting investment in order to revive a stagnant economy. At the recent Canada Investment Summit in Toronto international investors were given a deal book describing 167 projects available for investment. Attendees ranged from local money managers, such as the $303-billion Ontario Teacher’s Pension Fund, to the APG Groep NV of the Netherlands, which manages assets of $1.1 trillion. Some delegates said Ottawa’s new structure for regulatory approval of projects compared favourably with more difficult procedures elsewhere.But It’s not just international investment that’s needed. Before the election of the Trudeau government in 2015, Canadian investment abroad was about equal to incoming investment. Since 2015, $828 billion more in investment capital has left the country than has entered. Reversing that economically disastrous trend is vital to arresting the collapse of the Canadian dollar and attracting the new investment needed to reverse our industrial decline — no matter what Donald Trump does next.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.If anything, Canada’s domestic picture is even worse than the disarray in our trade and investment files. Ottawa’s 2026-27 budget projects a staggering $78.3-billion deficit. No prudent national leader would put forward such a budget in these escalating inflationary times. To see a much-lauded former central banker do so is perplexing.The only way to keep our country from falling into a debt abyss is by increasing revenue or cutting spending. But there is little room for more taxation. Fraser Institute data show that in 2024, the average Canadian family already paid 42.3 per cent of its income in taxes, compared with 35.5 per cent spent on housing, food and clothing combined.Making matters worse is a virtually unrestrained immigration policy adding large numbers of unskilled people requiring taxpayer financial support. Rejecting the points system that has functioned well since Lester Pearson introduced it in Centennial Year, Justin Trudeau’s approach saw a flood of people without needed skills or social compatibility pour into the country.This advertisement has not loaded yet, but your article continues below.Perhaps the most troubling of the Liberals’ nation-destroying moves has been their policy on information. They brought in Bill C-9, the “Combatting Hate Act,” which amended the Criminal Code hate propaganda provisions, as well as Bill C-34, which establishes a new “Digital Safety Commission” to regulate on-line content. Frontier Centre Senior Fellow Pierre Gilbert says “This increasing control over what Canadians can say and read is deeply troubling… If success is measured by whether Canada is becoming more prosperous, whether immigration is sustainable and whether Canadians remain free to speak their minds, this government is failing.”The Carney government would like us to believe our problems are all caused by Donald Trump. The reality is that Canada was in self-inflicted decline well before he became U.S. president.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.