Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
Carney looks like he will win a chance to lose
Unless some strange things happen, the next prime minister of Canada is likely to be an ambitious, high-achieving Albertan who made a mark on the world stage after excelling at Harvard and Oxford.
We don’t know yet whether that Albertan will be Mark Carney or Chrystia Freeland. But whoever becomes the Liberal Party leader on March 9 is unlikely to ever live in the official residence, because Justin Trudeau will probably still be packing boxes by the time his successor faces a different Albertan in an election.
Conservative Leader Pierre Poilievre has an enormous lead in the national polls, which have not moved despite Trudeau announcing his long-pined-for resignation. The polls may move when the Liberals pick a new leader, but not enough to stop a Conservative landslide this spring.
It is impressive in a way that both Carney and Freeland — both extraordinarily accomplished people — have decided the race is worth the trouble because it looks like all the winner will get is a chance to lose. (House Leader Karina Gould is also running, but she is unlikely to find a way to be competitive in such a short race.)
A lot to give up
It is particularly striking that Carney — the former governor of the central banks in both Canada and England — is willing to give up a lucrative life in lush boardrooms for a difficult and uncertain political career. He has resigned as chair of both Brookfield Asset Management and Bloomberg LP and disentangled himself from a variety of other desirable gigs, giving up goodness knows how much money.
He must think he can win the leadership — and believe he has some chance of beating Poilievre — or he wouldn’t be doing all that.
Carney looks like he will win the first race. He kicked off his campaign by cracking jokes during a successful interview with Jon Stewart last week on “The Daily Show,” which drew approving reviews from Canadian Liberals who previously had found him staid, even for a banker.
But, without Stewart to loosen him up, he appeared wooden during his official launch in Edmonton, a sign of his inexperience as a politician.
Emotional and divisive
Freeland doesn’t have that problem. A former journalist who impressed Canadians with her toughness during trade negotiations with Donald Trump during his first term, she will be a formidable opponent. In her launch video, she presented herself as the candidate best suited to stand up to Trump, who is threatening to impose economy-killing tariffs on Canada.
But Freeland’s launch was interrupted by Gaza protesters and overshadowed by news that Foreign Affairs Minister Mélanie Joly — a crucial organizer in Quebec — would support Carney. Former Minister Navdeep Bains — a crucial organizer in the rest of the country — is also said to be on Team Carney, as are a growing number of prominent ministers. On Sunday, François-Philippe Champagne, the influential industry minister, is expected to endorse Carney, adding a note of finality.
Canada’s Middle East policy has not emerged as a point of debate — there have not yet been any debates — but it appears to be a dividing line in the race ahead, judging from how supporters are sorting themselves. Joly has often been criticized by Israel’s supporters, and they were quick to see her Carney endorsement as a bad sign.
Freeland has spoken up for Israel in the past, while Carney has no public record on the issue but appears to be attracting supporters who are more critical.
They will likely both be challenged to take a position as the race continues, which may damage whoever wins. An emotional and divisive dispute over Middle East policy is exactly what the Liberal Party doesn’t need as it gets ready to face Poilievre, who is strongly pro-Israel — but it may be what the party gets.
An outsider? Really?
Whether that so-far sublimated division emerges into the open or not, Carney is likely to win. He has the advantage because of “the short timeline, the high buy-in, and just the sheer number of early caucus support he’s gotten,” says pollster Quito Maggi, of Mainstreet Research.
“In a long leadership, caucus matters very little. In a short leadership like this, where each caucus member is going to bring to the table a couple hundred supporters from their riding to be able to sign up for this, it matters a lot.”
And Freeland faces challenges. She will find it hard to distance herself from unpopular Trudeau policies since she was his deputy prime minister.
Carney was on the sidelines, giving him more of a credible claim to being, as he called himself on “The Daily Show,” an “outsider.” The Conservatives will ridicule that, pointing to his public support of carbon pricing, for example, but they might have to work up a sweat to make it stick. It is already stuck on Freeland.
“He’s got a lot to prove,” said a senior Liberal who prefers to remain anonymous. “Freeland has a lot to disprove, which means, I think that he has the easier go of it.”
And the manner in which Freeland left the Trudeau government — resigning on the day she was to deliver a fall economic update and throwing the government into chaos — may not sit well even with those Liberals who were relieved to see Trudeau pushed out.
There’s an old adage in politics: She who wields the knife never wears the crown.
It would be hard for her to win, but Carney — who is entering a demanding new profession at age 59 — might find a way to lose.
Whoever comes out on top will almost immediately face the fearsome Poilievre, giving them a good chance of beating the record set by Charles Tupper, who had the shortest tenure as Canadian prime minister when he served for just 68 days in 1896.
FILE PHOTO: Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland speaks during a press conference in Ottawa, Ontario, Canada November 6, 2024.
The Liberal leadership race is set to be a two-candidate throwdown
On March 9, the Liberal Party will have a new leader, and soon after, Canada will have a new prime minister.
The race is set to be a contest between former Bank of Canada and Bank of England Governor Mark Carney and Chrystia Freeland, who was Justin Trudeau’s finance minister and deputy prime minister until she resigned in December over differences with the PM.
A handful of others have declared a run including longtime Cabinet minister Karina Gould, former member of Parliament Frank Baylis, and current MPs Jaime Battiste and Chandra Arya. Resource Minister Jonathan Wilkinson is reportedly considering a bid. But they’re long shots at best.
Candidates have until Jan. 23 to declare.
With the Liberals down more than 20 points in the polls and facing an election as early as March, whoever wins has a tough task ahead. Rather than battle for a poisoned chalice, a number of high-profile Cabinet ministers are sitting out, including Foreign Minister Mélanie Joly, Industry Minister François-Philippe Champagne, Finance Minister Dominic Leblanc, and Transport Minister Anita Anand. Former British Columbia Premier Christy Clark also demurred, citing her poor French speaking skills.
The Liberals set a hefty entrance fee for candidates at 350,000 Canadian dollars — a steep amount for a short race in which strict election finance rules forbid individual donors from contributing more than CA$1,750, and companies are prohibited from donating at all. That means that only heavy hitters with wide recognition have a shot at raising enough cash in time, leaving the high-profile Carney and Freeland ahead of the pack before the race even begins.
Trudeau’s successor: All eyes on Freeland, Clark, Carney
Who is lining up to replace outgoing Justin Trudeau as Liberal Party leader and prime minister?
Popular MP Dominic LeBlancannounced Wednesday that he will not run. He took over the Finance portfolio after Chyrstia Freeland abandoned the sinking Trudeau ship last month, and he was already engaged with border issues, having gone with Trudeau to Mar-a-Lago at the end of November. The bilingual LeBlanc – French fluency is a must for Canadian PMs these days – was considered a potential replacement for Trudeau, but he couldn’t abandon his crucial portfolios to take part in the race.
Most speculation is now centered on Freeland, former British Columbia premier Christy Clark and former central banker Mark Carney, who are all considering candidacies.
They all have strengths and vulnerabilities. Freeland has the highest profile and is seen as tough and capable, but she would find it hard to distance herself from unpopular Trudeau policies. Also, some Liberals might resent her for hastening Trudeau’s political demise with her resignation.
Clark is a proven political performer with deep roots in the right wing of the party and could easily distance herself from Trudeau, but the quality of her French is an open question.
Carney, meanwhile, has impeccable economic credentials, a record of achievement at a global level, and speaks French, but he has not proven himself in the rough-and-tumble world of politics.
Several ministers are also considering runs, including François-Philippe Champagne, Karina Gould, Mélanie Joly, Steve MacKinnon, and Jonathan Wilkinson.
They all may wait until the rules are announced to announce their candidacies. The party is under pressure to tighten leadership voting rules, which currently allow foreign students and temporary workers to vote.
It’s too soon to handicap a race, but Carney is the one to watch. The Conservatives keep attacking him, which suggests he makes them nervous. But Carney has never sought public office, and it is impossible to predict if his skin is thick enough or stump presence appealing enough for the job.
France's snap election: Understanding why Macron took the risk
With Emmanuel Macron’s approval ratings at a historic low, and far-right parties gaining popularity, could France’s upcoming election be its own “Brexit” moment? Mark Carney, former governor of the Banks of England and Canada and current UN Special Envoy on Climate Action & Finance, joins Ian Bremmer on GZERO World to discuss snap elections in the UK and France, the complexities of Brexit, and its ongoing impact on domestic politics in Europe.
“There are a wide range of aspects of the UK-European relationship which don't work,” Carney says, “There's massive red tape, for example, in agricultural products, massive red tape and delays at the border, the inner workings of a very interconnected financial system.”
Calling a snap election in France is a big risk, Carney explains, but after his party underperformed in the EU parliamentary elections, Macron wants a referendum from the French people. He’s betting that voters used the EU election to send a message but will vote more moderately in national elections closer to home. Meanwhile, Labour is expected to win big in the UK elections, but the aftermath of Brexit still looms large. But the geopolitics of 2024 are very different than in 2016 during the Brexit referendum.
“There's a range of things that could be made better if the UK government and the European government wanted to work together,” Carney stresses, “And it's all operating in a GZERO World.”
Catch GZERO World with Ian Bremmer every week on US public television (check local listings) and online.
What the France and UK elections mean for the West
Major Western democracies like France, the UK, Canada, and the US are on the verge of sweeping political change, but how will upcoming elections impact our collective ability to deal with the world’s biggest challenges? How will Western allies approach issues like climate change, the AI revolution, and cyber defense in an increasingly fractured world? Mark Carney, former Governor of the Banks of England and Canada and current UN Special Envoy on Climate Action & Finance, joins Ian Bremmer on GZERO World for a hard look at three of America’s closest allies: France, Britain, and Canada.
“We're operating in a world where security is paramount. You need resilience,” Carney tells Bremmer, “You need to look to those countries where you have common values and you need to reinforce them.”
Carney and Bremmer also delve into the strategic importance of the US-Canada relationship and how our neighbor to the north can be a reliable, strategic partner in many critical areas, including national security and climate transition. He warns Canadians and Americans shouldn’t “hit the snooze button” when it comes to strengthening US-Canada ties and stresses that Canada can be a critical partner in providing lean energy, crucial minerals, and AI expertise. As for Carney’s rumored political future as a potential Liberal Party leader? Well, you’ll just have to watch the interview to find out.
Catch GZERO World with Ian Bremmer every week on US public television (check local listings) and online.
How political unrest across the West will impact the world: A conversation with UN's Mark Carney
Listen: On this episode of the GZERO World Podcast, major Western democracies like France, the UK, Canada, and the US are on the verge of sweeping political change, but how will upcoming elections impact our collective ability to deal with the world’s biggest challenges like climate, AI, and cyber defense? Mark Carney, former Governor of the Banks of England and Canada and current UN Special Envoy on Climate Action & Finance, joins Ian Bremmer to take a hard look at three of America’s closest allies: France, Britain, and Canada.
Upcoming elections in France and the UK could mean big changes for the West, similar to the aftermath of Brexit. Carney says there are still many aspects of the UK-EU relationship that need to be recalibrated. He also stresses the strategic importance of the US-Canada relationship and Canada’s role as a reliable partner in everything from national security to critical minerals to fighting climate change.
Subscribe to the GZERO World Podcast on Apple Podcasts, Spotify, or your preferred podcast platform, to receive new episodes as soon as they're published.
Ian Bremmer addresses the audience at the second annual US-Canada Summit in Toronto on June 11, 2024.
Second annual US-Canada Summit focuses on security and trade
Toronto was the place to be this Tuesday for the second annual US-Canada Summit, co-hosted by Eurasia Group and BMO. The event featured a cross-border who’s who of speakers, including former Ambassador to Canada David Jacobson, Under Secretary for Policy at the US Department of Homeland Security Robert Silvers, Delaware Sen. Chris Coons, Illinois Gov. JB Pritzker, and Alaska Gov. Mike Dunleavy. Canadian political heavyweights included the premiers of Ontario and Saskatchewan, Doug Ford and Scott Moe, as well as federal cabinet ministers Mélanie Joly and Anita Anand. UN Climate Envoy and former governor of the Bank of England Mark Carney gave the closing keynote, and both the US and Canadian Ambassadors, David Cohen and Kirsten Hillman, shared the stage. A full list of speakers can be viewedhere.
This year’s themes were the economy and security north and south of the 49th parallel. A major focus was the shift from global to regional blocs in international trade. While Eurasia Group President Ian Bremmer reassured the crowd that “Globalization is not falling apart. We are not heading to a Cold War here,” the Chairman of Cynosure Group and former Vice Chair of the Federal Reserve Randal Quarles took a more skeptical view. “If you’re a 55-year-old furniture maker from Hickory, North Carolina, globalization is never going to be better for you,” he said. The hollowing out of the working class and its impact on politics featured prominently, from the possibility of a second Trump administration to the recent right-wing victories in European Parliamentary elections.
Geopolitical tensions were also on the menu. Speakers touched on the wars in Ukraine and Israel, with Joly underscoring that US President Joe Biden’s proposal is “fundamental” to resolving the latter conflict. China loomed large in the conversation, with Silvers discussing how the US Department of Homeland Security is securing America’s ports by engaging Japanese firm Mitsui to replace Chinese cranes currently dominating port infrastructure. Ford emphasized that “China has the nickel market cornered. You know where the last safe haven is? Here in Ontario.” The Ontario premier concluded his presentation in his trademark style by giving the crowd his phone number (and no, we’re not going to publish it here).
Several speakers emphasized the need for energy security, including securing the supply chain for critical minerals necessary to build EVs. According to Dunleavy, as the world order shifts from a globalist to a regionalist perspective, North America can prosper by securing both its domestic supply and transformation. Moe emphasized that “If we get our energy security, we’ll have our food security, we’ll have our national security. But it starts with energy security.”
Finally, speakers discussed the post-COVID employment landscape and the impact of AI. Jonas Prising, chairman and CEO of ManpowerGroup, said that remote work is here to stay for the world’s knowledge workers. Eurasia Group released a new survey, which found that when asked about job automation, 17% of respondents believe almost all or most of their work could be done by machines, 28% say some of it, and 31% think not very much or almost none. The remaining 24% reported that they do not have a job.
Carney concluded the conference by underscoring the need for an inclusive economy and the importance of a growth mindset, particularly in Canada. “We need to build an economy for all Canadians. We can’t redistribute what we don’t have. We have less to spend because we’ve become less productive.”
Keeping the trains running on time was GZERO Publisher Evan Solomon, who served as event MC while Eurasia Group Advisors Gerald Butts and John Baird and Director Shari Freidman moderated several panels. And in true Canadian form, hockey was a running theme for the day, starting with BMO CEO Darryl White citing the Gordie Howe Bridge as a testament to the strength of the Canada-US trade relationship, and finishing up with Carney wishing the Oilers good luck in the Stanley Cup finals. Based on the way they played last night, they’ll be needing it.
Who’s afraid of Mark Carney?
Mark Carney set the cat among the pigeons last week with a speech that gently criticized the government of Prime Minister Justin Trudeau and tore a strip off of Conservative Leader Pierre Poilievre.
Carney, the former governor of both the Bank of Canada and the Bank of England, wants to be Canada’s prime minister, so he is letting it be known that he might do a better job than Trudeau while warning against the alternative.
Carney said Trudeau is spending too much money and is insufficiently focused on productivity — something most business people and economists think — but compared the prospect of a Poilievre victory to Brexit, which turned out to be the disaster he warned against.
“Brexiters promised that they were going to create Singapore on the Thames,” he said. “The … government actually delivered Argentina on the Channel.”
After the speech went live, a Liberal close to Trudeau messaged me a clip in which Carney used a series of catchphrases you’d expect to hear at Harvard Business School: “Hinge moment; dynamism; mission-oriented capitalism; combining resilience and purpose; mission institutions; seize the advantages.”
“These are all things Mark Carney said in 30 seconds or so,” the Liberal wrote. “That speech Carney gave is stuffed with more $5 bills than a vendor’s bag at the Jays game. Pierre will cream him.”
A threat from within
Some around Trudeau are uneasy about Carney’s high-profile outings. Liberals outside Trudeau’s circle are starting to think it might be nice if the prime minister spent more time with his family, because Canadians are so tired of him. He has been trailing Poilievre in the polls since Poilievre became leader in 2022. Trudeau just rolled out a CA$53 billion budget that so far has not moved the polls — an indication that Canadians have tuned him out. Some Liberal insiders hope Carney will take over and save them from the drubbing that Poilievre is getting ready to deliver in the next election.
But this is not what Trudeau’s people want. They point out that Carney has no experience in retail politics and may think Canada should be run like a central bank, where remote technocrats with degrees from elite universities make wise decisions without worrying about the grubby business of building political support. They are worried that the banker will lead the party to an electoral disaster.
Savior in the wings
Trudeau is not likely to be ousted, Liz Truss-style, since he single-handedly built the modern Liberal Party, and there is no rival in his caucus. But if Carney looks like a savior waiting in the wings, pressure will mount for Trudeau to hit the lecture circuit. Over the years, there has repeatedly been talk about Carney joining Trudeau’s team, but insiders say Trudeau — who may not have wanted to share the spotlight — would not promise Carney a role on the front bench. So now he is outside, loitering, waiting for a chance to run Canada, and Canadians are interested in what he is saying.
Carney’s video attack on Poilievre got three million views online, which is pretty good for a Canadian political video. The Conservatives responded by demanding Carney be summoned to testify at the Commons finance committee. “Canadians deserve to know how much Carney will increase Trudeau’s carbon tax, how much more debt he will add, and whether he would destroy Canada’s energy sector,” the party said.
When MPs from other parties sensibly declined to summon Carney, a private citizen, to the committee to be berated, Conservatives made a show of being furious. It was a stunt, meant to show Conservative contempt for the man who might replace Trudeau and lead the Liberals into the next election. But it also reflected real fear and loathing.
A threat to Poilievre
“The biggest thing that I think keeps Pierre Poilievre up at night right now is the thought that Justin Trudeau might leave,” a Conservative insider told me. “That scares him because he thinks it's an easy win right now. Canadians right now are thirsty, hungry, dying for change. A new leader of the Liberal Party is change. So that is a huge, huge threat to Poilievre.”
Poilievre is a fearsome political attack dog. On Tuesday, the Speaker threw him out of Parliament for calling Trudeau a “wacko.” He is happy to use populist rhetoric against Carney, portraying him as a “Davos elite” and accusing him of hypocritically imposing the cost of climate policy on ordinary Canadians while personally profiting from pipelines through his role as chair of Brookfield Asset Management, where he is in charge of environmental, social, and governance investing. Since 2020, Carney has been UN Special Envoy on Climate Action and Finance, working to make financial markets move the world toward a net-zero energy system — which is not popular with some folks in the oil patch.
Poilievre’s people say confidently that they would love to run against Carney, that he would be a perfect symbol of the regime they wish to replace, but they are behaving like they are worried, and for good reason. Carney is an astonishingly successful person, a smooth and thoughtful public speaker with decades of experience at the highest level of economic management. If he takes over, he could jettison unpopular Trudeau policies and present a fresh face to the electorate, offering safe hands.
Or … he could be a disaster, brittle, smug, and inclined to lecture, presenting himself as a potential CEO, not a leader. We can’t know unless or until he runs.
But he is becoming the obvious Liberal alternative to Trudeau, and the Conservatives, by attacking him, will help make that clear not just to their supporters but also to progressives thinking about who should replace Trudeau.