Canada’s finance minister announced his resignation Monday amid reports of differences with Prime Minister Justin Trudeau over government spending to protect the economy during the coronavrius pandemic.
Bill Morneau said he is leaving politics and has put his name forward as a candidate to lead the Organization for Economic Cooperation and Development.
Trudeau thanked Morneau for his five years as finance minister and said in a statement that “Canada will vigorously support his bid to lead” the OECD.
Morneau and Trudeau have reportedly butted heads amid spending to backstop the pandemic-hammered economy. Morneau said he was not asked to resign but added that he is no longer the appropriate the person for the job.
Canada’s government is predicting a historic CDN$343 billion (US$260 billion) deficit for 2020-21 resulting from its economic and stimulus plans to battle the impact of COVID-19. Trudeau has called the spending a lifeline to Canadians battling to stay afloat.
Recent news that Mark Carney, a former governor of both the Bank of Canada and Bank of England, has been advising Trudeau during the pandemic fueled speculation that Morneau might be replaced.
Carney and Deputy Prime Minister Chrystia Freeland would be considered favorites to replace Morneau but two senior government officials told The Associated Press that Carney is not a potential candidate to replace him.
The officials spoke on condition of anonymity as they were not authorized to speak publicly about the matter. One of the officials confirmed Carney has been informally speaking with the prime minister for some time.
Carney was the first non-Briton to take the top job at the 325-year-old Bank of England.
