Finance Minister Freeland Resigns Amid Policy Clash with Trudeau

Canada's Finance Minister Chrystia Freeland resigned after disagreeing with Prime Minister Justin Trudeau's proposed spending plans, calling them 'political gimmicks.' This comes ahead of an election in which Trudeau is expected to struggle. Freeland's departure leaves a crucial vacancy in the cabinet.

In a surprising turn of events, Canada's Finance Minister Chrystia Freeland has resigned following a policy disagreement with Prime Minister Justin Trudeau. Freeland referred to Trudeau's plans for increased spending as 'political gimmicks' and left her position just hours before a scheduled economic update presentation.

The unexpected departure of Freeland, who also held the title of deputy prime minister, comes at a critical time for Trudeau, as polls suggest an upcoming election could lead to significant losses for his Liberal party. In a letter to Trudeau, Freeland pointed out the divergence in their views on Canada's financial strategy.

National media outlets indicate that the disagreement centered around proposed temporary tax breaks and spending measures. Freeland underscored the necessity of maintaining fiscal reserves amid tariff threats from the U.S. Meanwhile, speculation has emerged that Mark Carney, a former Bank of Canada governor, could be a potential successor.

(With inputs from agencies.)