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Prime Minister Justin Trudeau of Canada called an election for next month, on September 20. He has been emboldened by polls showing his Liberal Party with a large enough lead to retake a majority in parliament.

Canada PM Trudeau Thinking

Trudeau is betting that with about 64% of the country's population fully vaccinated against COVID-19 that these high vaccination rates and a promised post-pandemic economic rebound will help him prolong and strengthen his grip on power.

"The decisions your government makes right now will define the future your kids and grandkids will grow up in," Trudeau told reporters. "So in this pivotal, consequential moment, who wouldn't want a say?"

Trudeau currently has only a minority of seats, leaving him reliant on other parties to govern. The prime minister met Governor General Mary Simon, the Queen’s representative in Canada, to request dissolution of Parliament. Trudeau, at a televised press conference after the meeting in Ottawa, said the election will take place on Sept. 20.

Nanos Research pollster Nik Nanos said the Liberals had no choice but to go to the polls now, noting that the longer they wait, the more risk they face of a fourth wave of the coronavirus. "They see a window and they're going to shoot for that window before the bad news comes out, before there's another variant or before the bill shows up for the full cost of fighting the pandemic," he said in an interview.

Polls Ahead of Election

Polls suggest the Liberals will win their third consecutive election but may not regain a majority in the 338-seat House of Commons. Nationally, Liberals would win 35% of the vote,  30% for the Conservatives and 19% for the left-leaning New Democrats, a Leger Marketing poll showed on Aug. 12.

The right-of-center Conservatives, the Liberals' biggest rivals, say spending will increase if Trudeau wins again, leaving generations of Canadians hobbled by debt. With a parliamentary majority, Trudeau would have a free hand to follow through on his stated policy priorities of fighting climate change and supporting those who suffered most during the pandemic.

Trudeau was likely influenced by the The Bank of Canada last month who were optimistic of growth heading into the second half of the year.

Trudeau now 49, the son of longtime former Prime Minister Pierre Trudeau, first won a majority in 2015. In the 2019 election, decades-old black face pictures surfaced and he failed to land a majority.

Another minority administration would leave him likely relying once more on the New Democrats, who favor even heavier spending on social programs. It would also raise questions about Trudeau's future as the leader of his party. Without a strong opponent to rail against in this election, as the main opposition Conservatives struggle, the Liberals fear the vote may fragment and hand them yet another minority government.

Source: Reuters

From The TradersCommunity News Desk

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