In this commentary, Stewart Kronberg of Glencott Associates makes the argument that with the new majority government, Canada is overdue for a groundbreaking initiative. He discusses an initiative that could be implemented in the face of severe fiscal constraints.
Kronberg refers to the discussion paper entitled “Restoring Fiscal Balance” which was tabled with the 2006 budget. In short, the paper stated that the federal commitment to address one imbalance (ensuring sustainable provincial finances) would be contingent upon the provinces committing to address another ‘imbalance’ (strengthening the economic union). Unfortunately, for five years after the paper was released, the Harper government was in a minority position and the ideas the paper contained were relegated to gathering dust on the shelf.
In Possible federal initiative without the price tag, Kronberg writes that Prime Minister Harper now has his majority government, and it will be interesting to see if he chooses to revisit those ideas. The time to do so, Kronberg argues, may now be ripe.
Click here to read the full commentary.