Canada's parliament passes Carney budget, avoids early election

(AFP) Canada's government survived a confidence vote Monday after parliament narrowly passed a budget that Prime Minister Mark Carney sees as essential to bolster an economy threatened by US tariffs.

The Liberal government, which does not have majorities, risked a collapse because of the tight budget vote, but a small group of opposition lawmakers—who wanted to avoid an early election—allowed the plan to pass.

Carney had described the budget as a "generational" opportunity to invest in Canada's economic future, and said it would strengthen self-sufficiency and reduce dependence on trade with the United States.

"Now is not the time to be cautious, because fortune favors the brave," he said last week.

Carney was elected in April to tackle protectionist tariffs from President Donald Trump, but his Liberal party failed to win a parliamentary majority.

Two opposition votes or two abstentions were needed to pass the budget. In the end they managed to get one opposition vote and one abstention.

The budget plans to double the fiscal deficit compared to last year.

Carney assures that this is necessary to compensate for the damage caused by U.S. trade policies.

The prime minister claims that investments in Canada's military and infrastructure will help improve economic sovereignty. He has repeatedly warned that relations with the United States will not return to pre-Trump normalcy.

"It's a time to achieve great things for Canadians, and achieve them quickly," he assured.