JAKARTA - Canadian Finance Minister Chrystia Freeland suddenly resigned due to a policy dispute with Prime Minister Justin Trudeau. Freeland rejected plans to increase state spending which was referred to as "political deception".

Freeland stepped down just hours before he was scheduled to deliver a recent report on the economic conditions this fall to parliament.

As reported by Reuters on Monday, December 16, Freeland's (56) resignation, which also serves as deputy prime minister, left Trudeau without an important ally in the cabinet ahead of the election which according to opinion polls showed he would lose badly.

"Over the last few weeks, you and I have found ourselves at odds over the best path forward for Canada," Freeland said in a letter to Trudeau posted on X.

Freeland has been finance minister since August 2020. There has been no direct statement from Trudeau's office.

Domestic media reports say Freeland and Trudeau clash over government proposals for interim tax breaks and other spending measures.

Freeland said the threat of new tariffs to Canadian imports by US President-elect Donald Trump's administration poses a major threat.

"That means keeping our fiscal dry at this time, so we have reserves that we might need for a tariff war. That means avoiding expensive political deception, which we can't afford," he wrote.

One of his successor candidates is former Canadian Central Bank Governor Mark Carney, who has served as Trudeau's economic adviser.

But Carney is not a legislator and tradition says he should run for seat in the House of Commons elected assembly.

"On Friday, you told me that you no longer want me to serve as Minister of Finance and offered me another position in the Cabinet," Freeland said.


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