Canada’s political spotlight shifts back to Ottawa this week as Parliament resumes for its fall sitting — and all eyes will be on Prime Minister Mark Carney and Conservative Leader Pierre Poilievre as they square off for the first time since Poilievre’s return to the House of Commons.
Key Political Stakes
Poilievre, fresh from a byelection win in Alberta, is looking to rally his caucus and demonstrate that his brand of aggressive opposition remains intact ahead of his leadership review at the Conservative convention in January. He pledged to “work with anybody from any party” but warned the Tories will keep pressing the Liberals on affordability, crime, and immigration — issues he says are top of mind for Canadians.
Carney, meanwhile, is aiming to project stability and collaboration. He told reporters Sunday that Canadians expect Parliament to “work together” and hinted at a cooperative tone, pointing to partnerships with provinces, unions, and the private sector on major files.
Budget on the Horizon
The fall sitting will build toward Carney’s first budget, expected in October. The prime minister has promised a mix of “austerity” and “investment” — trimming operational spending while boosting funding for housing, major infrastructure, and defence.
Carney confirmed the deficit has grown over the past year, citing U.S. tariffs and Canada’s countermeasures as key drivers. “We want to protect our industries and workers in the most affected sectors,” he said.
Major Legislation and Priorities
The Liberals are expected to advance projects under the One Canadian Economy Act, which fast-tracks approvals for nation-building infrastructure. But Poilievre criticized the government Sunday, saying Carney “has failed to grant any permits for a new nation-building project” since taking office.
The Liberals also face pressure to follow through on their spring promises — including an income tax cut and a GST exemption for first-time homebuyers purchasing homes under $1 million — as Canadians continue to struggle with housing affordability and the rising cost of living.
NDP and Bloc Crucial in Minority Parliament
With the NDP weakened after its worst election result in history and down to seven MPs, interim leader Don Davies will have limited speaking time but remains a potential kingmaker. The Liberals may rely on NDP or Bloc Québécois support to pass key legislation if Conservative backing is unavailable.
Political strategist Tim Powers summed up the next few weeks as “pesky Pierre versus calm Carney,” predicting heated exchanges but also a chance for Carney to define his leadership style as he faces his first sustained test in Parliament.