Former Bank of England governor Mark Carney enters race to be Canada’s next prime minister

Former Bank of England governor Mark Carney enters race to be Canada’s next prime minister
Mark Carney announced that he is running to replace Prime Minister Justin Trudeau as leader of the ruling Liberal Party. (Reuters)
Short Url
Updated 17 January 2025
Follow

Former Bank of England governor Mark Carney enters race to be Canada’s next prime minister

Former Bank of England governor Mark Carney enters race to be Canada’s next prime minister

VANCOUVER, British Columbia: Mark Carney, the first non-Brit to run the Bank of England since it was founded in 1694 and the former head of Canada’s central bank, said Thursday he is entering the race to be Canada’s next prime minister following the resignation of Justin Trudeau.
Trudeau will remain prime minister until a new Liberal Party leader is chosen on March 9.
Carney, 59, is a highly educated economist with Wall Street experience, widely credited with helping Canada dodge the worst of the 2008 crisis while heading the country’s central bank. He also helped the UK manage Brexit during his 7-year tenure as governor of the Bank of England.
“The prime minister and his team let their attention on the economy wander too often,” Carney said in Edmonton, Alberta, of Trudeau where he made his announcement. “I won’t lose focus.”
The front-runners for the Liberal Party leadership are Carney and ex-Finance Minister Chrystia Freeland, whose abrupt resignation last month forced Trudeau’s exit.
The next Liberal leader could be the shortest-tenured prime minister in the country’s history. All three opposition parties have vowed to bring down the Liberals’ minority government in a no-confidence vote after parliament resumes on March 24. An election is expected this spring.
Carney said he knows the Liberals are “well behind,” but said he would win the general election.
Trudeau announced his resignation Jan. 6 after facing an increasing loss of support both within his party and in the country.
Carney quickly launched into an attack on opposition Conservative Leader Pierre Poilievre, who the polls show has a large lead over the Liberals.
He also highlighted the threats by US President-elect Donald Trump, who has said Canada should become the 51st state and has threatened to impose 25 percent tariffs on all Canadian goods.
“This is no time for life-long politicians such as Pierre Poilievre,” he said. “Sending Pierre Poilievre to negotiate with Donald Trump is the worst possible idea.”
Poilievre painted Trudeau, Carney and Freeland with the same brush during a news conference in Vancouver earlier Thursday.
He blamed the Liberals for high taxes and slammed the government for suggesting it may put tariffs on energy exports to the US, saying it would hurt the oil-rich province of Alberta.
“Not only have the Liberals weakened our economy, now they’re resorting to dividing our people,” said Poilievre. “We don’t need to be divided; we need to be united.”
A major plank in Poilievre’s campaign has been removing the carbon tax, introduced by the Trudeau government as a fee on the amount of carbon emitted by fuels like gas.
Carney said if the carbon tax is removed, it should be replaced by something that is “at least if not more effective” in having the same impact of reducing greenhouse gas emissions while making Canadian companies more competitive and creating jobs.
An official close to Freeland said she would scrap the consumer carbon tax and instead make big polluters pay. The official spoke on condition of anonymity as they were not authorized to speak publicly ahead of her announcement.
When Carney, who grew up in Edmonton, was named the first foreigner to serve as governor of the Bank of England it won bipartisan praise in Britain.
“I have helped manage multiple crises and I have helped save two economies,” Carney said. “I know how business works, and I know how to make it work for you.”
More recently he served as the UN’s special envoy for climate change and led an alliance of international financial institutions pushing for carbon-cutting measures. Carney has long championed the notion that making companies accountable for their impact on the planet is the first step toward reducing greenhouse gas emissions.
When Carney led Canada’s central bank he was credited with keeping money flowing through the Canadian economy by acting quickly in cutting interest rates to their lowest level ever of 1 percent, working with Canadian bankers to sustain lending through the crisis and, critically, letting the public know rates would remain low so they would keep borrowing. He was the first central banker to commit to keep them at a historic-low level for a definite time, a step the US Federal Reserve would follow.
Like other central bankers, Carney is a former Goldman Sachs executive. He worked for 13 years in London, Tokyo, New York and Toronto, before being appointed deputy governor of the Bank of Canada in 2003. He has both financial industry and government credentials.
He has long been interested in entering politics and becoming prime minister but lacks political experience. The Liberal Party has tried to recruit him for years.
“Being a politician is quite different from being a policy adviser or a central banker,” said Daniel Béland, a political science professor at Montreal’s McGill University.


Elon Musk brands USAID as 'criminal organization' in growing row

Elon Musk brands USAID as 'criminal organization' in growing row
Updated 14 sec ago
Follow

Elon Musk brands USAID as 'criminal organization' in growing row

Elon Musk brands USAID as 'criminal organization' in growing row
  • USAID's account on X platform had been disabled and the agency's website was still offline
  • Reports suggest that Donald Trump wants to roll USAID into the State Department

WASHINGTON: US billionaire Elon Musk attacked the US Agency for International Development on Sunday, calling it a "criminal organization" after President Donald Trump moved to freeze the bulk of Washington's foreign assistance for three months.
The Trump administration has since issued waivers for food and other humanitarian aid. But aid workers say uncertainty reigns -- and that the impact is already being felt by some of the world's most vulnerable.
Trump has tasked his advisor Musk with cutting the government workforce and slashing what the Republican calls waste and unnecessary spending under the guise of the so-called Department of Government Efficiency (DOGE), which is now reportedly taking aim at USAID.
"USAID is a criminal organization," Musk wrote on his X platform, replying to a video alleging USAID involvement in "rogue CIA work" and "internet censorship."
In a subsequent post, Musk doubled down and, without giving evidence, asked his 215 million X followers, "Did you know that USAID, using YOUR tax dollars, funded bioweapon research, including Covid-19, that killed millions of people?"
He did not elaborate on the allegations, which officials in the previous administration linked to a Russian disinformation campaign.
There have been reports Trump wants to roll USAID into the State Department. His team did not respond to AFP calls for comment.
USAID's account on X had been disabled, AFP confirmed, and the agency's website was still offline.
USAID, an independent agency established by an act of Congress, manages a budget of $42.8 billion meant for humanitarian relief and development assistance around the world.
Democratic Senator Chris Murphy has criticized the "total destruction" of the agency.
CNN reported that two senior security officials at USAID were put on forced leave after they barred staff from DOGE, which is run by Musk, from accessing classified documents as part of their sprawling effort to inspect the government's books.
The two DOGE representatives also wanted to access staff files and security systems at USAID's headquarters, the broadcaster reported, citing multiple sources.


UK’s Starmer seeks strong trade relations with the US in the wake of Trump’s tariffs

UK’s Starmer seeks strong trade relations with the US in the wake of Trump’s tariffs
Updated 27 min 16 sec ago
Follow

UK’s Starmer seeks strong trade relations with the US in the wake of Trump’s tariffs

UK’s Starmer seeks strong trade relations with the US in the wake of Trump’s tariffs
  • The UK left the EU in 2020, following a referendum in 2016. Trump, who supported the Leave side in the Brexit vote, has not yet said whether he plans to target the UK with tariffs

British Prime Minister Keir Starmer said Sunday that he would seek a strong trade relationship with the US after President Donald Trump suggested he would slap Europe with tariffs after he hit America’s biggest trading partners — Canada, Mexico and China — with import taxes.
Starmer spoke to reporters while hosting German Chancellor Olaf Scholz at his country estate on the eve of a mission to improve relations with the European Union.
“In the discussions that I have had with President Trump, that is what we have centered on, a strong trading relationship,” he said. “So it is very early days.”
Canada and Mexico ordered retaliatory tariffs in response to Trump’s announcement that the US on Tuesday will stick a 25 percent levy on imports from Canada and Mexico and 10 percent on goods from China. Trump said he “absolutely” plans to impose tariffs on the EU.
The UK left the EU in 2020, following a referendum in 2016. Trump, who supported the Leave side in the Brexit vote, has not yet said whether he plans to target the UK with tariffs.
The tit-for-tat tariffs have triggered fears of a global trade war.
“Tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see,” British Home Secretary Yvette Cooper told the BBC.
Starmer is heading to Belgium to meet with EU chiefs Monday, where the UK leader is aiming for a relationship “reset”.
While ruling out rejoining the EU trade bloc five years after Brexit, Starmer said he wants to forge a closer relationship on defense, energy and trade.
“I think that is certainly in the UK’s best interest, I do believe it’s in the EU’s best interest, and already I hope that in the last seven months there’s been a manifest difference in approach, tone and relationship,” he said.
Starmer hosted Scholz at Chequers, the prime minister’s country residence in Buckinghamshire 30 miles (50 kilometers) northwest of London, where the two leaders discussed Ukraine and the Middle East, according to a Starmer spokesperson.
The prime minister spoke of their common approach to “key issues and challenges,” including their shared commitment to Kyiv as the war with Russia enters its fourth year this month.
The two agreed that Russia’s invasion had emphasized the need to beef up and coordinate defense production across Ukraine, according to a readout of the meeting from a Starmer spokesperson. The UK and Germany signed a defense pact in October, described by officials as the first of its kind between two NATO member countries, to boost European security amid rising Russian aggression.
The British government’s strategic defense review later this year will include lessons learned in Ukraine and the need to outmaneuver Russian President Vladimir Putin’s hostile acts across the continent, Starmer said.
Starmer thanked Scholz for visiting in the middle of a difficult re-election campaign. Scholz’s center-left Social Democrats are lagging in the polls behind the center-right Christian Democratic Union and the far-right Alternative for Germany, or AfD, with three weeks to go before the Feb. 23 vote.
“When I started as prime minister seven months ago now, I was determined to strengthen the relationship between our two countries — already very good, but I thought it could be stronger on a number of fronts,” said Starmer, leader of the center-left Labour Party. “And thanks to your leadership, I think we’ve made real progress.”
Scholz said the visit that included a walk around the grounds of the estate and a lunch was a “good sign of the very good relations between our two countries, and indeed between the two of us.”


Tens of thousands protest in Berlin against proposed German immigration crackdown

Tens of thousands protest in Berlin against proposed German immigration crackdown
Updated 38 min 41 sec ago
Follow

Tens of thousands protest in Berlin against proposed German immigration crackdown

Tens of thousands protest in Berlin against proposed German immigration crackdown
  • The draft law would have restricted family reunifications for some refugees and called for more people to be refused at the border

BERLIN: Thousands of people protested in Berlin on Sunday against plans to limit immigration proposed by opposition conservatives and supported by the far-right Alternative for Germany (AfD).
Friedrich Merz, the conservatives’ leader who is tipped to become Germany’s next chancellor after a national election set for Feb. 23, sponsored a draft bill with AfD support, breaking a taboo against cooperating with the far-right party.
Around 160,000 gathered at Berlin’s Brandenburg Gate, next to the Bundestag lower house, according to the Berlin police. The protesters held banners reading “We are the firewall, no cooperation with the AfD” and “Merz, go home, shame on you!.”
Merz, the CDU/CSU’s candidate for chancellor, on Friday tried to push the immigration bill in the lower house but failed to secure a majority as some of the deputies from his own party refused to support it.
Their failure to endorse his draft dealt a blow to the authority of Merz, who had pushed for the law despite warnings from party colleagues that he risked being tarnished with the charge of voting alongside the far-right.
Mainstream German parties had previously joined forces to prevent the AfD, which is under surveillance by Germany’s security services, from achieving legislative power, something they call a firewall against the far-right.
The draft law would have restricted family reunifications for some refugees and called for more people to be refused at the border. Two-thirds of the public support stronger immigration rules, according to a recent poll.
Merz had argued that the bill was a necessary response to a series of high-profile killings in public spaces by people with an immigrant background. But Chancellor Olaf Scholz’s Social Democrats (SPD) and Greens said the proposals would not have stopped the attacks and violated European law.
On Saturday, tens of thousands took to the streets across many other German cities, including Hamburg, Stuttgart and Leipzig, in similar protests against the CDU/CSU and the AfD.


Rwanda-backed M23 offensive in east Congo condemned

War-displaced people leave the camps on the outskirts of Goma on February 2, 2025. (AFP)
War-displaced people leave the camps on the outskirts of Goma on February 2, 2025. (AFP)
Updated 02 February 2025
Follow

Rwanda-backed M23 offensive in east Congo condemned

War-displaced people leave the camps on the outskirts of Goma on February 2, 2025. (AFP)
  • The 16-nation South African Development Community on Friday called for a summit with the eight-country East African Community to “deliberate on the way forward regarding the security situation in Congo”

WASHINGTON: Foreign ministers of the Group of Seven rich democracies have strongly condemned a major offensive by Rwandan-backed M23 rebels in eastern Democratic Republic of Congo and urged M23 and the Rwanda Defense Force to halt their offensive.
In a statement released by Canada, which holds the G7 presidency, the foreign ministers said they were particularly concerned about the capture of Minova, Sake, and Goma, and urged the parties to protect civilians.
“This offensive constitutes a flagrant disregard for the sovereignty and territorial integrity of Congo,” the statement said, citing a big increase in displaced civilians and worsening humanitarian conditions.
Meanwhile, Rwanda welcomed on Sunday calls for a summit of two African regional groups to discuss the escalating conflict.
It is the latest escalation in a mineral-rich region bedeviled by decades of fighting involving dozens of armed groups, and has rattled the continent with regional blocs holding emergency summits over the spiraling tensions.
The 16-nation South African Development Community on Friday called for a summit with the eight-country East African Community to “deliberate on the way forward regarding the security situation in Congo.”
The Rwandan Foreign Ministry said it “welcomes the proposed joint summit,” adding in a statement it had “consistently advocated for a political solution to the ongoing conflict.”
The SADC emergency session was not attended by President Paul Kagame of Rwanda — which is not a member of the bloc — but Congolese leader Felix Tshisekedi was present virtually.
Earlier in the week, Kagame appeared at an EAC emergency session when the DR Congo president was absent.
The SADC meeting was convened after soldiers from two member states, South Africa and Malawi, were killed in the fighting around Goma where they were deployed.
Some were part of Southern African Development Community Mission in the Democratic Republic of Congo.
In Sunday’s statement, Rwanda’s Foreign Ministry criticized the presence of the force in DR Congo, saying it should “not be there because they are adding to the problems that already existed.” Kagame has made similar remarks previously.
While Rwanda has never admitted to military involvement in support of the M23 group a UN report last July said it had roughly 4,000 troops in eastern DR Congo, and accused Kigali of having “de facto” control over the group.
Rwanda alleges that DR Congo supports and shelters the FDLR, an armed group created by former Hutu leaders who massacred Tutsis during the 1994 Rwandan genocide.
The intensified fighting has provoked fears of a humanitarian crisis.
In a region already home to hundreds of thousands of internally displaced people, the fighting has forced another 500,000 people to flee their homes, said the UN.
Separately, reports said two Tanzanian soldiers have been killed in clashes in the last 10 days in eastern Congo.
“Following a series of attacks in the areas of Sake and Goma carried out by M23 rebels, JWTZ (Tanzania People’s Defense Force) has lost two soldiers,” army spokesperson Gaudentius Ilonda said.
He confirmed that four others had been wounded and were currently receiving treatment in Goma.
Ilonda said the remaining units — without giving any further details — “continue to carry out their duties under the guidance of SADC.”
Preparations were underway to repatriate the bodies of the Tanzanian soldiers, he added.
So far 13 South Africans, three Malawians, and a Uruguayan national have died in the DR Congo clashes.

 

 


India reviewing crypto position due to global changes, senior official says

India reviewing crypto position due to global changes, senior official says
Updated 02 February 2025
Follow

India reviewing crypto position due to global changes, senior official says

India reviewing crypto position due to global changes, senior official says
  • The review follows crypto-friendly policy announcements by US President Donald Trump
  • It may further delay publication of a discussion paper that was due for release in Sept. 2024

India is reviewing its stance on cryptocurrencies due to shifting attitudes toward the virtual asset in other countries, a senior government official told Reuters on Sunday.
The review, which follows crypto-friendly policy announcements by US President Donald Trump, could further delay publication of a discussion paper on cryptocurrencies that was due for release in September 2024.
“More than one or two jurisdictions have changed their stance toward cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again,” India’s Economic Affairs Secretary Ajay Seth said in an interview.
Seth said that because such assets “don’t believe in borders,” India’s stance cannot be unilateral.
He did not specifically mention the United States, where Trump last week ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations and exploring the creation of a national cryptocurrency stockpile, making good on his promise to overhaul US crypto policy.
Indians have poured money into cryptocurrencies in recent years despite the country’s tough regulatory stance and steep trading taxes.
India’s Financial Intelligence Unit (FIU) issued show-cause notices to nine offshore cryptocurrency exchanges in December 2023 for non-compliance with local rules.
Binance, the world’s biggest crypto exchange, was hit with a fine of 188.2 million rupees ($2.25 million) in June 2024, a month after it registered with the FIU in an effort to resume operations in the country.
Last year, India’s market watchdog recommended that several regulators oversee trade in cryptocurrencies, in a sign that at least some authorities in the country are open to allowing the use of private virtual assets.
That position stood in contrast to statements by the nation’s central bank, which has maintained that private digital currencies represent a macroeconomic risk.