Canada's parliament got a temporary reprieve Wednesday after the Conservative-led coalition ministry of Prime Minister Stephen Harper, accepted an opposition amendment to the budget, breaking an impasse over stimulus-spending that threatened to bring it down and force mid-term elections, media reports said.
The Liberal Party's leader, Michael Ignatieff, broke ranks with the two other coalition partners Wednesday, offering conditional support for the budget--presented by the Conservatives Tuesday promising tens of billions of dollars in new spending, much of it in areas like housing that the party never previously championed.
With the Liberals holding the second largest number of seats in the House of Commons, its support effectively guarantees that the budget will be adopted.
"I'm very pleased to state that the government will be supporting the Liberal amendment to the budget," Conservative House of Commons leader Jay Hill said. He also lauded the Liberals for supporting the budget, saying he looked forward to working in co-operation with them.
To avert a fourth election in five years, the Liberals had demanded the Conservative government inform Parliament about the implementation and the costs of the budget, which include a massive economic-stimulus package in March, June and December.
Last month, the ministry of Harper--formed in the fall but short of a majority--escaped defeat by a coalition of three opposition parties.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.