As Parliament resumes in Ottawa, Prime Minister Mark Carney is signaling that the government’s focus for the fall sitting will be squarely on the economy. The Liberals are expected to introduce a major economic package, described by the Prime Minister as among the most consequential legislation of this Parliament, aimed at strengthening Canada’s competitiveness, accelerating project approvals and supporting long-term economic growth. The centerpiece is expected to be the proposed Building Canada Strong Act, backed by a broader agenda to improve investment conditions and economic resilience.
The government has also indicated that a federal budget will be tabled later this fall. The upcoming fiscal plan will provide the clearest picture yet of how the government intends to balance its growth agenda with its commitment to improving Canada’s fiscal position. Finance Minister François-Philippe Champagne has spent the summer consulting stakeholders, while the Prime Minister has suggested the government remains focused on achieving an operating budget balance ahead of schedule. The budget plus the economic reform package is likely to dominate the legislative session.
The government’s economic agenda is being advanced against a backdrop of mixed but generally resilient economic performance since the Fall 2025 budget. Canada’s economy grew by 1.7 per cent in 2025 and avoided the recession that many analysts had anticipated amid international trade tensions. Employment has remained relatively strong, unemployment has eased from its 2025 peak, wage growth has continued to outpace inflation, and Canada is projected by the IMF to post among the strongest growth rates in the G7 over the next two years. At the same time, policymakers continue to face challenges from ongoing global trade uncertainty, weak business investment and slowing economic growth. Policymakers will also be busy dealing with the overtures from Europe that focus on a yet-to-be-defined associate membership, a position that has sparked some domestic debate over Canadian sovereignty.
The government also faces broader national unity pressures, with renewed separatist sentiment emerging at both ends of the country. In Quebec, sovereignty advocates continue to argue that provincial interests are not adequately reflected in federal decision-making, while in Alberta concerns over energy policy, resource development and the province’s role within Confederation have fueled calls for greater autonomy and, among some groups, separation. While neither movement currently poses an immediate threat to national unity, both underscore the importance of the government’s economic agenda and its effort to demonstrate that national growth and major project development can deliver benefits across all regions of the country. Plus, with an antagonistic White House, the government will want to keep Canadians united in the face of external pressure and threats.
Politically, the Prime Minister enters the new sitting from a position of significant strength. The Liberals now hold a working majority in the House of Commons following a series of floor crossings and byelection gains over the past year, giving the government greater control over the parliamentary agenda. The Prime Minister himself is riding high in public approval at home, and is getting noticed for his leadership in international affairs too. Meanwhile, the opposition parties face the difficult task of trying to oppose the government while also expressing solidarity to Canada and Canadians. With strong public polling and a favourable political environment, the government is well-positioned to advance its legislative priorities over the coming months.
The result is a parliamentary session likely to be defined by economic policy, with the government seeking to use its strengthened mandate to push through reforms designed to boost investment, growth and Canada’s long-term economic competitiveness. This will happen against the backdrop of a trade war, relationship building with Europe, and national unity considerations at home.