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Canada’s new economic plan cuts spending and jobs to reduce U.S. reliance and deficits, facing public and bureaucratic pushback.
Prime Minister Mark Carney’s Canada 2.0 economic plan, launching with the November budget, aims to reduce Canada’s reliance on the U.S. and address rising deficits through fiscal restraint and targeted investment.
The Parliamentary Budget Office warns of a sharp deficit increase due to spending commitments tied to U.S. trade policies.
The government plans to cut postal services, reduce the civil service by up to 24,000 jobs by 2028, and slash funding for programs like gender equality—from $407 million to $76 million by 2027–2028.
While officials emphasize strategic investment over spending, the absence of clear fiscal targets raises concerns.
The reforms, framed as essential for economic resilience amid shifting U.S. trade policies, face challenges in gaining public and bureaucratic support.
El nuevo plan económico de Canadá recorta el gasto y los empleos para reducir la dependencia y los déficits de los Estados Unidos, enfrentándose a la oposición pública y burocrática.