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Canada’s Finance Minister Rejects Claim She’s In Conflict With Trudeau

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Canada’s Finance Minister Rejects Claim She’s In Conflict With Trudeau

Canadian Finance Minister Chrystia Freeland denied that there’s growing friction between her office and that of Prime Minister Justin Trudeau.

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(Bloomberg) — Canadian Finance Minister Chrystia Freeland denied that there’s growing friction between her office and that of Prime Minister Justin Trudeau. 

Asked if there has been greater tension between herself and Trudeau, or between their aides, the Canadian finance minister said: “From my perspective, not at all.”

Freeland’s future has been the subject of discussion within Canada since a report in The Globe and Mail on Thursday alleged that officials in Trudeau’s office believe Freeland has done a poor job of communicating the government’s economic message. The newspaper, citing anonymous sources, reported that officials had discussed the possibility of trying to get Mark Carney, the former governor of the Bank of Canada and the Bank of England, to take the finance minister’s role — with Freeland moving to a different cabinet post. 

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In an interview with Bloomberg News, Freeland said she fully supports Trudeau as prime minister and that it’s for him to answer questions about who serves in his cabinet. 

“My perspective is clear and actually very simple, which is I really consider it a privilege every single day that I serve as finance minister and deputy prime minister,” she said. 

Freeland said she has spoken with the prime minister twice this week, including on Friday morning. A government official, speaking on condition they weren’t named, said Trudeau and Freeland discussed planning for the fall economic statement, a policy document that’s typically delivered in October or November.

Canada’s economic growth has slowed this year and unemployment is rising, but on a number of measures its economy is holding up well. The federal budget deficit is below 2% of gross domestic product, inflation has eased to less than 3%, and last month the Bank of Canada became the first Group of Seven central bank to cut interest rates in the post-pandemic period. Economists surveyed by Bloomberg are forecasting a soft landing, not a recession, with growth picking up next year. 

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Yet Trudeau’s government remains stuck in a deep hole in public opinion surveys. For most of the past year, his governing Liberal Party has consistently trailed the rival Conservative Party by a double-digit margin, a gap that has stayed relatively constant despite a series of budget measures meant to address housing shortages and affordability concerns. A recent poll by Nanos Research for Bloomberg News found that about 30% of Canadians believe Conservative chief Pierre Poilievre is the best party leader to manage economic growth, compared with 19% for Trudeau.

Speaking to reporters on Thursday in Washington, Trudeau praised Freeland’s record but did not explicitly state whether he wanted her to remain finance minister. But a spokesperson for Trudeau said: “The prime minister has full confidence in Chrystia Freeland as deputy prime minister and finance minister.”

Freeland said she spoke this week with UK Chancellor Rachel Reeves and US Treasury Secretary Janet Yellen, and they discussed how they were anticipating a finance ministers’ gathering this fall during the Group of 20 summit in Brazil. “There’ll be three women around the table, and all three of us are looking forward to that,” she said.

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‘Time Is Our Friend’

Trudeau and Freeland have a short runway to turn around public opinion: the next federal election is due in the fall of 2025. 

The government has announced major spending plans in a number of areas, including on housing construction, in response to public concerns about the cost of living. 

“I think time is our friend,” Freeland said. 

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“We have the investments in place that are starting to kick in. I think when you look at the macro cycle, getting to actually having the soft landing is really important for everyone.”

Political watchers in Canada have speculated for years about whether Carney will run for political office, especially after he left the Bank of England in 2020, returned to his home country and joined the Liberal Party. He currently serves in several corporate and philanthropic roles, including as chair of Brookfield Asset Management and chair of Bloomberg Inc. 

Trudeau told reporters this week he has been talking to Carney for years about getting him to enter politics, and said the ex-central banker would be “an outstanding addition at a time when Canadians need good people to step up in politics.”

Freeland said she talks to Carney “pretty often,” pointing out they both come from northern Alberta and have known each other for a long time. Asked if she wanted Carney to join the government, Freeland said, “it’s very positive for us that he has come out as a Liberal.”

“I think all of us are very supportive of anything he can offer to our party, to our government, to our country,” she said.

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—With assistance from Erik Hertzberg and Thomas Seal.

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Finance

German finance minister wants to scrap spousal tax splitting

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German finance minister wants to scrap spousal tax splitting

Last weekend, several thousand people took to the streets in Munich to demonstrate against abortion and assisted suicide. One speaker made an extremely dramatic plea against what he called the “culture of death” that has allegedly taken hold in Germany. One sign of this, the speaker argued, was that the government is planning to abolish a regulation known as “spousal tax splitting.”

Is tax law really relevant to deep philosophical debates on the sanctity of life? It is even a matter of life and death at all? Surely we needn’t go that far? In any case, the intense political uproar surrounding the new debate on whether to abolish spousal tax splitting is notable, even by today’s standards of populist outrage.

An advantage for couples with widely divergent incomes

The row was sparked by Germany’s vice chancellor and finance minister, Lars Klingbeil, of the center-left Social Democratic Party (SPD), who said he wanted to abolish and replace the joint taxation of spouses’ income, a system that has been in place since 1958.

How exactly does spousal tax splitting work? In Germany, married couples (and since 2013, couples in civil partnerships), can choose to have their income assessed jointly by the tax authorities.

It means that the taxable income for both spouses together is halved – as if both partners had each earned an equal half of the income. Their tax liability is then determined by simply doubling the income tax due on one half.

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As people who earn more pay higher taxes in Germany, this system benefits couples where one partner (and often this is still the man) earns significantly more than the other (in practice often the woman).

Lars Klingbeil
Lars Klingbeil thinks spousal splitting is outdated and costs the state too muchImage: Bernd von Jutrczenka/dpa/picture alliance

Costs of up to €25 billion per year

If for example one partner earns €60,000 ($70,512) a year and the other partner earns nothing, the couple will be taxed as if they earned €30,000 each. In this example, the couple would save nearly €5,800 in taxes per year compared to the amount they would owe if both partners filed their taxes separately. According to the Finance Ministry, spousal tax splitting costs the government a total of up to €25 billion annually.

Some critics have long viewed splitting as a tool to keep women out of the labor market, because the more a woman earns, the larger her tax burden becomes. Klingbeil seems to agree, arguing on ARD television in late March that the system was “out of step with the times.” The spousal splitting system reflects “a view of women and families that is completely at odds with my own,” he said.

Chancellor Merz said to be in favor of splitting

On Monday of this week, Klingbeil got some surprising support on this from Johannes Winkel, head of the youth wing of the conservative Christian Democratic Union (CDU).

“Given the demographic reality, the government should create incentives to ensure that both partners in a relationship are employed,” Winkel told the Funke Media Group. “In the future, tax relief should primarily be granted to married couples when they are facing hardships related to raising children.”

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But the chancellor is a vocal skeptic of the proposal. “I am not convinced by the claim that joint filing for married couples discourages women from working,” Friedrich Merz said at a conference organized by the Frankfurter Allgemeine Zeitung newspaper. “Marriage is a relationship based on shared income and mutual support. And in a marriage, income must be treated as a joint income for tax purposes, not separately.”

Berlin under pressure to fix pensions, health care and taxes

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Klingbeil’s alternative plan

At around 74%, the labor force participation rate for women in Germany is one of the highest in Europe, but half of them work part-time.

Klingbeil’s idea is to replace the existing system with a more flexible approach: Both partners would be able to distribute tax-free income among themselves in such a way that it minimizes their tax liability. This would allow the couple to continue enjoying a tax advantage, albeit not to the same extent as before. And whether one partner earns more than the other would become less important.

However, it remains to be seen whether Klingbeil will be able to push through his proposal. Aside from Germany, similar regulations offering tax benefits to couples exist in Poland, Luxembourg, Portugal and France.

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This article was originally written in German.

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Departing inspector general targets Council Office of Financial Analysis

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Departing inspector general targets Council Office of Financial Analysis

The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.

Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.

In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.

But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”

“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.

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Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.

Jim Vondruska/Jim Vondruska/For the Sun-Times

But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”

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The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .

Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”

The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.

“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.

The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.

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The office was created in 2014 to provide Council members with expert advice on fiscal issues.

For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.

Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.

Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.

The office was further required to produce activity reports quarterly, not just annually.

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Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.

Two years ago, a bizarre standoff developed in the office.

Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.

The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.

“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.

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Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.

Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.

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Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

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Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments. 

“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.” 

In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.  

After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.  

“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.” 

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Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.  

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