Prime Minister Mark Carney completes a news conference in Ottawa on May 2.PATRICK DOYLE/AFP/Getty Images
Kevin Lynch is a former deputy minister of finance and former clerk of the Privy Council. Jim Mitchell is an adjunct professor at Carleton University and a former senior public servant.
Canada’s 2025 election campaign was shaped by U.S. President Donald Trump’s global trade war and his assault on Canadian dignity and sovereignty. The election delivered a clear mandate to deal resolutely with American trade aggression and to build a more dynamic and resilient Canadian economy. A recurring theme in the campaign was that achieving this requires change.
Voters believed that part of that change was the new Leader of the Liberal Party, Mark Carney. So too was a change in policy, with Mr. Carney campaigning on a commitment to focus on the economy and get Canada growing again. But what was missing was how a new Liberal government would govern differently than its predecessor.
The success of any new government depends not only what you plan to do, but also how you organize to achieve your goals. Governing in an ineffective manner can put the entire agenda at risk.
The governing model of the Trudeau administration was rooted in an extraordinary centralization of power in the political staff around the prime minister. Ministers felt ignored and disempowered. Cabinet itself was essentially a focus group, and the Prime Minister’s Office operated as if it was the policy announcement itself, rather than its implementation, that mattered most. Ministers were so overloaded with policy and program commitments that they simply could not deliver. The result was a lack of policy and operational focus, inconsistent delivery and a loss of confidence in the government’s ability to get things done.
Opinion: Carney did what voters wanted him to do: Be the adult in the room
As the new government gears up to tackle the wicked problems posed by Mr. Trump, not to mention the lingering Canadian challenges of low productivity and weak growth, what are the considerations that should shape how it will operate? History provides a useful guide.
First, start with a limited, highly prioritized agenda. Recall how prime minister Jean Chrétien won the 1993 election with a Red Book full of promises that he quickly put aside to deal with the serious fiscal situation Canada faced, and his government’s laser focus succeeded brilliantly. Stephen Harper was an advocate for the idea that a limited set of priorities is essential for successful governing. In today’s context, the Liberal policy platform, which numbers in the hundreds of commitments, is in serious need of prioritization.
Second, put a streamlined, empowered Cabinet at the centre of your governing model. Government is a large, complex enterprise where delegating authority and responsibility – from the PM to ministers and from ministers to officials – is at the heart of our Westminster system. Give people the authority to act, to take risks and then hold them to account. No one would try to micromanage a large corporation from the CEO’s office; Ottawa cannot be run successfully from the PMO alone.
Third, emphasize speed and results. The uncertainty caused by Mr. Trump is debilitating for Canadian businesses and workers. Canada needs some early wins, not just long-term projects, to restore confidence in ourselves and our economy. Quickly eliminating internal trade barriers is both doable and impactful. Mr. Trump cannot be allowed to dictate the tempo of change and the narrative of the future.
Fourth, don’t waste time reorganizing the government. Instead, institute a few key process changes. Reducing the regulatory burden and speeding up procurement, especially for our military, should be early priorities. Targeted program reviews in departments where there have been large increases in staff and spending would provide needed fiscal flexibility. And building our crisis-management capacity will be essential as the Trump trade wars and their consequences play out in the coming years.
Fifth, in a world in crisis, strong national balance sheets matter. At the onset of the 2007-08 global financial crisis, Canada had the advantage of budget surpluses and a very low debt-to-GDP ratio. As today’s fiscal situation is not as favourable, we need clear and credible fiscal anchors, and a track record of meeting them, to maintain the confidence of global capital markets in a chaotic world.
At this precarious juncture in a changing global order, Canadians will look to their national government for leadership. The new government can be most effective if it pays close attention to the way it operates – how to best utilize Cabinet and the public service; how to find alignment in Parliament on key economic measures to boost growth and counter Mr. Trump; how to better co-ordinate with provinces; and, how to reach out to key sectors and regions across the country affected by the trade war.
All this starts at the top. These fraught times need a prime minister who understands that governing differently today is in everyone’s best interests.