Bloomberg News

Flaherty Says Canada to Be Flexible If Hit by Foreign Shock

September 28, 2011

Sept. 28 (Bloomberg) -- Canadian Finance Minister Jim Flaherty reiterated today that his government will be flexible in terms of its economic policies if the country is hurt by events coming from abroad.

“If we get a shock from outside our country we’ll have to be responsive and we’ll be flexible and pragmatic,” Flaherty told reporters outside parliament in Ottawa.

Flaherty met Prime Minister Stephen Harper and Bank of Canada Governor Mark Carney yesterday to review last weekend’s meeting of policy makers from the Group of 20 nations in Washington. Flaherty declined to give details of that meeting today.

Flaherty said his European counterparts understand the seriousness of their sovereign debt crisis, and repeated they should come up with enough money to “overwhelm” it.

Flaherty also said “flight-to-safety” flows in currency markets have been affecting the value of the Canadian dollar, which depreciated more than 1 percent against the U.S. dollar today.

Flaherty also said his department is ‘very close’ to finalizing an agreement to compensate Quebec for merging its provincial sales tax with the federal government. A pact could be done by the end of the week, he said.

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net

To contact the editor responsible for this story: Paul Badertscher at pbadertscher@bloomberg.net


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