Canada's finance minister resigns amid COVID-19

Morneau resigned as finance minister on Monday and announced that he will also step down from his parliamentary seat. The politician said he would not run for parliament again and would instead seek to become the next secretary general of the Organization for Economic Cooperation and Development (OECD).

The move comes amid reports of differences with PM Justin Trudeau over government spending to protect the economy during the coronavirus pandemic.

Just last week, Trudeau had expressed confidence in his finance minister as rumors swirled of a rift between the two men. Morneau, 57, has been in the job since Trudeau's Liberals took power in 2015.

Morneau said he was not asked to resign but added that he is no longer the appropriate the person for the job.

A historic deficit

Canada's government is predicting a historic CDN$343 billion ($260 billion, €218.7 billion) deficit for 2020-21 resulting from its economic and stimulus plans to battle the impact of COVID-19. Total coronavirus support is nearly 14% of gross domestic product.

Trudeau has called the spending a lifeline to Canadians battling to stay afloat.

Recent news that Mark Carney, a former governor of both the Bank of Canada and Bank of England, is advising Trudeau during the pandemic fueled speculation that Morneau might be replaced.

Trudeau thanked Morneau for his five years as finance minister and said in a statement that "Canada will vigorously support his bid to lead'' the OECD.

tg/sri  (AP, Reuters)