The Canadian Prime Minister Stephen Harper said Wednesday he feels “really encouraged” by the European agreement on a credit line for Spanish banks, but Finance Minister Jim Flaherty, repeated today that Canada will not provide money to the IMF for a European fund.
Harper said today during a speech at the International Economic Forum of Montreal he was encouraged by the agreement agreed this past weekend between eurozone members to “stabilize the banking situation in Spain.”
Canadian Prime Minister added that “this is the type of measures that Europeans are able to undertake for themselves, and must undertake to advance its economy. This is the kind of self that Canada favors.”
While in Parliament, Finance Minister Jim Flaherty said Canada refuses to participate in any action of the International Monetary Fund (IMF) in Europe.
Flaherty said Canada will not send “thousands of millions of dollars of Canadian tax dollars to support European banks.”
Canadian Finance Minister also said that the situation in Europe is the consequence of “failure to promote growth and achieve fiscal surplus.”
Canada, which until the 2008 financial crisis 11 years chained fiscal surplus, more than any other G7 country, has refused to participate in any fund to help the European Union (EU) on the grounds that European countries have sufficient resources to address the crisis.
Harper also said in Montreal that Canada’s message on the next G20 Summit in Los Cabos (Mexico), is that you can have both “fiscal discipline and economic growth.”
“Est Canada will be the message in the G20 Summit: economic growth and fiscal discipline are not exclusive; go together.”
“In fact, Canada’s strong fiscal discipline is the reason why we have weathered the economic crisis better than many others,” said Harper, who recalled that Canada will have a balanced budget in 2015.
Harper also defended free trade “to create growth and jobs and ensure long-term prosperity.”
Canada, the country that has free trade agreements signed or under negotiation with Latin American countries, is in the middle of negotiations to sign a trade agreement with the European Union.