Article – Premiers emerged from Monday’s closed-door meeting with Finance Minister Mark Carney showing rare cross-partisan unity, though specifics remain notably absent on which infrastructure projects might receive federal funding. The gathering—the first formal sit-down between provincial leaders and Carney since he assumed the finance portfolio—signals what many observers describe as a reset in federal-provincial relations under Prime Minister Freeland’s administration.
“We’ve turned a corner in how Ottawa engages with provinces,” said Ontario Premier Caroline Mulroney, whose Conservative government has frequently clashed with federal counterparts. “Minister Carney came prepared to listen rather than lecture, and that’s refreshing.”
The half-day summit at Toronto’s Royal York Hotel brought together leaders from across the political spectrum. British Columbia’s Premier David Eby described the tone as “constructive and collegial”—a notable shift from the often tense federal-provincial meetings that characterized the previous government’s final years.
According to sources familiar with the discussions, Carney outlined a framework for infrastructure investment that would prioritize projects addressing housing supply, clean energy transmission, and transportation corridors. However, no specific initiatives were announced, leaving some observers questioning whether the goodwill can translate into concrete action.
“The atmosphere has changed, but Canadians need shovels in the ground, not just smiles in front of cameras,” said Saskatchewan Premier Scott Moe, who nevertheless characterized the meeting as “the most productive we’ve had in years.”
Federal infrastructure funding has been a persistent source of tension between Ottawa and the provinces. According to Parliamentary Budget Office data released last month, nearly $19 billion in allocated infrastructure funds remained unspent at the end of the last fiscal year, with provinces and municipalities often citing cumbersome federal approval processes.
Carney, speaking briefly to reporters afterward, emphasized his pragmatic approach. “Provincial governments know their local needs best. Our job is to establish clear national priorities and provide predictable funding that helps meet both local and national objectives,” he said.
The finance minister’s banking background appears to be influencing his approach to provincial relations. Sources indicate he presented premiers with economic modeling showing that coordinated infrastructure investment could potentially add 0.8 percentage points to GDP growth over the next three years—a significant boost as Canada navigates economic headwinds.
Quebec Premier François Legault, often one of Ottawa’s toughest critics, emerged notably optimistic. “For once, we’re being treated as full partners rather than subsidiaries,” Legault told Radio-Canada. “Minister Carney understands that Quebec’s priorities must be respected within any national framework.”
Climate adaptation emerged as a common priority across regional lines. Atlantic premiers, still recovering from last year’s devastating flooding, found common cause with Prairie leaders grappling with record drought conditions.
“When I can sit at the same table as my colleague from Alberta and agree on the urgent need for climate resilience funding, you know something important is happening,” said Nova Scotia’s Premier Tim Houston.
The meeting comes as Canadians express growing frustration with infrastructure deficiencies. A recent Angus Reid poll found 73% of respondents believe Canada’s infrastructure is falling behind other developed nations, with housing affordability and transportation bottlenecks topping public concerns.
Municipal leaders, who weren’t present at Monday’s meeting, expressed cautious optimism. “The premiers speaking with one voice creates momentum, but municipalities are where the rubber meets the road on infrastructure,” said Taneen Rudyk, president of the Federation of Canadian Municipalities. “We need to be at the table for the next round of discussions.”
Political analysts note that Carney’s approach reflects both his economic philosophy and political reality. With a minority government dependent on opposition support, cooperation with provinces—many led by parties opposed to the federal Liberals—becomes essential.
“Carney is playing a long game here,” says Emmett Macfarlane, political scientist at the University of Waterloo. “By establishing credibility with premiers now, he’s setting the stage for potentially difficult negotiations over project specifics later.”
The finance minister has promised to unveil a comprehensive infrastructure strategy before Parliament rises for summer recess. Monday’s meeting suggests that strategy will emphasize flexibility for provinces while maintaining federal oversight of national priorities.
As premiers departed Toronto, the goodwill was evident, but the real test lies ahead. “Today we agreed on principles,” said Manitoba Premier Wab Kinew. “The harder conversation about dollars and deadlines comes next.“
For communities waiting on everything from affordable housing to transit expansion, the question remains whether this new spirit of cooperation will deliver results where Canadians need them most.
