Trudeau resigns: Can the Liberals overcome leadership crisis ahead of crucial 2025 election?

Trudeau resigns: Can the Liberals overcome leadership crisis ahead of crucial 2025 election?

It is anticipated that the Liberals will appoint an interim leader to temporarily serve as prime minister while the party organises a special leadership convention. The party’s constitution provides that the Liberal caucus can determine who becomes the interim leader.

Trudeau has reportedly discussed with Finance Minister Dominic LeBlanc the possibility of him taking on the role of interim leader and prime minister.
Business Today Desk
  • Jan 06, 2025,
  • Updated Jan 06, 2025, 9:44 PM IST

Prime Minister Justin Trudeau stepped down as leader of the Liberal Party and as a Prime Minister on January 6, though it remains uncertain whether he will leave his role as prime minister immediately or continue until a new leader is selected.

Declaring his resignation at a press conference, Trudeau said it has become clear, if he has to fight "internal battles" that he cannot be the best option on the ballot for Canadians.

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He said parliament has been "paralysed for months" - after what he calls the longest session of a minority parliament in Canadian history. Trudeau added that the country needs a new session of parliament, and the house will be prorogued until 24 March.

The Liberal Party has two potential paths: appointing an interim leader or holding a full leadership contest.

It is anticipated that the Liberals will appoint an interim leader to temporarily serve as prime minister while the party organises a special leadership convention. The party’s constitution provides that the Liberal caucus can determine who becomes the interim leader.

If a leadership contest is pursued, the party’s constitution requires the executive to convene a meeting within 27 days of the resignation to establish the rules for the race. The Globe reported that the national executive, which oversees leadership matters, plans to meet this week following the caucus session.

A major challenge for the party is that organising a special leadership convention could take several months. If a federal election is called before that process is complete, the Liberals would be led by an interim prime minister, who was not selected by the party’s members — something unprecedented in Canadian history. The party may opt for a shorter convention timeline, but this could spark protests from candidates, who believe they would be unfairly disadvantaged. A rushed convention could also lead to poor decision-making, an issue the national executive is mindful of.

While the party constitution does not specify a required length for a leadership contest, candidates must gather signatures and submit a nomination letter to the party president at least 90 days before the vote, according to CBC.

Who will take over now?

Trudeau has reportedly discussed with Finance Minister Dominic LeBlanc the possibility of him taking on the role of interim leader and prime minister. However, this option would be complicated if LeBlanc intends to run for the leadership, The Globe reports.

Several names have emerged as potential successors. One prominent figure is Mark Carney, the former governor of both the Bank of Canada and the Bank of England, who is reportedly considering a bid for the Liberal leadership. Since December 26, Carney has been reaching out to Liberal MPs and political organisers, leveraging his experience, which could prove valuable in navigating challenges like potential US tariffs under President-elect Donald Trump and Canada’s cost-of-living crisis.

Another possible contender is Chrystia Freeland, whose surprise resignation as finance minister and deputy prime minister on December 16 sparked new challenges for Trudeau. According to an Angus Reid Institute poll, Freeland is viewed by many Canadians as Trudeau’s most likely successor. A Liberal source revealed that Freeland has been reaching out to Liberal MPs, fueling speculation that she may be considering a leadership run.

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