The sovereign debt and banking crisis in the Eurozone and U.S. congressional committees still grappling with debt reduction targets were the backdrop to the Government of Canada's Fall Economic Update delivered by Finance Minister Jim Flaherty a few weeks ago.

While Canada's economy weathered the global recession better than most other industrialized countries and we’re the only G-7 country to have more than recovered all of the jobs lost during the recession, we're not immune to these international developments.

The lesson in all this is that nations must have their fiscal house in order to preserve the economic well-being of their citizens. That’s why a central point in the Finance Minister’s Update is that the Government is following through on the deficit reduction action plan to achieve at least $4 billion in ongoing annual savings by 2014–15. This is part of the Federal Government’s commitment to return to a balanced budget over the medium term. In fact, the Update provided fiscal projections, taking into account the revised economic outlook from private sector economists, which confirm we’re on track. 

At the same time, the Government will continue to monitor closely the economic situation. If the economy weakens significantly, the Government is prepared to respond in a flexible and measured way to support Canadian jobs and growth. Two points I’d like to underscore here are that we continue to invest in innovation – making strategic investments that help us secure the jobs of the future. And, we are pursing stronger trade ties with China and Asia to ensure our export-based economy can continue to rely on new markets. 

Retirement security is a key part of the economic well-being of Canadians. That’s why the Government announced last week that we are improving Canada’s pension landscape with legislation to implement Pooled Registered Pension Plans (PRPPs). PRPPs will make saving for retirement easier for the millions of Canadians who never had a pension plan before. Incredibly, over 60% of Canadians do not have a workplace pension plan. PRPPs help by offering a new, low-cost and accessible pension option to help you meet your retirement goals. 

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On the international front, I’m pleased that Foreign Affairs Minister John Baird announced additional sanctions against Iran on November 21st. Canada is deeply disturbed by the information contained in the most recent International Atomic Energy Agency report on the state of Iran’s nuclear program and the threat to global security that poses. 

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As the season is upon us, best wishes from Almut and I to everyone in Ancaster-Dundas-Flamborough-Westdale for a Merry Christmas, a Happy Chanukah and a safe, healthy, prosperous New Year.