OTTAWA - Canadian Finance Minister Bill Morneau resigned after a rift with Justin Trudeau proved impossible to repair, leaving the cabinet with a major hole in the midst of a deep recession.
The resignation comes at a critical moment for Mr Trudeau as his government develops an agenda for the economic recovery amid historically high unemployment. The government is expected to introduce significant changes to the country's social programmes, including employment insurance and childcare. The Trudeau-Morneau rift burst into full view after Bloomberg News reported on Aug 10 that Mr Carney is advising the prime minister on an economic recovery plan. Mr Trudeau released an extraordinary statement the following afternoon stating his"full confidence" in Mr Morneau, as speculation grew over whether he'd be replaced in an expected cabinet shuffle. The two men met on Monday.