The Globe And Mail

Decisive Liberal win brings economic ‘stability’ to Quebec: economists
The Globe And Mail

The election of a majority Liberal government in Quebec and the decisive defeat of the separatist Parti Québécois signal a turn to greater economic stability and enhanced credibility on the fiscal front in the province, observers say.

“Suffice it to say that the sovereignty issue was all but put to bed last night,” BMO Nesbitt Burns chief economist Douglas Porter said in a note Tuesday. “From an economic perspective, a majority government (and silencing of referendum talk) returns some political stability back to Quebec, which is a clear positive for the flagging economy,” he said, pointing out that the Canadian dollar is modestly stronger Tuesday morning at $1.092 (U.S.).

“Certainly from a foreign investor perspective, they are more comfortable with the idea of the separation issue fading into the background,” said David Watt, chief economist with HSBC Canada. “We still need foreign investment having a strong confidence in Canada.”

“You’ve got four years of stability,” Mr. Mack said about Quebec. But he added that a key driver of market sentiment will be the first Liberal government budget and how determined it is about putting the province’s fiscal house in order. Mr. Porter said to expect the Liberal government of Philippe Couillard to target a budget surplus by 2015-16, mostly through a freeze on spending.”

The “election of a strong majority government increases certainty surrounding government policy since budgets and other key legislation can be passed without support from opposition parties,” Toronto-Dominion Bank economic analyst Sonny Scarfone said in a note Tuesday.

Même si on aime souvent dire que le PLQ et le PQ c’est blanc bonnet, bonnet blanc, il faut réaliser que les marchés financiers et les investisseurs ne voient pas les choses sous cet oeil. S’il est vrai que les programmes se ressemblent, il y a des « adultes » au PLQ qui sont capables de réassurer les acteurs économiques. Contrairement au PQ, vous pouvez être certains que le PLQ n’oubliera pas de nommer un ministre du revenu