Conservative Party wins outright parliamentary majority, with New Democrats now in role of official opposition. Liberal Party has its smallest representation ever and Bloc Quebecois dwindles to just a few seats.
1. Last night’s election marked a major shift in the Canadian political landscape, confounding the results of many pre-election polls. The Conservative Party rolled to an outright parliamentary majority, winning 167 of the 308 parliamentary seats, a better showing than had been expected.
2. Perhaps more stunning was the reshuffling of the opposition. The election saw the Liberal Party, the dominant political party in Canada through much of the 20th century, reduced to a third-place showing, losing more than half of its seats and leaving it with its smallest electoral representation in history (34 seats). The Bloc Quebecois was reduced to a mere four seats, and its leader resigned. The leaders of both parties failed to win their own ridings (districts). The New Democratic Party gained at the expense of both (particularly the Bloc), surging into the role of official opposition party.
3. In terms of implications, the Conservatives have pledged to avoid tax increases and generally favor more devolution of power to provincial governments. They plan to propose a major revision of Canadian crime laws early in the new session. One industry-specific implications concerns defense, where the Conservatives have supported greater military spending (including a recent order for fighter aircraft from the United States) than other parties. Another is the possibility of looser foreign ownership restrictions in the telecommunications sector. The party platform includes a return to budget surpluses by the 2014-2015 fiscal year.
Souce: Goldman Sachs