With his “Financial Framework for an Independent Quebec,” PQ leader Paul St-Pierre Plamondon proves mathematically that it is possible to become completely “masters at home.”
Furthermore, taking into account seven years of federal and Quebec data and projections from fiscal year 2021-22 to fiscal year 2027-28, an independent Quebec’s finances would allow for savings of $12 billion in Quebec’s share of federal deficits.
“If we compare the fiscal situation of a potentially independent Quebec with that of the G7 countries, we see that from the first year of its independence (in 2023), Quebec would have ranked second in terms of its fiscal balance as a percentage of GDP. “says the leader of the sovereigntists. And this takes into account the share of the large federal debt that Quebec will have to take on in the event of secession.
THE GREAT UNKNOWN
Mathematically speaking, sovereign Quebec would have a bright future!
Mathematically speaking, I said. Because all the figures projected in this new financial framework of an independent Quebec assume that the separation would take place without the slightest economic or financial shock. That means:
– No big company would run away.
– Companies would continue to operate without their sales and profitability being affected.
– Canadian banks would continue to finance them without fear.
– There would be no economic slowdown in the years following the separation.
– No more unemployment.
– Equal export levels, both interprovincially and internationally.
– Households in Quebec would continue to consume at the same level.
– The government of a sovereign Quebec would be able to finance its debt without having to accept a risk premium that would increase the interest costs on loans.
– Even the hypothetical creation of the “Quebec piastre” would go smoothly.
– And all this without resistance from the federal government and its allied states.
Is it too good to be true that Quebec’s separation can go ahead without the slightest problem? This is the great unknown! We agree that the CAQ, the Liberals, the Federals and other advocates of federalism will not stand idly by.
THE ASSETS OF QUÉBEC
We are obviously unique in America because of our French-speaking culture. This enabled us to establish close relations with France.
Furthermore, we shouldn’t be ashamed to say it: Quebec has enormous economic assets.
Our natural resources are abundant. Hydro-Québec alone represents a major advantage for Quebec’s autonomy and is also an important lever for establishing close economic ties with the United States. Hydro’s total assets: $90 billion.
The Caisse de dépôt et placement du Québec is a major player in global financial markets, with net assets of $424 billion. The Caisse alone could finance more than double the province’s current debt!
What can we say about the Desjardins movement, which serves 7.5 million members through its funds and several subsidiaries across all financial sectors? His total assets: $407 billion.
The market value of the TOP 50 with the largest market capitalization in Quebec Inc. is more than 500 billion dollars on the stock market.
In interprovincial trade, approximately 21.7% of Quebec businesses source goods and services from other Canadian provinces. In return, 18.4% of our companies sell goods and services in other federal states. So it’s the other provinces that benefit from the change!
But when it comes to interprovincial trade volume, you should know that according to the latest data available (2021), Quebec comes out on top. We exported goods and services worth a total of $86.5 billion to other provinces, which is $7.3 billion more than the value of imports ($79.2 billion) from other provinces. Our most important Canadian partner is Ontario.
In international trade, the value of product imports reached $124 billion in 2022, which is $11 billion more than the value ($113 billion) of our exports.
By far our largest trading partner is the United States. Last year, products worth $82.6 billion were exported there. And our imports from the United States were $43.4 billion.
Since the major bankers of global high finance are well established in the United States, it is in our interest to convince them of the benefits of a hypothetical independent Quebec for the United States.
Bad challenge! Let Paul St-Pierre Plamondon and his supporters of a sovereign Quebec take this for granted!
