The other big factor restraining business investment was the delay in the Trans Mountain Pipeline project. The signing of CUSMA is likely to support a rebound in investment, particularly given ongoing capacity constraints, although governments still need to implement the agreement. Furthermore, the federal government’s recently announced tax changes will lead to a further strengthening in investment.
However the combination of a European supervisor of banks with responsibility for the resolution of bank failures remaining at the national level may not be a stable equilibrium in political economy terms, as individual member state governments may question and resent the imposition from the SSM of bank resolution requirements potentially including recapitalisation costs.