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Andrew Steele is vice-president at StrategyCorp, Canadas integrated public affairs, communications and management consultancy. He served as senior adviser to Ontario premier Dalton McGuinty

Despite a 14-year run in office, the Ontario Liberals havent had much swagger of late. But that may change. As the government turns the corner on a balanced budget, Ontarians are about to see the government shift into an explicitly small-l liberal groove for the first time in almost a decade.

Cast your mind back. During the Great Recession, Ontarios balanced budgets of 2006 and 2007 gave way to $20-billion-a-year deficits in 2008 and 2009. While the public was hardly clamouring for fiscal discipline in the era of GMs bankruptcy, premier Dalton McGuinty nevertheless made a promise to balance by the year 2017.

The province has since held by that pledge, even after the Liberals chose a new premier, Kathleen Wynne. But fiscal discipline is no longer a key vote driver with the Liberal coalition. While in the mid-00s balanced budgets were the necessary precondition to be seen as competent managers, public opinion subsequently shifted. Today, deficits are no longer anathema.

In fact, the belt-tightening required to balance the budget may have been a large factor in Ms. Wynnes poor postelection polling. Voters elected Kathleen Wynne as a progressive breath of fresh air who would build Ontario up with public spending. Those voters felt a lunch-bag letdown when her first three years with a majority government were spent doing not-so-Liberal things such as managing down labour-cost pressures and selling Hydro One.

With a balanced budget now in the works, the Liberal Premier appears likely to begin governing unbound. Ms. Wynne is now in a position to undertake a much more aggressive agenda in line with the deficits and infrastructure spending of the popular Trudeau Liberals. While that approach will find no friends with National Post editorial writers and Bay Street, it is likely to prove more popular than the austerity of the past decade.

This Great Shift Left will see the end of 10 years of austerity and incrementalism in pursuit of a refashioning of the social compact to help Ontarians prosper in the face of globalized disruption. It is fuelled by the fastest growth in the country in 2017, growth that is expanding the fiscal capacity of the province at the exact time there is renewed permission for spending.

The Ontario government signalled its intention to move to the left over past weeks. Already they have announced:

What is waiting in the wings is even more dramatic:

Shifting left is a smart political strategy for the struggling Liberals.

The NDP has been siphoning left-leaning voters from the Grits on the back of fiscally driven decisions such as the Hydro One privatization and battles with public-sector unions to control costs. Moving left could help the Liberals win back many of these progressive voters.

But the primary threat to the Liberals remains the Conservatives. Since winning the leadership as the darling of social conservatives, Patrick Brown has been removing the Mike Harris-era rough edges off the PC Party. His efforts sparked a backlash among party grassroots with a pledge to implement a carbon tax. All of this is in an effort to remove policy differences between the PCs and Liberals so the next election is fought on time for a change and not over the PCs policy positions.

Shifting left will open up room between the PCs and Liberals, likely too far for the already internally assailed Brown to follow. That will give the Liberals the ability to fight the election on policy, polarize the vote between themselves and the PCs, minimize the NDP vote and make the election a choice instead of a referendum on themselves.

No government looks good measured against perfection. But by shifting left, the Liberals hope they will be measured against Patrick Brown, a more appetizing prospect.

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Ontario's Liberals take a big step to the left - The Globe and Mail

OTTAWA A new federal agency designed to fuse public and private dollars to help build infrastructure in Canada could end up building new roads and bridges south of the border so long as they connect to the Great White North.

The legislation for the Liberals' proposedinfrastructure bank would allow the arm's-length organization to use public money to help bankroll or financially backstop projects that are "in Canada or partly in Canada."

The key for the government is that there has to be a financial benefit and a physical connection to the country, meaning Canadian dollars won't be building any infrastructure solely in the United States or anywhere overseas, andsuggesting that the government is interested in funding projects like transmission lines and bridges that cross the border and have a revenue stream attached to them.

U.S. President Donald Trump's transition teammusedabout setting up an American infrastructure bankthat would use various financing toolsto lure private dollars towards the construction ofpublic assets like new transit and transportation networks and the issue remains a topic of discussion in American political and academic circles.

Minister of Infrastructure and Communities Amarjeet Sohi. (Photo: The Canadian Press/Adrian Wyld)

Infrastructure Minister Amarjeet Sohimet high-level American officials on two separate visits to Washington, D.C., along with top officials at the International Monetary Fund and the World Bank, all of themkeenly interested in how the Canadian bank will operate once it officially launches.

So tooare observers and investors in Canada, many of whom still havequestions about the bank's operations and whether the legislation as worded could put up roadblocks to the bank's success.

At the heart of the concerns is one of independence from political interference: Giving the government too much control over the bank's operations could end up scaring off investors who don't want short-term political opportunism meddling in long-term infrastructure projects. On the flip side, not enough political oversight could scare off cities and provinces who would be the ones to bring projects forward.

"We believe that the legislation to create the CIB strikes the right balance between creating an arms-length Crown corporation that would attract private capital to build more infrastructure across Canada and would ensure the agency is accountable to Parliament in its management of public funds," said Brook Simpson, a spokesman for Sohi.

The Liberals are infusing the bank with $35 billion in government funding, hoping that the money can leverage three or four times that much in private dollars to build infrastructure in Canada.

Last year, Finance Minister Bill Morneau's council of economic advisers envisioned a very specific decision-making process that would only allow government to step inif a project didn't have a revenue stream attached to it, wasn't in line with the government's growth strategy, or didn't have a private backer.

Finance Minister Bill Morneau. (Photo: Reuters/Chris Wattie)

The overarching idea was to make the bank independent, so that it would be viewed as credible by capital markets and signal stability to private investors.

Private pension funds have pushed for months for the Liberals to make the new bank independent from government intervention. Now that the legislation is out, some are privately expressing concerns while others are taking a wait-and-see approach, knowing that more details about the bank's operations will come from a corporate plan set to be released later this year.

Government officials have been telling investors that the plan for the bank would be for the government to approve a project when it is submitted to the bank for review, meaning cabinet couldn't cancel a project later on in the process. Nor would there be any restrictions on where private backing could come from, easing concerns from some corners that only blocking foreign funds could see retaliation against domestic funds that invest overseas.

Benjamin Dachis, associate director of research at the C.D. Howe Institute, says investors could be scared away fromworking with the bank if they don't feel that there are strong firewalls to prevent political meddling in long-term projects.

"Private investors will be very skittish if they know that any individual decision is going to be subject to right until the actual project is completed that any infrastructure can just be scuttled by the government of the day," Dachis said.

"This legislation needs to strike that balance between democratic oversight, but institutional independence to make sure that projects that go ahead are the right ones and not just politically attractive ones in the short term."

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Liberals' Infrastructure Program Could Pay For Projects In U.S. - Huffington Post Canada

New York Times

After Georgia's Close Race, Montana Democrats Demand Party's Attention New York Times But grass-roots liberals are not about to let party leaders lapse back into traditional red state, blue state assumptions. Instead, the Democrats' enthusiastic base is demanding to compete on terrain that once seemed forbidding, a formula for disputes ... Georgia race is national therapy session for liberalsNewsday Trump Bashes Georgia Dem as Liberals Spend Big to Flip Tom Price's SeatFox Business Liberals fume at Democratic establishment as timid about TrumpThe Providence Journal Washington Free Beacon -NBCNews.com -Salon all 1,396 news articles »

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After Georgia's Close Race, Montana Democrats Demand Party's Attention - New York Times

I understand that there is a political story around personal popularity, but thats actually beside the point for me, Premier Kathleen Wynne said firmly. (Ed Clark, chair of the Premier's Advisory Council on Government Assets, is pictured at a 2015 announcement on beer being sold in Ontario grocery stores.) ( MARTA IWANEK / THE CANADIAN PRESS file photo )

A defiant Premier Kathleen Wynne said she is not going anywhere despite concern within the governing Liberals that her unpopularity is hurting the party.

Ive made a decision, with the support of my caucus, to go into the next election, Wynne told reporters at the Childrens Hospital of Eastern in Ottawa on Wednesday.

We have important work still to do. Were on the verge of . . . bringing in a balanced budget for the first time in nearly a decade, she said, referring to Finance Minister Charles Sousas April 27 budget.

That will allow us to do more of the things that are needed in this province, whether its in health care, whether its in infrastructure.

Her comments came in the wake of a front-page Star story on Tuesday that revealed unease within the Liberals because Wynne badly trails Progressive Conservative Leader Patrick Brown and NDP Leader Andrea Horwath in public opinion polls.

The Star revealed that more than a dozen Liberal MPPs are considering not running again in the June 7, 2018 election over concern her numbers will drag them down.

I understand that there is a political story around personal popularity, but thats actually beside the point for me, the premier said firmly.

The point for me is to do the work that I was elected to do with the support of my colleagues, she said, flanked by Attorney General Yasir Naqvi, Community Safety and Correctional Services Minister Marie-France Lalonde, and MPP Nathalie Des Rosiers (Ottawa-Vanier).

Of course, there are political calculations along the way. There always are. Ive been in this office since 2013. We won a majority in 2014 and we have been doing the work that we were elected to do.

Asked why her personal popularity appears to be down the economy is performing well and residential electricity rates are being cut by 25 per cent this year Wynne smiled gamely.

Im going to leave that to the pundits and to the press . . . to analyze.

The Star disclosed that some Grits are worried about continuing organizational challenges in the Ontario Liberal Party.

Within hours of those concerns being aired in print, the Liberals scrambled to announce a candidate for an upcoming byelection in Sault Ste. Marie, former local mayor Debbie Amaroso, and unveiled a new executive director of the party, former political staffer David Clarke.

One senior Liberal admitted the revelations in the Star were a wake-up call for a party that has been in power since October 2003.

To that end, the Grits are touting the skills of campaign co-chairs David Herle, who managed the victorious 2014 effort, deputy premier Deb Matthews, and prominent lawyer Tim Murphy, as well as campaign director Chad Walsh, a rising star in the party.

The Liberals also announced new campaign committees to oversee fundraising, candidate recruitment, the election platform, organization and communications.

Speaking in Toronto, Matthews said Wynne is our best asset.

She is making some really substantial change for our government . . . and her caucus is fully behind her and the party is fully behind her, she said.

You know, we can get distracted by polls . . . so do not write Kathleen Wynne off. Shes a very, very strong leader for us.

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Kathleen Wynne insists she's not going anywhere despite concern among Liberal MPPs - Toronto Star

By now, you should have seen enough to decide whether youre inclined to vote for Justin Trudeau in the next election.

With the arrival Thursday of legislation to legalize marijuana use, with two of their four budgets behind them, and with most of the agenda implemented, imminent or abandoned, the Liberals first term has largely taken shape. Should it also be their last? Lets take a look at how the government has performed thus far. Consider this one observers midterm report card.

Mr. Trudeau came to power vowing to admit 25,000 refugees displaced by the Syrian civil war. The rookie government missed the Dec. 31, 2015 deadline, but not by much, and the airlift has been welcomed by most Canadians. Former immigration minister John McCallum also increased the annual intake of immigrants to 300,000, which will help sustain a Canadian population that, were it not for immigration, would otherwise soon be in decline. The jury is still out on how the Liberals are handling refugee claimants crossing the border illegally, but overall this governments immigration and refugee policy deserves high praise.

Margaret Wente: Justin Trudeau's out of touch with the 99 per cent

Praise is also warranted on the trade file. In opposition, the Liberals were lukewarm to the Conservative governments ambitious trade agenda. In government, they became firm supporters, pushing hard and successfully (if the Walloons can be kept onside) to complete the agreement with the European Union. Will they be able to conclude a deal with China, Japan or another major Asia/Pacific nation between now and 2019? If so, the Liberals could count trade as one of their signature achievements.

On the environment, Justin Trudeau promised a new resolve in Canadas efforts to fight global warming. In the end, he simply embraced the targets established by the previous Conservative government. But the Liberals appear determined to meet those targets, and to that end have persuaded most provinces to impose some form of carbon tax. Promise made; promise at least partly kept.

The Liberals also deserve qualified praise for their handling of the health-care file. Their funding broadly follows the targets set by the Harper government, but Health Minister Jane Philpott did find some extra dollars for mental health and home care, which the provinces, for the most part, accepted. Should Ottawa be meddling in how the provinces handle health care? And is the money enough to meet the need? Probably not, in both cases. And the federal/provincial prescription-drug strategy remains more aspiration than reality. But Ms. Philpott can take credit for preventing a federal/provincial impasse on funding.

The Trudeau governments relationship with the military is more problematic. Full marks to Mr. Trudeau for his governments commitment to lead a NATO battle group in Latvia, to deter Russian ambitions. Defence Minister Harjit Sajjans biggest procurement move was to acquire Boeing Hornets as a stopgap to replace the terminally aged CF-18s, while holding off on a permanent replacement for several more years. It was a controversial decision, but at least it was a decision. On the downside, the Liberals still cant make up their minds whether to commit to a peacekeeping mission in Africa, a defence review has been repeatedly postponed and the shipbuilding program continues to be plagued by delays. A very mixed bag.

Closer to home, Justice Minister Jody Wilson-Raybould skillfully piloted an emotionally charged bill on assisted dying through Parliament. The marijuana legislation is another big, important file that she has kept on top of. But the governments efforts to streamline and modernize the criminal-justice system havent prevented impatient judges from throwing out cases that take too long to come to trial. Delays in appointing judges are making things even worse. The minister has to take responsibility for this serious miscarriage of justice.

People have reason to be disappointed in this governments handling of Indigenous issues. Mr. Trudeaus most impassioned promise was to transform relations with Canadas Indigenous peoples on a nation-to-nation basis. But although funding has increased, nothing transformative has emerged. The inquiry into murdered and missing Indigenous women and girls proceeds at a glacial pace which anyone could have predicted and there is little evidence of accelerated progress in settling land claims, or of progress toward comprehensive education reform, which the Conservatives tried but failed to implement.

But what about the finances, you might reasonably ask. How the government raises and spends taxpayers money is a key metric on how it is judged. From this armchair, the government has little to brag about. The Liberals promised during the election campaign to run modest $10-billion deficits, with the money devoted to renewing infrastructure. Instead, the deficit was $23-billion in the past fiscal year, and is projected to be $28.5-billion in 2017-18, with no end to red ink in sight. A Senate report criticized the governments $186-billion decade-long infrastructure plan for its lack of clarity and co-ordination. The Liberals did implement their promise to make income tax and the child benefit more progressive, punishing the wealthy and rewarding the middle class, and Finance Minister Bill Morneau has earned praise for initiatives that make it easier to recruit foreign talent, raise venture capital and bring innovations to market. Its a one-hand, other-hand file. Mr. Morneau negotiated an enhanced Canada Pension Plan with the provinces: Good. He lowered the retirement age for old-age security: Bad. But its the growing debt that causes this writer the most concern. When will this government keep its promise to balance the budget?

On two files, the Liberals deserve unremitting scorn. We are committed to ensuring that 2015 will be the last federal election conducted under the first-past-the-post voting system, Mr. Trudeau said, over and over again. But when a parliamentary committee urged a move to proportional representation, Mr. Trudeau balked; he also resisted calls for a national referendum on the subject. In February, the government announced it was scrapping its electoral-reform plans. A total fail.

The Liberals promised, as well, to end the conversion of home delivery of mail to community mailboxes. A subsequent study estimated that abandoning conversion would cost $400-million and sink the Crown corporations efforts to stay in the black. A final decision is expected this spring on whether to break the promise or lose the savings. Both choices are lousy. Shame on the Liberals for painting themselves into this corner.

On one vital issue, the jury is still out. Foreign policy under the Trudeau government has broadly cleaved to the principles established by Stephen Harper: a strong commitment to NATO and to free-trade agreements, caution in dealing with trade and human-rights issues in China, and stern disapproval of Russian ambitions in Ukraine and elsewhere in Europe. But the election of Donald Trump as U.S. President changed the game. Keeping the Canada-U.S. border open, successfully renegotiating the North America free-trade agreement and preventing a crippling import tax from applying to Canadian exports are the most important priorities for Foreign Affairs Minister Chrystia Freeland. Her success or failure could define this government.

Otherwise, not much is likely to change over the next two years, for better or for worse. You may disagree with this report card, but you surely know enough now to come up with one of your own.

Follow John Ibbitson on Twitter: @JohnIbbitson

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Trudeau's Liberals: A midterm report card - The Globe and Mail