Quebec Independence May Come at a Steep Price, Study Suggests

A recent study on Alberta's potential independence from Canada has shed light on the economic implications of Quebec separating from the country. The report, commissioned by the Alberta government and conducted by experts at the University of Calgary, found that Alberta's separation could cost between $50 billion and $170 billion over a five-year period.

The study highlights the complex economic reality of secession, which is often touted as a panacea for Quebec's financial woes. However, the report suggests that the costs of independence would be significant, with potential losses in GDP ranging from 1.2% to 7.7%. The authors also point out that an independent Quebec would need to establish its own military and border services, which would come at a cost.

The Parti Québécois (PQ) has promised to hold a vote on independence after Donald Trump's term ends in January 2029, citing the unpredictability of his administration as a reason for the delay. The PQ's costed platform outlines a $130-million price tag for preparing and holding a referendum.

However, experts warn that Quebec would face significant challenges in navigating its new status as an independent country. Tim Sargent, the lead economist on the report, noted that an independent Quebec would 'face a bigger risk premium' that would increase interest rates throughout the economy, passed on to consumers and raising the cost of mortgages and lines of credit.