REACTION: We don’t need a Canada Infrastructure Bank 2.0

• Norway’s largest sovereign wealth fund does not invest domestically

Montreal, April 27, 2026 – The new Canada Strong Fund, which was announced this morning by Prime Minister Mark Carney, risks costing taxpayers dearly while generating limited returns, according to an MEI economist.

“What the Carney government is announcing today is essentially the Canada Infrastructure Bank under a different name,” says Emmanuelle B. Faubert, economist at the MEI. “If the prime minister wants to create another sovereign wealth fund, he should take inspiration from Norway by implementing strict safeguards and presenting balanced budgets.”

Since 2019, the Norwegian government has run only one deficit, in 2020.

By contrast, Canada has not posted a single budget surplus over that period, and still lacks a concrete plan to return to budgetary balance.

Norway’s Government Pension Fund Global, its main sovereign wealth fund, is one of the most frequently cited examples of such funds.

Unlike the Canada Strong Fund announced by the Carney government, Norway’s sovereign fund has an explicit mandate to invest abroad rather than domestically, in order to avoid overheating the local economy.

The researcher explains that another benefit of such restrictions is that they limit the potential for political interference in the allocation of funds.

In a recent Economic Note, the MEI explained that companies financed by publicly backed venture capital tend to underperform those supported by private funds. This type of intervention also appears to crowd out private venture capital formation.

“Such government-backed industrial policies alters incentives, favouring entrepreneurs who tick the right boxes rather than those with the strongest growth potential,” adds Ms. Faubert. “While the goal of stimulating investment is a commendable one, the method that’s been chosen leaves a lot to be desired.

“Better results would be achieved by tackling the heavy regulatory and tax burdens that have contributed to the current economic malaise than by creating yet another new structure.”

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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