Mark Carney warns of grey‑zone threats while urging Canada’s tax overhaul

Former Canadian finance minister Mark Carney told the World Economic Forum that the rules‑based international order is “a pleasant fiction” and that state actors are already using economic coercion, disinformation and land‑acquisition as grey‑zone tools, particularly against Australia. He said Australia’s response is “technically serious but conceptually misaligned” because it assumes a rule‑breaking adversary that can be deterred within existing frameworks, whereas the actual threat operates on different assumptions. Carney cited Japan’s long‑standing grey‑zone doctrine as a contrast.

In Canada, Carney met with CEOs of the country’s largest banks, insurers and pension funds, arguing that a comprehensive tax reform is needed to restore competitiveness. He highlighted that since 2016 the top personal income tax rate has risen to 33 % federally (53 % combined in Ontario), placing Canada among the highest‑taxed OECD economies, and that corporate tax policies have discouraged entrepreneurship. Carney called for a major overhaul of the tax system to attract investment and talent.

Both remarks underline Carney’s push for policy shifts that address security threats abroad and economic competitiveness at home.