Stéphane Dion announced his departure as Liberal Leader today, paving the way for Michael Ignatieff to take over as interim chief even as rival Bob Rae digs in his heels.
"As the Governor-General has granted a prorogation, it is a logical time for us Liberals to assess how we can best prepare our party to carry this fight forward," Mr. Dion said in his resignation letter.
"There is a sense in the party, and certainly in the caucus, that given these new circumstances the new leader needs to be in place before the House resumes. I agree. I recommend this course to my party and caucus. As always, I want to do what is best for my country and my party, especially when Canadians' jobs and pensions are at risk.
"So I have decided to step aside as Leader of the Liberal Party effective as soon as my successor is duly chosen."
Mr. Dion is under fire for the way in which he handled the formation of a coalition with the NDP and MPs have expressed deep concern about whether he is the individual to lead the party into a power-sharing agreement with Jack Layton's party.
Initially, he had announced his intention to step down in May, during the Liberal leadership convention. But the party pressed him to move up that decision.
Another contender, Dominic LeBlanc, withdrew from the race Monday and threw his support behind Mr. Ignatieff. "Michael can bring the Liberal Party together in a way that no other can, and he can bring the country together in a way that Stephen Harper has not," the New Brunswick MP said at a press conference in Ottawa.
Mr. Rae, meanwhile, is hanging tough. Speaking in Toronto, he said it is up to the party membership to decide who becomes the next leader and suggested an interim leader would have an unfair advantage in the race.
The former NDP premier of Ontario added that he prefers democratic contests to coronations.
Mr. Dion's decision to step down was greeted warmly by both the New Democrats and the NDP Leader Jack Layton issued a statement, saying he is looking forward to working with the next leader of the "Liberal-New Democrat coalition" on proposals for the economy.
"Mr. Dion and the entire Liberal caucus have shown courage and leadership by putting aside political differences with New Democrats to forge a majority coalition," Mr. Layton said. "They have made a commitment to the coalition to get the economy on the right track for Canadian families."
Leader Gilles Duceppe also issued a press release, praising Mr. Dion's willingness to put aside his own personal interests in order to allow the Liberals to choose a new leader. "Our opinions have differed radically in many areas, particularly regarding the status of, but Stéphane Dion has always strived to serve the interests of the population in the best way possible, according to his convictions," Mr. Duceppe said.
Québécois' support for the coalition as long as the new leader respects the terms of this agreement.
On Sunday, Mr. Ignatieff launched a bulldozer charge at the leadership, campaigning for the party's parliamentary caucus to elect him immediately as an interim replacement for Mr. Dion.
Mr. Ignatieff's organizers said they had the support of at least 55 of the party's 77 MPs, including Mr. Dion's most vocal supporter, suburban Toronto MP Bryon Wilfert, and MP Maurizio Bevilacqua, who chaired the 2006 leadership campaign of Mr. Ignatieff's major opponent, Bob Rae.
In addition, Mr. LeBlanc flew to Toronto Sunday night to meet with Mr. Ignatieff.
The plan calls for Mr. Dion's resignation followed by a vote that would likely install Mr. Ignatieff at the helm as interim leader. At a second-stage process — almost certainly the leadership convention currently scheduled for May — the party either would confirm him as leader or turn to his only other declared opponent, Mr. Rae.
The party's caucus executive met Sunday night and agreed to recommend the two-stage selection process to the national party executive, which is to decide the issue on Tuesday.
Should the Ignatieff plan prevail, the proposed Liberal-NDP coalition could well be scuttled. Mr. Ignatieff was never an avid supporter of the coalition and had turned against it by Saturday, according to party insiders.
