The chances of an early Canadian election appeared to diminish sharply on Tuesday after the leader of Canada's main opposition party held two rounds of "productive" talks with Prime Minister Stephen Harper.
Liberal leader Michael Ignatieff had threatened on Monday to topple Harper's minority Conservative government, but the political temperature dropped when the two men met for what both sides agreed were productive discussions.
More talks were scheduled for Wednesday morning, spokesmen for both sides said, but the outcome seemed increasingly clear. Ignatieff's ally Steve MacKinnon said on CTV television that he expected "ultimately no election."
Ignatieff had said on Monday he would try to bring down the Conservatives on a budgetary vote on Friday unless Harper explained in detail how he planned to help Canadians survive the economic downturn.
Although Harper quickly delivered a largely defiant response, Ignatieff then said he saw enough in the prime minister's words to indicate some progress had been made. Harper then suggested the two meet on Tuesday.
"We're gradually getting clearer answers and we made a little progress yesterday," Ignatieff told French-language broadcaster Radio-Canada before the talks started.
After having spoken of progress and productive talks, it would be tricky for Ignatieff to suddenly force an election.
Canadians are showing little interest in what would be the country's fourth election in little over five years. A Harris-Decima poll for Canadian Press on Monday said only 14 percent of respondents wanted an election now.
The country has had minority governments since 2004, requiring the governing party to win the support of at least some opposition members or to face another election.
Political observers largely agree that Ignatieff took too hard a line on Monday and is now seeking a way out.
Ignatieff, who like Harper insists he does not want an election now, says he is most concerned about the unemployment benefit system, which he demands be made more generous and more widely available.
Harper said on Monday that Ottawa would expand the system to include the self-employed later this year but added that broader changes would be too expensive.
"This afternoon I will put questions to the prime minister to see if there's draft legislation on the self-employed or whether these were just vague words to calm down the political situation," the Liberal leader said.
But Ignatieff also said he was prepared to be flexible on his demands for more jobless benefits, given that Canada faces a C$50.2 billion $44.4 billion budget deficit this year.
He also wants Ottawa to explain how it is spending billions of dollars in stimulus money, how it will restore the budget surplus, and how it plans to overcome a shortage of medical isotopes used in cancer and heart tests.
"As we don't have clear answers to these questions right now, it is very difficult for our party to vote in favor of more money for this government," Ignatieff said.
Polls show the Liberals are slightly ahead of the Conservatives but do not have enough support to guarantee winning even a minority government. The last election was in October 2008.
Editing by Anthony Boadle
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