The GG made the only decision she could. Those complaining about it really don't understand our system of government I think. If the GG had gone against the recommendations of the PM, she would in effect be exerting the will of the Queen (she is the Queen's representative in Canada) over the will of the people's elected representative. Do we all really want the Queen to run our politics? I know the Queen doesn't want that, because she has said as much in relation to other commonwealth countries (Australia specifically I believe). If the GG had denied Harper's advice there would a consitutional crisis not just in this country, but in every commonwealth country. I expect the Queen would have removed the GG and Harper would have been able to "recommend" a new one to the Queen.
In any event, Harper and the Conservatives will work over the next 5 weeks to put together a budget that they hope will be supported. They'll almost assuredly work to discredit the separatist coalition as well, something that won't be nearly as hard. If the budget is passed, we all get on with our lives. If not, Harper will recommend the dissolution of parliament to the GG, a request she will certainly grant, and we'll go back to the polls some 35 days after.
If Dion wants to be PM, he needs to win that mandate from the voters by having more seats than the other guys, or having a coalition in place BEFORE the GG names the PM after the results of the next election.
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