According to CBC, this is getting serious. Still, you have to convince the Conservatives a coalition is really possible for them to take such a threat seriously(er).
I find the idea of a coalition (extremely) entertaining, but I wonder if it's such a good idea for the Liberals. The LPC might become the doormat of the House, with smaller parties using their contribution as leverage.
But my emotions are very, very optimistic if a coalition becomes an option. Even more so if such a coalition actually works well. Many other parliamentary systems regularly function with minorities and coalitions.
Perhaps they have no conservatives.
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