Prime Minister Stephen Harper and Liberal Leader Michael Ignatieff will meet again Wednesday in an attempt to defuse a political showdown threatening to spark a summer election.
Sources told CTV News that Ignatieff and Harper had agreed to further examine the rules surrounding employment insurance. The prime minister will apparently create a blue-ribbon panel to examine the divisive issue over the summer, and Ignatieff will choose two of its members.
The leaders met twice on Tuesday. In a sign the two sides have managed to avert a non-confidence vote for the Harper government, officials from both camps called the meetings "productive."
Earlier in the day, Ignatieff said he was "optimistic" that the two leaders could co-operate to make Parliament work -- despite a brewing political showdown that came to a head this week.
Harper offered to meet with Ignatieff Tuesday ahead of a confidence vote Friday on the government's summer fiscal update.
The opposition has threatened to topple the government over four issues: EI reform, stimulus spending, the growing deficit and the medical isotope shortage.
"The prime minister doesn't have the confidence of the House of Commons, he has to work with other opposition leaders like myself," Ignatieff told CTV's Canada AM on Tuesday.
"We're doing the business of Canadians, we're making the system work for Canadians, and I'm optimistic today that we can make some progress but I will have to see what happens in the meeting."
On EI reform, Harper said Monday that the opposition's proposal to lower EI eligibility to 360 hours -- a figure equal to only 45 workdays -- is "irresponsible."
Instead, the prime minister said he is open to extending EI benefits to self-employed workers not currently covered under EI.
Ignatieff said he wanted to hear more "specific detail" about the plan.
In the government's economic progress report, which Harper delivered last Thursday, it says 80 per cent of stimulus spending was being implemented and 3,000 new infrastructure projects have begun.
Ignatieff said Harper is not telling Canadians the "whole truth" about stimulus spending.
He said he wants the prime minister to explain how much has been spent, not just implemented, so far on stimulus projects.
Industry Minister Tony Clement said the government is willing to get into the details of its stimulus spending.
Still, he said Canadians don't expect the government to announce a project on day one and on day two to have the complete project done.
"People know that to be responsible you have to allocate the money, have an agreement with the municipality or province, and then spend the money over time as the project is being built," Clement told CTV's Canada AM on Tuesday.
Despite their differences, Ignatieff said he was hopeful that an election could be avoided.
"I take the prime minister at his word, he doesn't want an election, and I'd like to avoid an election if we can," Ignatieff said.
Clement said Ignatieff wants an election but "doesn't want to be blamed for an election."
He said Ignatieff has to show more "flexibility" on the issues.
The NDP and Bloc Quebecois have already said they intend to vote against the government on Friday.
