An agreement signed by the Liberals and New Democrats with the support of the Bloc Quebecois could set the stage for a historic coalition government should the Tory minority fall in a vote of confidence next week.

As the CBC reported, the deal comes after Liberal caucus members gave Stephane Dion a clear mandate to lead the coalition earlier today.

Dion has written to Governor General Michaelle Jean to inform her that he has the support of the House of Commons to take over Stephen Harper’s job if the Tories are defeated on Dec. 8.

In a letter addressed to the citizens of Canada, all three opposition parties criticized Harper for failing to adequately deal with the global economic crisis. Here is a transcript of the letter:

Canada is facing a global economic crisis. Since the recent federal election, it has become clear that the government headed by Stephen Harper has no plan, no competence and, no will to effectively address this crisis. Therefore, the majority of Parliament has lost confidence in Mr. Harper's government, and believes that the formation of a new Government that will effectively, prudently, promptly and competently address these critical economic times is necessary.

The contrast between the inaction of Mr. Harper's government and the common action taken by all other Western democracies is striking. We cannot accept this.

A majority of Canadians and Quebecers voted for our parties on October 14, 2008. Our Members of Parliament make up 55 per cent of the House of Commons.

In light of the critical situation facing our citizens, and the Harper government's unwillingness and inability to address the crisis, we are resolved to support a new government that will address the interests of the people.

Today we respectfully inform the Governor General that, as soon as the appropriate opportunity arises, she should call on the Leader of the Official Opposition to form a new government, supported as set out in the accompanying accords by all three of our parties.

The current political showdown stems from a controversial fiscal update proposed by the Conservatives last week. If Parliament passes a Liberal no-confidence motion on the legislation next Monday, Dion will ask Jean to approve plans for a coalition government.

Harper has accused opposition parties of making backroom deals and today charged Dion with "playing the biggest political game in Canadian history" during Question Period. Meanwhile, the Toronto Star opined that the Tory government's failure to compromise on a "hot button" economic plan is to blame for the crisis.

As the Tyee pointed out, the entire controversy is reminiscent of the King-Byng affair of the 1920s, which created a constitutional crisis that lasted 11 months.

Already, the CBC story on the Dion agreement has generated nearly 3,000 reader comments. Writing for the Globe and Mail, Mathew Ingram suggested a similar overload of opinion on the Globe’s website was a testament to the vibrancy of Canadian democracy.

Geoff Dembicki is a staff reporter for the Hook.