Canada's Liberals pick Ignatieff

Michael Ignatieff (L) returned to Canada three years ago

Michael Ignatieff has been named as interim leader of Canada's main opposition Liberal Party.

The former Harvard academic is a well-known author, broadcaster and historian.

Outgoing leader Stephane Dion said on Tuesday he would resign early, having lost favour with his party after the Conservatives won the October election.

If plans to topple Prime Minister Stephen Harper succeed, Mr Ignatieff could become prime minister in January.

"This decision comes at an historic time for Canada," party president Doug Ferguson said in a statement after the party's national executive council confirmed Mr Ignatieff as interim leader.

"Our interim leader will be called upon to lead our caucus and our party through a volatile parliament, and a possible federal election in the midst of the worst economic crisis in memory."

Power games

Last week, an opposition coalition tried and failed to topple the government, which relies on opposition votes to pass budgets and legislation.

Stephane Dion lost favour with the Liberals after losing October's election

The Liberals and the New Democratic Party (NDP), with the support of the separatist Bloc Quebecois, had agreed to vote together to overthrow the government in a confidence vote scheduled for 8 December, and form a coalition government.

But, in an unprecedented move, Mr Harper avoided the vote by asking the governor general to suspend parliament until late January, when the government will present a budget.

Should the opposition parties stick to their plan to vote against the Conservative government when it presents its budget on 27 January, Canadians will be faced with either another general election, or a Liberal-NDP coalition government.

But Mr Ignatieff has been lukewarm to the prospect of a coalition, describing his position on Sunday as a "coalition, if necessary, but not necessarily a coalition".

Hard knocks

Mr Ignatieff returned to Canada in 2005 after almost 30 years abroad. A year later, he ran for leader of the Liberal Party, but his long absence from Canada and perceived political naivety worked against him.

"I think the ballot question the last time was 'who the hell does he think he is?'" said Mr Ignatieff.

Since then, Mr Ignatieff has travelled across Canada, building the bridges necessary to secure his political future.

The 61-year-old is believed to be to the right of the party, favouring Canada's military mission in Afghanistan.

His early support of the Iraq war also attracted controversy.