Former Royal Bank of Canada chief executive Gord Nixon is cautioning that newly-minted finance minister Chrystia Freeland will face a difficult path in her efforts to steer the domestic economy out of the COVID-induced crisis. In an interview on BNN Bloomberg Wednesday, Nixon said Freeland will face a tall task in engineering a broad-based recovery, given the unprecedented nature of the crisis.

“It’s not going to be easy. Chrystia is going into a portfolio that’s going to be very challenging, because we’ve been hit with something that has come out of the blue and set us back a year in terms of growth,” said Nixon, who now serves as chair of BCE Inc., which owns BNN Bloomberg through its Bell Media division.

“It’s going to be a question of tradeoffs and balance, and it’s going to be a question of investing in growth but at the same time they need a degree of fiscal discipline and social responsibility.”

Nixon said the federal government’s declaration that the crisis presents an “unprecedented opportunity” to create a “greener and more competitive” Canada is an admirable approach, but said spending plans need to be realistic about ensuring those green initiatives contribute meaningfully to economic growth.

“We want it to be green growth, as opposed to greenwashing,” he said. “A lot of people will talk up initiatives that aren’t really creating growth or creating value, or frankly creating benefit. But there are other opportunities where you can create that benefit and create that value.”

Nixon dismissed any concerns about Freeland’s lack of a Bay St. background impeding her ability to execute the tasks central to her new role, and praised her ability to take on key portfolios.

“I don’t think that’s a concern one bit when it comes to Chrystia,” he said. “She certainly has the tools and the capability to provide good leadership, so that won’t be an issue.”