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Prime Minister Stephen Harper says it's "good news" that his government is co-operating with the Liberals on a deal to review Canada's Employment Insurance rules, an agreement that will avert a summer election call.

A six-member panel will undertake the review, with three members appointed by the prime minister and the remaining three appointed by Liberal Leader Michael Ignatieff. It will report back to Canadians on Sept. 28.

The deal was sewn up Wednesday morning, following three meetings between the two leaders in a 24-hour period.

"We found a way to make progress for Canadians on employment insurance and we found a way to hold the government accountable," Ignatieff said.

Harper and Ignatieff met twice on Tuesday and had a phone conversation on Wednesday, before coming to terms on the deal.

"The good news we have today for people is that the breakthrough we actually have is a willingness of the government and the Official Opposition to work together on an important public policy matter," Harper said at a news conference on Wednesday. "I think it's always preferable that parties work together in these difficult times and that's what Canadians want."

The prime minister told reporters he spoke with Ignatieff about his Employment Insurance concerns, but Harper provided few other details about the talks.

"We discussed in very general terms our views on Employment Insurance, I wouldn't want to reveal anything prejudicial," Harper said.

The prime minister hinted that the EI system needs to be more uniform, though he said his party does not support dropping eligibility to the 360-hour mark, as has been suggested by the Liberals.

The Liberals issued a press release Wednesday morning describing the new panel as an "employment insurance working group."

The panel will be tasked with coming up with proposals "to allow self-employed Canadians to participate voluntarily" in the EI system, and to "improve eligibility requirements in order to ensure regional fairness."

According to the Liberals, "the parties will work in good faith to implement any consensus recommendations made by the working group."

At a news conference in Ottawa late Wednesday morning, Ignatieff said the panel will "seek to present to Canadians by September of this year, specific legislative proposals to bring the self-employed into the EI system. As you know, they are the largest group of unemployed Canadians who have no coverage," he said.

He said the panel would also work to "improve fairness, access and equality" within the EI system.

Ignatieff said he had selected Liberal MPs Michael Savage and Marlene Jennings to serve on the working group, along with his head of policy, Kevin Chan.

Harper said Human Resources and Skills Development Minister Diane Finley will be one of the Conservative-appointed members of the panel, along with an official from her department. The prime minister said he has not yet made a decision on who the third member who he will appoint to the panel.

Fall election?

The prime minister also agreed to give the Liberals an Opposition day at the end of September, something CTV's Ottawa Bureau Chief Robert Fife said could force an election, if the Liberals decide to move a non-confidence motion at that time.

The Liberals are expected to start voting against the government in the fall, setting up the possibility of an election, which Harper called "crazy."

"The last thing anybody should be doing today is saying we've got an agreement for now, but what that really means is we are going to defeat the government in the fall. I think that would be crazy," Harper said.

However, it is unclear if the NDP, who have consistently voted against the Tory government, would be willing to continue to do so knowing there could be an election.

NDP deputy leader Thomas Mulcair told Â鶹´«Ã½ Channel's Power Play the NDP votes against the government "on a case-by-case" basis and did not rule out propping up the government in the fall.

Mulcair criticized the Tory-Liberal deal and said Ignatieff "settled for nothing."

Bloc Quebecois leader Gilles Duceppe also lashed out at the Liberal leader and said "he choked."

Both the NDP and Bloc Quebecois have increasingly aimed their guns at the Liberal party, as polls show the Grits inching ahead.

The Conservatives had not intended to have an Opposition day until late December, shortly before the House of Commons shuts down before the holidays.

An internal Conservative memo circulated on Wednesday, however, did not concede any points to the Liberals as a result of the deal.

"The Liberals have reversed themselves on EI reform (their 360-hour demand has been abandoned) and withdrawn the threat to force an unnecessary summer election," the memo said.

"Instead, the Liberals will vote for the next round of stimulus in our Economic Action Plan."

Access to EI has become a thorn in the government's side in recent months, as more and more Canadians have found themselves needing federal support after losing their jobs.

The Liberals have asked that the government lower EI eligibility to 360 hours, the equivalent of 45 work days, though the prime minister has called that target "irresponsible."

Harper said earlier this week that his priority was acting on an earlier campaign promise, to extend EI benefits to self-employed workers who are not currently covered under EI.

With files from The Canadian Press