Dec 1 (Reuters) - Following are key provisions of an agreement signed on Monday by Canada's three opposition parties to form a coalition which they hope would displace the minority Conservative government.

HOW THE COALITION WOULD WORK

- The Liberals and New Democratic Party would adhere to the agreement through mid-2011 and the separatist Bloc Quebecois would adhere to it through mid-2010 unless renewed

- During this time, none of the parties will support any non-confidence motions and they will support the government position on financial matters and on the overall policy direction laid out in the Speech from the Throne

- Only the Liberals and the New Democrats would have ministers (18 and six, respectively), but the Bloc says it would help build the budget speech and the throne speech

- Liberal leader Stephane Dion would be prime minister until a new leader for his party is chosen in May

FISCAL PRINCIPLES

- Stimulus would be provided over the next two years, with budget deficits likely

- A return to budget surpluses within four years

ECONOMIC STIMULUS

- Accelerate infrastructure funding and make substantial new investments

- Spend on housing construction and retrofitting

- Invest in key sectors, including manufacturing, forestry and automotive, with any aid contingent on a plan to return these industries to profitability

OTHER FINANCIAL MEASURES

- Cut the minimum required withdrawal from retirement funds by 50 percent, for 2008

- Reform bankruptcy and insolvency laws to better protect pensions

- Make employment insurance easier to access and insure that all revenues goes to benefits and training

- Support the Canadian Wheat Board

CLIMATE CHANGE

- Work with North American partners to pursue a North American cap-and-trade market for carbon emissions, with absolute emission targets, using 1990 as the base year.

WHEN AND HOW CAN IT TAKE EFFECT

- The opposition parties will have a chance on Dec. 8 to vote non-confidence in the Conservative government, unless the government tries to suspend Parliament in the meantime.

- Governor-General Michaelle Jean, representative of head of state Queen Elizabeth, would have to decide whether to ask the coalition to form a new government; she could also back a possible attempt to suspend Parliament or a possible government request to call a new election

PARTY STANDINGS FOLLOWING OCT. 14 ELECTION

- Conservatives 143 seats in House of Commons

- Liberals 77

- Bloc Quebecois 49

- New Democratic Party 37

- Independents 2 (Reporting by Randall Palmer; Editing by Jeffrey Jones)

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