Monday, November 29, 1999

UK Lib Dems press for clarity in govt coalition talks

News posted by www.newsinfoline.com

Liberal Democrat legislators sought clarification on Monday about details of a possible deal with the Conservative Party to form Britain's next government, a party negotiator said.The comments suggested a delay in reaching agreement on a government despite intense pressure from markets which want clarity after Britain's first inconclusive election since 1974.Negotiator David Laws told reporters that members of the smaller party wanted to hear more from the Conservatives on education spending, a fairer taxation system and voting reform."Although we are very, very conscious of the need to make these decisions quickly, and that's a clear decision of the parliamentary party today, we also want to make sure that we get these matters right," Laws said.David Cameron's centre-right Conservatives and the Lib Dems, led by Nick Clegg, are trying to thrash out a deal that could lead to Britain's first collaborative government for more than 30 years.The Conservatives won the most seats in parliament in last Thursday's election but are 20 seats short of a majority in the 650-seat parliament. Labour, in power for 13 years, came second and the Lib Dems a distant third.Conservative and Lib Dem negotiators said earlier they made progress at talks to reach a power-sharing deal, although others called for caution on how quickly a deal could be clinched."I'd be surprised if there was a deal today but there is an opportunity for us to consider the position within hours if that is necessary," said Simon Hughes, a senior Lib Dem legislator.The talks centre on the best way to rebuild the economy, after the worst recession since World War Two, and cut a record budget deficit, party figures said over the weekend."We have made further progress," said William Hague, chief negotiator for the Conservatives. "We are now going to report back to David Cameron and have meetings with our parliamentary colleagues."BROWN'S ROLEGordon Brown, whose Labour Party has ruled Britain since 1997, remains prime minister while the negotiations continue. He still hopes to woo the Lib Dems and hold on to power.The Conservatives want Liberal Democratic support either in a formal coalition or a looser power-sharing deal.The two parties, which disagree on electoral reform, immigration and Britain's ties with the European Union, have limited time to reach an agreement.While financial markets were focused on the EU and International Monetary Fund's rescue package to stop the Greek debt crisis from spreading, they will want Britain's uncertain political situation to be resolved in the next few days."The market's patience over the UK political situation will only last for a limited time," said Howard Archer, chief UK economist at IHS Global Insight.Any breakdown of talks between the Conservatives and the Lib Dems would delay the formation of a new government and raise the possibility of a wider, and possibly more unstable, pact between the Lib Dems, Labour and a host of smaller parties.Analysts said markets would take solace from comments by the Conservatives and Lib Dems that reducing a deficit running at more than 11 percent of national output would be a plank of any deal.A stumbling block to a Conservative/Lib Dem deal could be electoral reform, a long-cherished ambition of the Lib Dems who would win far more seats if Britain switched from its winner-takes-all system to proportional representation.For multimedia coverage, click http://r.reuters.com/quq44jFor a graphic of gilt and stg reaction, click http://r.reuters.com/nec23kFor a graphic of results, click http://r.reuters.com/hym23k- See us online http://uk.reuters.com/news/globalcoverage/politics- Follow us on Twitter https://twitter.com/reuters_co_uk(Additional reporting by Keith Weir, David Milliken and Fiona Shaikh; Editing by Mark Heinrich)

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