Tories: To deal or not to deal

FORMING a new government was always going to be a painstaking process, given how the electoral arithmetic left Britain in a state of political paralysis and with each of the main parties in a position of weakness after they failed to meet their own expectations.

This deadlock was also going to be compounded by three other factors that came into play during a weekend of high political drama: that negotiations were being conducted by politicians in a near state of befuddled exhaustion following the election; that a hung Parliament is a rare phenomenon and the underlying seriousness of the economic crisis.

As such, it was always going to take time for Tory leader David Cameron to reach an understanding with the Liberal Democrats Nick Clegg, if such a deal is going to stand the test of time – and not result in another election later this year. The fundamental problem is that the negotiators do not have time, with the international money markets likely to react with volatility to last night's statement by William Hague, Mr Cameron's chief spokesman, that the Tories and Lib Dems are at least 24 hours away from reaching a possible consensus.

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Such political uncertainty has the potential to cause widespread economic damage at a time when many financiers are already warning that the country's level of indebtedness is comparable to Greece's deficit. One source of encouragement was the Lib Dems' assertion that deficit reduction will be at the heart of any deal.

The complexity of Britain's position was encapsulated yesterday when Alistair Darling, the Chancellor, found himself negotiating in Brussels on behalf of Britain when, back home, the Tories and Lib Dems were locked in coalition talks in the Cabinet Office, and a growing number of Labour MPs said Gordon Brown's position as Prime Minister was untenable.

While many will, of course, be amused by Mr Brown's portrayal as a "squatter" holed up in 10 Downing Street, this is, actually, an unfair appraisal.

The constitution dictates that the incumbent Prime Minister remains in office until a new government can be formed which can command the confidence of Parliament, and, disappointingly, that position has not been reached.

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However, it is important that coalition talks do not become bogged down by conflicting views over proportional representation – the issue at the core of the Liberal Democrats' negotiating position.

When people cast their votes four long days ago, they were primarily voting for a government to restore parity to Britain's economy. They were not voting for a new electoral system, although the time has clearly come to determine whether the first-past-the-post system should be replaced.

Yet there is nothing to stop this debate, and a referendum on voting reform, taking place while the Tories, with Lib Dem support, get to grips with the appalling state of the public finances before Britain is plunged into an even greater political and economic crisis.

In short, the time has come for David Cameron and Nick Clegg to honour their respective commitments to put the national interest before party advantage and deliver a new style of government; one with trust and consensus as its two guiding principles.