UK's two big parties court Lib Dems
Brown offers to quit:
UK: Britain's two big rival political forces planned to resume wooing
the smaller Liberal Democrats on Tuesday after Prime Minister Gordon
Brown said he would step aside to try to keep his Labour Party in power.
Brown's announcement disrupted efforts by the centre-right
Conservatives to broker a government deal with the Liberal Democrats
after the country's first inconclusive election since 1974.
The Conservatives emerged as the largest party in Parliament after
last week's election but fell 20 seats short of an outright majority in
the 650-seat parliament.
They quickly began talks with the Liberal Democrats on a government
alliance, but Liberal Democrat parliamentarians asked for more clarity
on issues including reform of the voting system. Sensing hesitancy on
the part of the Liberal Democrats, Brown appeared outside his Downing
Street office to announce that he planned to step down by the time the
Labour Party holds its annual conference in September.
Liberal Democrat leader Nick Clegg had said during the campaign that
he was reluctant to work with Brown and the prime minister's departure
could smooth the path to a deal.
Sterling and British government bonds fell on the uncertainty, with
markets taking fright at the prospect of prolonged political uncertainty
in a country struggling with a record budget deficit.
Clegg, 43, finds himself in a difficult situation. His party has more
in common with Labour in terms of policy, but the two parties combined
would not be able to command a majority and would need to enlist the
support of smaller parties. An alliance with the Conservatives would
offer a more stable formation, with a strong majority but a more
difficult political compromise.
"We are keen to settle things as soon as we can," Clegg told
reporters after a meeting with his parliamentarians that ended after
midnight.
"There is going to be a further meeting (later on Tuesday) to have
discussions about where we are and see if we can resolve the existing
issues that are outstanding," said David Laws, one of the party's
negotiating team.
London, Tuesday, Reuters |