Tackling economic crisis British coalition’s priority

Author: 
Reuters
Publication Date: 
Thu, 2010-05-13 02:52

Cracking jokes with his new deputy Nick Clegg, leader of the third-placed Liberal Democrats, Cameron hailed a “historic and seismic shift” in British politics as he sought to bury their old rivalry.
With Britain emerging from its worst recession since World War Two, the new coalition must find a way to cut a budget deficit running at more than 11 percent of GDP.
“No government in modern times has ever been left with such a terrible economic inheritance,” Cameron told reporters in the garden of 10 Downing Street.
“We know there will be difficult decisions ahead. (The coalition) can be an historic and seismic shift in our political landscape.” At an open-air news conference, Cameron and Clegg stood side-by-side and forgot the animosity and insults of the close-fought election campaign, laughing at each other’s jokes and using first names.
Hailing a new era of British politics, Clegg said: “We need to rebuild not only the public finances but we also need to rebuild the British economy on new sustainable foundations out of the rubble of the old economy.”
The two sides agreed earlier on Wednesday to form a coalition.
Despite big differences on policies as varied as tax, immigration and nuclear weapons, the parties said they had agreed a policy program that will be stable and lasting.
The coalition adopted Conserv-ative plans to cut £6 billion ($9 billion) of spending this financial year, earlier than the Liberal Democrats wanted. “There is going to be a significant acceleration in the reduction of the structural budget deficit,” new Finance Minister George Osborne told reporters.
Britain’s financial markets had mixed fortunes as relief about the coalition deal was tempered by concerns about the harsh austerity measures that lie ahead.

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