Britain's Unlikely Coalition Government

The coalition between the Conservatives and the Liberal Democrats has created the first coalition government since 1945. Despite the Lib Dems' poor election performance, they have secured key cabinet positions and negotiating leverage. The partnership has both benefits and drawbacks for both parties, including shared responsibility for unpopular austerity measures and potential disagreements on European integration.

Key Takeaways:

• The coalition gives the Liberal Democrats five seats at the cabinet table and several junior ministers, with prominent figures like Vince Cable and David Laws holding key positions on economic and fiscal crises.
• The partnership will implement £6 billion ($9 billion) in savings this year and withdraw welfare benefits from higher earners, with an emergency budget expected in June.
• The coalition makes strategic sense for Conservative leader David Cameron, who can now share the blame for unpopular austerity measures with the Liberal Democrats.
• The Liberal Democrats gained real power for the first time in over a century, but may face a reckoning with their left-wing voters, who could migrate to a more Liberal-friendly Labour Party led by David Miliband.
• Disagreements on European integration and the balance between liberty and security may pose a significant challenge to the coalition's long-term survival.
• Despite differences, both parties share a critique of the state as overcentralized and bureaucratic, with a focus on giving power away to local government and individuals.

Statistics:

• £6 billion ($9 billion) in savings to be implemented this year.
• Emergency budget expected in June.
• 23% vote share for the Liberal Democrats in the general election.
• Lib Dem voters who may migrate to a more Liberal-friendly Labour Party: potentially significant numbers, although exact figures are not mentioned.

Sources:

• The Economist Online.