Economics weekly by Lloyds TSB

The UK has just had one of the most hotly-contested general elections in living memory. It has resulted in a hung Parliament as expected. This means that no party can form a government on its own. The UK has just had one of the most hotly-contested general elections in living memory. It has resulted in a hung Parliament as expected. This means that no party can form a government on its own. So a coalition or minority government is now a certainty. There is also a high risk that this sort of government will not last the full five-year term. With many permutations of minority or coalition government possible, we will focus on the task facing the next government. However, it is clear from recent financial market volatility directly related to the Greek debt crisis that there needs to be an urgent effort to give reassurance on how the UK is going the meet its public sector debt challenge.

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