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Cameron and Clegg shake hands in Downing Street

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Cameron and Clegg shake hands in Downing Street


Putting aside party differences, particularly on Europe, David Cameron and Nick Clegg have made history in Downing Street.

Side by side, the two leaders stand at the head of Britain’s first coalition government since the Second World War.

An inconclusive election may be the reason for this unlikely partnership. But the Conservative premier and his Liberal Democrat deputy are determined to make it work.

Prime Minister Cameron’s Tory colleagues William Hague and George Osborne have been given the Foreign Affairs and Finance portfolios respectively. As for the smaller Lib Dems, four others in addition to Nick Clegg will sit in Cabinet.

A key challenge is tackling Britain’s record budget deficit. Initial market reactions in London to the formation of the new government seemed to be positive.

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