Hung parliament hopes and fears

There’s no doubt, pressure to discuss the consequences of a hung parliament will intensify, above and below the surface. It’s started to dawn on both Labour and Conservatives that a state of public denial will do them positive damage. Nick Clegg has four big tasks, says my colleague Robert Hazell writing in the Guardian. (My post below is a projection of his analysis). Who to negotiate with first; minority government or coalition? ; change of Labour leader?; and selling whatever agreement is reached to the flakier members of the Lib Dems rank and file. Reuters reports that sterling won’t go into free fall at the prospect of a hung parliament – provided the parties have a deal wrapped by Sunday May 9, according to one banking analyst! .

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