March 9, 2010
No political party has enough support to win outright control of parliament in Britain’s forthcoming election, raising the prospect of a period of unstable minority government, opinion polls showed on Tuesday.
The opposition Conservatives’ poll lead has dwindled in the run up to an election expected on May 6, suggesting that the center-right party will struggle to get the votes it needs for a workable majority.
Analysts say the ruling Labour party might even cling to power for an unprecedented fourth term, but a hung parliament — where no party has more than half of the seats — is looking the most likely scenario at present.
Investors are concerned that political gridlock will hamper efforts to cut a record budget deficit and result in a downgrade to Britain’s triple-A credit rating, which could drive up borrowing costs.
This article was posted: Tuesday, March 9, 2010 at 10:36 am