John
05-11-2010, 04:33 PM
Brown's statement late on Monday disrupted efforts by the centre-right Conservatives, who won the most seats in a parliamentary election last week but fell short of a majority, to clinch a power-sharing deal with the Liberal Democrats.
It is unclear which way the Liberal Democrats, who came third in the poll after Labour, will turn.
With markets and voters keen for an end to political uncertainty, Liberal Democrat leader Nick Clegg said the talks had entered a "critical and final phase."
"I am as impatient as anybody else to get on with this, to resolve matters one way or another," he told reporters.
Conservative leader David Cameron, who stands to become prime minister if his party prevails in the tussle for Lib Dem support, said it was "decision time" for the smaller party.
After the first set of formal talks between Labour and the Liberal Democrats ended at lunchtime, a Labour source said "constructive" discussions had uncovered some differences relating to the tight fiscal situation.
Britain is emerging from its worst recession since World War Two with a record budget deficit that analysts believe will only be cut effectively by a strong and stable government.
Cameron and Clegg also met on Tuesday and negotiating teams from their parties resumed discussions in the early afternoon.
By 3 p.m., the FTSE 100 index of leading shares was down 1.8 percent, sterling was jittery and UK government debt heavily underperformed its German equivalent as the uncertainty weighed on the market.
"The market wants a conclusion to this and whilst we are without a conclusion the market will remain nervous," said one London-based gilts trader.
The head of the French financial markets watchdog said London should not rely on EU help in any financial crisis.
"The English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven will help you," Jean-Pierre Jouyet, who was European affairs minister in 2007-2008, told Europe 1 radio.
BIDDING WAR
The Conservatives emerged as the largest party in parliament but fell 20 seats short of an outright majority.
They quickly began talks with the centre-left Liberal Democrats, or Lib Dems, on a government alliance. However, the smaller party wanted concessions on areas including reform of the voting system to make it more proportional.
Sensing a hesitancy on the part of the Lib Dems, Brown said on Monday he would step down by the time Labour holds its annual party meeting in September.
Clegg had said during the campaign that he was reluctant to work with Brown and the prime minister's departure could smooth the path to a deal.
It is unclear which way the Liberal Democrats, who came third in the poll after Labour, will turn.
With markets and voters keen for an end to political uncertainty, Liberal Democrat leader Nick Clegg said the talks had entered a "critical and final phase."
"I am as impatient as anybody else to get on with this, to resolve matters one way or another," he told reporters.
Conservative leader David Cameron, who stands to become prime minister if his party prevails in the tussle for Lib Dem support, said it was "decision time" for the smaller party.
After the first set of formal talks between Labour and the Liberal Democrats ended at lunchtime, a Labour source said "constructive" discussions had uncovered some differences relating to the tight fiscal situation.
Britain is emerging from its worst recession since World War Two with a record budget deficit that analysts believe will only be cut effectively by a strong and stable government.
Cameron and Clegg also met on Tuesday and negotiating teams from their parties resumed discussions in the early afternoon.
By 3 p.m., the FTSE 100 index of leading shares was down 1.8 percent, sterling was jittery and UK government debt heavily underperformed its German equivalent as the uncertainty weighed on the market.
"The market wants a conclusion to this and whilst we are without a conclusion the market will remain nervous," said one London-based gilts trader.
The head of the French financial markets watchdog said London should not rely on EU help in any financial crisis.
"The English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven will help you," Jean-Pierre Jouyet, who was European affairs minister in 2007-2008, told Europe 1 radio.
BIDDING WAR
The Conservatives emerged as the largest party in parliament but fell 20 seats short of an outright majority.
They quickly began talks with the centre-left Liberal Democrats, or Lib Dems, on a government alliance. However, the smaller party wanted concessions on areas including reform of the voting system to make it more proportional.
Sensing a hesitancy on the part of the Lib Dems, Brown said on Monday he would step down by the time Labour holds its annual party meeting in September.
Clegg had said during the campaign that he was reluctant to work with Brown and the prime minister's departure could smooth the path to a deal.