LONDON. Britain’s Conservatives said they held “good discussions” with the Liberal Democrats yesterday but failed to conclude a deal to govern together, and planned further talks within 24 hours.
David Cameron’s Conservatives won the most seats in Thursday’s parliamentary election but fell short of a majority and are seeking the support of Nick Clegg’s third-placed Liberal Democrats, or Lib Dems, to end 13 years of Labour Party rule.
Analysts said markets would take solace from comments that reducing a deficit running at more than 11 percent of national output would be key to a deal.
“We are agreed that a central part of any agreement we make will be economic stability and the reduction of the public deficit,” Conservative negotiator William Hague said after talks with Lib Dems.