Lib Dems, Tories may agree on 'economic deal' to reassure markets

London, May 10 (ANI): In what could be a decisive factor leading to the formation of a coalition in the House of Commons, Nick Clegg and David Cameron are close to agreeing to an 'economic deal.'

This is especially significant, since British markets have registered fluctuations with the pound depreciating after it came to light that Britain was heading for a hung parliament.

The move will allay investors' fears about the market that has already faced rough weather following the crisis in Greece.

Tory leader William Hague, explained how the basis of a deal would be rooted in an economic agreement, The Telegraph reports.

"We are agreed that a central part of any agreement that we make will be economic stability and a reduction of the budget deficit," the paper quoted him as saying.

He added that "political reform, economic issues and the reduction of the deficit, banking reform, civil liberties, environmental issues" has also been discussed.

Interestingly, Nick Clegg met Gordon Brown for a meeting to work out a new deal with the Labour Party while his negotiators were immersed in talks with Tory party negotiators in a neighbouring building.

Meanwhile, Labour Party top-brass are urging Brown to abdicate his position in order for an alliance with the Lib-Dems to come through.

Brown, however, is extremely reluctant to give up the Prime Ministership, he is hastily trying to stitch together a shaky coalition with minority parties instead. This inspite of his own party members coaxing him to step down with dignity.

A Lib Dem- Lab deal seems unlikely in the current scenario.

Lord Ashdown, the former Lib Dem leader and close ally of Clegg, said of Brown: "Amongst his personal qualities is not one that makes him an easy or very able leader of a collegiate-style government." (ANI)