Friday, May 07, 2010

Hung Parliament

Despite the dire warnings, we have ended up with a "hung parliament". But is this really so bad? After all, many other countries have coped with this situation for years, for example, Germany, Switzerland, Austria, Denmark, Sweden, the Netherlands and Canada, to name but a few.

And is it really so bad for business? When Italy found itself withy a hung parliament the then US President Ronald egan asked the US Ambassador to Italy, Joseph LaPalombara, whether the markets would react badly? “No, Mr President,” answered LaPalombara. “Quite the contrary. Without a single party having a majority, no populist political action will be taken. It will be business as usual. The markets quite like it.

A diametrically opposite view was once put by Lord Reith, who said that the best form of government was a dictatorship tempered by the threat of assassination.

What is your view? Do you think a hung parliament will be good, bad or indifferent for your organisation?

1 comment:

  1. A hung parliament will only be bad for our business if the politicians involved make more of a mess of it than they usually do. However, the signs are not looking good. If the negotiating tactics of the Liberal Democrats is anything to go by then I think we may be in trouble!