Lex: Con-Dem nation

David Cameron and Nick Clegg began work on the historic job of building a coalition government between the Liberal Democrats and Conservatives on Wednesday as further evidence emerged to underline the UK’s dire economic position. The latest unemployment figures showed that the jobless total rose to 2.51m in the three months to March – the highest level for more than 15 years – underlining the fragility of the labour market as the country emerges from recession. In his first comments since becoming chancellor, George Osborne said the new coalition government planned to accelerate measures to tackle the country’s record budget deficit and overhaul the banking and tax system. Neil Buckley analyses the market reaction to the new coalition government.