FUNDAMENTAL ANALYSIS
the election system is first-past- the-post. Put simply, it requires a political party to win over half of the available constituency seats to form a majority government. The number of seats required to form a majority at this election was 326.
Howe v e r , the election result a
threw surprise.
No political party acquired 326
seats, the
Conser vat ives – who were f a v o uri t e s to win this election – returned the largest number of seats with 318 (eight short of
The
a majority). second
‘Hung Parliament’. It’s where no party has enough seats to pass legislation without
cross-party
support. It’s problematic because it hampers a government’s ability to get things done and implement its own agenda.
FX
This is something the UK has recently experienced. From 2010 to 2015,
the Conservatives and
Liberal Democrats were part of a coalition government, after the former party failed to secure a majority in the 2010 election.
However, the situation is very different
forming formal
have in
2017. All of the smaller parties have ruled out a
c o a l i t ion . Why? Because most
fundamental ly d i f f er en t policy agendas than
The election result threw a surprise No political party acquired 326 seats
largest party, Labour, won 262 seats. We also have a number of smaller parties that won seats:
• Scottish National Party: 35 seats • Liberal Democrats: 12 seats • DUP: 10 seats • Sinn Fein: 7 seats • Plaid Cymru: 4 seats • Green Party: 1 seat
This scenario is known as a The state of play
As the largest party, the Conservatives have the right to try and form either a coalition or minority government.
A coalition is a formal agreement with another political party, which ensures they will work together to pass legislation with a majority.
the
Conservatives . Those parties have
also seen
how the Liberal D em o c ra t s s u f fe r e d
electorally after forming a coalition with the Conservatives.
With a coalition seemingly off the table, the Conservatives can try to govern with a minority government. In this situation, the Conservatives will look to secure a confidence and supply arrangement with a smaller party to get legislation passed. Think of
FX TRADER MAGAZINE July - September 2017 11
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69