Political Currency EMQs: Is it time for a Tory/Labour truce?
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Nov 24, 2025 Could a merger between the Tories and Labour be the answer to political fragmentation? George Osborne and Ed Balls discuss European examples and the barriers to coalition-building. They dive into the lasting impacts of Liz Truss’s mini-budget and the implications for Rishi Sunak. The conversation shifts to the art of public speaking, highlighting how over-preparation can backfire. Plus, they explore innovative ways to engage the public with political simulations. It's a blend of economics, strategy, and communication!
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Centre Merger Is Contextual Not Immediate
- A Tory–Labour merger is plausible only in certain multi-party or coalition scenarios rather than as an immediate solution.
- George Osborne and Ed Balls say historical differences (eg Brexit) make a formal merger unlikely now.
Electoral System Shapes Party Realignments
- First-past-the-post makes pre-election pacts and new centre parties risky due to lost historical roots and voter punishment.
- George Osborne argues proportional representation is the usual precondition for viable new centre formations.
Mini‑Budget Left A Lasting Market Mark
- Liz Truss's mini-budget created a lingering UK risk premium and entrenched fiscal orthodoxy around independent forecasts and fiscal rules.
- Ed Balls and George Osborne say market distrust from that episode still affects borrowing costs and perceptions.