I guess I got hooked into finding out what is going to happen, so even from Brussels, I'm checking up on the British elections.
It seems that
1. Gordon Brown, Labour's leader and the Prime Minister, is resigning. That should solve a lot of problems.
2. The Lib Dem negotiations with the Conservatives haven't been productive even though the Conservatives have offered to have a referendum on proportional representation. (Originally they were willing to study the issue.)
3. With Gordon Brown out of the Labour leadership position, there's a much better chance for Labour and the Lib Dems to form a coalition. Especially if it's true that Labour has offered to implement Proportional Representation without a referendum. [Update: As Doug points out in the comments Labour plus the Lib Dems is not enough for a majority.]
For additional information (it seems some of the more accessible reports come from afar where they give you the main points and leave out the details.)
New Zealand Channel 3 News
Portland Mercury
Labour + Lib Dem does not make a majority. Other small parties would have to be drawn in, making an inherently unstable situation for government.
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