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Well, Clegg has to talk to Cameron, he made it very clear during the election campaign that whoever had most votes/seats should have first bite at forming government, so he is being very consistant. Also, PR should not be a deal breaker. It would look like Clegg is putting Lib Dem interests above the Nations: but the Lib Dems have very serious qulams over the Conservative's economic policies, especially the idea of beginning to bring in cuts immediately. What I think is likely to happen is that Lib Dems will offer to conditionally support Cameron to form minority government, andt hen to vote on issues as they come up. Lib Dems are likely only to support the government if they agree, it is unlikely that Clegg will provide a blank cheque to the Tories. I can't see Lib Dems in Tory Cabinet, Tories will not accept it as the price for such a coalition will have to be electoral reform. But, also can't see us propping up Labour unless there is a wide ranging "rainbow" coalition including all progressive left parties - a deal that is unlikely. But Clegg has to hold his nerve and not be seduced by the thought of Cabinet post with Tories. Good thing is that Clegg cannot just accept deal, needs to bring MPs and Party with him and I cannot see Cameron being able to convinve his own Party to support the necessary reforms that Libe Dems will expect for a full coalition.
But, I must point out that theses are my own views and I have no inside knowledge apart from what has already been made public knowledge. But, if today's Observer report about HAgue's anti-EU stance is true, then any deal with Lib Dems is already blown.