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UK's conservative party is set to win an outright majority in 2015 election. This overall stands as a good news as it would be easier for Mr. Davis Cameron to push for policies. With right policies growth could speed up in world's fifth largest economy.
Election risk subsides, another looms ahead -
However Prime Minister David Cameron has announced referendum on Britain's membership in European Union should negotiation between UK and European partners fail. Prime Minister Cameron is looking to secure UK's to be precise London's position as financial center and Britain's veto power over key decisions.
This stands as a key event risk with Cameron in outright majority.
Risk is much lesser -
- This referendum was proposed by Mr. Cameron in January 2013, at that time Europe and Euro zone was going through troubled times. Euro zone's perception has changed a lot since then. Euro zone's return to growth has changed perception.
- On other hand Bank of England (BOE) has won a legal battle against European Central Bank (ECB) or Bank of France to be precise to secure London's position to settle European securities as ECB has agreed to provide the necessary liquidity.
- Euro zone leaders including German chancellor Angela Merkel want to keep UK in European Union and ready to provide some concession, however Mr. Cameron requires to be cooperative too.
