Outside Downing Street, David Cameron's first words as Prime Minister captured the values that make Britain a fine nation and defined the revolutionary state that British politics has now entered. A coalition of Conservatives and Liberal Democrats will, he said, be dedicated to freedom, fairness and responsibility. The coalition provides Britain with the stable government that it needs at a time of economic peril. It also closes a period of partisanship and brings forth the politics of compromise and co-operation. The unspoken truth is that decent liberal people exist in all parties and this coalition holds out the promise that they can act in the common good, across the usual lines.

After four days of wrangling behind closed doors, the sort of thing to which the British have an allergy, it seemed unlikely that any deal could send a bolt of energy and optimism through the nation's politics. And yet it did exactly that. The generosity and optimism of Mr Cameron's acceptance speech and the remarkable sight of Tories and Lib Dems lauding each other was a signal that the expenses scandal has changed politics for good, in both senses of that word.

It had looked, for a brief and inglorious moment, as if the Labour Party and the Liberal Democrats would stitch up an unstable deal. In truth, that was always impossible. The parliamentary arithmetic told against it and the discipline on the Labour benches never existed. This governing coalition was not just the only option that was ever really on the table. Most important of all, this is the best option for the country. It is also the best option for all three of the main parties.

For a long time now it has been clear that this country is set on an unsustainable path. Public spending could no longer continue to expand in excess of the growth rate of the economy. Improvident government spending was exacerbated by the crisis in banking that necessitated a huge outlay of public money. This combination of events produced a legacy that no incoming government would welcome but it did mean that a stable and viable administration was imperative. The new coalition commands 363 seats in the Commons, an overall majority of 80. With an agreement on a credible Budget and a programme of cuts, this is a government that can realistically hope to still the markets and carry the country.

David Fuller's view Newly elected governments are often greeted with an optimism which proves to have been naïve with the passing of time. A cynical view of politics and politicians is too often justified. Hopefully, this time it is different because the UK certainly needs good governance to deal with its myriad problems, not least concerning indebtedness.

Coalition governments have an uninspiring history in the UK, although there have not been many. Markets are taking a sceptical view, judging from sterling's continued weakness since the new government was formed. They may be right but although I had initially hoped for a strong Conservative Party majority, polls indicated that this was never likely. Like many others, I also feared that a victory in this election would prove to be a poison chalice, given the economic problems.

There is a real chance that this coalition of Conservatives and Liberal Democrats could be the best result, not least because it represents more than 60% of the people who voted and provides change. If the UK's coalition government proves to be cooperative rather than procrustean - admittedly, a big ask - it would obviously retain public support for longer. This is essential given the tough decisions that will have to be made. An encouraging note is that the UK's coalition is led by reformers. If they can implement a credible debt reduction programme and help the private sector - a daunting challenge - then sterling's present levels should prove to be near their nadir relative to the euro (weekly & daily) and US dollar (weekly & daily).

This editorial from the FT: Cameron changes the landscape, is also interesting.

The FT also provides this more sceptical and amusing sketch by Matthew Engel: Until May 7 2015 do us part.