UK Prime Minister Gordon Brown has effectively announced his resignation, opening the door for discussions with the Liberal Democrats over a coalition government.
Brown intends to resign before the autumn Labour conference, according to The Guardian.
He is also offering a compromise government including the Liberal Democrats and other third parties with the aim of electoral reform being a central goal.
This comes just moments after the Liberal Democrats announced little progress in talks between themselves and the Conservatives.
Brown also announced that he has already been in talks with Nick Clegg, Liberal Democrat leader, about forming a coalition government.
The search for a new Labour leader, who could potentially lead the next UK government, will begin with a certain focus on David Miliband.
The pound has fallen since Brown’s announcement:
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