Leaving the supposedly serious business of governing the country to one side and getting down to electoral politics how do their strategists see things panning out.
My personal belief is that both the Conservatives and the Liberal Democrats both entered the coaltion thinking it would be more advantageous to them and more damaging to the other party in the long run. In particular I think both have taken a gamble on the impact of the deal in alienating party activists and some core voters.
My suspicion is that Clegg believes the deal will benefit his party more than the Tories since Cameron will have trouble with the Eurosceptic wing of his party and defections to UKIP at local elections. This is not an unreasonable expectation given that the Tory right have previous 'form' in this area. I also think Clegg is of the opinion that nearly all publicity is good publicity as far as his party is concerned as the coalition will keep the Liberal Democrats permanently in the spotlight. Rightly or wrongly he may assume that the public will blame the Tories for any unpopular austerity measures and he may think it will be easier for the Liberal Democrats to exit the alliance at the time of their choosing should things go terribly wrong
Cameron and his allies have clearly made a similar judgement calculating that some Liberal Democrat activists as well as some tactical voters are regretting their decision to support the party and will desert it at the future for Labour. This would be particularly be important in some parts of England where the Conservatives and Liberal Democrats are in direct competition and the switching of a few thousand votes from the Liberal Democrats to Labour would allow the Tory to win. The article in this Sunday's Independent about negative reaction to the coalition by Liberal democrat voters in Eastbourne and the desertion of the Lib Dems by Alex Kear their local party chairman in Worcester shows this calculation is not without some justification
http://www.independent.co.uk/news/uk/politics/the-party-faithful-feel-conned-by-coalition-1974685.htmlAs for Labour their choice is clearly going to revolve around how much of the legacy of the Blair/Brown years they are prepared to ditch. In some ways their task should be easier since they are the Official Opposition so can simply devote their time to chipping away at the coalitions morale and exploiting the problems it is doubtless going to experience over the next few years. Unfortunately I fear that the upcoming leadership election campaign may prove to be more acrimonious than many imagine. It is certainly going to be no walk over for a new Blair. I think old ideological divisions will revive and have to be resolved. This may not be a bad thing in the long run since the party had lost much of its original reason for existence during its long period of government and had become little more than a machine for winning and retaining power. The danger is that the party will revolt too fiercely against its recent past with the result it loses the populist touch that Blair, for all his faults, gave the party. In addition too much introspection would divert its attention from the real task which is fighting a reargaurd action to protect the living standards of ordinary people from the onslaught they are going to suffer from the new government.