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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared North Korea cuts ties with South | Video 11:29am EDT Obama tells military: prepare for North Korea aggression 24 May 2010 Covert U.S. operations authorized in secret order 24 May 2010 UPDATE 2-U.S., European economies face major hurdles-GE CEO 24 May 2010 Government needs BP technology to "kill" oil spill | Video 11:47am EDT BP exploring new option to siphon off spill oil 3:04am EDT Euro seen heading for parity with dollar 7:38am EDT Stocks tumble on euro-zone fears | Video 11:41am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 Commodities, stocks fall on rising risk aversion | Video 10:25am EDT Euro seen heading for parity with dollar 7:38am EDT Exclusive: U2's North American tour cancelled 8:51am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 North Korea cuts ties with South | Video 11:29am EDT Raleigh ranked top U.S. city for quality of life: poll 24 May 2010 Scenarios: Europe's debt woes could weigh on U.S. recovery 24 May 2010 Obama tells military: prepare for North Korea aggression 24 May 2010 Learning a new language? Try Globish, author says 23 May 2010 Covert U.S. operations authorized in secret order 24 May 2010 No evidence organic foods benefit health: study 24 May 2010 Commentary Bernd Debusmann: In Mexico, a drug war of choice? Mexico's drug war history has two versions, one of which paints President Felipe Calderon in a desperate fight to legitimize his presidency by waging war on drug cartels. Is he stuck in a battle he can't win? Commentary Slideshow: Mexico's bloody drug war UK government plans political reform Keith Weir LONDON Tue May 25, 2010 9:38am EDT Factbox Factbox: Reactions to new UK government's plans 9:38am EDT Britain's Prime Minister, David Cameron (centre L), and the acting leader of the Labour Party, Harriet Harman (centre R), walk through the Members' Lobby of the House of Commons in Westminster, at the State Opening of Parliament, London May 25, 2010. Credit: Reuters/Johnny Green/Pool LONDON (Reuters) - Britain's new coalition government set out plans on Tuesday to reform the electoral system and cut state interference in people's lives, while tackling a record budget deficit. World The Conservative-Liberal Democrat alliance, Britain's first coalition for 65 years, also plans to allow private investment in state-owned distribution business Royal Mail, setting the scene for an early clash with trades unions who sharply criticized the new government's program. In a speech delivered on its behalf by Queen Elizabeth at the formal state opening of parliament, the government also proposed legislation to give British people a say on any transfer of powers to the European Union. Analysts said the program of 22 bills, to go before parliament between now and late next year, was an ambitious start to a new era after Labour lost power for the first time since 1997. The center-right Conservatives and smaller, left-leaning Lib Dems took office after an election on May 6, swiftly smoothing over differences on issues such as when to start cutting a deficit running at over 11 percent of national output. The Treasury set out plans on Monday to trim an initial 6.2 billion pounds from the deficit. Further cuts are expected to follow in an emergency budget to be presented in four weeks and the deficit issue cast a long shadow over the program. "The first priority is to reduce the deficit and restore economic growth," the Queen said in her speech. "Action will be taken to accelerate the reduction of the structural budget deficit. A new Office for Budget Responsibility will provide confidence in the management of the public finances." The office will be led by economist Alan Budd and will take on the task of forecasting economic growth and borrowing needs. Figures published earlier on Tuesday showed Britain's economy grew by 0.3 percent in the first quarter of the year in a modest recovery from an 18-month recession. PROTECTING LIBERTIES The coalition tapped into a sense the Labour government had extended its reach too far into the lives of ordinary Britons by proposing a Freedom (Great Repeal) Bill to limit the use of CCTV, the storage of DNA samples and e-mail records and to protect the right to peaceful protest. Led by Conservative Prime Minister David Cameron and his Lib Dem deputy Nick Clegg, the government is enjoying a political honeymoon, with media largely supportive and markets calmed by first steps on the deficit. An ICM poll published in the Guardian's Tuesday edition found nearly two-thirds of voters approved of the coalition. However, unions, who traditionally back Labour, signaled that they would give the government a rough ride. "We are deeply concerned about the further erosion of state services that have been built up over many years and which millions of people rely on," said Mark Serwotka, head of the Public and Commercial Services Union which has 300,000 members, many of them civil servants. He urged unions and community groups to fight cuts and defend public services. Analysts said the acid test would be how the coalition hung together when managing unexpected turbulence. "All in all, it's so far, so good but it remains to be seen how much they will be able to do when other events take precedence," said Wolfango Piccoli of political risk consultancy Eurasia Group. (Additional reporting by Adrian Croft; Editing by Dominic Evans) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. 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