Possible kingmakers Liberal Democrats demand post-election stability budget

By William James LONDON (Reuters) - Liberal Democrats, possible kingmakers after a May 7 election, on Tuesday demanded a 'stability budget' within 50 days of the vote as a pre-condition of any coalition with either Conservative leader David Cameron or Labour's Ed Miliband. With neither Cameron nor Miliband expected to win an outright majority, the Liberal Democrats are eyeing a second term as junior coalition partner, positioning themselves in the centre ground as a possible partner to either party. Liberal Democrat leader Nick Clegg said instability stoked by unfunded election pledges from the Conservatives and vague fiscal targets from Labour would necessitate a post-election budget to decide how and when Britain's books would be balanced. "It would be necessary in order to get off first base as a government after May 7, that we restore that fundamental stability and confidence in our macroeconomic plans as a country," Clegg told a news conference. The budget would have to set out detailed tax and spending plans to balance the cyclically-adjusted current budget by 2017/18, Clegg said. Support for the Liberal Democrats has collapsed since 2010 when the party secured its first spell in government, but party sources are optimistic it can win enough seats to form a working coalition. Clegg said current Conservative plans, which would meet the 2017/18 target, were "completely unacceptable" because they put too much of the burden on cutting welfare spending. The Conservatives want to balance the books through spending cuts, while the Liberal Democrats favour a mix of tax increases and spending reductions. (Editing by Andrew Osborn)