Queen Elizabeth II gave her “Queen's Speech” to Britain's parliament Wednesday, setting out government policy for the coming year as the ruling coalition sought to fight back after a dismal month. The year's new laws would focus on “economic growth, justice and constitutional reform”, the queen said, while “the first priority will be to reduce the deficit and restore economic stability”. The two-year-old government's pursuit of deep spending cuts to reduce the deficit was one of the reasons for the drubbing that the Conservatives and their Lib Dem coalition partners received in local elections last week. The government will also reform parliament's non-elected House of Lords and force banks to separate their retail and investment divisions, the queen said, as it seeks to win back voters' approval. Amid the traditional pageantry, the monarch announced from a throne in the House of Lords that the upper chamber itself would be reformed to become a senate with 80 percent elected members, from the current largely appointed body. “A bill will be brought forward to reform composition of the House of Lords,” the queen said — but without specifying a timeframe, in an apparent concession to assuage critics of the plan. The coalition has backed Lords reform under pressure from junior partners the Liberal Democrats, despite opposition from some majority Conservative MPs who have labelled it a distraction from pressing economic problems. The queen said legislation on the agreed European Union bailout fund deal would be put to a parliamentary vote. The introduction of the new European Stability Mechanism will remove Britain's liability for future bailouts for countries in the eurozone, of which Britain is not a member. Chancellor of the Exchquer George Osborne has also resisted calls for Britain to contribute to EU bailouts through the International Monetary Fund. Both coalition partners took heavy losses in the local elections, with the opposition Labour party taking control of 32 councils and winning more than 800 seats from the ruling parties.
