No, no coalitions. An implicit deal, yes, but not a formal coalition. There are areas of common ground, the sort of legislation we can push through with the votes (or abstentions) of LibDems. Might help push an emergency budget through, since that being blocked could lead to financial meltdown.
Yes, there are disagreements, electoral reform being one of the major ones - why not put it to the House? We have legislators for a reason, they just aren't used properly enough. And in fact the 2010 Conservative manifesto had something of an old Liberal feel about it - might some Lib Dems actually feel comfortable with a good lot of what's in the manifesto?
As for electoral reform, I'll talk about that in a future blogpost. But it's probably worth Cameron going it alone, getting some stuff through, showing he's serious and he's taking the decisions, then calling a second election. But first, he also needs to sell conservatism to a sceptical public, sell the fact that government is not the answer to everything.
(in other news today, a load of youngish (7-11) kids decided to jump on me and make lots of noise because I said I voted Conservative. The poor souls seem to think voting Labour/Lib Dem is better for unemployment, or is somehow 'helping the poor'. They're young, I'll let them off.)