Well, Cameron can see off any challenges from the right on the argument that they must compromise to keep the Coalition together. How long this argument will be sustainable for I don't know.
That'll probably last equally as long as Britain's financial system and banking industry can be protected from collapse. Since a large part of what's holding it up are deposits from abroad (including flight to safety deposits) and repayments from money lent abroad, the UK will only remain protected from collapse as long as the unwinding and domino effect of banking, financial system and sovereign default collapses elsewhere can be kept at bay.
A chain is only as strong as it's weakest link. That's why the collapse of Bear Stearns a few years back during the 2007/08 financial crisis had such a pivotal ramification for banks here and worldwide. It triggered a cascading series of electronic bank runs, unwinding and position covering.
That's part of the reason why everyone is desperate to help bail out Ireland, including Britain. This isn't necessarily an argument for or against it; but were it not to happen, given UK exposure the stark probability is that major names in the UK banking sector would technically be insolvent and essentially bankrupt again, a mere couple of years after the last UK bank bail out.
Can governments bail out the world? Logic would say not, but expediency, a desire to maintain wealth (including illusions of wealth) and desperation to maintain power status quos suggest otherwise.
When it comes to bail outs, it seems governments are damned if they do, and damned if they don't. If they do, they stand accused of protecting the wealthy (although to some extent bailing out a bank may be protecting everyone in part to a degree given it staves off a deeper economic depression). If they don't, then such public misery and anger ensues, that central hiearchical governments end up at best, simply collapsing and at worst, they end up hung from the rafters. If they carry out a bail out, you get a slower collapse, 'off with their heads' demands are few and far between, and the government ends up later being quietly shown the door as happened in Iceland, Greece, UK, and is happening in Ireland.
The only winner seems to be global financial system, which - along with many pre-existing predatory practices - remains relatively intact, unimproved and unreformed.
All bets as to the direction of the coalition are indeed truly off, if there is a further systemic collapse in Britain's financial system and banking sector.
If there is one, then there are a number of things that could happen. Cameron could be replaced as leader (John Major and Edwina Currie could run for leader/deputy on a workhouse and gruel 'back to basics' come-back ticket!) The coalition could swing to the right or move to the left (e.g. backed into a corner to fully nationalise a bank for example). Britain could either fully withdraw from the EU or fully join it. Or hook up in closer economic alliance with some European countries, like Iceland and Norway, a kind of North European Economic Community or Union of Independent European States. Who knows?
