The coalition goverment is the first time the Conservatives and Liberal Democrats have had a power-sharing deal at Westminster and the first coalition in the UK since the Second World War.
David Cameron's arrival in Downing Street marks the end of 13 years of Labour rule. The Conservatives won the most seats in last week's general election, but not enough to secure an overall Commons majority, resulting in a hung Parliament. After days of talks with the Lib Dems - the UK's third biggest party - a deal was reached on Tuesday that resulted in Labour Prime Minister Gordon Brown resigning.
In a joint press conference in the Downing Street garden, Mr Cameron said the coalition government could mark a "historic and seismic shift" in British politics. Both laughed off differences between the parties and animosity in the past - Mr Cameron apologising after a past description of Mr Clegg as a joke was brought up by a reporter.
After it became clear Labour could not reach an agreement with the Lib Dems that would have allowed them to remain in power, Gordon Brown tendered his resignation, saying it had been a privilege to serve "this country I love".
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