London, England (CNN) -- Britain's new coalition government has embarked on a budget-deficit cutting strategy that is bold, brave and potentially very risky, says analyst Fareed Zakaria. It could turn out to be a model for the United States to follow -- or a prime example of what not to do in the wake of a severe recession. After forming a government in the wake of the May election, the ruling coalition of Conservatives and Liberal Democrats announced plans last month to cut spending and raise taxes in an effort to reduce the budget deficit. Zakaria, the author and host of CNN's "Fareed Zakaria GPS" spoke to CNN on Wednesday from London. Here is an edited transcript:
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Britain's aggressive plan to cut its deficit is a bold but risky move, says Fareed Zakaria
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The coalition government has announced plans but they haven't gone into effect, he says
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Zakaria: Question is will it restore business confidence or cause recession
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He says GOP should take note of how Cameron is modernizing the Conservative Party
Britain
Britain
@placeholder is going further than withdrawing the stimulus measures, it's actually cutting spending.
Conservative Party
But here people are still struck by how limited was the @placeholder victory, if you could call it a victory.
Conservative Party
As somebody put it to me, the @placeholder brand is still a tarnished brand.
GOP
It made me wonder about the @placeholder in the United States, which of course has broader appeal, but still faces some of these same challenges.
Conservative Party
The @placeholder was seen in Britain as too right wing, too extreme and too intolerant in many ways and what he's been trying to do is to broaden its appeal.
Britain
Britain
The Conservative Party was seen in @placeholder as too right wing, too extreme and too intolerant in many ways and what he's been trying to do is to broaden its appeal.
Britain
Britain
If these cuts put @placeholder in a double-dip, you'll see great strains on the coalition itself, and the Liberal Democrats will find it difficult to stay in this coalition.
Liberal Democrats
If these cuts put Britain in a double-dip, you'll see great strains on the coalition itself, and the @placeholder will find it difficult to stay in this coalition.