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
As somebody put it to me, the @placeholder brand is still a tarnished brand.
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.
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.