Speaking at the London Stock Exchange Clegg said the size of the deficit will require politicians to take a different approach to the challenges in public spending to avoid Greek-style social unrest.
He said: “The standard model, of Governments elected with a minority of popular support, cooking up fiscal plans behind closed doors in Whitehall, imposing cuts from on high is a recipe for Greek-style social and industrial strife.”
Clegg said the Lib Dems would establish a council, made up of the economic spokespeople of all major parties, the governor of the Bank of England and the head of the FSA.
He said: “The purpose would be to force the politicians to put the long-term national interest ahead of their own narrow political interest and agree the basic timetable and scale of deficit reduction in the years ahead.
“This would not prevent political parties from arguing about what changes should be made to taxes and in public spending, or which areas of taxation and spending should be immune from any change, but it would force the whole political class to come clean and tell the people of Britain what the scale of the changes actually will be.”