Ireland's Greens pose threat to 'bad bank'

Members of the Green Party, Ireland's junior coalition partner, are calling for an internal debate on plans to create a "bad bank" in a potential threat to government efforts to clean up the country's financial system. Finance Minister Brian Lenihan will recall parliament on September 16 to debate legislation creating the National Asset Management Agency (NAMA) but some Green Party members want to thrash out the law's implications before giving it support.
Ireland is planning to park risky property loans with a nominal value of 90 billion euros in NAMA to restore the flow of credit and confidence to an economy that has morphed from the "Celtic Tiger" to the eurozone's weakest link. "What the Green Party grassroots are looking for is a debate before the legislation is supported or not supported by our parliamentary party," Tony McDermott, a party member and former Green councillor, told state broadcaster RTE on Thursday.
The leader of the left-wing Green's, John Gormley, said it would listen to suggestions on the "bad bank" from its members. "As the most democratic party in this country we welcome our members' participation in policy formulation on this and all other issues," Gormley said in a statement.
The six Green Party members of parliament hold the balance of power in Ireland's lower chamber after defections from the main government party, Fianna Fail, over harsh spending cuts. But some grassroots members are unhappy about the party's continued role in government after it suffered near annihilation in local and European elections in June amid widespread voter anger about the state of the former "Celtic Tiger" economy.
The Green Party's executive committee will call a special convention on NAMA if it receives requests from five constituency groups. Votes in a special convention have to be carried by a two thirds majority. It has received three valid requests so far. There were queries about a fourth.
"This is a serious threat. It seems likely that they will get five branches, which is all they need but they then need to get a two thirds majority which will be more difficult," said Michael Marsh, a professor of political science at Trinity College Dublin.
If two thirds of Green members were to vote against NAMA, parliamentary members would be blocked from supporting the legislation, throwing Lenihan's plans and the future of the government into disarray. The government, whose technical majority was wiped out following the defection of two parliamentary members earlier this month, faces a rocky autumn.