Irish Government in Last-Minute Talks to Avoid Early Election

The Irish government of Brian Cowen is in emergency talks to secure a two-party ruling coalition and avoid a general election. The Green party, a crucial ally, is holding a special convention to decide on its bank rescue plan, which is central to the country's stabilization program. Failure to secure a two-thirds majority would force the Greens to quit the coalition, triggering an early election.

Key Takeaways:

• The Green party's special convention will decide on the government's policy program and bank rescue plan, which is worth $80 billion.
• Delegates are being asked to back the National Asset Management Agency (Nama) plan to assume €54 billion of distressed property loans.
• Failure to secure a two-thirds majority would force the Greens to quit the coalition, triggering an early general election.
• Green party officials say the outcome of the vote is uncertain, despite most analysts believing it's a high hurdle for opponents of Nama to overcome.
• Fianna Fail ministers hope concessions in the new program for government and the threat of early elections will concentrate the minds of Green delegates.
• The Green party has suffered collateral damage from ongoing scandals affecting Fianna Fail, which saw a former justice minister step down over expenses.
• 800 Green party delegates are expected to attend the special convention to vote on Nama and the government's policy program.

Statistics:

• $80 billion: The value of the bank rescue plan.
• €54 billion: The amount of distressed property loans currently on Irish banks' books that Nama plans to assume.
• 800: The expected number of Green party delegates attending the special convention.
• 2/3: The majority required for the Greens to approve the government's policy program and bank rescue plan.
• 2007: The year the Green party entered government for the first time.

Sources:

• The Irish Times
• Female First
• Irish Mirror