Now is the hour

This has to be a pivotal moment in the furtunes of the Liberal Democrats. Two critical issues that now confront the Government - reform of the NHS and the banking system - may make or break the Lib Dems for the next generation. If there is a fudged and indecisive compromise on these issues the party will failt to regain any of the massive amount of political capital it has lost over tuition fees. If Norman Lamb is serious about his potential resignation, and if Vince Cable is sincere in his desire to see genuine banking reform, the leadership must now dig in its heels and force the Conservatives into open ground. The Liberal Democrats gained enormous respect, especially from a younger cohort, for their stance on Iraq. This was then thrown away. A principled and firm stance on health reform will not stem the bleeding, but it will reduce the flow. Similarly, support for the new report on reform of the banks will chime with public opinion which is possibly stronger on this issue even than on the NHS. The problem is that some leading Liberal Democrats (Clegg, Cable, Hughes) seem to have fallen in love with power and no matter how many times they are told it will 'all end in tears', as many temestuous love affairs do, they cannot extracate themselves from it. As with many a love affair, they are willing to sacrifice long term happiness and security for short term gratification. So, they must first come to their senses and then do the right thing - and they know what the right thing is. The alternative could destroy the third force in British politics for decades.