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30-10-02, 16:21
Labor to leave unity gov't as talks to end coalition crisis fail
By Yossi Verter and Gideon Alon, Ha'aretz Correspondents
Defense Minister Benjamin Ben-Eliezer handed in his letter of resignation Wednesday evening, after a last-ditch meeting in the Knesset with Prime Minister Ariel Sharon aimed at finalizing a compromise deal to stave off Labor's threatened departure from the government ended in a shouting match. The move effectively means Labor will leave the national unity government.
Toward afternoon, it appeared that a compromise deal had been worked out over Labor's demand that funding to settlements in the West Bank and Gaza Strip, to the tune of $145 million, be reallocated to the weaker sectors of society. Labor has also been demanding that more funds be allocated to students and pensioners.
While Labor's departure from the national unity government will not topple Sharon immediately, it will force him to rely on the far-right, or ultimately call early elections.
Despite Labor's demands, Cabinet Secretary Gidon Sa'ar, a close aide to Sharon, said earlier Wednesday that the prime minister would brook no changes to the 2003 State Budget until after the Knesset voted on the first reading of the budget proposal.
Earlier Wednesday, Likud and Labor figures had joined forces to delay the vote on the first reading of the budget in the Knesset plenum in the hope that a compromise formula could be found.
Originally scheduled for 11:30 A.M., the vote on the first reading of the budget was pushed back to 4:00 P.M., and then 6:00 P.M., as a result of the behind-the-scenes wrangling aimed at finding a compromise solution to defuse the crisis.
Throughout the day, mediators Ram Caspi and Ya'akov Ne'eman - both lawyers, and the latter a former finance minister - had been in contact with Sharon and Ben-Eliezer in an ultimately vain attempt to head off the coalition break-up.
By Yossi Verter and Gideon Alon, Ha'aretz Correspondents
Defense Minister Benjamin Ben-Eliezer handed in his letter of resignation Wednesday evening, after a last-ditch meeting in the Knesset with Prime Minister Ariel Sharon aimed at finalizing a compromise deal to stave off Labor's threatened departure from the government ended in a shouting match. The move effectively means Labor will leave the national unity government.
Toward afternoon, it appeared that a compromise deal had been worked out over Labor's demand that funding to settlements in the West Bank and Gaza Strip, to the tune of $145 million, be reallocated to the weaker sectors of society. Labor has also been demanding that more funds be allocated to students and pensioners.
While Labor's departure from the national unity government will not topple Sharon immediately, it will force him to rely on the far-right, or ultimately call early elections.
Despite Labor's demands, Cabinet Secretary Gidon Sa'ar, a close aide to Sharon, said earlier Wednesday that the prime minister would brook no changes to the 2003 State Budget until after the Knesset voted on the first reading of the budget proposal.
Earlier Wednesday, Likud and Labor figures had joined forces to delay the vote on the first reading of the budget in the Knesset plenum in the hope that a compromise formula could be found.
Originally scheduled for 11:30 A.M., the vote on the first reading of the budget was pushed back to 4:00 P.M., and then 6:00 P.M., as a result of the behind-the-scenes wrangling aimed at finding a compromise solution to defuse the crisis.
Throughout the day, mediators Ram Caspi and Ya'akov Ne'eman - both lawyers, and the latter a former finance minister - had been in contact with Sharon and Ben-Eliezer in an ultimately vain attempt to head off the coalition break-up.