Sharon agrees deal with Labour to form new coalition: FT

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http://news.ft.com/cms/s/c984c7a0-5069-11d9-b551-00000e2511c8.html

Sharon agrees deal with Labour to form new coalition
By Harvey Morris in Jerusalem
Published: December 17 2004 20:32 | Last updated: December 18 2004 00:39
Ariel Sharon, Israeli prime minister, and Shimon Peres, Labour opposition leader, on Friday reached a deal on forming a new coalition early next week, their spokesmen said.

The agreement would bring eight Labour members about a third of the cabinet into government alongside ministers from Mr Sharon's Likud party. The prime minister wants to expand the coalition to ensure implementation of his plan to withdraw Jewish settlements from Gaza and part of the West Bank.

The alternative to a partnership with Labour would be to call early elections that would delay the Gaza plan.

If parliament approves the deal, it would mark Labour's return to government after a two-year break. Labour, which failed to sway voters in January 2003 with its own proposal of unilateral disengagement from the Palestinians, has supported Mr Sharon in the Knesset against rightwing opponents of withdrawal.

Mr Peres will be given the title of deputy prime minister in the prime minister's office, according to Israeli media reports. His partnership with Mr Sharon will bring together the two oldest veterans of the Knesset. Both see the Gaza plan as vital to Israel's diplomatic and economic interests.

Likud-Labour talks broke down this week over the distribution of cabinet posts. Some Labour politicians argued that the party should enter the government without portfolios and quit once the settlement withdrawal was completed next year.

There was no official statement last night from either Likud or Labour headquarters. Although media reports said the deal was done yesterday morning, it was not confirmed until after the start of the Jewish Sabbath.