Shas to quit Israeli coalition

Barak faces coalition break-up

By Jerusalem Correspondent Hilary Andersson

Israel's ultra-orthodox Shas party has announced it will leave Prime Minister Ehud Barak's coalition over the government's refusal to give adequate funding to its schooling system.

If Shas carries out this threat, Mr Barak will have to form another coalition.

Shas made its announcement after a meeting in which it is believed to have considered compromise suggestions from the prime minister.

Demands

Shas, which is Ehud Barak's largest coalition partner, has been demanding more funding for its network of religious schools, which are in serious financial difficulties.

The prime minister has been taking a stand against the demands, which analysts have called political blackmail.

Shas knows that without its support, Mr Barak will have to rebuild his coalition entirely.

Threat

At the moment, Shas has said it will carry out its threat to leave the government this weekend - this still leaves time for manoeuvre.

The crisis began last week, when Shas voted against the government in a motion calling for early elections.

Mr Barak's coalition problems have given him an image in the Arab world of not being in control - this is very destructive to his efforts to negotiate peace.

If he is forced to form a new coalition, bringing in the secular Shinui party, he will still be able to govern, although he will have to rely on the outside support of the Arab parliamentarians to do so.