Sharon secures coalition deal

Sharon secures coalition deal

The coalition is due to be presented to parliament on Thursday

Israeli Prime Minister Ariel Sharon has reached final agreement to form a coalition government, a statement from his Likud Party has said.

Mr Sharon is expected to sign the deal with his partners, Shinui, the National Religious Party (NRP)and the National Union Party (NUP), on Wednesday.

The coalition make-up was finalised after the right-wing NUP agreed to join on Tuesday evening.

Their presence in government increases Mr Sharon's majority in the Knesset to eight votes, and swings his cabinet further to the right.

Correspondents say the new Israeli political line-up represents a setback for American-led efforts to restart the Middle East peace process.

The NUP, which has seven seats, is strongly opposed to the creation of a Palestinian state.

Ariel Sharon's Likud: 40 seats

NUP: 7 seats

NRP: 6 seats

Shinui: 15 seats

Total: 68 seats (of 120)

Mr Sharon has supported such a state in principle by signing up to an American peace plan which foresees an independent Palestinian state by 2005.

According to the Israeli media, Likud and the NUP managed to sidestep the deadlock over Palestinian statehood by agreeing the issue would only be brought before the cabinet "if and when it becomes relevant".

"This agreement means the next government will be unable to produce any balanced policies on the peace process. There will be no chance left for peace," top Palestinian negotiator Saeb Erekat told French news agency AFP.

The NUP is an alliance of several small ultra-nationalist factions, which advocates Jewish sovereignty in the West Bank and Gaza.

Avigdor Lieberman, who leads the NUP, is expected to receive the transport ministry and fellow party member Benny Elon is seen heading either the tourism ministry or absorption and immigration ministry.

Divided opinion

Mr Sharon had already gained the support of the National Religious Party (NRP) - which advocates the expansion of Jewish settlements and is opposed to the peace process - and the centre-right secular parry, Shinui.

Palestinian statehood: a major if unspoken issue for the coalition

The NUP's seats combined to the NRP's six seats, plus the 40 of Mr Sharon's Likud Party and 15 from Shinui, give the prime minister a comfortable eight-vote majority in the 120-seat Knesset.

Mr Sharon had worked hard to bring the Labour Party into government as well, but the two sides disagreed sharply over the inclusion of the NRP.

This is the first time that ultra-Orthodox parties - the traditional kingmakers of Israeli politics - have not been part of a Likud government.

Mr Lieberman, who was Mr Sharon's national infrastructure minister in the previous government, pulled the party out of the coalition in March 2002, in protest against Mr Sharon's decision to lift the siege of Palestinian leader Yasser Arafat's compound in Ramallah.

The NUP is perceived as the political heir to the anti-Arab Kach movement, which is banned under Israeli law.