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Livni 'admits coalition bid over' Israeli coalition bid 'defeated'
(30 minutes later)
The head of Israel's largest Kadima party, Tzipi Livni, has admitted defeat in attempts to form a coalition government, reports from advisers say.The head of Israel's largest Kadima party, Tzipi Livni, has admitted defeat in attempts to form a coalition government, reports from advisers say.
Ms Livni had given potential partners until Sunday to say whether they would join. She is now likely to recommend early elections.Ms Livni had given potential partners until Sunday to say whether they would join. She is now likely to recommend early elections.
She faced a major setback on Friday after the religious Shas party said it would not join a coalition.She faced a major setback on Friday after the religious Shas party said it would not join a coalition.
She has the support of the Labour party but is short of a majority.She has the support of the Labour party but is short of a majority.
Ms Livni could still attempt to form a government with a numerically fragile grouping - or she could admit defeat.Ms Livni could still attempt to form a government with a numerically fragile grouping - or she could admit defeat.
In that case, early general elections are likely, said BBC correspondent Tim Franks said. In that case, early general elections are likely, said BBC correspondent Tim Franks.
Shas had said that its two key demands had not been met: that child welfare payments increase, and that Jerusalem stays off the negotiating table with the Palestinians.Shas had said that its two key demands had not been met: that child welfare payments increase, and that Jerusalem stays off the negotiating table with the Palestinians.