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New election looming for Israel New election looming for Israel
(40 minutes later)
Israel appears set for a snap election after the head of the governing Kadima party, Tzipi Livni, said she had given up efforts to form a coalition.Israel appears set for a snap election after the head of the governing Kadima party, Tzipi Livni, said she had given up efforts to form a coalition.
She said she had decided to recommend new elections were held after potential partners had made "economically and diplomatically illegitimate" demands.She said she had decided to recommend new elections were held after potential partners had made "economically and diplomatically illegitimate" demands.
Ms Livni had set other parties a Sunday deadline to join Kadima in government.Ms Livni had set other parties a Sunday deadline to join Kadima in government.
But on Friday the key Shas party turned her down. Ms Livni is due to meet President Shimon Peres later on Sunday.But on Friday the key Shas party turned her down. Ms Livni is due to meet President Shimon Peres later on Sunday.
After briefing him on her attempts to form a new government, Mr Peres has three days for further consultations.After briefing him on her attempts to form a new government, Mr Peres has three days for further consultations.
If these fail, any other Israeli MP can attempt to form a governing coalition over the next three weeks.If these fail, any other Israeli MP can attempt to form a governing coalition over the next three weeks.
WHAT HAPPENS NEXT? President Peres has three days for further consultationIf those talks fails, other MPs have three weeks to form coalitionPeres can then call election to be held within 90 daysPoll likely in late February or MarchWHAT HAPPENS NEXT? President Peres has three days for further consultationIf those talks fails, other MPs have three weeks to form coalitionPeres can then call election to be held within 90 daysPoll likely in late February or March
But correspondents say no other coalition is likely to emerge and Ms Livni's decision will effectively lead to new elections, which could be held in February or March. But correspondents say no other coalition is likely to emerge and Ms Livni's decision will effectively lead to new elections, which look set to be held in February.
The next parliamentary poll had been scheduled for 2010.The next parliamentary poll had been scheduled for 2010.
Opinion polls suggest Ms Livni could face a tough fight in an early election against the right-wing Likud party.Opinion polls suggest Ms Livni could face a tough fight in an early election against the right-wing Likud party.
'Extortion''Extortion'
After her election as Kadima leader last month, Ms Livni was asked to form a government to replace that of outgoing Prime Minister Ehud Olmert.After her election as Kadima leader last month, Ms Livni was asked to form a government to replace that of outgoing Prime Minister Ehud Olmert.
He is stepping down amid corruption allegations, but will remain in office until a new government is formed.He is stepping down amid corruption allegations, but will remain in office until a new government is formed.
ISRAELI KNESSET SEATS Current coalition (67 seats): Kadima: 29Labour: 19Shas: 12Pensioners party: 7 Other parties: Likud: 12Yisrael Beitenu: 11National Union-National Religious Party: 9United Torah Judaisim: 6Meretz: 5Arab parties: 10 Coalition needs 61 for majority
Kadima holds 29 seats in Israel's 120-member Knesset and has secured a draft coalition agreement with the centre-left Labour party, which has 19 seats.Kadima holds 29 seats in Israel's 120-member Knesset and has secured a draft coalition agreement with the centre-left Labour party, which has 19 seats.
Shas, an extra-Orthodox party, has been a crucial ally in Mr Olmert's coalition, with 12 seats.Shas, an extra-Orthodox party, has been a crucial ally in Mr Olmert's coalition, with 12 seats.
But on Friday, Shas pulled out of talks for a new coalition, saying its two key demands - to increase child welfare payments and keep Jerusalem off the negotiating table with the Palestinians - had not been met.But on Friday, Shas pulled out of talks for a new coalition, saying its two key demands - to increase child welfare payments and keep Jerusalem off the negotiating table with the Palestinians - had not been met.
On Sunday, Mr Livni issued a statement saying: "When it became clear that everyone and every party was exploiting the opportunity to make demands that were economically and diplomatically illegitimate, I decided to call off (talks) and go to elections."On Sunday, Mr Livni issued a statement saying: "When it became clear that everyone and every party was exploiting the opportunity to make demands that were economically and diplomatically illegitimate, I decided to call off (talks) and go to elections."
Earlier, she told Haaretz newspaper she was "not willing to be blackmailed" and the alternative to early elections was "for me to capitulate to extortion".Earlier, she told Haaretz newspaper she was "not willing to be blackmailed" and the alternative to early elections was "for me to capitulate to extortion".
As foreign minister, Ms Livni has been heading negotiations with the Palestinians.As foreign minister, Ms Livni has been heading negotiations with the Palestinians.
But the talks effectively ground to a halt amid Israel's political uncertainty.But the talks effectively ground to a halt amid Israel's political uncertainty.
US President George W Bush had hoped to have a Middle East peace deal by the time he leaves office in January.US President George W Bush had hoped to have a Middle East peace deal by the time he leaves office in January.