Nepal sank into political turmoil after politicians failed to agree on a new constitution, leaving the country with no legal government.

Nepal’s political parties were holding crisis talks on forming a new coalition government today after the prime minister resigned in a power struggle with the president over enlisting former Maoist rebels into the military.

Nepal’s new prime minister announced a cabinet today that includes a communist party leader as his deputy, and he faces the daunting tasks of negotiating peace with Maoist rebels and cementing the return of democracy.

Thousands of troops fanned out across the Nepalese capital Katmandu today to enforce a curfew aimed at derailing opposition plans for a massive rally to protest the king’s seizure of absolute power nearly a year ago.

Nepal’s political parties today rejected on offer from communist rebels to help the campaign to restore democracy in the Himalayan nation, saying the guerrillas must renounce violence before the two groups can unite to challenge King Gyanendra.