Arafat appoints deputy as prime minister
Mr Arafat sent a letter to Abbas, the number two in the PLO, asking him to form a new cabinet, said Palestinian cabinet minister Saeb Erekat. Abbas, widely known as Abu Mazen, has five weeks to complete the task.
Mr Arafat agreed to appoint a premier under intense international pressure but tried until the last minute to limit the powers of the new position. On Tuesday, the Palestinian parliament rebuffed Arafat's efforts to insert a clause that would have appeared to give him final say over cabinet appointments.