Key Sharon coalition partner threatens to quit

Israeli Prime Minister Ariel Sharon’s largest coalition partner threatened to quit today, raising the possibility of early elections that could endanger his plan to withdraw from the Gaza Strip next year.

The secular-rights Shinui Party warned that it would leave the government if Sharon gives in to financial demands by a small religious party in return for much-needed support in budget votes.

Sharon lost a majority in the parliament earlier this year, with hawks defecting in protest at the Gaza plan. In recent months, he has tried to expand his coalition.

The Israeli prime minister faces critical votes on the proposed 2005 state budget as early as next week. Failure to approve the budget could bring down his government.

Sharon’s Likud Party has been negotiating with the United Torah Judaism Party, offering to increase funding to their religious institutions.

Sharon initially also courted the opposition Labour party. However, the prime minister told Labour leader Shimon Peres earlier this week that he could not invite the party into the coalition because of strong opposition in his right-wing Likud Party.

Labour had provided a parliamentary “safety net” to Sharon’s government in recent months to ensure he could implement the Gaza withdrawal. However, in response to Sharon’s refusal, Labour said it would withdraw the safety net.

Shinui leader Yosef Lapid said he will urge Sharon to ignore the Likud hard-liners and to invite Labour. A Likud-Shinui-Labour coalition would be best equipped to push ahead with the Gaza plan, Lapid said.

If instead Sharon invites religious parties, at a price of increased funding for religious institutions, Shinui will quit, Lapid said. “We’ve reached the breaking point,” he said. “There’s no reason for me to stay in a governmen that is willing to capitulate.”

Sharon faces great opposition in the Likud to his plan to pull troops and 8,800 Jewish settlers out of the Gaza Strip and four West Bank settlements next summer.

The government hopes to pass the 2005 budget in its first reading next week, but has the support of only between 55 and 57 MPs in the 120-seat parliament.