10:44pm UK, Saturday October 25, 2008

Israeli Foreign Minister Tzipi Livni has reportedly called off efforts to forge a new governing coalition and will recommend holding an early national election.

 

Israel prime minister designate Livni

Reports said the decision by the designated successor to scandal-hit outgoing Prime Minister Ehud Olmert, would mean elections could be expected in February.

The next parliamentary poll had been scheduled for 2010.

An early Israeli election could kill off the already slim chances of meeting Washington’s objective of an Israeli peace deal with Palestinians before President George Bush leaves office in January

Livni and Olmert

Mrs Livni had huddled with advisers a day after the religious Shas party bowed out of coalition talks.

It had cited objections to dividing Jerusalem for peace and welfare spending policies.

A political source said afterwards that Livni “decided to opt for elections”.

She will meet with President Shimon Peres on Sunday and tell him “we couldn’t give in to political blackmail and we should hold elections,” the source said.

Mrs Livni had the option of seeking a deal with the left-leaning Labour party and smaller parties that would have given her only a razor-thin majority in parliament.

She could still opt to form a government before she meets with Mr Peres, if one of the parties accepts her terms, but this is seen as unlikely at this point.

After meeting Mrs Livni, Mr Peres can take several days to hold consultations before notifying parliament she cannot form a government.

Under Israeli law, Mr Peres also has the option of naming another party leader to form a government.

But this is seen as unlikely since the most popular alternate leader, rightist Benjamin Netanyahu, favoured by polls to win an election, now lacks enough parliamentary seats to cobble together a government.