Sharon Turns Sharp Right in Search for Government
Israel's government-in-the-making turned sharply to the right Sunday, prompting the party behind historic peace deals with the Palestinians to end talks on forming a ``unity'' coalition with Ariel Sharon.

Partnership between the center-left Labor Party and the prime minister's right-wing Likud would have put a more moderate face on his government ahead of anticipated U.S. pressure for Israeli territorial handovers after any war in Iraq.

A coalition deal between Likud and the National Religious Party (NRP), a champion of Jewish settlement on occupied land and an opponent of a Palestinian state, led Labour's chairman Amram Mitzna to declare an end to its own talks on an alliance.

``The NRP's position suits him (Sharon) better,'' Mitzna said in a speech to Labor members, predicting the Israeli leader would make no breakthrough toward peace with the Palestinians.

Together with the NRP's six parliamentary seats, the 15 held by likely coalition partner Shinui, a centrist party, and Likud's 40 lawmakers, Sharon could form a narrow, shaky government of 61 legislators in the 120-member Knesset.

Israel's business leaders had been pushing for a broad government as the best chance to restore economic stability rocked by a Palestinian uprising for statehood.

Sharon turned to the NRP after holding three inconclusive meetings with Mitzna, who campaigned in the January 29 election on a pledge not to join a Likud-led coalition and on a promise to resume peace talks with the Palestinians immediately.
http://www.nytimes.com/reuters/international/international-israel.html