Israeli government in crisis after ministers sacked

11.00am

JERUSALEM - Israeli Prime Minister Ariel Sharon's government plunged into crisis after he kicked ministers of the linchpin Shas party out of his government for voting against an emergency economic package.

The loss of Shas' 17 votes in the 120-member parliament would reduce the number supporting him from 82 to 65.

"The prime minister ordered the immediate dismissal of four of the five Shas ministers...in the wake of tonight's parliamentary vote against the government's economic plan," Sharon's office said in a statement.

He also fired deputy ministers from the United Torah Judaism (UTJ) party who also broker ranks on the vote, a move that could cut the number of government Knesset seats to 60 -- still a majority under Israeli law -- if the UTJ bolts the coalition.

The dismissals go into effect in 48 hours, but Shas leaders left no doubt they no longer considered their ultra-Orthodox party -- a traditional kingmaker in Israeli politics -- part of Sharon's administration.

"We welcome his decision," one of the fired Shas ministers, Shlomo Binizri, told Army Radio. "We wish him all the luck if he thinks he can go to elections without Shas or other ultra-Orthodox parties."

The 13 billion shekel ($5.84 billion) emergency economic package was aimed at reining in a budget deficit swollen by lower tax revenues and higher defence spending as a result of the 19-month-old Palestinian uprising.

Shas opposed the measures, which included cutting social welfare payments and raising taxes. In a stinging defeat for Sharon, parliament voted 47-44 against the package, with one abstention.

The measures also call for a widening of the budget deficit to 3.9 per cent of gross domestic product from 3.0 per cent. Finance Minister Silvan Shalom had warned that if the changes were not approved, the deficit could reach six per cent of GDP and Israel's credit rating could be lowered.

- REUTERS

Feature: Middle East

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