Israeli Coalition Government Falls - 2002-10-30

The nineteen-month coalition government of Israel collapsed following the resignation of the leader of the Israeli Labor Party and its ministers from the cabinet due to disagreements over funding for Jewish settlements in the occupied territories. Benjamin Ben-Eliezer, the defense minister and a key partner in Prime Minister Ariel Sharon's coalition government, submitted his resignation to the Prime Minister after a contentious three-hour discussion with him. Shimon Peres, the foreign minister, and other Labor Party ministers in the ruling coalition also resigned from their positions. Mr. Ben-Eliezer demanded that Mr. Sharon reduce the $145 million budget for Jewish settlements in the West Bank and Gaza Strip. This money was part of the country's budget for the upcoming year, which the Israeli parliament approved late tonight despite objections from the Labor Party. Meanwhile, violence continues. A Palestinian gunman last night shot dead three Jewish settlers, including two teenage girls, in the Hermesh settlement in the West Bank, and was subsequently killed by Israeli soldiers. According to the Israeli army, during this attack, two residents of the settlement and one Israeli soldier were also injured. The Al-Aqsa Martyrs Brigade, affiliated with the Fatah movement led by Palestinian leader Yasser Arafat, claimed responsibility for the attack. Following the collapse of his 20-month coalition with the center-left on Wednesday, Prime Minister Ariel Sharon will engage in discussions to form a new coalition with far-right parties. News reports indicate that Sharon will consider an alliance with the National Union, although the head of that party claims his faction is not interested in joining the government. The Prime Minister may also call for elections to be held nine months earlier than scheduled. The center-left Labor Party exited the government after protesting the increase in financial allocations for Jewish neighborhoods in the occupied territories. This increase could signify the expansion of these neighborhoods and an escalation of violence between Israelis and Palestinians, thereby undermining U.S. peace plans for the region.