February 2001 World Headlines

Friday, February 23, 2001 - Web posted at 8:27:49 AM GMT

Israel still optimistic on broad government

JERUSALEM - The rift in Prime Minister Ehud Barak's Labour Party deepened yesterday, with centrists saying they were close to joining forces with hardline Prime Minister-elect Ariel Sharon and party doves trying to block them.

It was not clear whether Labour - temporarily leaderless after outgoing Prime Minister Ehud Barak announced earlier this week he is retiring from politics - was headed for a split.

The party's decision-making central committee was to meet Monday to vote on a possible coalition deal.

Negotiators from Labour and Sharon's Likud Party met yesterday for another round of talks.

Labour negotiator Dalia Itsik, the outgoing minister of environmental protection, said the two sides were close to agreement, provided Likud raised no new conditions, and that a deal could be presented to the party for approval next week.

A leading proponent of joining a Sharon government is Labour's elder statesman Shimon Peres.

Sharon advisers denied Israeli media reports that Sharon has offered Peres the job of defence minister - a post initially earmarked for Barak.

- Nampa-Sapa-AP