Israeli parties in 'coalition deal'

Israeli parties in 'coalition deal'
Labour leader Barak would become senior deputy prime minister if a new coalition assumes power [EPA]
Israel's Kadima and Labour parties have reached an agreement in principle for the formation of a new coalition government.
The deal, reported in Israeli newspapers on Monday, paves the way for Tzipi Livni, the foreign minister, to become the next prime minister.
Ehud Barak, Labour's leader, will be named senior deputy prime minister, next only to the prime minister in rank.
Livni, 50, was asked by Shimon Peres, the Israeli president, on September 22 to form a new government after Ehud Olmert, the incumbent prime minister, announced he would resign over corruption allegations.
Reporting on the developments, David Chater, Al Jazeera's correspondent in Jerusalem, said: "There has been marathon talks between the two sides - 18 hours so far.
"Israeli media say it has been signed, but our contacts with the Kadima party say that although agreement is close, it has not actually been signed.
"But we are very near to that giant step of Tzipi Livni becoming the next prime minister."
Concessions
Chater said that the Labour party did not get the increases in the government budget they were asking for as part of the deal.
However, it did get some of the concessions they wanted, for instance, an increase in student fees.
But the seats of Labour and Kadima do not add up to a majority needed to run parliament. The support of the ultra-Orthodox Shas party is necessary to gain a majority.
The Shas party has demanded increases to child subsidies and a promise not to negotiate with the Palestinians over Jerusalem, to join the coalition.
Livni has set a deadline of October 27 to form a coalition. Otherwise elections to choose a new prime minister will have to be held.

Source:
Al Jazeera and agencies