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June 30, 1999
Web posted at: 8:48 p.m. EDT (0048 GMT)

In this story: Coalition could have up to 87 votes Talks with Likud break down RELATED STORIES, SITES

From staff and wire reports

JERUSALEM (CNN) -- After nearly six weeks of dickering with various parties across Israel's fractious political spectrum, Israeli Prime Minister-elect Ehud Barak announced Wednesday that he has put together a coalition government with broad support for restarting the Middle East peace process.

In a letter to Shimon Peres, the acting speaker of the Knesset, Barak said that he has enough votes to form a government in the 120-seat parliament. The government will be officially presented next week.

The final piece of the coalition puzzle fell into place when Barak reached an agreement with the ultra-Orthodox Shas Party, which won 17 Knesset seats in the May 17 election. In return for its support, Shas will receive four Cabinet posts -- infrastructure, labor, health and religious affairs.

But Shas agreed to give up the powerful Interior Ministry that it held under the outgoing government of Prime Minister Benjamin Netanyahu -- a move that could bring even more secular legislators into the Barak fold.

Secular political groups have objected to the ultra-Orthodox party's hold on the Interior Ministry which, among other things, finances social service agencies and determines who is eligible for Israeli citizenship.

Coalition could have up to 87 votes

Shas' 17 seats brings the number of legislators committed to the Barak coalition up to 59. In addition, 10 Arab members are expected to support the government but remain officially outside the formal coalition.

Also, three other parties -- the Center Party, Am Ehad and Meretz, with a combined 18 seats -- are considering joining the Barak coalition, which could give the new government the widest parliamentary majority seen in Israel in years.

Talks with Likud break down

Not included in the new coalition is the second-largest party in the Knesset, Likud, which was the leading party in the outgoing government.

Talks between Barak and Likud leader Ariel Sharon, a hard-liner who has supported Jewish settlement in the West Bank, broke down Monday. The Palestinian leadership and much of the Arab world had been jittery at the prospect that Likud might play a role in Israel's new leadership.

Sharon became Likud's leader when Netanyahu resigned after the party's poor showing in the election, which saw Netanyahu ousted and Likud slump to just 19 seats. Under the Israeli electoral system, the prime minister and members of parliament are elected separately.

Despite being the bane of secular Israelis and having supported Netanyahu in the election, Shas has taken a generally conciliatory line in ceding land to the Palestinians.

Another member of Barak's coalition is the National Religious Party, which draws support from Jewish settlers in disputed areas and is uncomfortable with reviving the peace process. However, the party appears poised to moderate its opposition in return for maintaining influence in the religious and education ministries.

Correspondent Jerrold Kessel, The Associated Press and Reuters contributed to this report.

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