Peres looks poised to join Sharon's party

A deal was emerging today for elder statesman Shimon Peres to leave Israel's Labour Party and join Ariel Sharon's government …

A deal was emerging today for elder statesman Shimon Peres to leave Israel's Labour Party and join Ariel Sharon's government if the prime minister is re-elected in March.

A Sharon associate and newspaper reports said Mr Peres would likely be charged with developing the outlying Galilee and the Negev regions if Mr Sharon retains power.

In Barcelona today, Mr Peres refused to be drawn out. "I shall decide tomorrow night," he said.

But he had warm words for Mr Sharon - and none for Labour, whose members ousted him as party chairman earlier this month, in favour of union firebrand Amir Peretz.

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"The real change is not in the Labour Party. The real change is in the Likud Party," he added.

"Mr Sharon took a different direction for a Palestinian state. He wants to continue the peace process."

Speculation has been rife since Mr Peres lost the leadership of Labour earlier this month that he would join forces with Mr Sharon ahead of March 28th elections.

That speculation intensified today, after a Peres protege, MP Dalia Itzik, left Labour to defect to the Sharon camp.

"It looks like a package deal," Labour's secretary-general, Eitan Cabel, told Army Radio, saying it now appeared likely Mr Peres would leave as well.

"We spoke about their remaining (in Labour) and not defecting to another party, but apparently things were already sealed, and the talks with us were nothing but a smokescreen."

In Barcelona, Mr Peres told army Radio: "I have to reach a complete decision, and I am considering all the aspects I can ... I expect that within the next two days I will end my deliberations and make an announcement."

Other party-jumping incidents dominated Israeli news late yesterday and early today.

Shelly Yachimovitch, a well-known broadcast journalist, announced her plan to contend for a slot on the Labour party list.