Sharon faces coalition crisis over budget vote

Israeli Prime Minister Ariel Sharon's coalition reeled towards collapse today over a budget vote likely to force him to remake…

Israeli Prime Minister Ariel Sharon's coalition reeled towards collapse today over a budget vote likely to force him to remake his government or call elections that would imperil his Gaza withdrawal plan.

Parliament was to convene at 4 p.m. for a first reading of the 2005 state budget that Mr Sharon looked destined to lose because of a revolt by his main coalition partner, the Shinui party. He said he would sack Shinui if it defied him.

To avert elections two years ahead of schedule and an indefinite delay to his plan for "disengaging" from conflict with Palestinians, Mr Sharon would have to replace Shinui with the Labour party and maybe a religious faction to pad his margin.

Analysts said Mr Sharon, who would hold only 40 seats in the 120-seat parliament without Shinui, wanted to wrap up a deal with Labour by Monday to avoid the risk of being toppled by a possible no-confidence vote over the economy.

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The government must pass the budget by March 31st or resign. The budget process has stumbled on opposition from left-wing and religious parties to steep cutbacks in social spending.

Having Labour on board would solidify majorities for the budget and Mr Sharon's plan to remove Jewish settlements from some occupied land. But powerful Likud rebels bent on scuttling his Gaza plan have balked at any such "unity coalition".