Israeli parliament sworn in, parties discuss coalition

JERUSALEM -- Israel's new parliament convened for the first time Monday as Prime Minister Ariel Sharon and his main rival discussed forming a coalition government to address the country's security and economic crises.

The shape of Sharon's new government could determine how Israel deals with the Palestinians. If the moderate Labor Party headed by Amram Mitzna joins, it could signal a readiness to soften current policies and reopen peace negotiations.

Without Labor, Sharon could team up with hawkish parties that favor even stronger measures against the Palestinians and reject consideration of a Palestinian state.

Another option is a "secular government" with Likud, Labor, the anti-religious Shinui and the tiny Am Echad parties. That would leave ultra-Orthodox Jewish parties outside for the first time in decades, with a goal of reversing the favors they gained over the years as a balance of power between the two main parties.

Favoring coalition

Sharon has said he favors a broad coalition with as many Jewish parties as possible but excluding three factions representing Israel's Arab minority.

Israeli television reported that Sharon would discuss that possibility with Mitzna, but it was considered unlikely that Sharon would sever his party's strategic alliance with the religious bloc, which supports Sharon's harsh policy toward the Palestinians.

After the two-hour meeting, Sharon's office issued a statement saying the two leaders discussed security and economic issues and agreed to meet again.

Mitzna has said he would not lead his party back into Sharon's government unless Sharon adopts Labor's dovish platform, including holding peace talks with the Palestinians, evacuating Israeli settlements from the Gaza Strip and quickly constructing a fence Israel and the West Bank.

Sharon rejects the first two points.

Sharon crushed his rivals in a Jan. 28 general election. He has six weeks to present parliament with a majority coalition government for a confidence vote.

The new parliament consists of 13 parties, with 38 new members in the 120-member house. Sharon's Likud Party holds the largest number of seats -- 40 -- but he still needs coalition partners to form a majority governing team.

During Monday's ceremonies for new members, former Prime Minister Shimon Peres, a Nobel Peace Prize laureate, called on Israel and the Palestinians to take concrete steps toward peace after 29 months of bloody conflict.

"The Palestinians must show real effort against terror, and we can begin to march toward a permanent solution," he said. "Peace is waiting for a Palestinian government of peace, and for an Israeli peace process."