Shas to stay in Israeli government

Meretz leader Yossi Sarid arrives late Wednesday at Israeli Prime Minister Ehud Barak's home to submit his letter of resignation

Saves Barak coalition from collapse

June 22, 2000
Web posted at: 8:20 a.m. EDT (1220 GMT)

From CNN's Jerrold Kessel

JERUSALEM (CNN) -- Leaders of the ultra-orthodox Shas party in Israel withdrew their resignations Thursday from the government of Prime Minister Ehud Barak, averting a crisis that likely would have toppled his government.

The move came after Shas' main opponent in the Barak coalition, the Meretz party, announced it was withdrawing from the coalition in order to save it from collapse.

Shas ministers met with their spiritual leader, Rabbi Ovadi Yosef, before announcing that they would remain in the government.

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Shas leader Eli Yishai earlier told reporters if Shas stays in the coalition, it expects to participate as a full partner.

Meretz leader Yossi Sarid announced Wednesday that Meretz would give up its cabinet posts and withdraw from the coalition to appease Shas so it would not withdraw its 17 members and torpedo Barak's government.

Because Shas has agreed to keep its members in Barak's coalition, the prime minister has been left with a minority government of 58 out of 120 Knesset members.

But Sarid pledged that Meretz's 10 members of parliament would continue to support Barak outside the coalition, allowing him to fend off any no-confidence motions.

Shas threatened to quit the government over demands that Barak and the Israeli government provide 25 million shekels (about U.S. $8 million) to save the party's bankrupt school system.

Shas also wanted its group of pirate radio stations legalized.

Over weeks of negotiations, Shas' demands expanded to include more respect and fuller consultations in running the government.

Barak said he wanted to keep Shas in the government and had come up with plans to address "90 percent" of their problems.

Sarid, who had been the education minister in the Barak government, had strongly opposed bailing out the Shas schools.

He said that peace talks with the Palestinians were reaching a critical stage and Meretz would step aside so Barak could keep his government in power and continue the negotiations. Three Meretz ministers turned in their resignations late Wednesday.

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