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Israeli coalition bid 'defeated' Israeli coalition bid 'defeated'
(20 minutes later)
The head of Israel's largest Kadima party, Tzipi Livni, has admitted defeat in attempts to form a coalition government, reports from advisers say.The head of Israel's largest Kadima party, Tzipi Livni, has admitted defeat in attempts to form a coalition government, reports from advisers say.
Ms Livni had given potential partners until Sunday to say whether they would join. She is now likely to recommend early elections. Ms Livni had given potential partners until Sunday to say whether they would join. She is now likely to recommend an early general election.
She faced a major setback on Friday after the religious Shas party said it would not join a coalition. She faced a major setback on Friday after the ultra-religious party Shas said it would not join a coalition.
She has the support of the Labour party but is short of a majority.She has the support of the Labour party but is short of a majority.
Ms Livni could still attempt to form a government with a numerically fragile grouping - or she could admit defeat.Ms Livni could still attempt to form a government with a numerically fragile grouping - or she could admit defeat.
In that case, early general elections are likely, said BBC correspondent Tim Franks. In that case, an early general election is likely, BBC correspondent Tim Franks says.
Shas had said that its two key demands had not been met: that child welfare payments increase, and that Jerusalem stays off the negotiating table with the Palestinians. Shas said its two key demands - to increase child welfare payments and keep Jerusalem stays off the negotiating table with the Palestinians - had not been met.
'Political blackmail'
Ms Livni is scheduled to meet President Shimon Peres at 1700 (1500 GMT) on Sunday to brief him on her efforts to form a new government.
Israeli radio stations have been reporting that she told a meeting of her advisers on Saturday evening she had decided not to continue the attempt.
An unnamed political source told Reuters news agency after the meeting that she had "decided to opt for elections".
She will tell Mr Peres "we couldn't give in to political blackmail and we should hold elections", the source said.
Some time in February is being mooted by the Israeli media as the likely date for the election.
Israel has a notoriously febrile and fast-changing political atmosphere, our correspondent adds.
But the latest reports suggest that the foreign minister believes an early general election may prove the only option, he adds.
If that were the case, she would have a tough fight against Binyamin Netanyahu, the leader of the main right-wing opposition party, our correspondent says.