Shinui was the dark horse in the Jan. 28 elections, leaping to 15 seats from just six on a pledge to sweep ultra-Orthodox Jewish parties out of government for the first time in more than a quarter of a century. The move caused fury among the longtime Likud allies Shas, the main ultra-Orthodox party, which vowed to try to bring the new government down and branded Shinui’s leader Tommy Lapid an “enemy of Judaism”.

Sharon’s new government also came under fire from the center-left Labour Party after the right-winger enlisted the National Religious Party (NRP), which represents the Jewish settlers in the occupied Palestinian territories. But the Labour, which suffered a historic defeat on a ticket to drastically reduce the controversial settlements, is riven with internal strife after its new leader Amram Mitzna refused to push through his own coalition talks with Likud, which could have brought the party back into government.

Some pundits predict Labour could split over the issue, with its right-wing veering toward the coalition, while others say Mitzna could be toppled from the leadership.

On the Palestinian side, chief negotiator Saeb Erekat predicted the new right-wing coalition would not try to make peace. “The next coming Israeli government will be one devoted to settlement building and rejecting peace,” Erekat told AFP.

Likud is also negotiating with a coalition of extreme right-wing parties, the National Union bloc, which has seven deputies but is demanding two government portfolios. But talks have deadlocked over the bloc’s implacable opposition to a Palestinian state — to which Sharon has in principle subscribed — and public radio said the premier would present his new government to Parliament tomorrow, without waiting to see if he can also bring them on board.

Amid criticism that the new government will not be able to revive the moribund peace process, army radio reported that Sharon has proposed stopping deadly raids into the Gaza Strip if Palestinian activists end their attacks. Sharon has charged moderate Likud veteran Dan Meridor with pursuing the proposal with Washington and other countries.

The Palestinian Authority issued a call for an end to the rocket attacks following the latest massive incursion into Gaza, which unlike the West Bank has not been reoccupied by the Israeli army. Meridor hinted that he was in contact with Palestinian officials.

Meanwhile in the northern West Bank city of Nablus, another Palestinian died of wounds sustained a week ago when Israeli troops arresting a senior member of the Palestine Liberation Organization (PLO) opened fire on stone-throwers.