US embassy cable - 04TELAVIV6262

C O N F I D E N T I A L TEL AVIV 006262 
 
SIPDIS 
 
E.O. 12958: DECL: 12/10/2014 
TAGS: PGOV, PREL, KWBG, IS, GOI INTERNAL 
SUBJECT: SHARON WINS LIKUD GREEN LIGHT TO NEGOTIATE WITH A 
PORTFOLIO-FOCUSED LABOR PARTY 
 
 
Classified By: Political Counselor Norman Olsen for reasons 1.4 (b,d). 
 
1.  (C) The Likud Central Committee's 62 percent majority 
vote in favor of opening coalition negotiations with Labor, 
United Torah Judaism (UTJ), and Shas is an important victory 
in Prime Minister Sharon's long struggle to broaden his 
minority government, which has dwindled down to 40 Likud MKs. 
 Embassy sources believe that Sharon will choose to  bring 
Labor and the UTJ into the coalition now, and only later 
consider inviting Shas, due to Shas' opposition to 
disengagement.  A coalition composed of Likud, Labor (19 MKs) 
and UTJ (five MKs) would give Sharon a majority coalition of 
64 MKs.  Once Histadrut Chair Amir Peretz's Am Ehad party is 
formally part of the Labor Party in January, that party's two 
seats will be added to the coalition. 
 
2.  (C) Prime Minister Sharon made the long-anticipated call 
to Labor Party leader Peres December 10, inviting the 81-year 
old statesman to the negotiating table.  Peres will likely 
bring the issue of entering coalition negotiations with Likud 
before his own party's governing bodies December 11 and 12, a 
move expected to create intra-party battles with what Labor 
contacts say are unpredictable results.  Labor Whip Isaac 
Herzog told the Ambassador December 9 that Labor could decide 
on the matter at its December 12 Central Committee meeting, 
which is being held to vote on a date for party primaries 
(septel).  Herzog estimated that an agreement between Labor 
and Likud could be wrapped up as early as December 16, 
although he stressed that battles over ministerial portfolios 
and economic issues would likely emerge between Labor and 
Likud during the negotiations.  Herzog explained that shortly 
after a coalition agreement is reached, the Labor Party 
governing bodies would vote on Labor candidates for eight 
ministerial portfolios that Herzog expects Sharon to offer 
Labor as part of the coalition agreement (see septel).  Once 
the portfolios are sorted out between Likud, Labor and UTJ -- 
the latter having traditionally shied away from accepting 
Cabinet seats -- Sharon would present a new government before 
the Knesset for its likely approval. 
 
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