Sharon resigns as leader of Likud party

Middle East: Israel's Prime Minister Ariel Sharon has decided to quit his ruling Likud party, it was reported last night, quoting…

Middle East: Israel's Prime Minister Ariel Sharon has decided to quit his ruling Likud party, it was reported last night, quoting unidentified party sources.

Army Radio said Mr Sharon, after marathon talks with aides and associates, has decided to quit the party he helped found and run separately in the next Israeli national elections likely to be moved up from November 2006 to February or March.

The sources said Mr Sharon has decided to quit Likud, with one saying "a political earthquake is on the way".

"Ariel Sharon has decided ... Ariel Sharon's decision is dramatic, unequivocal, to leave the Likud," the radio quoted the source as saying.

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Mr Sharon has already begun contacting political allies to join a new party he would head, the radio said.

The 77-year-old former general had been expected to announce his decision by a planned meeting today with members of the Likud parliament faction.

Confidants have said Mr Sharon wants to seize the chance that polls say he has to defeat the left-of-centre Labour party in a snap election, then pursue plans to end conflict with the Palestinians without having to battle Likud hardliners who oppose giving up West Bank land.

Earlier yesterday the Labour party had voted to quit Mr Sharon's coalition.

Leftist Labour's central committee, encouraged by fiery new leader Amir Peretz, voted overwhelmingly to leave the government it had joined to help Mr Sharon counter rightist Likud rebels who opposed his withdrawal from the occupied Gaza Strip.

"Let the revolution begin," said party official Eitan Cabel as he announced the result of the vote in a show of hands.

The withdrawal of the Labour party was the expected first step in a week that could reshape Israeli politics, thrown into turmoil since union leader Mr Peretz defeated veteran peacemaker Shimon Peres in a surprise leadership vote.

Israel Radio said Labour cabinet members were likely to hand in resignation letters today.

They are already written.

Polls indicate Mr Sharon would be uncertain of winning elections, now expected in February or March, with a new party.

"He is liable to set in motion a political migration on a scale that the Israeli political map hasn't witnessed since the state of Israel was founded," wrote Shimon Shiffer in the best-selling Yedioth Ahronoth daily.

Earlier confidants said they believed Mr Sharon was leaning towards leaving Likud, a party which he helped co-found and long championed the settlement of land captured in the 1967 war, territory that Palestinians want for a state.

One of Sharon's closest allies, Justice Minister Tzipi Livni, has met Likud members of parliament to discuss forming a new party.

Mr Sharon agreed last week with Mr Peretz to hold elections between late February and the end of March.

A provisional election date was due to be agreed by Wednesday ahead of a debate in parliament to set in motion the process of holding an early vote. One member of the team discussing a date acceptable to all parties said March 28th looked likely.

Mr Peretz stands on a platform of rolling back spending cuts and free-market reforms as well as withdrawing from West Bank settlements and talking peace with the Palestinians as soon as possible.

"I intend to march Israel forward where social justice and peace will go together," said Mr Peretz.

At the same time he vowed that "the war on terror will be without compromise".

While ready to go further than many in Likud in giving up land, Mr Sharon aims to keep major West Bank settlements and has ruled out talks on statehood unless Palestinians disarm militants waging an uprising.

Palestinians fear Mr Sharon aims to unilaterally set a border along the lines of a barrier being built deep inside the West Bank. Israel says the barrier stops suicide bombers. Palestinians call it a land grab.- (Reuters)