JERUSALEM (Reuters) - The Israeli ultra-orthodox Shas party decided on Friday not to join a coalition led by Israeli premier-designate Tzipi Livni, a party spokesman said, making early elections almost inevitable.
On Thursday, Livni set a Sunday deadline to either say she can form a new Israeli coalition government or announce failure, thereby starting the constitutional process that leads to an early general election.
Shas spokesman Roy Lachmanovich said in a statement that the party was unable to reach agreement with Livni's Kadima party over two main issues -- the status of Jerusalem and social welfare benefits for the poor.
"Shas has asked only for two things ... real financial help for the (financially) weak in Israeli society and protection for Jerusalem ... which is not merchandise for sale."
http://www.reuters.com/article/worldNews/idUSTRE49N2JB20081024