Originally published by the Voice of America (www.voanews.com). Voice of America is funded by the US Federal Government and content it exclusively produces is in the public domain. October 24, 2008 Early Elections Likely in Israel After Coalition Talks Flop ----------------------------------------------------------- http://enews.voanews.com/t?ctl=1EEB305:A6F02AD83191E1601F15566E0E74241F2A201403E89ED254& Prime Minister-designate Tzipi Livni threatens early elections if coalition government is not formed by Sunday There is political turmoil in Israel after negotiations on forming a new government collapsed. Robert Berger reports from the VOA bureau in Jerusalem. Tzipi Livni, 5 Oct., 2008The ultra-Orthodox Shas party has decided not to join a government led by Foreign Minister Tzipi Livni, who is hoping to become Israel's first woman prime minister in more than 30 years. Shas leader Eli Yishai said coalition talks collapsed. Yishai told Israel Radio that Livni failed to meet two key demands: first, not to negotiate with the Palestinians on the future of Jerusalem, and second, to provide $26 million in welfare benefits for big religious families. Shas's decision came a day after Livni issued an ultimatum. Livni said that if she did not have a new coalition government by Sunday she would call early elections. With two days to go before the deadline, both sides could be engaging in brinkmanship. Officials in Livni's Kadima party and in Shas say there is still a chance for a deal. If there are early elections, they would probably take place in March of next year. Livni would face off with hawkish opposition leader and former Prime Minister Benjamin Netanyahu. Battle lines are already being drawn. Netanyahu opposes Livni's plan for the creation of a Palestinian state and compromise on Jerusalem. .