Shas on way to government

Coalition talks: Shas officials say they expect to finalize deal with Kadima soon. Labor party also on verge of finalizing deal to join government, right-wing Israel Our Home appears likely to stay out of coalition

Ilan Marciano|Last update: 04.27.06 , 09:06

Shas officials said Thursday morning the religious party and Kadima reached a breakthrough in their coalition talks and are expected to sign a deal by Friday at the latest.

Party leader Eli Yishai is expected to receive a draft of the agreement and consult with Shas spiritual leader Rabbi Ovadia Yosef. Shas members said the breakthrough came after it became increasingly apparent Avigdor Lieberman's Israel Our Home will be staying out of the government.

"After Olmert found out Lieberman is out of the picture, the negotiations with us were significantly boosted," one Shas source said.

At this time it appears Shas will be receiving an extended Trade, Industry and Labor portfolio, the Communication Ministry, and a minister at the Prime Minister's Office to be in charge of religious services. The minister will receive powers related to the Ministry of Religion, which was dismantled under the previous government.

Shas officials were encouraged by the understandings and said there was a good chance they would get a fourth portfolio.

Labor in; Lieberman out?

Earlier, senior Labor party officials said an agreement with Kadima on joining the new coalition may be signed as early as Thursday. As a result, Labor is preparing for quickly convening the party's Central Committee to approve such deal.

On another front, religious spiritual leaders toughened their positions Thursday night and presented Kadima with a sort of ultimatum, threatening to stay out of the coalition should child allowances not be boosted.

"Don't enter the coalition without the getting back child allowances," one leading rabbi said.

Kadima officials invited United Torah Judaism representatives to continue talks Thursday night. During the meeting, which continued into late hours, UTJ presented its demand to undo part of the cut in allowances for families with many children.

The issue has already been discussed earlier, and UTJ proposed that the boost to child allowances for families with a large number of children can be funded by cutting child allowances for the first and second child.

Earlier, Kadima already agreed during talks with Shas to cancel further child allowance cuts slated to continue until 2009. However, Shas members said they are not satisfied.

"We're talking about a virtual benefit only," one Shas member said. "We want the money to be returned to the public that elected us, just as it was taken away."