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Shamir Optimistic on Forming Government by Week’s End

November 21, 1988
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Prime Minister Yitzhak Shamir, saying he is confident he will have a new government put together by the end of this week, is vigorously pursuing his options.

There appear to be only two — a narrowly based Likud-led coalition with the ultra-Orthodox and extreme right-wing parties, or a broader partnership with Labor.

Both present severe difficulties and pitfalls.

Shamir met Sunday with a delegation of the far right Tehiya Party, led by Professor Yuval Neeman and Geula Cohen.

Meanwhile, Labor and Likud negotiators were meeting secretly in Jerusalem. Moshe Arens and Dan Meridor represented Likud and Moshe Shahal and Haim Bar-Lev reportedly were Labor’s spokesmen.

Nothing official emanated from the talks, but according to the latest leaks, Likud is now ready for parity, meaning it and Labor would have the same number of ministers in the next Cabinet.

Likud is also reportedly willing to give Shimon Peres a “senior portfolio.”

The Labor Party leader would like to retain the Foreign Ministry, but reportedly would accept the Finance Ministry portfolio.

So far, Likud insists on retaining the Treasury. It is said to be willing to let a Laborite be foreign minister, but not Peres.

Even if ministry jobs can be agreed to, government guidelines would have to be worked out on the issue of an international peace conference, which Labor favors and Likud adamantly opposes.

Labor for its part has refused to commit to serving out the full four-year term of the next government. Likud insists on such a pledge.

Likud liberal Yitzhak Moda’i, who would like to be finance minister again, looked dimly on the chances of Shamir quickly forming a government.

Powerful elements in each party could sabotage an agreement.

Shamir must contend with David Levy and hard-liner Ariel Sharon, both adamant against an alliance with Labor.

Sharon covets the Defense Ministry, which would probably be his in a narrowly based rightwing regime.

In a possible Likud-Labor alliance, Laborite Yitzhak Rabin seems favored by Shamir to remain defense minister.

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