The Labor Party reached a compromise last night regarding coalition talks with the Likud. In light of the Likud Party's decision last week to reject Labor's inclusion in the government - in opposition to Prime Minister Sharon's position - some leading Labor MKs called for the end of all talk of a unity government with the Likud. Others, such as Shimon Peres, said that Labor must continue to strive to enter the government in order to facilitate the disengagement.



The compromise reached last night states that the talks have ended, the negotiating team is not disbanded - and if Sharon beckons Labor, the party leadership will convene again to decide what to do.



The Labor Party resolution also states that the Likud is to blame for the failure of the unity government to get off the ground. Former Party chief Binyamin Ben-Eliezer explained this morning why this had to be said: "We are a political party, and it's important that the public know that it's the Likud's fault that there is no unity government."



Ben-Eliezer also said that Labor must begin preparing for new elections - though these are scheduled only for two years from now. It is assumed that if the elections are moved up, so will be the Labor primaries. Peres currently heads the party, and angered many of his colleagues when he said last week that he plans to head the party in the next elections - contrary to the understanding reached last year when he was chosen Party Chairman. Many MKs, such as Ben-Eliezer, Matan Vilnai, Ephraim Sneh and others, would like Peres to move aside and make room for the "younger" generation.



Peres and his allies see the decision not to disband the coalition negotiating team as significant for their side. The team's continued existence is seen as a way of "locking in" the current situation, thus preventing the advancement of the primaries before December 2005, when Peres' term ends.