The United Torah Judaism (UTJ) party continues to negotiate with the Likud over the conditions necessary for it to join the coalition as well.



Labor Party chairman Shimon Peres summoned an outside source, Atty. Ram Caspi, to finalize the deal after his party's chief negotiator, MK Dalia Itzik, antagonized Prime Minister Ariel Sharon into suspending talks after accusing Sharon of crooked personal motivations in the negotiations. Itzik rejected the Likud's earlier offer, demanding more cabinet posts while accusing Sharon of leaving Labor only the "crumbs."



Peres stepped in when it was clear that the Likud "had enough of Itzik's games," as one Likud party source described the situation.



The agreement will also give Peres a new and undefined title of "Deputy Prime Minister in the Prime Minister's Office" after Deputy Prime Minister Ehud Ohlmert refused to allow Peres to replace him. Labor is set to receive the Ministries of Interior, Housing, Tourism and Communications, among others.



The hareidi UTJ party is demanding more authority for religious affairs than what Likud is offering. It also wants a deputy ministry responsible for either social affairs or housing and construction.



Further economic concessions to UTJ and Shas will be difficult for Finance Minister Binyamin Netanyahu to accept. The deal with Labor will cost the government some 600 million shekels.