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Sharon undertakes damage control exercise

Atul Aneja

MANAMA: Faced with deepening divisions within the Israeli Right-wing over the Government’s decision to make a unilateral pullout from Gaza, Israeli Prime Minister Ariel Sharon has begun hectic parleys to minimise the impact of the protest resignation by his Finance Minister Benjamin Netanyahu on Sunday.

On Monday, Mr. Sharon, held a series of “damage control” meetings with his Cabinet colleagues following Mr. Netanyahu’s shock resignation in protest against the pullout plan. Mr. Sharon’s supporters were quoted as saying that there was little chance the Mr. Netanyahu’s exit from the Cabinet would encourage more resignations.

Mr. Sharon also spoke to the Bank of Israel Governor Stanley Fischer and senior treasury officials as stocks at the Tel Aviv stock exchange fell sharply following Mr. Netanyahu’s resignation. He conveyed that there would be continuity in the economic polices pursued under Mr. Netanyahu by Deputy Prime Minister Ehud Olmert who has now taken over the Finance portfolio temporarily. After Sunday’s drop, stocks rallied on early trading on Monday.

In his resignation letter, Mr. Netanyahu said the withdrawal of the Israeli settlements from the Palestinian territory of Gaza would see the area emerge as an “Islamic terrorist base.” “We’ve reached the moment of truth. There is a way to achieve peace and security, and a unilateral withdrawal under fire, without receiving anything in return, is not the way. I am not willing to be a party to a move that ignores reality and blindly advances toward the establishment of an Islamic terrorist base that threatens the state.”

Analysts point out that by resigning abruptly, Mr. Netanyahu might be seeking to position himself as the Likud party leader in the future following growing opposition within the Israeli Right-wing to Mr. Sharon’s plan. Elections in Israel could be brought forward to June next year, in case the controversial budget that is being presented before Parliament on Tuesday does not pass before a March 31, 2006 deadline. In that case, Mr. Netanyahu would be provided with an early opportunity to emerge as the future Prime Minister heading the Likud party.

Observers say Mr. Netanyahu’s chances would depend on the manner in which the Gaza withdrawal takes place. His chances would improve in case there was turbulence involving evacuation of settlers as well as stepped up Palestinian attacks. But Mr. Sharon could occupy the Centre-Right political space and push Mr. Netanyahu to an extreme Right wing fringe in case the pullout took place smoothly. The pullout plan would affect less than 4 per cent of the 240,000 settlers who live alongside 3.8 million Palestinians.

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