Israel's Kadima and Labour parties have signed a draft coalition deal that would pave the way for the formation of a new government headed by Foreign Minister Tzipi Livni.
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Shock defeat for Brown's Labour in Scotland ... media are reporting that the agreement was signed by MPs from both sides following marathon negotiations. It would bring Defence Minister Ehud Barak's 19-member Labour bloc into a coalition with Kadima's 29 MPs. However, it would still leave Livni short of a workable majority. Kadima officials said she planned to try to persuade the Jewish ultra-Orthodox Shas party to join the coalition. If Livni fails to present a new cabinet by the end of the month, an early parliamentary election will have to be held. Livni was elected by Kadima members last month to take over as party leader from Ehud Olmert, who has announced his resignation amid a corruption scandal.
(Deutsche Welle)
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