Tzipi Livni has failed to form a government and will recommend calling an election. The sticking point in coalition negotiations was the status of Jerusalem in Palestinian negotiations:
Prior to the press conference, Shas had released a statement in which it said: “Throughout the negotiations, Shas hasn’t asked for political upgrades or fancy titles. It has asked for only two things: a profound assistance to the weak socioeconomic classes living in Israel and the protection of Jerusalem,” the statement read.
“…Our negotiators proposed solutions for these two issues, but their opinion was not accepted,” the statement said.
One of Livni’s close advisers said that Yishai was told as soon as the negotiations started that Livni would not accept a coalition agreement that excluded Jerusalem from the political talks with the Palestinians and that Yishai had nevertheless been willing to start coalition talks.
(Via Power Line.)
By the way, I’m glad we don’t have a parliament.