Israel's Livni Calls for Early General Elections

Israeli Prime Minister-designate Tzipi Livni, also ruling Kadima chairwoman, has announced that she failed to form a coalition and called for early general elections.

Livni, also Israel's foreign minister, made the announcement on Sunday at a press conference held at the president's residence in Jerusalem, where she met with Israeli President Shimon Peres.

"In the last days it has become obvious to me that the existing system and the fact that my attempt to establish a government is being carried out at the end of its cadence, brings impossible demands from possible partners, on economical, state and political issues. Gentlemen, there are prices that are possible to be paid, there are prices that others are willing to pay, but i am not willing to pay them at the expense of the state and its citizens and only to be a Prime Minister in a crippled government."

Peres, in his meeting with Livni, lauded Livni's decision and her determination to stick to her principles in the process of attempting to put together a coalition.

He said he intended to summon the various parties and to give her an answer regarding the elections within three days.

Though Peres is likely to accept her preference, by law he could also decide to appoint another member of Knesset, whom he believes could form a stable government within 28 days.

Palestinians worry Livni's decision may put already fragile peace talks in limbo for months until the elections are held.

Aiman Taha, Hamas spokesman in Gaza said that the elections would have a "negative effect" because the negotiation process would be temporarily halted.

But Palestinian negotiator Saeb Erekat said that Palestinians see the internal political situation in Israel as a "domestic matter".

"I hope that the Israeli people will chose peace, will chose to end the occupation, will chose to end settlement activities and to end the occupation and will chose the two state solution. The state of Palestine next to the state of Israel".

Livni has been serving as Israel's chief peace negotiator since talks were formally re-launched last November at a US-hosted summit.