Shas chairman Eli Yishai said Friday that the decision made earlier by the Council of Torah Sages for the party not to join the coalition was final. "As I said, the Council of Torah Sages decided this morning after a telephone survey and in accordance with the directives of Rabbi Ovadia Yosef that Shas will not join the government," said Yishai at a press conference next to his home in Jerusalem. "The decision is final."

Yishai said his party's demands for the allocation of more funds to poor Israelis and for a commitment that Jerusalem remain united, demands which were not met by Kadima, were not personal, but were for the benefit of the entire country. "We have made our decision according to our principles. Shas cannot be bought. We will stick to out goals and principles," he said.

"A year ago, the decision was made in Shas that if [the division of] Jerusalem is discussed, it would withdraw from the government. Even more so, it will not join [a government] without a commitment not to negotiate over Jerusalem. Jerusalem is not for sale," Yishai continued.

However, the Shas leader hinted that the party could still change its mind, telling Israel Radio that Shas had not decided that new elections should be held. The decision was in Kadima's hands, he said, and "if they don't meet our demands, we won't be able to join."

Associates of prime minister-designate Tzipi Livni were exploring the option of a narrow 66-MK coalition, consisting of Kadima, Labor, Meretz, GIL and UTJ, but Army Radio reported that they were advising her to go to elections, since she would then be seen by the public as someone who didn't give in to financial extortion.

The associates said Livni was steadfast in her position not to pay an "irresponsible" price just to avoid elections.

Meanwhile, supporters in Kadima of Transportation Minister Shaul Mofaz were continuing to oppose a narrow coalition and several of them declared that they would vote against such a government in the Knesset, said the radio station.

Following the Council of Torah Sages decision, Shas released a statement Friday morning, stressing that throughout the coalition talks it had never requested titles or political promotions. "We have asked for two things only: real assistance for the weak sectors of Israeli society and the protection of Jerusalem," said the party. "Today's distress and difficulties can't be ignored, [particularly] when it is reported that Israel has the highest poverty levels out of developed countries."

The party emphasized that for the duration of the coalition talks it had stressed that if Jerusalem's status was not secured it would have a bearing on all future peace negotiations and that Israel would be seen as a country that "caves in under political pressure and makes routine concessions."

The party went on to say that its negotiators had suggested solutions to outstanding issues, but they had been dismissed. "In light of this, the Council of Torah Sages, headed by Rabbi Ovadia Yosef, has decided that Shas cannot join a coalition under the current conditions," continued the statement.

Meanwhile, Meretz faction head Zehava Gal-On said the leftist party would not sit in a government that accepts Shas's demands to expand the authorities of the rabbinic courts.

Gal-On said that such a move would lead to an independent judicial authority running alongside Israel's court system, which she said was contrary to commitments made to Meretz by Kadima.

Earlier Friday, Shas faction head Ya'acov Margi said the party was demanding a billion shekels for "fair and legitimate" child welfare payments. He said such an investment would lead to future savings in welfare, education and fighting crime. Speaking to Israel Radio, Margi also urged the Treasury and the Kadima leadership to "show responsibility."

Meanwhile, National Infrastructures Minister Binyamin Ben-Eliezer told the radio station that Shas must "act responsibly" and join the coalition. Ben-Eliezer said he hoped Shas would not "abandon the scene" when there were socioeconomic dangers.

Also speaking to Israel Radio, MK Ze'ev Elkin (Kadima) said he hoped and believed Livni would avoid a narrow coalition and would instead send the country to elections. Elkin also asserted that had Livni vowed not to divide Jerusalem, she would have succeeded in building a coalition with greater ease.

Livni told her faction on Thursday that she would tell President Shimon Peres on Sunday whether she would be bringing a government to the Knesset for approval or giving up on her coalition talks and sending the country toward general elections.

AP contributed to this report

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