Sharon vows to stay at helm The Israeli Prime Minister, Ariel...

Sharon vows to stay at helm

The Israeli Prime Minister, Ariel Sharon, has vowed to remain in power despite a revolt by Labor Party ministers which has brought down his national unity government.

He is attempting to forge a new coalition rather than call early elections. The Labor Party withdrew from the Government over a bitter row concerning funding for Jewish settlements.

It wanted the funds channelled into social spending and job creation against Mr Sharon's wishes. But the Finance Minister, Silvan Shalom, says Labor is jeopardising not only the security of Israel, but also its financial stability.

"It's just an excuse to break this unity government," he said.

"I'm very sorry for it. I've done everything in order to form this unity government and after it to keep it.

"But from now on we'll have to see if we'll be able to form a new government and if not Israel will face a new election."

One of the contenders in a new poll is the former prime minister Banjamin Netanyahu, who says a change is needed now. "What this country needs desperately are solutions," he said.

Solutions to the security problem, solutions to the economic and the social problems that are becoming enormous."