Israeli prime minister-delegate to abandon talks

Prime Minister-designate Tzipi Livni on Sunday abandoned her efforts to form a new coalition government and said she would recommend early parliamentary elections.

Palestinians worried the decision could put already fragile peace talks in limbo for months until the elections are held. The balloting could also clear the way for opposition leader Benjamin Netanyahu, who rejects sweeping territorial concessions to the Palestinians, to reclaim the premiership.

Livni has been trying to cobble together a government since she took over as head of the ruling Kadima Party from the corruption-tainted Prime Minister Ehud Olmert in September. But partners in the current coalition, which took power in May 2006, used the changing of the guard to press new demands.

In a statement Sunday, Livni said she was willing to make concessions but had to put a stop to “impossible” demands.

“When it became clear that everyone and every party was exploiting the opportunity to make demands that were economically and diplomatically illegitimate, I decided to call off (talks) and go to elections,” she said.