Israel's Livni reportedly set for key coalition deal

JERUSALEM (Reuters) - Israel's Kadima and Labour parties are close to a deal on a coalition government led by Tzipi Livni, a move that sets her on course to form a new centrist administration, Army Radio said on Sunday. Foreign Minister Livni still needs to persuade other parties to join her to build a workable parliamentary majority. She was named by President Shimon Peres to take over from Ehud Olmert, who quit as prime minister over a corruption inquiry. Olmert continues to serve as caretaker prime minister for now but if Livni cannot form a government by the start of November, an early parliamentary election is likely. "The formation of as broad a government as possible at this time is the best thing for Israel and I know that the public will not forgive those who ...... [read full story]