As Tzipi Livni and Ehud Barak were reportedly polishing off the final points of a coalition agreement between Kadima and Labor Monday morning, Likud chairman Binyamin Netanyahu met with Shas spiritual leader Rabbi Ovadia Yosef in an effort to dissuade Shas from joining a coalition under Livni.
If Kadima and Labor cement a coalition agreement, Livni's next hurdle would be Shas, which is demanding, among other things, a significant increase in child welfare benefits.
"At this time, we need a government that will bolster Israel's economy and protect Jerusalem. Obviously, this government can't do it, and we must therefore have an election," Netanyahu reportedly told Rabbi Yosef.
The meeting was the second of its kind between the two since Livni was elected to lead Kadima. Three weeks ago, Netanyahu met Yosef and Shas chairman Eli Yishai in an effort to persuade them to push for new elections rather than join forces with Livni.
Ten days ago, Kadima negotiators offered Shas NIS 400 million for child welfare allotments that would be called a family grant, but Shas rejected the offer and asked for more money. No negotiations have been held with the party since then.
Shas has also expressed opposition to Meretz joining the government.
Shas officials said they were ready to initiate an election if Livni did not give in to their demands.
"I spoke to Livni today, but there has been no progress and certainly not any breakthrough," Yishai said.
Last week, Shas representatives also told their counterparts in Kadima that the party opposed any negotiations on Jerusalem in any way, shape or form and would not sit in a government that had diplomatic talks on Jerusalem on its agenda.
Gil Hoffman contributed to this report
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