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Elections redraw Israeli politics

A powerful centrist party may emerge. Palestinians debate how to proceed with peace process on hold.

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Where will Israelis and Palestinians be on May 4, 1999?

Israelis don't know who will be leading their state, and Palestinians don't know if they'll have one at all.

What is clear is that the five-year "interim phase" stipulated by the Oslo peace accords officially stops ticking on that date. In anticipation of its arrival, Israelis and Palestinians face wrenching internal debates over how to proceed in what could be the most momentous period - or possibly the most explosive - in the peace process thus far.

Palestinian leader Yasser Arafat has said he will declare an independent state on May 4. At that time, Israelis may have a new prime minister - or may be in the thick of an election campaign.

The path to new elections, which heated up this week, has put both peoples' political circuits into disarray.

Party challengers

Prime Minister Benjamin Netanyahu's former finance minister, Dan Meridor, resigned from the Likud Party Tuesday and said he will run for prime minister as the leader of a new centrist party. The late Menachem Begin's son, Benny Begin, may either challenge Mr. Netanyahu for the leadership of Likud or form a far-right party. Defense Minister Yitzhak Mordechai and Jerusalem Mayor Ehud Olmert, both popular in Likud, are also considering challenges to Netanyahu. The maneuverings have been read by many as signals that the once-mighty Likud is splintering to pieces.

In perhaps an equally potent blow to the status of the Labor Party, Lt. Gen. Amnon Lipkin-Shahak - a former army chief of staff and known peace advocate - is forfeiting his natural home on a Labor ticket, albeit as No. 2, to party chairman Ehud Barak. Mr. Lipkin-Shahak is expected to announce that he, too, will run as the leader of the new centrist party - which could eventually cause Mr. Meridor to cede his candidacy to the popular ex-chief of staff.

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