Right-wing party quits Olmert's government

A right-wing party has quit Israeli Prime Minister Ehud Olmert's coalition government, condemning his peace efforts with the Palestinians in a move that still left him with a parliamentary majority.

"A few minutes ago, I spoke to the prime minister and I also gave him a written announcement of our departure from the coalition and my resignation from the government," Strategic Affairs Minister Avigdor Lieberman, whose party appeals to Russian-speaking immigrants, told a news conference.

Lieberman made good on his threat to quit the coalition once talks with the Palestinians moved to discussing "core issues" including borders and the fate of Jerusalem and Palestinian refugees, which must be resolved to end decades of conflict. "Negotiations on the basis of land for peace are a mistake ... and will destroy us," Lieberman said.

Yisrael Beitenu has 11 seats in the 120-member legislature. After its departure, Olmert's coalition will control 67 seats.

Israel and the Palestinians opened their most serious peace talks in seven years on Monday, urged by U.S. President George W. Bush to reach a deal within a year.

But domestic troubles have weakened Olmert and Palestinian President Mahmoud Abbas in their home constituencies.

Israeli officials said Olmert was seeking a deal that would outline a "framework" for a Palestinian state with implementation delayed until the Palestinians can ensure Israel's security.

Abbas wants a final peace treaty enabling him to declare a state by the end of the year.

However, his loss of control in the Gaza Strip to Hamas Islamists last June could leave that goal in grave jeopardy.

Olmert may face new calls to resign after an inquiry into the 2006 Lebanon war issues its final report on Jan 30.