Israeli Prime Minister Ehud Barak dropped a political bombshell on Saturday with the announcement he would resign after 17 turbulent months in power and seek a new mandate to confront the seething crisis with the Palestinians.
"Faced with the state of urgency and the need to work to reduce the violence and restart the peace process, I have decided to resign and ask again for the people's confidence," Barak said.
The former army chief, who has been trailing badly in opinion polls, said elections would be called within 60 days to choose a new prime minister, a move, which does not mean automatic elections for the Israeli parliament.
Barak's decision would appear to rule out his most dangerous opponent, former right-wing prime minister Benjamin Netanyahu, from running against him as only members of the Knesset, or parliament, can stand in the prime ministerial election.
Netanyahu's successor as leader of the right-wing opposition Likud party, Ariel Sharon, said he was "surprised" by Barak's decision.
"Barak has probably reached the conclusion that his government was not able to function in this grave security situation and political confusion," he added in a statement.
In a 20-minute televised speech, an emotional and stern-looking Barak said he would formally submit his resignation Sunday to President Moshe Katsav.
"This will be a true referendum for peace," he said, adding that his decision was a "personal one" taken after consulting with family and close aides.
"I know what we have to do to make peace because if we fail we risk being forced to drink from rivers of blood and tears," he warned.
"The path is difficult, complicated and painful but the only possible way to resolve the conflict is a political one," he said.
Reactions to Barak’s resignation were cautious, including key players in the peace process the Palestinian Authority, Egypt and the United States.
While emphasizing that Barak's resignation was a domestic affair, Palestinian officials said the move would affect the peace process, without saying in what direction.
The White House refrained from passing judgment on Barak's decision, with spokeswoman Nanda Chitre calling it "an internal Israeli matter."
"The United States continues to support the peace process and is committed to help the parties," Chitre said, with the caveat that the next steps in the process are "up to them."
She said national security adviser Sandy Berger had informed US President Bill Clinton of Barak's decision.
Gilad Sher, Barak's chief of staff, seemed to be trying to reassure Washington, telling CNN that despite his resignation and ongoing violence Barak still hoped for a peace agreement with the Palestinians, even before Clinton leaves office in a month.
"He will as he has until now pursue the peace process with the goal of pursuing an agreement as complete as possible, even before President Clinton leaves office," Sher said.
French Foreign Minister Hubert Vedrine, whose country is president of the European Union, also called Barak's resignation an internal affair, with Barak "the sole judge."
Vedrine said he would go ahead with a planned trip to the region in the coming week.
"What is important to us is that the Palestinians and Israelis hold firmly, without any useless detour, to the Sharm el-Sheikh agreements" reached verbally in October in Egypt.
Initial Palestinian reaction came from Tayeb Abdelrahim, secretary-general of the Palestinian presidency, who said that Barak's resignation "will affect the peace process."
"I will not comment anymore on this subject which will be under the study of the Palestinian leadership," he told AFP.
But the speaker of the Palestinian legislature said Barak's announcement amounted to a political game.
"This is a game to keep (former prime minister) Benjamin Netanyahu away, and for the election race to be against Ariel Sharon," Ahmed Qorei told journalists in Ramallah.
"It's easier for Barak that way," Qorei said.
Under Israeli law, Netanyahu, Barak's predecessor, cannot run because he is not a member of parliament.
With elections perhaps 60 days away, Qorei said the resignation set up a "dead period" during which no agreement could be reached with Israel.
Egyptian Foreign Minister Amr Moussa called the resignation "a significant development in the internal political situation in Israel," adding that Egypt will follow events as "they can have an influence on the peace process."
Barak's chief rival in parliament, Ariel Sharon of the right-wing Likud party, said he was "surprised" by the announcement.
"Barak has probably reached the conclusion that his government was not able to function in this grave security situation and political confusion," he said in a statement.
Many in Likud accused Barak of desperation, saying his resignation was a cheap way to avoid Netanyahu.
"Even under the best of circumstances, even if Barak wins the election, which I am sure he will not, he will not have any majority in parliament," Jerusalem Mayor Ehud Olmert told CNN.
"We all know the reason he submitted this resignation is that he is afraid of Benjamin Netanyahu."
Eli Yishai, leader of the powerful ultra-Orthodox Shas party which has frequently played the role of kingmaker in Israeli coalition governments, said his party would push for a change in the law to allow Netanyahu to run.
"We must make it legally possible for Netanyahu to run in elections. If Ariel Sharon is the only candidate against Barak and Netanyahu cannot run, then we will support Sharon," he said. (AFP)
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