Rival minister says Israel is in 'dire straits' under Sharon

JERUSALEM -- Foreign Minister Benjamin Netanyahu criticized his new boss on his first full day on the job, saying Israel has fallen into "dire straits" under the leadership of Prime Minister Ariel Sharon.

Netanyahu and Sharon are engaged in a complex political battle -- they are working together in a caretaker government, yet they are also rivals, with each man seeking to lead the Likud Party into national elections in January.

In an interview Thursday in The Jerusalem Post, Netanyahu attacked Sharon's 20-month tenure as prime minister, saying he had been unable to bring an end to Palestinian attacks.

"I think one of the things we see is the tremendous escalation of terror," Netanyahu was quoted as saying. "The economy is in worse shape...A lot of that is derived not so much from the lack of security but from the absence of a coherent economic policy."

"The country is in dire straits and we have to get it out," he added.

Disagreeing over plan

Sharon and Netanyahu met Wednesday, shortly after Netanyahu was sworn in. They reportedly sparred over a U.S.-backed peace plan that Sharon has tentatively embraced. Netanyahu said the plan was "not relevant" as long as U.S. military action in Iraq is pending.

Netanyahu also spoke to U.S. Ambassador Dan Kurtzer, but they did not discuss the American "road map" for peace, Foreign Ministry spokesman Ron Prosor said.

He said the peace plan was clearly on hold until Israeli elections, tentatively scheduled for Jan. 28.

Nonetheless, U.S. envoy David Satterfield will visit the region next week to promote the plan, which also has the backing of the United Nations, Russia and the European Union.

Government collapse

Last week, the Labor Party quit Sharon's coalition in a dispute over funding for Jewish settlements in the West Bank and Gaza.

The walkout led to the collapse of the government. Sharon had hoped to keep his coalition government afloat without Labor, but a right-wing party, the National Union-Israel Beitenu, refused to join without changes in government policy. Sharon balked and, left without a majority, was forced to call early elections.

In the end, Likud may come out ahead. The latest polls show it and other parties on the right gaining ground -- and Sharon currently enjoys a slight lead over Netanyahu among Likud voters.