Israeli ruling coalition wobbles as U.S. peace proposal looms


  • World
  • Thursday, 30 Jan 2014

JERUSALEM (Reuters) - A pending U.S. framework proposal to propel stumbling Israeli-Palestinian peace talks forward chipped away on Wednesday at a troubled alliance between Prime Minister Benjamin Netanyahu and an ultranationalist ally in his governing coalition.

Adding to the fray was a warning by centrist Finance Minister Yair Lapid that any failure of U.S.-brokered peace talks could cause a "dramatic setback" in Israel's economy, citing boycott threats against Israel already heard in the West.

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