JERUSALEM, Nov 8: Prime Minister Ariel Sharon on Monday suffered a stinging parliamentary defeat by rebellious members of his own Likud party that could push Israel towards early elections following its Gaza withdrawal.

In an important test of political strength, hardline Likud lawmakers bent on punishing Sharon for evacuating Gaza settlements voted against three key cabinet appointments, including Deputy Prime Minister Ehud Olmert as finance minister.

The 60-54 vote, which capped a stormy session after a week of negotiations failed to reach a compromise, underscored divisions in Sharon’s party that threaten his ability to govern for the remainder of his term due to end in November 2006.

Warning there would be ‘consequences’, Sharon immediately convened a cabinet meeting to consider a revised proposal to be brought to a parliamentary vote.

He was expected to seek separate approval for Olmert’s appointment, while delaying a vote on the other two more problematic nominees.

Sharon has made clear he prefers to avoid an early general election but aides have said he may have no choice if his own party ties his hands.

There has also been speculation that Sharon could bolt Likud and form a centrist party to capitalize on broad Israeli public support for the pullout.

The latest political standoff was sparked by Sharon’s bid for parliamentary approval for Olmert to replace rival Binyamin Netanyahu, who resigned as finance minister in protest over the Gaza pullout, and for two other loyalists to join his cabinet. Sharon would be certain to win endorsement for Olmert if he re-submits his name before his 90-day term as acting finance minister expires on Wednesday.—Reuters