Israel spurns new French-led peace talks with far-right government

A Middle East peace conference will be held in Paris on 3 June, French Foreign Minister Jean-Marc Ayrault said on Thursday, but a new ultra-right Israeli administration threatens the talks before they start.

"I have suggested that the conference initially planned for 30 May be held on 3 June," Ayrault said during a NATO meeting in Brussels.

"We reviewed again the position concerning France's initiative to hold a ministerial-level meeting in Paris to relaunch the Middle East peace process," Ayrault told reporters.

This basis of the talks between Israel and the Palestinians would be on a two state solution, but Israeli Prime Minister Binyamin Netanyahu has voiced his opposition to such an idea. He has also voiced his opposition to the French initiative, but Paris said it is essential to give the talsk a chance.

"We are in a crisis situation and every day the situation on the ground gets worse," Ayrault added. Kerry confirmed he will attend the Paris talks.

Ayrault said in a separate statement that the 3 June conference would help identify "ways to help Israel and the Palestinians return to the path to peace".

But an upturn in violence has put the prospect of successful peace talks distant.

'Party of settlers and extremists'

The viability of the peace talks has also been setback by political changes in Israel. The country is preparing for the "most right-wing cabinet in its history" with a party despised by Palestinians and whose MPs also have voiced their contempt for peace.

Prime Minister Binyamin Netanyahu's Likud Party is in talks with Yisrael Beitenu, a far-right party led by radical settler Avigdor Lieberman.

The prime minister hopes to form a coalition with Lieberman after spurning the Labour Party who wanted the formation of a more centrist administration, which would be able to pursue talks with Palestinian officials.

The inclusion of Lieberman in a new government would all but kill off any hopes of finding a peaceful resolution to the current impasse with the Palestinian Authority.

Leaks have revealed that a deal is close to being finalised.

Yisrael Beitenu hold six of the 120 places in parliament, but one MP Orly Levi-Abekasis said she was quitting the party ahead of the coalition to "according to the dictates of my conscience."

This will leave the far-right party with five seats but should be enough to expand on Likud-led coalition's current 61 seats.

Lieberman will now be a kingmaker, with power in government likely to reflect this position.

The settler once said that some Palestinian citizens of Israel should be beheading with axes, and led to the Palestinian Authority calling for his arrest and trial at the international criminal court.

The ICC also views Israeli settlements - like the one Lieberman lives - illegal, and their presence are viewed as one of the biggest stumbling blocks to peace with Palestinians who suffer daily hardships from the occupation.

Agencies contributed to this story.