By Gerald Butt Middle East analyst

The central committee of the Likud party has done what surely no-one thought was possible: it has made Ariel Sharon look like something of a moderate - in the context of rightwing Israeli politics.

The overwhelming vote - contrary to the wishes of Mr Sharon - against the establishment of a Palestinian state has also given a huge boost to the political aspirations of Benjamin Netanyahu.

Netanyahu has political aspirations

The proposal to reject definitively Palestinian statehood came from a Likud MP who is a firm supporter of Mr Netanyahu.

In effect, then, a new campaign for the premiership has begun. And Mr Sharon's arch-rival will feel that it is only a matter of time before he returns to the office that he left in May 1999.

Disappointed hardliners

This is not to say that Mr Sharon will give up without a fight.

After the vote on Palestinian statehood, he said he would go on leading the country "according to principles I have always held: security for Israel and aspirations for peace."

Some say the army's response was too soft

But the problem for the prime minister, henceforth, is that he can no longer automatically rely on broad rightwing support in Israel.

Mr Sharon's tough military response to the suicide attacks won him praise from many sections of Israeli society.

But those on the far right were ultimately disappointed by the fact that, in their opinion, he was not tough enough.

Thus, for example, while he kept Yasser Arafat under siege for weeks in Ramallah, he ignored calls from Mr Netanyahu and others for the Palestinian leader to be removed permanently from the scene.

Cancelled attack

In the end, Mr Arafat emerged triumphant, with his popularity greater than it had been for decades.

The Bethlehem siege also ended with 13 of the men most wanted by Israel being flown out - as exiles, but also as free men.

Mr Sharon had promised that the 13 would stand trial in Israel.

Shortly after this, in the wake of another Palestinian suicide attack on a civilian target south of Tel Aviv, Mr Sharon prepared for a massive military operation in Gaza - only to cancel it at the last minute because details had been leaked.

This turn of events did nothing to convince Mr Sharon's critics on the right that his resolve had returned.

American involvement

The prime minister's critics also believe that his government has mishandled relations with the United States in a way that has allowed the Arab world - in particular Saudi Arabia - to get the ear of President Bush.

The Saudis communicated in the strongest language possible that US interests in the Arab world would be adversely affected if the Washington administration did not engage in efforts to resolve the Middle East conflict.

Reluctantly, Mr Bush has started to do that - a move that necessarily inhibits Israel's freedom of movement to some extent.

The Arabs argue that the US still has not done enough to restrain Israel.

And they would reject the suggestion that Mr Sharon is in any shape or form a moderate.

But in the wake of the Likud vote on Palestinian statehood, a day may be coming when a prime minister with even tougher plans for dealing with the Arabs returns to power.