He made the announcement during a news conference on Tuesday.

The following are excerpts from Mr Sharon's statement as broadcast by Voice of Israel Network B radio:

...Since the inception of the unity government headed by me, I have done everything to lead the State of Israel by as wide-ranging a national consensus as possible.

It was not easy, but national responsibility made it necessary. The unity was vital then, and in view of the situation, it is also vital now.

Last week, the Labor Party decided to disband the unity government because of political capriciousness.

'Not what the country needs'

Elections at this time are not what the country needs.

Irresponsible behaviour led to the superfluous dissolution of a government that reflected and still reflects the wish of the people, the wish for unity.

I said this in the past, and I say it again today: elections at this time are not what the country needs...

Since the Labour Party's irresponsible resignation, I turned to various factions and people to stand behind the government in view of the challenges awaiting us.

To my regret, in the conversations I held, demands, conditions and terms were raised to which I could not agree.

I will not yield to political blackmail by anybody.

I will not budge from the government's responsible policy. I will not change the government's basic guidelines.

I will not harm the deep strategic ties with the United States...

From my first day on the job, I set myself a rule: I will not yield to political blackmail by anybody...

'Least harmful' option

Ben-Eliezer's resignation helped end the coalition

I wanted this government to last its full term because I promised my coalition partners to make every effort to ensure that this happens.

However, the opposition to the government's continuation as expressed in the impossible conditions presented by elements in the political system, together with the need to prepare for the complex challenges we are anticipating, brought me to a decision to choose the most responsible and least harmful choice - I stress, the least harmful - to dissolve the 15th Knesset.

This morning, I conferred with the president and I asked for his agreement under Clause 22 in the Basic Law: The Government, to dissolve the Knesset and hold general elections within 90 days.

After considering the matter, the president informed me of his agreement, and a short time ago he informed the public...

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