Coalition negotiations: Netanyahu agrees to Deri's 0 VAT on basic consumer items condition

Prime Minister Benjamin Netanyahu's efforts to form a governing coalition before Wednesday's deadline continued on Thursday with progress reported in talks with Shas.
In a telephone conversation between Netanyahu and Shas leader Aryeh Deri, the prime minister agreed to accept Deri's condition to cancel Value Added Tax on basic consumer items.
Netanyahu's move came after Deri said earlier Thursday in an Army Radio interview that he was backing off his demand to serve as interior minister in the next government.
The two faction leaders were scheduled to meet at 5 p.m. on Thursday.
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