JERUSALEM, Dec. 15 (Xinhuanet) -- Israeli Prime Minister Ariel Sharon has offered the opposition Labor Party both the interior and communication portfolios after the breakdown of coalition talks between both sides, Israel Radio reported Wednesday.

    Sharon had initially refused to cede the Interior Ministry to Labor, sparking a crisis with Labor who refused to give up the portfolio.

    Labor is also holding out for three more ministries currently held by Likud lawmakers -- namely the Education, Transport and Public Security Ministries, the radio said.

    Senior Likud members were fuming over Sharon's offer of the Interior and Communications Ministries portfolios to the Labor party as part of coalition negotiations.

    Speaking on Israel Radio Wednesday morning, Finance Minister Binyamin Netanyahu accused Labor of being "politically motivated" in demanding budget changes, rather than being truly concerned withsocial issues.

    The coalition talks for a unity government stopped Monday night after Labor negotiating teams stormed out of the meeting room.

    Labor Chairman Shimon Peres said later Tuesday that his party would not enter a unity government under the conditions currently proposed by Likud, demanding changes to the 2005 budget.

    "We don't want to be shadows in a Likud government. There is no contradiction between withdrawal from Gaza and changes to the budget," Peres said.

    Meanwhile, citing differences of opinion between the two parties, Labor chief negotiator Dalia Itzik cancelled a meeting scheduled for Wednesday with her Likud counterpart attorney Yoram Raved, Israel Radio reported.

    Itzik explained that Likud's offer of the Interior Ministry portfolio is not enough to resolve the differences of opinion between Labor and Likud.

    Sharon had expected to reach an agreement on forming a unity government with Labor "within days."

    The breakdown of coalition talks, however, may delay Sharon's plan to form a unity government as soon as possible. No timetable has been set for the renewal of the talks at present. Enditem