JERUSALEM, Aug. 7 (Xinhuanet) -- Israeli Prime Minister Ariel Sharon intends to continue with the government's current economic policy after former Finance Minister Binyamin Netanyahu's resignation, the prime minister's office said in a statement on Sunday.

Ehud Olmert (L) and Benjamin Netanyahu (R) sing Israel's national anthem as they celebrate with party supporters Jan. 28, 2003. (AP/file)

      The statement came following an emergency meeting held by Sharon with Finance Ministry Director-General Dr. Yossi Bechar, Finance Ministry Budget Director Kobi Heber and Finance Ministry Taxation Authority Director Eitan Rov.

     In the meeting, Sharon told the finance staff that the upcoming state budget would remain within the limits of the deficit and expenditure targets set by the government.

     The premier also expressed his appreciation of their professional abilities and requested that all three remain in their positions.

     The three thanked Sharon and assured him that they intend to remain in their positions in order to continue implementing the government's economic policy.

     Netanyahu, the former prime minister and still a strong figure in the leading Likud, handed in his resignation earlier on Sunday in protest against the government's pullout plan from the Gaza Strip, saying the withdrawal cannot bring peace for the region. His resignation rattled Tel Aviv Stock Exchange. The stock market plunged sharply minutes after Netanyahu announced his resignation. Enditem

Sharon names new finance minister

     JERUSALEM, Aug. 7 (Xinhuanet) -- Israeli Prime Minister Ariel Sharon appointed Vice Prime Minister Ehud Olmert as interim finance minister on Sunday, hours after Binyamin Netanyahu presented his resignation.

    Sharon called Olmert, who currently also serves as minister of industry, trade and labor, to inform him of the decision. The two will meet on Monday morning to discuss financial objectives. The appointment is expected to go into effect 48 hours after Netanyahu's resignation. But Sharon is reportedly looking into away to enable Olmert to assume the position immediately. Netanyahu announced his resignation Sunday afternoon in protest of Israel's plan to withdraw from the Gaza Strip and northern Samaria.

    His resignation, which came during a Sunday cabinet meeting to approve the first step of the evacuations, did not succeed in torpedoing the vote. It was easily passed with the vote result of 17-5.

    Netanyahu held a press conference at 6:00 p.m. (1500 GMT) to explain the reasons for his resignation.

    "The disengagement is going ahead blindly," Netanyahu addressed reporters. "I understand the intentions here -- who doesn't want peace? But here in the Middle East this is not the way to attain peace -- it has failed before and it will fail again." "At moments of truth a leader must ask himself what he stands for and what he is working towards." Netanyahu added, "And I cannot be a part of this disengagement."

    Netanyahu's resignation letter, quoted by Army Radio, contained severe criticism of the disengagement plan.

     "I had demanded that we keep the Philadelphi route (along the Gaza-Egypt border) to counter the impression that we are running away from terrorism. The government is ignoring the reality: terrorism is continuing, the Hamas is growing stronger, terrorists will smuggle weapons from Gaza to the southern West Bank," Netanyahu wrote.

    Netanyahu, a former prime minister and political hardliner, has long been conflicted over the Gaza withdrawal. He is considered Sharon's biggest political rival within the ruling Likud Party and was expected to challenge Sharon for party leadership ahead of the next election in late 2006.

    Netanyahu's dramatic decision was welcomed by a number of his allies as well as a number of his opponents.

    Some expressed hopes that Netanyahu's move would prompt a wave of additional resignations, which would ultimately lead to the government's collapse. But others assessed that it would have minimal repercussions.

    Education Minister Limor Livnat, who voted against the first evacuation of settlements at Sunday's meeting, insisted that she would not follow Netanyahu's example and quit as well. In the meantime, Yisrael Maimon, the cabinet secretary, said on behalf of the cabinet that both the disengagement and the government's economic policies would continue unchanged. Sharon also pledged to continue the evacuation of settlements as planned, Israel Radio reported. Enditem