The New Nation - Internet Edition

AP, Jerusalem

Israeli Prime Minister-designate Tzipi Livni says she has given up her attempts to form a new government.

Livni's office says she told the Israeli Cabinet on Sunday that her potential coalition partners have made unrealistic demands.

She says there "is a limit" to how much she can give in to these demands and that she will recommend to President Shimon Peres to call new elections.

Livni has been trying to put together a coalition government since she took over as head of the ruling Kadima Party last month.But partners in the current coalition used the changing of the guard to press new demands.

New elections are likely to freeze already struggling peace talks with the Palestinians.