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From: BBC: Israeli PM sacks coalition allies
Mr Sharon sacked ministers from the Shinui party, which voted against the government in the defeat of the annual budget in parliament on Wednesday.
The break-up of the coalition triggers a crisis that may derail Mr Sharon's plan to pull out of the Gaza Strip.
The BBC's Barbara Plett in Jerusalem says the prime minister now heads an untenable government.
His Likud party controls only 40 of the 120 seats, and is itself deeply divided.