Newly-elected Labor leader Merav Michaeli announced Monday that her party is pulling out of the unity government.
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Michaeli, who won the party primaries Sunday with 77% of the vote, ordered Economy Minister Amir Peretz and Labor and Social Services Minister Itzik Shmuli to resign.
"The Labor Party is leaving the corrupt Netanyahu-Gantz government," Michaeli said in a statement. "I told Peretz and Shmuli they must resign immediately. The Labor Party is starting over."