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Talks on new Yemeni government collapse

Update : 24 Aug 2014, 06:47 PM

Talks on forming a new Yemeni government collapsed yesterday over demands by Shi’ite Muslim Houthis to restore fuel subsidies cut by President Abd-Rabbu Mansour Hadi, officials said, and further demonstrations in the capital Sanaa were expected.

The Houthis, who have been fighting for years for more power for their Zaydi Shi’ite Muslim sect in north Yemen, have massed tens of thousands of supporters on the outskirts of Sanaa to press the government to quit and to restore fuel subsidies.

The government offered on Saturday to resign within a month to pave the way for a technocrat administration that would review the fuel subsidy issue, but officials said the Houthis had demanded an immediate reinstatement of the subsidies.

The standoff has raised fears for the stability of Yemen, a majority Sunni Muslim country of 25 million that is allied with the United States and borders major oil exporter Saudi Arabia.

The government blamed the Houthis for the failure of talks. “The Houthis have reneged on all previous understandings, including joining a new government and an offer to reduce the price of oil products, at the first government meeting,” Abdel Malek al-Mekhlafi, a spokesman for the government committee told Reuters.

Daifallah al-Shami, a leader of the Houthi group, made clear the demand for reinstating fuel subsidies was non-negotiable for his side and said the peaceful protests would continue.

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