Israel to face catastrophe if Gaza pullout fails: Peres

Speaking hours before a crunch parliamentary debate on Prime Minister Ariel Sharon's disengagement plan, Labour party leader Peres also predicted the premier would either have to forge a new coalition or call elections in days.

"What is happening today is massively important. If it fails it's a catastrophe," he told foreign journalists in Jerusalem.

Peres said that the current massive military presence in Gaza, which is currently home to around 8,000 Jewish settlers, was unsustainable.

"We have two military people for every settler. The Israeli people and economy have to pay for that. It's an unreasonable and impossible situation for us and the Palestinians."

The Nobel peace prize-winning former prime minister said the demographic trend -- which could see the Arab population of Israel and the Palestinian territories overtake that of the Jews in a decade -- had led Sharon to "begin to realise that we have to answer very serious questions."

Peres said while he expected Palestinian militants to continue rocket attacks on Israel from Gaza in the immediate aftermath, a pullout would help "drain a swamp made of desperation".

"I believe that once we should leave Gaza the security situation will be improved, not declined," he added.

Labour has agreed to back the government in a vote on disengagement on Tuesday -- virtually guaranteeing victory for Sharon -- but the current government's minority status is unsustainable in the long-run.

Meanwhile, Israeli Prime Minister Ariel Sharon vowed to see his controversial disengagement plan through to the end Monday as he told MPs he was convinced a withdrawal from the Gaza Strip would strengthen the nation.

"I have decided to go right through to the end with this separation. I am convinced this separation will strengthen Israel," he told MPs at the start of a two-day debate on the project.

"It will advance us on the road to peace with our neighbours the Palestinians," he added in his speech to parliament, which will vote on the plan on Tuesday evening.