Israeli electoral commission bans Arab party, Arafat's Fatah marks anniversary.

(From Agence France Presse)

Right-wingers loyal to Israeli Prime Minister Ariel Sharon entered the new year with a show of political force ahead of January 28 polls, as Yasser Arafat and thousands of demonstrators in the Palestinian territories celebrated the anniversary of their Fatah party.

Israel's rightist-dominated electoral commission banned MP Azmi Bishara and his Balad party late Tuesday from running in the upcoming legislative elections, in a crackdown on Israeli Arab politicians which sparked accusations that the Jewish state was violating democratic rules.

It was the second time in as many days that an Israeli Arab MP was barred from running for parliament re-election, but the first time ever an entire party was disqualified by the commission.

Ahmed Tibi, who heads another party, was excluded from the race on Monday. Both politicians will appeal in the Supreme Court the decision, which follows accusations that they back "Palestinian terror".

While cracking down on Israeli Arab support for the Palestinians, the same commission allowed the candidacy of Baruch Marzel, a former member of the racist Kach party.

"This is a step towards apartheid, at least in the political culture. The decision can still be reversed legally, but culturally the damage is done," Bishara told AFP.