Mugabe to form new government

By Nelson Banya

HARARE (Reuters) - Zimbabwe President Robert Mugabe will form a new government soon but he says the main opposition Movement for Democratic Change does not want to join, state media reported on Wednesday.

Mugabe and Morgan Tsvangirai's MDC have failed to reach agreement in over one month of post-election power-sharing negotiations aimed at ending a political crisis that has worsened Zimbabwe's devastating economic decline.

"We shall soon be setting up a government. The MDC does not want to come in apparently," state-owned newspaper The Herald quoted Mugabe as telling government officials on Tuesday after opening parliament.

Mugabe, who was booed and jeered by opposition members when he opened the assembly, has said he is still hopeful of agreement in the power-sharing talks.

The MDC said it remained committed to talks but the party insisted on an inclusive government.

"We remain committed to a dialogue process that is going to produce an acceptable outcome for all the players, an inclusive government. We are against this unilateralism and arrogance," MDC spokesman Nelson Chamisa said.

New parliament speaker Lovemore Moyo, from the MDC, said talks were continuing. He said the heckling of Mugabe in parliament was regrettable but reflected MDC frustrations over the political deadlock in the country.

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