Israel's Olmert Loses Key Support

Minister Urges Party To Prepare for Change

JERUSALEM, May 29 -- Israel's foreign minister on Thursday joined the growing ranks of senior politicians who have turned away from embattled Prime Minister Ehud Olmert, as expectations built that there will soon be fresh elections.

Tzipi Livni, a possible successor to Olmert and a fellow member of his centrist Kadima party, stopped short of calling for his resignation. But she did say the party needs to prepare for a new vote and indicated it should first pick a new leader.

"I think the reality has changed since yesterday and Kadima has to make decisions," Livni told reporters in Jerusalem. "I suspect that Kadima needs to start right away acting for every eventuality, including elections."

Unlike top Kadima leaders who have voiced support for Olmert as he attempts to fend off corruption allegations, Livni pointedly refused. Instead, she said that it was necessary to "restore the trust in Kadima" and that the allegations against Olmert were a matter not just of legality but of "values and norms."

Olmert, whose term is not up until 2010, has been besieged in recent days by calls for his resignation. The most prominent such demand came Wednesday when Defense Minister Ehud Barak threatened to force early elections unless Olmert stepped aside. Barak's Labor Party is Kadima's largest partner in the fragile coalition government.

Olmert did not comment publicly on Livni's remarks Thursday, and has not spoken openly about the scandal since American businessman Morris Talansky testified on Tuesday to having given him $150,000, much of it in cash. Talansky said that the money was supposed to be for political purposes but that he believed Olmert had used at least some of it on luxuries such as fine cigars and an Italian vacation. Olmert had earlier denied that he took any money for personal gain.

Despite the pressure, there has been no indication from Olmert that he plans to step aside. "We can't allow party politics to trump the legal process," said a senior official in Olmert's office. "The prime minister has said he will resign if an indictment is issued. But he's confident that will not happen."

Israeli Attorney General Menachem Mazuz said Thursday that he would expedite the Olmert investigation "in order to complete it as soon as possible." He did not give a time frame, but most legal analysts say it could take several more months.

Olmert's political opponents, however, hope he does not last that long.

Israeli officials with insight into Livni's strategy said that she was acting in coordination with Barak and that the two have concluded that elections are inevitable. "Their common interest for some time has been to topple Olmert," said one official, who would speak only on the condition of anonymity. "Now they see their opportunity. Olmert's losing supporters by the hour. They understand it's over for him, and they have to move."

Barak and Livni have tried to force Olmert's hand in the past. They each called for his resignation after the botched 2006 Lebanon war, but Olmert refused.

Livni's comments Thursday seemed to be an acknowledgment that Olmert has no intention of passing the baton to her, if he does ultimately resign. Despite sharing membership in Kadima, the two have been bitter rivals, and Olmert is believed to want to try to leave Kadima's leadership in someone else's hands if he is forced out.

While Livni is popular nationwide, she could have trouble in a Kadima primary. At least four candidates could vie for the party's leadership, and Livni has done less work than some of the others to build a base among the party's rank and file. Livni would also face tough competition in the general election. Likud Party chief Binyamin Netanyahu and Barak would likely be contenders.

Any election would also probably put a temporary halt to U.S.-backed peace talks between Israel and the Palestinians. The most recent round of talks was launched with great fanfare in Annapolis last November, but the negotiations have failed to gain traction. Livni has been Israel's chief negotiator, and the election could become a referendum on whether the talks should continue.