Olmert Declares Intent to Step Down
Israeli Premier, Facing Criminal Probe, Says He Will Not Contest Party Primary

By Linda Gradstein
Special to The Washington Post
Thursday, July 31, 2008

JERUSALEM, July 30 -- Israeli Prime Minister Ehud Olmert, facing a widening corruption investigation, announced Wednesday that he will not compete in his party's leadership primary in September. The move will effectively end his tenure as premier and is likely to complicate efforts to reach an Israeli-Palestinian peace deal before President Bush leaves office.

Olmert, 62, who has been under growing pressure to resign, continued to insist he was innocent of the corruption charges. He said he was choosing the public good over justice for himself.

"I was forced to defend myself against relentless attacks from self-appointed fighters for justice who sought to depose me from my position, when the ends sanctified all the means," he said.

In a live television broadcast from the back yard of his official residence in Jerusalem, Olmert said he would step down as soon as his Kadima party chooses a new leader in the primary set for Sept. 17. Olmert's term was originally set to end in 2010.

In Washington, White House spokesman Gordon D. Johndroe said Bush spoke to Olmert just before his announcement. "He wishes him well and will continue to work closely with him while he remains prime minister," Johndroe said, adding that relations "have been exceptionally close and cooperative" during Olmert's tenure.

Palestinian officials reacted cautiously, with Foreign Minister Riyad al-Maliki saying that Olmert's decision would not change much, the Associated Press reported. "It's true that Olmert was enthusiastic about the peace process and he spoke about this process with great attention, but it has not achieved any progress or breakthrough," Maliki said.

Israel and the Palestinian Authority, whose influence is limited to the West Bank, renewed peace talks at a U.S.-sponsored conference in Annapolis, Md., in November, after a seven-year hiatus. More recently, Israel has renewed indirect peace talks with Syria, with the latest round, mediated by Turkey, concluding Thursday.

Olmert said he would continue to push for peace as long as he is in office, but it appears unlikely that Israel will make any major decisions on concessions to either Syria or the Palestinians until a new government is formed.

Some Israeli politicians welcomed Olmert's decision.

"I think the prime minister did the right thing," said Gideon Ezra, of Kadima. "His speech was open and direct, and I'm sure he is relieved now. It is time to establish an alternative leadership in the party."

The front-runner to replace Olmert is Foreign Minister Tzipi Livni, who was at the State Department when Olmert made his announcement. She was about to begin a 90-minute meeting with Secretary of State Condoleezza Rice and former Palestinian prime minister Ahmed Qurei.

In a curt statement to reporters later, Rice called the announcement "an internal Israeli matter." She said this week's talks -- including a private meeting with Livni and sessions with the Palestinians and with Israeli Defense Minister Ehud Barak -- had been "very fruitful" and the parties were working "very, very hard towards an agreement."

Rice, who has made nine trips to the region this year in an effort to promote an agreement, expects to return next month.

The administration has been persistently upbeat about the possibility of reaching an agreement this year, despite minimal progress and repeated setbacks. Saeb Erekat, an aide to Qurei who participated in the Washington talks, said they would "continue to try," but "we will not allow time to be the sword [at] our necks."

Olmert's successor as party leader does not face an easy road to the top office. If he or she succeeds in forming a coalition, Israel could have a new government by the end of October. Otherwise, the country would hold new elections, probably early next year, and Olmert would remain in office until then as head of a caretaker government.

Gerald Steinberg, a professor of political science at Bar-Ilan University, said the most likely scenario was that Israel would go to new elections. That would pit Livni against former prime minister Binyamin Netanyahu, leader of the opposition Likud Party. Polls show Netanyahu with a 10-point lead over Livni if the elections were held today.

"She will have a hard time convincing voters that she has the necessary security experience," Steinberg said. "We're talking about issues like a possible war with Iran or Hamas in Gaza. These are difficult situations."

Thursday's announcement could also bode ill for Kadima. The party was founded by former prime minister Ariel Sharon in November 2005 to advocate for a Palestinian state in the West Bank. Olmert was thrust into the leadership of Kadima in January 2006 after Sharon suffered a massive stroke.

"Kadima is a very fragile structure that Sharon put together, and it could well shatter after the primary," Steinberg said.

Meanwhile, Palestinian medical workers said Israeli troops wounded nine Palestinians in the West Bank town of Ramallah during the funeral of a 10-year-old boy killed Tuesday by Israeli police during a protest. They said Israeli troops fired rubber bullets after mourners threw stones at them. A 17-year-old Palestinian was hit in the head, and doctors said he is brain-dead.

Staff writer Karen DeYoung in Washington contributed to this report.