Olmert Cuts Deal with Labor, Agrees To Hold Primaries

Jerusalem — Prime Minister Olmert cut a political deal with his Labor party allies that will keep him in power for up to three more months.Mr. Olmert, who faces calls to resign over allegations that he benefited from bribes, persuaded the defence minister and Labor leader, Ehud Barak, not to bring down the Israeli coalition government.The deal means Mr. Olmert, whom many had written off when the scandal broke last month, has added to his reputation as a political Houdini by buying himself more time in which to clear his name.In exchange for the deal, Mr. Olmert promised to hold an internal leadership election or primary within his own Kadima party some time before September 25.Israeli political analysts believe he could lose that primary and be replaced by either the foreign minister, Tzipi Livni, or the transport minister, Shaul Mofaz, although in Israeli politics much can change in three months.In theory, the primary winner will be able to form another Kadima-led coalition government, including Labor, thereby avoiding a general election. Neither Kadima nor Labor want an early general election as polls suggest they would be badly beaten by the Right-wing Likud party and its likely coalition allies.The deal was cut after a late-night session between senior Kadima and Labor figures.Mr. Olmert will hope that he can persuade some of those calling for his resignation to change their minds when the main witness behind the bribery allegations, Morris Talansky, is cross-examined next month. It was Mr. Talansky’s earlier court testimony about acting as a cash cow for Mr. Olmert, buying him luxury items such as expensive pens, first-class travel, and hotel suites, that damaged the premier’s public standing.Mr. Olmert’s lawyers will seek to discredit Mr. Talansky and convince the Israeli public that Mr. Olmert did not do anything in exchange for the money he received. It is legal for Israeli politicians to receive money, as long as they do not seek to use their influence to benefit the source.Mr. Olmert denies any wrongdoing. He has said he will resign if he is charged.

Olmert Cuts Deal with Labor, Agrees To Hold Primaries

Olmert Cuts Deal with Labor, Agrees To Hold Primaries

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