Israel's Livni wins party battle to replace Olmert

A fast-rising star in Israel's political firmament, Livni is Israel's lead negotiator in peace talks with the Palestinians and a rare female power figure in a nation dominated by macho military men and a religious establishment with strict views on the role of women.

A lawyer and former agent in the Mossad spy agency, she is eager to continue the low-decibel diplomatic efforts. She says she hopes diplomatic efforts to halt Iran's nuclear program will prevail, though she says all options are on the table.

With opposition leader Benjamin Netanyahu's hardline Likud Party polling well, neither Kadima nor its coalition partners appear eager for a new election.

Peace negotiator
But the ultra-Orthodox Shas Party, which could be key to building a new coalition, has already served notice that it would not join a government that is willing to negotiate the fate of disputed Jerusalem with the Palestinians.

As lead peace negotiator, Livni is committed to discussing all the outstanding issues between Israel and the Palestinians, and the future of Jerusalem is at the heart of the conflict.

Shas' position will require some deft political maneuvering on Livni's part if she is to sidestep elections.

"If it becomes clear that Jerusalem is on the negotiating table ... then we won't be part of the coalition," party spokesman Roi Lachmanovitch said.

Nationally, polls show Livni roughly tied with Netanyahu should elections be held today. A new nationwide vote would likely turn into a referendum on the current effort to forge a historic peace deal with the Palestinians.

Palestinian Information Minister Riad Malki was hopeful that peace talks could succeed under Israel's new leadership.

"We welcome the results of the election, and we are going to deal with any new prime minister in Israel," he told The Associated Press. "We hope this new prime minister will be ready to ... reach a peace deal with the Palestinians that ends the occupation and allows the establishment of an independent Palestinian state living beside Israel."

The primary was Kadima's first since the party was founded by then-Prime Minister Ariel Sharon in 2005. Sharon suffered a debilitating stroke in early 2006, and Olmert subsequently led the party to victory in elections.

Sharon set up Kadima as a personal bastion after his hard-line colleagues in Likud blasted his unilateral pullout from the Gaza Strip in 2005. It was widely predicted Kadima would disintegrate after his exit, but the moderate Livni's victory appeared to give it a chance of survival.

Olmert is under police investigation over his financial dealings. But he has been pursuing peace talks with the Palestinians and has pledged to continue as long as he is in office.

However, both he and his Palestinian counterparts now say they are unlikely to reach the U.S.-set target date of year's end for a final peace deal. Any agreement they might reach would not be implemented until Abbas regains control of the Gaza Strip, overrun by Islamic Hamas militants in June 2007.

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