Olmert, Peretz: We'll form stable cabinet

'Labor will be senior partner in government.' (Video: Channel 2) 

"Immediately after the president tasks me with forming the next government, we will embark on coalition negotiations in a bid to assemble a government headed by me," Olmert said.

Shaking hands (Photo: Haim Tzach)

"The Labor Party will be a senior partner in the government, and I hope that many other parties will join. We will establish basic principles, and anyone who accepts them will be able to join," he added.

Peretz spoke about the direct dialogue created between himself and Olmert "out of national responsibility, while the entire country is dealing with something that never happened," hinting to the "obstructive bloc" he tried to form with right-wing factions.

The Labor chairman referred to Olmert as the next prime minister and estimated that a government headed by Kadima, with a Labor partnership, would be stable and complete its four-year term.

"The State of Israel is facing very important challenges, and I am certain that the new government will really create a state which is nice to live in," Peretz said.

He added that he would ask President Moshe Katsav to assign the task of forming the new government to Olmert.

The meeting and the joint declaration were preceded by unofficial meetings and talks between the two officials. Labor officials believe that Olmert will give Peretz the defense portfolio.

The dramatic development in the coalition negotiations took place following a day in which it seemed that the two party leaders were very far from one another. The two held unofficial talks with heads of other parties, after Labor representatives recommended to President Katsav to assign Amir Peretz with the task of forming the government and called on other parties to do so as well.

Earlier Tuesday, Peretz met with Pensioners party leader Rafi Eitan, who praised him for work in favor of the elderly and the needy in Israel. 

Peretz with Pensioners party leader Rafi Eitan on Tuesday (Photo: Yaron Brenner) 

Labor officials said Monday evening that Peretz would meet with Olmert only after the president assigns the latter the task of forming the government. Labor Secretary-General Eitan Cabel, who is responsible for coordinating the meeting on behalf of the Labor chairman, said that the meeting would be held only after the official negotiations begin.

Olmert to Netanyahu: Join coalition

On Monday, Olmert met with senior Kadima officials and briefed them on the possible coalition compositions: A central government with Labor, Shas and United Torah Judaism, or a right-wing government with ultra-Orthodox parties and Israel Our Home.

Olmert told his party members that in order to get Labor to join the government, Kadima would be forced to concede a senior portfolio – the Treasury or the Defense Ministry.

Before his meeting with Peretz, Olmert met with Likud Chairman Benjamin Netanyahu and presented him with the next government's political plans.

Olmert stressed that the government would prefer holding negotiations with the Palestinians, but that "the government will also operate in the absence of a deal, while forming a broad internal agreement and international agreement – especially with the United States – in order to determine Israel's permanent borders."

Olmert invited the Likud to join the government and said that Kadima would not disqualify any party.

Netanyahu said that the Likud supports negotiations with the Palestinians, but stressed that unilateral moves pose a great danger to Israel's security. In any event, the Likud chairman plans to present Olmert's invitation to his faction members, who are expected to meet in the coming days to discuss the issue.

Knesset Member Gideon Saar (Likud) estimated Tuesday that "our chances of joining the government are not high, since the government's policy is expected to focus on a unilateral withdrawal from the West Bank."   

National Democratic Assembly representatives at president's residence (Photo: Yaron Brenner)

In the meantime, President Katsav continued the series of consultations with faction heads, ahead of assigning the task of assembling the next government. Katsav met Tuesday with representatives of the Arab factions and Likud members.

Hadash representatives did not recommend a prime minister candidate, but stressed that they would definitely prefer Peretz over Olmert. Also the Likud and National Democratic Assembly representatives did not recommend any candidate.

Neta Sela contributed to the report