Speaking at the start of the cabinet meeting, Olmert said, "I have instructed the police to show zero tolerance and bring about a cessation of the violence in Akko and a continued cooperation between the parties."
He added that "for years Akko was a city which excelled in living together, a mixed city, and this is something which lifted up and flourished the city. But now there is a feeling that large circles of the city residents are turning into hostages in the hands of small groups of extremists from both sides, Jews and Arabs, leading them to violence, fanaticism and a lose of the right criteria."
The prime minister went on to call for tolerance. "Even if conflicts may take place and often takes place between residents of any mixed town, the need for mutual respect and mutual tolerance between Jewish and Arab residents in the State of Israel is an issue constantly on my mind.
"In the past year I have attempted to create a process of dialogue with the Arab population's leadership. I sought to create a situation in which we moderate radical views, reduce the frictions and create a dialogue out of the belief that there is no escape from living together."
Earlier Sunday, Defense Minister Ehud Barak said during a Labor ministers' meeting that the Akko Festival should be held as planned and that "the rioters must not be allowed to harm the fabric of life in the city and country." He added that law and order must be restored in the city.
Prime minister-designate Tzipi Livni toured Akko on Friday, also calling on the police to show determination.
According to the Kadima chairwoman, the State of Israel will not allow citizens to take the law into their hands and damage property. She added that the violent incidents are a watershed aimed at determining "if we will remain in the past with all our angers or work to improve the relationship between Jews and Arabs from now on."