Sharon loses; Olmert wins

The Knesset approved Monday evening the appointment of Ehud Olmert to the post of finance minister by a 71-41 margin, after earlier rejecting Prime Minister Ariel Sharon’s bid to have all three of his ministerial appointments approved.

Knesset members rejected the proposal to appoint Olmert, Ze’ev Boim, and Ronnie Bar-On as ministers, forcing Sharon to hold an urgent government meeting and bring forward a new proposal, minus Boim and Bar-On, for Knesset approval.

While Sharon suffered a stinging defeat, Olmert emerged as the big winner of the night. In addition to heading the Treasury, Olmert now also heads the Industry, Trade, and Labor Ministry, as well as the Israel Lands Authority and the country’s broadcasting authority.

‘This is a turning point’

Meanwhile, a grim atmosphere prevailed at the Prime Minister’s Office Monday night. Sharon himself refused to issue a response to the evening’s events, but his close associates told Ynet the situation within the Likud was difficult and changes were required.

“The compromise agreement reached by Knesset Member Michael Eitan and Coalition Whip Gideon Saar is no longer valid,” one source said. “They (Likud rebels) did not meet the agreement’s clauses. They stood up as one against the prime minister and against the government of Israel…this comes with a price. We now need to rest for a few days, reexamine the situation, and take decisions. “

“There’s no doubt this marks a turning point,” one Sharon associate said furiously.

Other sources at the PM’s office said Sharon’s defeat was a bitter disappointment.

“One cannot run a party, a government, and a country this way,” one official said. “…the prime minister must decide whether he can continue running the government of Israel.”

A senior official at the PM’s Office concluded on a threatening note, saying “the (Likud) rebels who voted against him (Sharon) will have to pay a price for their actions.”

Earlier, Sharon resorted to menacing tones, telling Likud members their actions will have implications, after the Knesset rejected his three ministerial appointments by a 60-54 margin.

“I have no qualms with the opposition, but as far as the so-called coalition members, this move will have implications,” Sharon said, referring to the several Likud members who voted against the three appointments.

Immediately following the vote on the first proposal, Sharon took the podium and briefly addressed the Knesset, saying it was a pity that factionalism and personal motives “thwarted the appointment of two worthy people.”

“It’s even a greater pity that members of the Likud faction…foiled a move meant to boost the Likud and give it the representation it deserves in accordance with coalition agreements,” he said.

During the brief government session that followed his defeat, Sharon said that for the past year and a half “a minority of coalition members” attempted to interfere with the government.

“At times they had specific successes, but at the end of the day the government was able to implement everything it wanted,” he said. “Even in the mater of the ministerial appointments I wasn’t able to pass, eventually we’ll implement everything we want.”

“Mr. prime minister, take advantage of this opportunity…because your government is unworthy to continue functioning,” he said.

Meanwhile, Knesset Member Avraham Poraz (Shinui) said: “As of this evening Sharon is no longer an omnipotent prime minister, but rather, a defeated PM unable to function. He will do well for State of Israel if he calls for elections.”

Earlier, senior Likud members who met with Sharon said “he looks exhausted and realizes he’ll be losing this evening.” 

Attila Somflavi contributed to the report