Voice of America, 25 June 2008

Israel's prime minister has avoided a split with a major coalition partner and possible dissolution of his government in a deal that could end his own political career in three months. VOA's Jim Teeple reports the political developments came as a shaky cease-fire in Gaza showed more signs of unraveling.

Prime Minister Ehud Olmert reached a last-minute deal with his coalition partner, Labor Party leader Ehud Barak, that put off a Labor Party vote supporting a parliamentary measure that would have dissolved the Israeli Knesset and led to new elections.

The measure was proposed by the right-wing Likud Party, which polls say is favored to win new elections. Mr. Olmert had threatened to fire Labor ministers in his Cabinet if their party supported the measure.

Under the compromise, Mr. Olmert will now submit himself to an internal vote for leader of his Kadima Party on September 25. Tzachi Hanegbi, a close ally of Mr. Olmert's, who negotiated the deal with Barak said new elections had been avoided - for now.

Hanegbi says Israel has extricated itself from the daily preoccupation of when elections would be called that has dominated political discourse in recent weeks.

It is unclear if Mr. Olmert can win a leadership contest in his own party. Israel's prime minister is waiting to see if he will be indicted in a corruption probe related to funds he received from an American businessman while he was Mayor of Jerusalem and as a cabinet minister.

Mr. Olmert has declared his innocence, saying any funds he received were for political purposes only and he has pledged to resign if indicted.