Tzipi Livni, ruling Kadima party's new leader, now has difficult task of forming coalition government<
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"Israel's embattled prime minister, Ehud Olmert, today confirmed his resignation but will remain in power until a new government is formed.
At the opening of his weekly cabinet meeting Olmert addressed the country live on television, saying it was his "intention to resign the office of prime minister of the state of Israel".
Olmert – who announced in July that he would step down because of pressure over allegations of corruption – said he would "stand by" the foreign minister, Tzipi Livni, who was elected this week to replace him as chairman of the governing Kadima party.
It was still unclear, however, when Olmert would formally submit his resignation to the president, Shimon Peres, and there is speculation that he may remain in power for a number of months.
After the Israeli PM has formally notified the president, Peres can ask Livni to put together a new coalition government, a difficult task because Kadima does not have a parliamentary majority.
Livni, 50, a lawyer and former agent in the Mossad secret service, has six weeks to form a government around her party. If she succeeds, she will be prime minister - the first woman in the job since 1974. If she fails, general elections will be held by early next year."
http://www.guardian.co.uk/world/2008/sep/21/israelandthepalestinians