Olmert Resigns-and Remains in Office

Prime Minister Ehud Olmert now is officially a lame duck head of government after he resigned Sunday night, but he remains in power until newly-elected Kadima party leader Tzipi Livni forms a coalition or is forced to go to the polls. His legal position has changed in that he cannot be suspended from office, but he still can fire Cabinet ministers.

President Peres invited all of the heads of the 13 Knesset factions for consultations, a formal act before asking Livni, as head of the largest party, to form a new coalition.

She already has gone into action to attempt to win over opposition parties although she has not yet received the formal go-ahead from the President, after which she will have 42 days in which to accomplish her task. If she does not, President Peres can ask another party to form a coalition, which would be highly unlikely, or call for new elections within 90 days.