September 22, 2008	Monday	Ramazan 21, 1429

JERUSALEM, Sept 21: Israel’s scandal-tainted Prime Minister Ehud Olmert resigned on Sunday, setting the stage for more weeks of political turmoil as the horse-trading begins to form a new government.

Olmert, who is battling a swathe of corruption allegations, handed a brief letter to President Shimon Peres announcing that “in line with his commitments, he is submitting his resignation,” the president’s office said.

Peres, who now has a week to designate the party leader who will form the next government, paid tribute to Olmert for his work “for the people and the state of Israel.”

Foreign Minister Tzipi Livni, who replaced Olmert as head of the centrist Kadima party in a leadership vote on Wednesday, is hoping to become only the second woman prime minister in the nation’s history.

“I have decided to end my functions as prime minister of the government of Israel,” Olmert, who has been in power for 31 months, told a cabinet meeting earlier on Sunday.

Olmert’s move initiates what could be a months-long process to form a new government, casting a shadow over peace talks with the Palestinians and further denting hopes of a deal by the end of this year.

Peres is due to hold talks with Kadima representatives later Sunday, the local media said

The 62-year-old Olmert, who is likely to stay on as interim premier, had first announced on July 30 he would step down to battle a number of corruption allegations.

Peres is expected to give Livni 42 days to form a government and try to prevent a snap general election.—AFP