Israeli voters turn to new issues, parties

Under him, the party had hoped to take close to 40 of the 120 seats, but must settle on 28. The smaller-than-expected number is viewed as a mark of the tepid support he has from the public, and an indication of the difficult job that lies ahead for him.

In a victory speech, Olmert made an appeal to the Palestinians that was statesmanlike in quality, and which seemed to run counter to some of the assumptions made about Kadima's do-it-yourself, unilateralist approach to the conflict.

"There is no substitute for a peace agreement. There is no more stable peace than one with a peace agreement," said Olmert, specifically citing the Bush administration's road map as a primary means to reaching an end to the conflict. He called on the Palestinians to be realistic, and like Israel, consider forfeiting land they cherish.

"For thousands of years, we have dreamed in our hearts of a Greater Israel, and such a country will always remain our dream in our hearts," Olmert said. "But out of a recognition of reality we are prepared to make compromises, we are prepared to turn our backs on these areas, and to painfully pull out our residents from settlements."

Olmert's speech seemed an apparent opening to talk with the Palestinian Authority (PA), even one led by Hamas. Israel, the US, and other Western allies have declined to deal with Hamas because they view it as a terrorist group, and because it does not recognize Israel's right to exist.

Many analysts here, however, say that the chances of a resumption of negotiations are extremely slim, making unilateral moves far more likely. But such major moves to pull unilaterally out of settlements beyond Israel's West Bank barrier are not expected to be made for at least a year, says Mr. Shelach, the columnist.

"Right now, Olmert is going to try to put the ball in the Palestinian court and see how things work out between [Palestinian President] Mahmoud Abbas and Hamas," he says. "Unless the security situation deteriorates, both sides of the conflict and the international community will wait it out."

Part of the suspense in this election drama, he adds, is whether most Israelis actually voted on the questions of the conflict with the Palestinians. Probably half voted on internal questions - economic problems or narrower, special interests.

One common thread among the "other half," as it were, is a backlash against the economic cuts made by Mr. Netanyahu while he was finance minister under Sharon.

The Pension Party wants a better national retirement plan - support payments were cut by about 30 percent during Netanyahu's reforms. Shas will push for the restoration of a per-child support check from the state.

"The real complication is that it's difficult to get a common denominator on economic issues," says Mr. Heller.

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