Defence Minister Ehud Barak called today on Ehud Olmert to step aside as Israel's prime minister after damaging testimony in a corruption case.
"The prime minister needs to disconnect himself from the day to day management of the government," Mr Barak told a news conference, adding that his Labour Party, Mr Olmert's biggest coalition partner, could force an early election if he refused to go.
"I don't think the prime minister can simultaneously run the government and deal with personal issues, he added.
US businessman Morris Talansky testified yesterday that he gave Mr Olmert $150,000 in cash-stuffed envelopes, including personal loans that were never repaid, over a 15-year period before the veteran politician became Israel's leader.
Even in a country where many assume corruption at the top is rampant, the image painted in court of a politician with a penchant for expensive cigars and for cash over cheques offered by the American Jewish fundraiser was extraordinary.
Mr Olmert, whose defence attorneys will cross-examine Mr Talansky only in July, has acknowledged receiving money from the New York-based businessman but said the funds were legal election campaign contributions.
Denying any wrongdoing, he has said he would resign if indicted.
Tal Silberstein, an Olmert adviser, told Israeli army radio the prime minister had no intention of stepping aside now.
"I can tell you, based on a recent conversation with him, that he has no intention of announcing that he is taking a leave of absence or declaring anything at this stage - not as long as he is trying to prove his innocence," Mr Silberstein said.
Should Mr Olmert (62) step aside temporarily while prosecutors pursue the corruption case against him, Foreign Minister Tzipi Livni, as his deputy, would likely take over, for an interim period of 100 days.
If Mr Olmert quits outright, President Shimon Peres, under Israeli law, could name a replacement after consultation with leaders of parliamentary parties.
The frontrunner would likely be Mr Livni, Israel's chief delegate to peace talks with the Palestinians which the United States hopes can result in a statehood agreement by the end of the year.
Israel Radio painted another scenario this morning, reporting that Mr Barak was considering the formation of an emergency government with Benjamin Netanyahu's right-wing opposition Likud party that would leave out Mr Olmert's centrist Kadima party.
Mr Olmert, twice questioned by police in the past few weeks, has said he took cash from Mr Talansky for two successful campaigns for mayor of Jerusalem in 1993 and 1998, a failed bid to lead Likud in 1999 and a further internal Likud election in 2002.
A judicial source said the sums involved totalled hundreds of thousands of dollars.
Mr Talansky (75) told the Jerusalem District Court that he had helped Mr Olmert because he regarded the former Jerusalem mayor as "a man who could accomplish a great deal" for Israel.
A poll in the
Haaretznewspaper said that 70 per cent of the Israeli public did not believe that Mr Olmert was telling the truth about using the money only for political campaigns.