The international community is keeping a close watch on the recent political developments in Israel, following Monday's release of the Winograd report on the government's performance during the Second Lebanon War. Foreign diplomats are discreetly feeling the pulse of the political system.

The Foreign Ministry has learned that the report's repercussions received high priority in last week's meeting of the European Union Council of Ministers. EU foreign policy chief Javier Solana said there that should the government collapse following the report, then "it would constitute a death blow to the peace process, particularly with the Palestinian Authority."

In addition, several powers have instructed their envoys here to report on subjects including Prime Minister Ehud Olmert's "chances of survival" in office, and "the potential effects of the political crisis on the security situation in the Occupied Territories and along the northern border."

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However, foreign diplomats have refused to address the issue on the record, as the Winograd report is an "internal Israeli affair."