Olmert says he was 'within whisker' of peace with the Palestinians

As his term in office officially comes to a close, Israel's premier said on Wednesday that his government was close to a historic breakthrough in peace negotiations with the country's Arab neighbors.

"I was within a whisker of an agreement with the Palestinians," outgoing Prime Minister Ehud Olmert said during a visit to a brewery in Ashkelon.

"The distance to such an agreement is not big, but time is not infinite," Olmert said. "If we do not act quickly and make fateful decisions and overcome the difficulties, the state will not be able to embark on a path of development, domestic might, and prosperity."

Olmert said Israel's most vexing challenge is the Palestinian question. "The leader who will have the courage to bring forth a decision on this issue will serve as prime minister not just for one term, but for as many as he or she wishes," Olmert said. "We need first and foremost to reach a decision and then to nail down everything to the last detail and not to let this linger and dawdle."

The premier said his government worked to restore Israel's deterrent power and to solidify its standing in the Middle East.

"How I wish that I could be able to tell in detail what we did, but I cannot nor do I want to," Olmert said. "A considerable chunk of our deterrence that we attained is due to the fact that we knew when to keep quiet while others expected us to talk."

"For one month, we fought in the south and there was quiet in the north," Olmert said. "This is not by chance. The fact that the Lebanese army recently seized Katyusha rockets that were ready to be launched at Israel by some marginal group is not by chance. This reality is borne out of the situation we created."

The premier also said the global financial crisis presented a considerable set of dilemmas for the state. Olmert said the United States did not spend $700 billion for an economic bailout plan. The actual sum is at least $3 trillion when factoring in the nationalization of banks and large financial institutions, Olmert said.

"Against the backdrop of this serious crisis, the state cannot evade its responsibility and it will not do so," Olmert said. "If it shows foresight and does not get swept up in events it will overcome the crisis."

Olmert told the workers at the plant that he is not overjoyed at the prospect of stepping down, though he insists he is not bitter. "The time has come to put aside our grumbling and unnecessary anger and focus on the rare abilities that are bubbling within Israeli society," Olmert said.