Pressure grows on Olmert to step aside

By Jeffrey Heller

JERUSALEM (Reuters) - Israel's foreign minister deepened the uncertainty over Prime Minister Ehud Olmert's ability to survive a corruption scandal by saying on Thursday their party had to prepare for a possible early election.

Olmert has responded with a business-as-usual approach to a demand by Defense Minister Ehud Barak that he step aside.

But the comments by Olmert's deputy, Foreign Minister Tzipi Livni, and other members of their centrist Kadima party could increase pressure on the prime minister to go.

Livni, Israel's chief negotiator with the Palestinians, said Kadima should "take decisions" and start preparing for "any scenario", including an early general election and an internal leadership vote.

Widely regarded as a top candidate to replace Olmert, Livni did not call for Olmert to step down but said "values and norms" must be upheld in Israeli politics.

Addressing members of his left-leaning Labor faction, Barak said he would force the issue if Olmert failed to act.

"The prime minister has to make decisions. Factions have to make decisions, and if they don't, we will make the decisions for them," said Barak, whose party is Olmert's largest coalition partner.

Olmert has made clear through aides that he has no intention of stepping down. At a welcoming ceremony for Denmark's prime minister on Thursday, Olmert made no reference to Barak's call to go on leave or quit.