Shaul Mofaz moved from the position of Defense Minister and received the Transport ministry in the new Cabinet installed on 4 May 2006. In 2008, with Israel's then prime minister, Ehud Olmert, being pressured to resign due to corruption charges, Mofaz announced that he would run for the leadership of the Kadima party. On 5 August 2008, Mofaz officially entered the race to be leader of Kadima. That same day he received a blessing by Shas spiritual leader Rabbi Ovadia Yosef. On 17 September 2008, he lost the Kadima party election, losing to Tzipi Livni for the spot of the Prime Minister
Meretz new chairman. On 22 December 2008, Meretz finalized its merger with Hatnua HaHadasha ("The New Movement") for the 2009 Israeli elections. The joint Meretz-Hatnua HaHadasha list ended up winning only 3 seats in the elections. This electoral loss was largely attributed to traditionally left-wing voters choosing to strategically vote for Kadima, in an effort to get Tzipi Livni to head the next government instead of Benjamin Netanyahu of Likud. Following the party's failure in the 2009 legislative elections, some of the party members called for the resignation of the party chairman Haim Oron and to give way for Zehava Gal-On.