Tzipi Livni Kadima the most seats in the Knesset, parties to the right in Israel's political spectrum gained enough seats that a coalition government under Kadima leadership was unlikely. As a result, Israeli president Shimon Peres asked Netanyahu and Likud (which received one fewer seat than Kadima in the elections) to form a government; this was the first time in Israel's history that the party with the most seats was not asked to attempt to form a government. "The New York Times" commended Livni for "refusing the extortionist conditions set by Shas," and endorsed her candidacy for prime minister, saying Israelis would
Tzipi Livni Livni and Shaul Mofaz emerged as the main rivals for the leadership. Livni won the Kadima leadership election by a margin of just 431 votes (1%). Palestinian peace negotiators were reportedly pleased with the result. As the new leader of the ruling party, Livni became prime-minister designate. Upon declaring victory, she stated "the national responsibility (bestowed) by the public brings me to approach this job with great reverence." On 21 September 2008, Olmert formally resigned in a letter submitted to president Shimon Peres, and the following day Peres formally asked Livni to form a new government. Livni faced tough negotiations