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
Tzipi Livni by Livni's decision to leave Likud and also accepted her support for the two-state solution, although it "hurt her." Livni entered politics in 1995 when she tried unsuccessfully to win a place on Likud's list to the Knesset. She was appointed as head of the government-owned corporations authority in Netanyahu's government, and oversaw the privatization of a number of companies. While in this capacity, in 1998 she was considered a prominent candidate to become director general of the Finance Ministry. Livni would later rue the decision to privatize certain companies and natural resources. As Hatnuah chairwoman in 2013, she wrote: