Tzipi Livni with Kadima's coalition partners, particularly the Shas party, which had set conditions for joining a Livni government, including an increase in child allowances to Haredi communities, and a vow not to negotiate the status of Jerusalem during peace talks with the Palestinians. Livni was able to sign a coalition agreement with the Labor party, led by former prime minister Ehud Barak, but on 26 October, informed the President that she was unable to form a government and suggested Israel go to elections. Livni cited her unwillingness to sell out her principles just to become prime minister, stating, "I was willing
2008 Kadima leadership election count turned out much closer, amid very low turnout, with Shaul Mofaz coming within a few hundred votes of winning an unexpected victory over Livni. Supporters of Mofaz called for a recount but Mofaz rejected any legal challenge of the declared result and called Livni to congratulate her on her victory, as did Sheetrit and Dichter. After Mofaz's loss, he announced that he would be taking a break from politics and leaving the government and Knesset. However, he would remain a member of Kadima. Soon after, however, he announced his return and won the 2nd place in Kadima's Knesset list