Prime Minister Ehud Olmert admitted in a speech Wednesday evening that Hizbullah has more missiles today than it did before the Second Lebanon War. Speaking at the Herzliya Conference, Olmert said, however, that he regrets none of the major decisions he made in the course of the war.

Olmert said the north was flourishing as a result of the war. "The present situation is incomparably better than that which preceded it," he said. "The residents of the north have peace and security. There is no daily friction and no firing of rockets or even Kassams. This has gone on, not for a day or a month but for 18 full months. This is the longest period of quiet in the north in the past 25 years."

"Our enemies in the north are in no hurry to fight us," Olmert added. "They know why. The reasons are flying in the air, they are felt in the region, they are known to all those who need to know."