In his opening remarks, Olmert offered to meet with the Lebanese prime minister for peace talks in the wake of the recent war against Hizbullah terrorists in southern Lebanon.



Siniora was unimpressed, however. "The prime minister has announced more than once that Lebanon will be the last Arab country to sign peace with Israel," Siniora's office said in a statement.



Olmert said in his address that Israel “has not forgotten, nor shall we forget” IDF reservists Ehud Goldwasser and Eldad Regev, kidnapped by Hizbullah terrorists on the Lebanese border in July, and Cpl. Gilad Shalit, abducted by Hamas terrorists near Gaza in June. No sign of life from the three has been received, and their whereabouts and condition remain unknown.



Nonetheless, Olmert said the time had come for him to meet with Siniora and find a peaceful solution to the current tensions in the region. He also mentioned Syria in his speech, but noted that “peace is made only with those who truly abandon terror.” Syria, which Olmert accused of sponsoring terrorist organizations, does not meet the criteria.



Despite the chaos that currently reigns in the Palestinian Authority, Olmert insisted that “Palestinians alone can change their future.” He emphasized that he believed PA President and Fatah faction leader Mahmoud Abbas (Abu Mazen) was a “legitimate partner” for peace talks. The Fatah faction is actively involved in a bloody struggle for control of the government with the Hamas terror organization which now runs the PA.



The Iranian nuclear development program was also high on the Prime Minister’s list of priorities. “The world must ensure that Iran does not have nuclear weapons,” he said. North Korea’s recent underground test of a nuclear weapon also does not bode well, added Olmert. “The latest events in North Korea manifest the danger,” he said.



"Let's establish an appropriate and honorable government," said Olmert, adding that he "invites any opposition party that accepts our guidelines to take part in the action and join the coalition."



Olmert's calls for unity, however, were not as well-received. The remarks were met by Knesset Members' heckling, as Knesset Speaker Dalia Itzik repeatedly called for order in the chamber.



Opposition leader and Likud party chairman Binyamin Netanyahu, who took the podium after Olmert, backed up the Prime Minister in his bid to “stop Iran from developing weapons of mass destruction,” saying Iran poses a threat to Israel’s existence.



The prime minister is expected to bring up the Iranian nuclear program as a threat to the world when he visits Russia this week and the United States next month.



Both Olmert and Netanyahu saluted outgoing MK Natan Sharansky, who recently announced his retirement from the Knesset and from politics.