Israel moves towards forming new government

ISRAEL yesterday took its first steps toward forming a new government widely expected to be led by interim Prime Minister Ehud Olmert who wants to set the country’s final borders with or without Palestinian agreement.

President Moshe Katsav, who will choose a party leader to put together a governing coalition, met members of Mr Olmert’s centrist Kadima party which won the most parliamentary seats in the March 28 election.

He then held talks with the centre-left Labour Party which came second.