HA’ARETZ

1. PM HALTS MUTINY AND PREPARES FOR CABINET RESHUFFLE.

2. PERETZ DECIDES TO STAY AT DEFENSE MINISTRY UNTIL PRIMARIES: HE CONSIDERED RESIGNING.

3. COALITION CHAIRMAN AVIGDOR YITZHAKI RESIGNS AFTER CALLING FOR OUSTING OLMERT; HANEGBI TO REPLACE HIM.

4. LIVNI CALLS FOR OLMERT TO RESIGN, BUT ANNOUNCES SHE WILL REMAIN IN HIS GOVERNMENT.

5. PROTEST RALLY TONIGHT – WITHOUT POLITICIANS.

6. Gag order lifted: Police raided Bishara's home and office; are considering issuing an international arrest warrant.

AZMI BISHARA SUSPECTED OF ASSISTING HEZBOLLAH ROCKET FIRE ON ISRAEL. 

Suspicions against Bishara: Held contact with Hezbollah intelligence; transferred information during war designed to enhance damage to Israel; supplied information on possible rocket targets and assisted in correcting coordinates; received hundreds of thousands of dollars from anonymous source.

HATZOFEH

1. Decision at PM Bureau at end of dramatic day:

IF EHUD SURVIVES, LIVNI TO BE FIRED.

Kadima standing behind Olmert, Livni isolated, struggle passes this evening to Rabin Square.

2. TREASON.

First disclosure of charge details against [former] MK Azmi Bishara.

MA’ARIV

1. Tonight at Rabin Square: Protest against Government reaches peak.

TEST IN THE SQUARE.

Political establishment waiting to see if Winograd report will awaken Israeli public from its apathy.

2. LIVNI DOESN'T RESIGN, KADIMA MUTINY BROUGHT TO A STANDSTILL.

YEDIOT AHRONOT

1. Olmert survives party mutiny.  Tonight: The next round.

TEST IN THE SQUARE.

The big question: How many will come to protest rally at Rabin Square.  Prime Minister's confidants: Will fire Livni and appoint Mofaz in her stead – at the appropriate time.

2. SUSPICION: SPY.

Treason: At the height of Lebanon War Azmi Bishara passed to Nasrallah Israeli targets for missile attacks.  Payment: Bishara received hundreds of thousands of dollars for information, which he obtained through his work at the Knesset.  Evidence: ISA – Discovered treason through wiretaps.  Agents who transferred the money gave evidence.  Family – Bishara's friends: They're framing him; his sister: Exaggerated libel.

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SUMMARY OF EDITORIALS FROM THE HEBREW PRESS

Makor Rishon-Hatzofeh believes that while the concept of a centrist party has merit, "Kadima is not a regular centrist party.  It certainly is not the DMC or the third way, which attempted to bring about a new approach of governance.  One cannot forget that Kadima was conceived in sin.  It was born from Ariel Sharon's desire to force his opinion on his party, deviate from its basic positions and entrench an administration that everyone knows was corrupt to the core."  The editors excoriate Kadima and hope that Israel wants a different style of governance.

Yediot Ahronot suggests that the fathers of both Prime Minister Ehud Olmert and Foreign Minister Tzipi Livni are spinning in their graves.  The editors liken the latter's remarks yesterday to, "placing a gun on the Prime Minister's desk that will be fired in August," when the Winograd Committee issues its final report.  However, the editors caution that, By August, many things could happen in this nutty country of ours," and add that, "In August, it will be Olmert who decides whether or not to stay in office and it seems that Tzipi Livni will then have very little to say."

Yediot Ahronot, in its second editorial, speculates that if an alien came to Israel yesterday from Mars, he could not help but conclude that, "People in this country have gone crazy,"

Yediot Ahronot, in its third editorial, wonders that if we really are like other nations, are they in the dumps as well?

[Eitan Haber wrote today’s editorials in Yediot Ahronot.]