JERUSALEM - Israel's foreign minister eked out a victory Thursday in a surprisingly tight race to replace Prime Minister Ehud Olmert as the head of the governing party, putting her in a strong position to become the country's first female leader in 34 years.
  
If she succeeds, she will become Israel's first female prime minister since Golda Meir stepped down in 1974. If she fails, the country will hold elections in early 2009, a year and a half ahead of schedule.

Livni is Israel's lead negotiator in peace talks with the Palestinians and a rare female power figure in a nation dominated by macho military men and a religious establishment with strict views on the role of women.

 
 

A lawyer and former agent in the Mossad spy agency, she is eager to continue the low-decibel diplomatic efforts. She says she hopes diplomatic efforts to halt Iran's nuclear program will prevail, though she says all options are on the table.

Jerusalem resident Shula Lon said she hoped Livni's non-confrontational approach could help the peace efforts.

"I really wish her the best, that she will bring peace," she said. "After so many generations (when) nobody succeeded, maybe a woman could do it now."
 
With opposition leader Benjamin Netanyahu's hardline Likud Party polling well, neither Kadima nor its allies appear eager for a new election. But with the Shas party, a key coalition partner, making tough demands, Livni will have to perform some deft political maneuvering to put together a government.

The ultra-Orthodox Shas opposes shared control of Jerusalem — the holy city claimed by Israel and the Palestinians. As lead peace negotiator, Livni is committed to discussing all the issues between Israel and the Palestinians, and the future of Jerusalem is at the heart of the conflict. 1