IN A SURPRISE ANNOUNCEMENT...SHAUL MOFAZ RESIGNS

Following his loss to Tzipi Livni, no matter how narrow it turned out to be, Shaul Mofaz has decided to step down from political life:

Transportation Minister Shaul Mofaz, who lost the Kadima primary election to Foreign Minister Tzipi Livni by a small margin on Wednesday night, announced Thursday evening that he was leaving the government and the Knesset.

Mofaz would remain a member of Kadima, he said.

The dramatic development meant that the former IDF chief of staff, who on Wendesday was a breath away from the party leadership, would be a normal citizen with no political power.

"I want to continue contributing to society but after 42 years of giving to the country I need a time-out," Mofaz said.

This, as some TV analysts I've watched discussing the development have said, is a blow to Livni.

Benjamin Netanyahu has said that it's time for new general elections:

"After congratulating Tzipi Livni, I called on her to coordinate a date for general elections as soon as possible," opposition leader and Likud chairman Binyamin Netanyahu told reporters at a press conference on Thursday evening.

He added that he intended to approach Labor chairman and Defense Minister Ehud Barak, Shas Chairman and Labor, Trade and Industry Minister Eli Yishai, and other faction leaders on the subject.

Netanyahu said that "the only way to stop the deteriorating situation is to enable the people of Israel to elect a new government."

The opposition chairman stated that "anyone who fears the people's decision is not worthy of leading."

"In recent months public norms have been widely discussed. The most decent and democratic step is to hold general elections. We need to let the people of Israel determine who will be Israel's prime minister, not Kadima party members," he said.

"In the last two and a half years the Kadima government has failed in security, economy and education," Netanyahu said. "The only way to stop the deteriorating situation is to enable the people to elect a new government."

The opposition chairman claimed his party could "restore security, boost the education system and stabilize our economy."

Netanyahu said he was confident Israel could be put on the track to success.

He's right. The time has come for new elections.