On
May 4, 2006, Olmert presented his new government to the Knesset. Olmert became Prime Minister and Minister for Welfare. The control over Welfare Ministry is expected to be given to
United Torah Judaism if it will join the government. Olmert would, however, remain Minister of Welfare as UTJ usually prefers to manage government ministries from a Deputy Minister position.
On
May 24, 2006, Olmert was invited to address a joint session of the US Congress. He stated that his government would proceed with
Israel's unilateral disengagement plan if it could not come to agreement with the Palestinians. Olmert was the third Israeli Prime Minister to have been invited to speak at a joint session of Congress. On
June 4, 2006, Olmert announced he will meet Mahmoud Abbas to resume talks on the
Road map for peace.
Under Olmert, the policy of ambiguity on the possession by Israel of nuclear weapons remains intact. One result of this is the continued detention in Israel of Mordechai Vanunu, who spent eighteen years in prison in Israel after breaking confidentiality agreements and divulging to a news organization in Britain details about Israel's suspected nuclear projects.
Since the
2006 Israel-Lebanon conflict, Olmert has become extremely unpopular in Israel and recent opinion polls have pointed to a victory for Likud leader Benjamin Netanyahu if an election were to be held at this point. Additionally, on
September 15, 2006, former chief of staff Moshe Ya'alon held that Olmert should resign his office. According to the BBC, Olmert's approval rating has dropped from 22 percent in early 2006 to 14 percent. As of May 2007, Olmert's approval rating fell to 3 percent. Olmert has also been the recent recipient of a
Google Bomb for the words כישלון חרוץ, which means "miserable failure" in Hebrew.
On
September 26, 2006, the BBC reported that Prime Minister Ehud Olmert had held a meeting with a senior member of the Saudi royal family which rules Arabia. These talks reportedly included the reported Saudi proposal to lead Arab states in recognition of Israel in exchange for Israel removing its forces from neighboring disputed territories. Ehud claimed in an interview with Yediot Aharonot's newspaper that the meeting had US backing.
On
December 8, Olmert met
Russian President Vladimir Putin about
Iran's nuclear program and told Putin that he hoped the
United Nations Security Council would vote to impose sanctions if Iran continued to flout the international community's demands that it stop its nuclear development.
Olmert told on
December 9 that he could not rule out the possibility of a military attack against
Iran, and called for the international community to step up action against the country. Olmert called Iranian President Mahmoud Ahmadinejad's repeated threats to destroy
Israel "absolutely criminal", and said that he expected "more dramatic steps to be taken." The interview came ahead of his planned trip to
Germany, where on
December 11 he met and held a joint press conference with Chancellor Angela Merkel. He stated that he was prepared to concede "large territories" in the
West Bank for a "true peace." Such a withdrawal would allow the establishment of a
Palestinian state in the West Bank, he added.
In a
December 11 interview with German TV network
Sat.1, he appeared to include Israel in a list of nuclear powers, a statement which his office has characterised as an unintentional mistake in translation. He has nonetheless come under harsh criticism from both ends of the Israeli political spectrum due to the perceived threat to Israel's policy of ambiguity regarding its nuclear status.
On
January 16, a criminal investigation was initiated against him. The investigation will focus on suspicions that during his tenure as finance minister, Olmert tried to steer the tender for the sale of Bank Leumi in order to help
Slovak-born Australian real estate baron
Frank Lowy, a close personal associate.
On
January 21, Olmert promised to lessen conflict and work with Defense Minister Amir Peretz in determining who will succeed former IDF Chief of General Staff Lt.-Gen. Dan Halutz.
On
May 2, 2007, the
Winograd Commission accused Olmert of failing to properly manage the Second Lebanese War, which prompted a mass rally of over 100,000 people calling for his resignation.. At the moment he still has an acting coalition, but his post is perceived to be at risk.
On
July 28, 2007 Olmert requested of his cabinet and his cabinet agreed that
Holocaust survivors living in Israel who are older than 70 will receive a special supplement to their pensions and welfare allowances totaling some $28 million in 2008.