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Olmert blasted Netanyahu for getting into "a blunt confrontation with the most powerful man in the world," suggesting that Israel isn't in a position to show contempt for the US, which provides the Jewish state with billions in military aid each year.
Olmert made the remarks during a conference in Tel Aviv on Thursday.
"While the American defense budget is facing cuts, (Obama) supports the Iron Dome," Olmert said, referring to the president's move to release funds for Israel's aerial defense system. "This is a president who says in the middle of a conflict that he won't let Israel lose its advantage. But the Israeli government doesn't think so."
The criticism came on the backdrop of reports citing US President Barack Obama acerbically criticizing Netanyahu for announcing plans to build thousands of new homes in the disputed E1 area of the West Bank in November.
The Israeli government, Olmert continued, "rejects peace. It rejects the process and refuses to talk to the moderates on the Palestinian side. It doesn't want an agreement. There's no other way to say it."