Olmert: Despite calm, things could be different

Addressing the situation in the Gaza Strip following Operation Cast Lead, Olmert noted, "We never wanted to exert all the power we have in order to cause the other side to understand that in this conflict we all lose at the end of the day.

"We are living in an area with a lot of uncertainty. We have neighbors whose actions we cannot always foresee."

As for the fighting in the Strip, the prime minister said, "I think Israel's overall strength was in the fact that we did not rush to use it during the fighting. The last thing we can bear is the fear of a small child. The State of Israel exists so that this won't happen."

"We exercised restraint for a long time, even when those who preach us would have acted and acted differently, without hesitation and brutally. Our restraint was our power and I hope that at the end of the day it's very understandable," he said.

"At the end of the day, we have no interest and no desire in hitting the other side. We never educated our children to hatred, to power struggles and to how can beat the other person more."

Olmert said he told Ban, "It is only fair that you visit there. It's unthinkable that you should see the suffering of one side and ignore the other side."

The UN chief visited Sderot on Tuesday and said, "The rocket fire is unacceptable. I know it caused you to live with anxiety."

'Operation could help Shalit's release'

Asked about the opportunity to return kidnapped soldier Gilad Shalit now that the operation is over, Olmert replied, "I believe the questions about Shalit are legitimate, but my response will not advance his release. I am working, I have worked and I will work for his release.

"I read speculations and assumptions in the newspapers. People ascribe stances which I never had, to other people as well, on the Shalit issue. Even if I answer your questions about it, this won't create an opportunity to bring Gilad home."

He added that the military operation in Gaza "created leverages which could speed up Shalit's return to Israel."

The prime minister was also asked to address Defense Minister Ehud Barak's performance, and said, "I expressed my gratitude both to Barak and to (Foreign Minister) Tzipi Livni, who I believe fulfilled their duties properly. But from here to the point where he would like to be prime minister, I say, let's not exaggerate."

Diplomatic efforts in Europe

Meanwhile, the diplomatic battle after the ceasefire continues. Foreign Minister Livni, who met her European counterparts on Wednesday night, told a press conference that the crisis in Gaza would not be resolved so long as Gilad Shalit remains in Hamas' hands.

The EU foreign ministers met in Brussels to declare their intention to contribute units, vessels, and technological means in order to curb weapon transfers from Iran to Hamas. Livni and EU foreign policy chief Javier Solana both agreed that each of the countries would allot resources to fight the smuggling.

The foreign minister said the international community understands that the need to act against the (smuggling) threat is mutual, adding that during the meeting it was agreed that Israel and the European Union would work together towards this end.

"Israel maintains the right to defend itself and its citizens – not just against being fired on, but also against smuggling," she added.