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* Opinion polls show Netanyahu on course to win ballot

* Could win renewed mandate ahead of U.S. presidential vote

(Adds Netanyahu quote on Iran, settlers force procedural

delays)

By Allyn Fisher-Ilan

TEL AVIV, May 6 (Reuters) – Prime Minister Benjamin

Netanyahu on Sunday said he supported holding an early general

election in four months’ time, a ballot polls say could

strengthen his hand as Israel confronts Iran’s nuclear

ambitions.

The next national vote was not due until October 2013, but

new legislation that might force ultra-Orthodox Jews to serve in

the military and an upcoming budget debate have threatened to

unravel a governing coalition of religious and nationalist

parties once seen as one of the most stable in Israel’s history.

“It is preferable to have a short election campaign of four

months that will swiftly return stability to the political

ranks,” Netanyahu said in a speech to a packed convention of his

rightist Likud party.

He said he wanted to avoid pressure from coalition partners

who were beginning to destabilise the government. He did not

specify a date, but a party official earlier said Sept. 4 was

the probable date for the ballot.

Likud has submitted a bill to dissolve Israel’s parliament

so that an early election may be held.

Parliament had been expected to start debating the measure

on Monday, but that plan seemed uncertain after a senior

coalition partner urged a procedural postponement.

“With the start of the government’s fourth year we have seen

many signs that the stability has begun to waver and political

instability always brings extortion (and) populism which harm

security, the economy and society. I will not allow a campaign

of a year and a half that will harm the country,” Netanyahu

said.

A Netanyahu victory two months before the U.S. election

would give him leverage over Barack Obama on the Iranian and

Palestinian issues while the U.S. president is still engaged in

his own campaign and wary of alienating pro-Israeli voters.

Netanyahu and Obama have had a thorny relationship and the

right-wing Israeli leader has come under pressure from

Washington not to take unilateral military action against

Iranian nuclear facilities suspected of being part of a project

to produce nuclear weapons.

Iran says its nuclear programme is purely civilian. Israel

is believed to be the Middle East’s only nuclear-armed power.

Opinion polls show Likud will easily come out on top of the

national ballot, giving Netanyahu a renewed mandate to tackle

what he has described as the most important challenge facing his

country – the prospect of a nuclear-armed Iran.

On the subject of Iran, Netanyahu told his party he would

not “ease the pressure until the threat is truly removed.”

IMPACT ON IRAN POLICY

Israeli leaders have insisted the election campaign would

have no impact on their decision-making on Iran. Netanyahu and

his government would remain in office until a new administration

is sworn in following the election.

Netanyahu has been urged by Washington and other world

powers to allow beefed-up international sanctions on Iran to

bite. He has voiced pessimism about the outcome of international

nuclear talks with Iran due to resume in Baghdad on May 23.

While opinion polls have shown strong support for

Netanyahu’s leadership, they have also indicated a wide majority

of Israelis either oppose an Israeli strike on Iran or would

favour an attack only if it were carried out with U.S.

agreement.

Netanyahu was cheered by hundreds at the Likud session held

at a Tel Aviv convention hall but seemed to lose face in a

procedural battle, when booing pro-settler activists managed to

postpone a vote to elect him as head of a body to set party

election rules.

The meeting broke up after a disorderly three hours without

holding the vote that would have launched a process of choosing

a slate of Likud candidates for the general election.

“Iran is not so interesting just now,” said Reuven Malter,

from the Elon Moreh settlement in the West Bank. He said he was

worried that Netanyahu would succumb to Western pressure to

break a deadlock with Palestinians and strike a peace deal at

settlers’ expense if he wins a second term.

“I think the prime minister is too moderate,” said Yossi

Bitan, another settler delegate, citing recent efforts to remove

unauthorised outposts built by the settlers on land that

Palestinians seek for a state.

(Additional reporting by Jeffrey Heller and Ori Lewis; editing

by Anna Willard)