Israel PM salutes Iran protests, deplores violence
* Israeli PM on first European trip
* Netanyahu praises Iran protesters
* Says Iran repressing own people
(Adds quotes, details)
By Allyn Fisher-Ilan and Daniel Flynn
ROME, June 23 (Reuters) - Israeli Prime Minister Benjamin Netanyahu on Tuesday praised Iranians protesting against the election results and said Tehran's "aggressive and violent" behaviour made it the greatest threat to peace.
"I believe that the courage shown by the people of Iran in facing bullets in the streets for the sake of freedom is something that deserves the salute of free men and women everywhere," said Israel's prime minister on a visit to Rome.
Calling Iran the "greatest threat" to peace with its "aggressive and violent behaviour", he said Iran's rulers had shown their true nature with their response to protests at the June 12 vote confirming hardline President Mahmoud Ahmadinejad.
"Iran is not only supporting its terrorist proxies that oppose peace -- Hezbollah and Hamas -- it is also repressing its own people," said Netanyahu.
Making his first trip to Europe since he took office in March at the head of a right-leaning government, Netanyahu had been expected to use his visits to Rome and Paris to advocate stronger global sanctions against the Iranian government.
Netanyahu wants all options left on the table for halting Iran's atomic project. Israel believes Iran is enriching uranium for military purposes while Iran says it is aimed at generating electricity.
SETTLEMENTS A HINDRANCE
Standing beside Prime Minister Silvio Berlusconi, a firm ally of Israel whose country is, however, one of Iran's biggest European trading partners, Netanyahu voiced appreciation for the Italian premier's "cautionary words that such a regime should not be allowed to develop nuclear weapons capability".
Berlusconi said he and Netanyahu discussed Italy's ties with Iran and Rome was "willing to continue relations only if it has the explicit approval of the U.S. administration".
The Italian prime minister said the demilitarisation of the Palestinian state was "absolutely necessary" for peace, as was the acknowledgement and recognition of the Jewish state.
But Berlusconi said he had also "drawn the (Israeli) prime minister's attention to the need to send signals about stopping the establishment of settlements, which would otherwise be a hindrance to peace".
Washington has reiterated its opposition to new Israeli settlements in the West Bank, but Israel's response has so far been that it cannot accept completely freezing settlements.
Israel's ambassador to France, Daniel Shek, told Israel's Army Radio in an interview that the settlements were likely to be discussed with President Nicolas Sarkozy on Wednesday.
"There won't necessarily be agreement," said Shek, going on to say that this would not necessarily eclipse other issues on which there was agreement -- "which with France are today greater than they ever were in recent decades".
The Italian prime minister reiterated to Netanyahu his idea for a "Marshall Plan" for economic assistance to the West Bank once progress is seen between Israel and the Palestinians.
An aide said Berlusconi was likely to present this idea at the G8 summit he will be hosting near Rome early next month. (Reporting by Allyn Fisher and Daniel Flynn; writing by Stephen Brown; Editing by Jon Boyle)
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