UPDATE 1-Japan business lobby: ruling party, opp should form coalition

Mon Jun 6, 2011 3:51am EDT

* Lobby head says should be political coalition to help rebuild

* PM Kan under pressure to quit and clear way for smoother policymaking (Adds quote, background)

TOKYO Jun 6 (Reuters) - The ruling political party and the opposition should form a coalition to help Japan recover quickly from the massive earthquake and tsunami in March, the head of the country's most influential business lobby said on Monday.

"I would like Prime Minister (Naoto) Kan to work to make that (coalition) happen," Hiromasa Yonekura, chairman of Nippon Keidanren, told reporters at a regular news conference.

Japanese voters want the ruling Democrats to form a coalition with their main rival instead of governing on their own, a published poll showed on Monday, as pressure mounted on Prime Minister Naoto Kan to quit and clear the way for smoother policymaking. [ID:nL3E7H60AY]

The opposition, which controls parliament's upper house and can block bills, has refused to cooperate with the government in enacting key legislation as long as Kan remains in power.

(Reporting by Mariko Katsumura; Editing by Joseph Radford)

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