Netanyahu demands election to replace Olmert

By Allyn Fisher-Ilan and Adam Entous

JERUSALEM (Reuters) - Israel's right-wing Likud leader Benjamin Netanyahu called on Thursday for an early election to replace Prime Minister Ehud Olmert, whose pledge to resign has deepened uncertainty over Middle East peacemaking.

Top advisers said Olmert could stay in office for months as caretaker premier, long enough to pursue talks with the Palestinians and Syria. But politicians said the scandal-plagued leader had no mandate to commit Israel to any deals.

"He has no legitimacy, not from the public, nor the Knesset, nor the government, to reach any understandings with the Palestinians or with Syria that would bind the government," said Communications Minister Ariel Attias of the ultra-Orthodox Shas party, a member of Olmert's governing coalition.

Olmert said on Wednesday he would step down after a September 17 vote within his centrist Kadima party to choose a new leader.

Foreign Minister Tzipi Livni has emerged as the leading candidate inside Kadima to succeed Olmert, but opinion polls show more Israelis would support Netanyahu, a vocal critic of the government's peace moves, in a parliamentary election.

It could take months for a new Kadima leader to assemble a coalition majority, and Vice Premier Haim Ramon told Channel Two television that Olmert could remain in office as caretaker until February or March, assuming new elections are called.

An Israeli official, speaking on condition of anonymity, said Olmert would seek a statehood agreement with Palestinian President Mahmoud Abbas "during the time he has left" in office.

Livni, Israel's chief negotiator with the Palestinians, said in New York that the negotiations were continuing despite Olmert's announcement.

But analysts said it was not realistic to expect Olmert to succeed in clinching sweeping peace accords. "Who is going to make a deal with him when they know he can't deliver? He is a lame duck," professor Gadi Wolfsfeld of Hebrew University said.

ABBAS PLEDGE

Speaking in Tunisia, Abbas pledged to work with Olmert and his successor despite the "turmoil" in Israel.

Four Kadima ministers have launched campaigns to replace Olmert in the September 17 vote. Livni's closest rival for the post is Transport Minister Shaul Mofaz, a former defence chief known for his tough tactics in crushing a Palestinian uprising.

Netanyahu could try to thwart Kadima's plans to form the next government by mustering a majority in parliament, either to form his own coalition or move up elections scheduled for 2010.

"This government has reached an end and it doesn't matter who heads Kadima," Netanyahu said. "National responsibility requires a return to the people and new elections."

A poll conducted by Israel's Channel Two television after Olmert's announcement showed 39 percent support for Netanyahu becoming prime minister compared to 34 percent for Livni.