Netanyahu says Israel could be headed to an early election

Israeli Prime Minister Benjamin Netanyahu, embroiled in a Cabinet crisis, said on Monday he would call an early national election unless rebellious ministers stop attacking government policies.

His coalition, dominated by the right wing, is split on a range of issues, including the 2015 budget, high living costs, policy toward the Palestinians and a Jewish nation-state bill that critics say discriminates against Israel's Palestinian minority.

The divisions have prompted speculation that Netanyahu will bring forward an election that is not scheduled until 2017. In public remarks to members of his Likud party, he gave his strongest indication yet that early balloting could be in the offing.

"I have not enjoyed the fulfillment of even the most fundamental obligation — the loyalty and responsibility of ministers to the government in which they serve," he said.

"I demand these ministers stop their undermining, stop the attacks," Netanyahu added. "I demand that they close ranks behind the proper policy for leading the nation, for its security, economy and lowering the cost of living, in every aspect. If they agree to do so, we can continue to work together. If they refuse, we will draw conclusions and go to the voters."

He was due to meet on Tuesday with two of his fiercest Cabinet critics: Finance Minister Yair Lapid, who has been sparring with Netanyahu over the 2015 budget, and Justice Minister Tzipi Livni.

Livni has been highly critical of the Jewish nation-state legislation, which won Cabinet approval over her objections a week ago but has not yet been brought before parliament.

An opinion poll published by the left-leaning Haaretz newspaper on Sunday showed that although Netanyahu's popularity has been declining, he was still very likely to win a fourth term as prime minister if an election were held today.

The poll showed his approval rating had slipped to 35 percent, compared with 42 percent in August at the end of the war against Hamas in the Gaza Strip, but he still led the race against other potential contenders.

If an election is called, one casualty will likely be the 2015 state budget. Parliament last month gave initial approval to the $107 billion spending package.

If there is no agreement and final parliamentary approval by the end of this year, the original 2014 budget, which excludes midyear increases, will be used to allocate spending next year.

The last parliamentary election was held in January 2013, with Netanyahu then taking two months to piece together a five-party coalition government.

Reuters