Israel forges unity government as Iran issue looms

By Allyn Fisher-Ilan

JERUSALEM (Reuters) - Israeli Prime Minister Benjamin Netanyahu called off plans on Tuesday for early elections and formed a unity government in a surprise move that could give him a freer hand to confront Iran's nuclear ambitions.

The deal, agreed at a secret meeting overnight, means the centrist Kadima party will hook up with Netanyahu's rightist coalition, creating a wide parliamentary majority of 94 legislators, one of the biggest in Israeli history.

"A broad national unity government is good for security, good for the economy and good for the people of Israel," said a statement from the prime minister's office, quoting Netanyahu.

Environment Minister Gilad Erdan said the accord would help build support for potential action against Iran's atomic program which Israel views as an existential threat.

"An election wouldn't stop Iran's nuclear program. When a decision is taken to attack or not, it is better to have a broad political front, that unites the public," he told Israel Radio.

The recently elected head of Kadima, Shaul Mofaz, will be named vice premier in the new government, officials said, adding that the accord would be formally ratified later on Tuesday and presented to parliament.

As deputy prime minister in a former Kadima-headed government in 2008, Mofaz was among the first Israeli officials to publicly moot the possibility of an attack on Iran.

A onetime defense minister, the Iranian-born Mofaz has been more circumspect while in the opposition, saying Israel should not hasten to break ranks with war-wary world powers that are trying to pressure Iran through sanctions and negotiations.