Israeli prime minister Benjamin Netanyahu, trailing in opinion polls, used a strategic Jewish settlement he helped found as the backdrop for an election eve bid to win back right-wing votes.

Ehud Barak, the former Israeli prime minister tossed out of office six years ago in a humiliating election defeat, won the leadership of the dovish Labour Party today in a dramatic political comeback.

Allies and opponents today clamoured for Israeli Prime Minister Ehud Olmert’s resignation after scathing criticism from an official commission of his performance during last year’s Lebanon war.