With his coalition at loggerheads over a new budget, the Israeli prime minister answered weeks of intense speculation on Tuesday evening when, in a televised press conference, he called for government to be dissolved in order to prepare for early elections.
Given his government has been unable to agree a national budget, Mr Netanyahu announced: "I have therefore decided, for the benefit of Israel, to hold elections now and as quickly as possible."
The vote could is likely to be held in late January or early February next year.
Financial issues aside, the timing of these snap elections, called at the height of concerns over Iran's nuclear intentions and the week after Mr Netanyahu drew a "red line" on the issue at the United Nations General Assembly, ensures security will dominate the campaign.
Mr Netanyahu's announcement follows a week of crisis talks with party leaders within his coalition, including Eli Yishai, Israel's interior minister and head of the ultra-orthodox party Shas.
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