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May 11, 2007 -

The Turkish Bulletin – May 11th, 2007

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These last weeks, Turkey was highlighted by an intense political agenda dominated by the Presidential elections. After Foreign Minister, Abdullah Gül was designated by AKP to run for the elections, disappointments grew in Turkey to protect secularism. The tensions between the Gov’t and the Army were palpable when the Constitutional Court finally invalidated the elections, as the 367 (2/3) MP quorum was not reached. Abdullah Gül withdrew his candidacy once the quorum was not reached during the second election.

As a result, PM Erdogan called for early elections and July 22 date was set against CHP’s opposition.

In the meantime, AKP introduced important constitutional amendments which have been approved by the Parliament; the most radical one being the election of the President by general public. All these constitutional amendments are now submitted to the President for ratification. If the President vetoes these amendments they will eventually be subject to a referendum.

Despite this adverse political landscape, financial markets have reacted calmly while interest on the part of foreign investors continued over the last few weeks as evidenced by the Izmir Port privatisation and Halbank IPO.

The Turkish Bulletin – May 11th, 2007 (161 ko)