"Keeping a (blind?) eye on Turkish politics
Fri, Jul 20 2007, 07:32 GMT
by Danske Research Team
Danske Bank A/S
On Sunday, July 22 parliamentarian elections will be held in Turkey, a key event for the Turkish markets. We find it most likely that the governing AKParty will maintain the absolute majority in the Turkish parliament. This would be positive for the Turkish markets as it renders it more likely that AKParty’s economic reform agenda will be continued. However, a key question will be how large its majority will be. Will AKParty gain a constitutional majority of 367 seats (two-thirds of the seats) in the parliament? This would be viewed as negative as the markets fear that AKParty might use a constitutional majority to push for more Islamist-oriented legislation, thereby increasing the risk of renewed conflict between the government/AKParty and the Turkish secular elite - especially the military."
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