Erdogan and ally agree to lift state of emergency

ISTANBUL - Turkish President Recep Tayyip Erdogan and his government alliance partner have agreed not to extend emergency rule when the current three-month period expires in July, the pro-government Sabah newspaper said on Thursday.

The state of emergency has been in place since after an attempted coup in July 2016 and has been extended every three months since then. Erdogan said this month it would be lifted if he won the June 24 elections.

Erdogan won 53 percent of the vote in Sunday's presidential vote, extending his rule until at least 2023 - with the sweeping executive powers that Turks backed in a referendum last year.

Erdogan and his alliance partner, the national MHP leader Devlet Bahceli, held a meeting on Wednesday afternoon. Sources have said Erdogan could give the MHP cabinet posts, rewarding its support for his AK Party in parliament.

"In the talks, agreement was reached not to extend the state of emergency," the Sabah newspaper said without providing details. It did not specify the source of its report.

The state of emergency enables Erdogan and the government to bypass parliament in passing new laws and allows them to suspend rights and freedoms. Turkey has said the measures are necessary to fend off security threats.

Meanwhile, experts said it is high time for Erdogan to address his country's economic vulnerabilities and uplift markets after the pivotal election win.

As clear as the electoral victory is, there are also clear risks on the horizon for the NATO country as the Turkish leader, who has ruled Turkey since 2003, has to manage an ailing economy relying on external financing with a currency which has lost some 17 percent of its value this year.

The rates of inflation and unemployment also went sky high, causing public loss of confidence in the once resilient Turkish economy, as Erdogan seems to seek only growth instead of controlling inflation.

Turkish Deputy Prime Minister Mehmet Simsek, whose role in the future economic team of Erdogan still hangs in the balance, said the election result "is setting the stage for speeding up the reforms", long awaited by market makers and investors.

Immediately after the election, the Turkish Industry and Business Association called for "urgent" reforms.

A "comprehensive" political and economic reform agenda which deserves "urgent" attention is now a must, the Turkish top business organization said in a statement.

Enver Erkan, a senior economic analyst from Istanbul-based GCM Forex, said: "The elections are now over and uncertainties for the near future seem to be over. Now it's time for action and structural reforms expected by markets."

In the capital Ankara, there is a wave of confidence among government circles in the wake of Erdogan's victory.

"Turkey ranks first among the Organization for Economic Cooperation and Development countries and second among G20 countries in terms of growth rate. There are some areas of trouble but these will be addressed rapidly," said a source close the government.

"President Erdogan is capable of addressing any challenges," the source added.

During a victory speech on Sunday night, Erdogan said there would be no retreat from his drive to transform Turkey.

He said with major infrastructure and building projects, such as the gigantic $65 billion Canal Istanbul into the Black Sea, a shipping canal similar to Panama or Suez, Turkey will be one of the world's most innovative and fast-growing economies.

Reuters - Xinhua