Turkey shifts to presidential system without constitutional change

Turkey's Transportation Minister Yildirim greets members of his party during the AKP extraordinary

y Orhan Coskun and Nick Tattersall

ANKARA (Reuters) – As Turkey’s incoming prime minister prepares to name his new cabinet, there is little doubt that its primary role will be to rubber-stamp what has already become reality: a shift to a full presidential system with Tayyip Erdogan firmly in charge.

Erdogan on Sunday confirmed Binali Yildirim, a close ally for two decades and a co-founder of the ruling AK Party, as his new prime minister, ensuring government loyalty as he pursues constitutional change to replace Turkey’s parliamentary democracy with an executive presidency.

Yildirim’s appointment will stamp out any vestiges of resistance in the AKP to Erdogan’s plans, three senior party officials said, forecasting that the new cabinet, expected to be announced on Tuesday, would contain only loyalists.

“We have entered a period of a ‘de facto’ presidential system, where Erdogan’s policies will be implemented very clearly,” one of the officials said, predicting five or six ministerial changes from the existing team.

“They will lead to complete harmony between Erdogan and the cabinet … Erdogan’s decisions will be implemented without being touched,” the official said, speaking anonymously because the final decision on the appointments has not yet been made.

Erdogan and his supporters see an executive presidency – a Turkish take on the system in the United States or France – as a guarantee against the sort of fractious coalition politics that hampered Turkey’s development in the 1990s, when it was an economic backwater with little clout on the world stage.

His opponents, and skeptical Western allies, fear growing authoritarianism. Prosecutors have opened more than 1,800 cases against people for insulting Erdogan since he became president in 2014. Opposition newspapers have been shut and journalists and academics critical of government policies sacked.

European Parliament President Martin Schulz criticized Erdogan’s accumulation of power in comments published on Monday, describing it as a “breathtaking departure from European values” in a nation negotiating for membership of the EU.

“We see Turkey under Erdogan on its way to being a one-man-state,” he told German newspaper Koelner Stadtanzeiger.

He said the European Parliament would not begin debating visa-free travel for Turks to Europe, a quid pro quo for Ankara’s help in curbing illegal migration, until Turkey fulfilled all the criteria including amending its sweeping anti-terrorism laws, which Erdogan has resolutely refused to do.

“It is incumbent on all of us to make clear that we cannot idly accept the monopolization of power in the hands of a single man,” Schulz said.

In a sign of the possible turbulent relations to come with Brussels, Erdogan’s economic advisor Yigit Bulut warned Ankara could suspend all of its agreements with the European Union if it failed to “keep its promises”.

MASTER MANEUVERER

Erdogan has made clear he wants to seek legitimacy for the presidential system, which will require constitutional change, via a referendum. To do that, he will need the support of at least 330 members of the 550-strong parliament, and unwavering backing from the AKP grass roots on the campaign trail.

Outgoing Prime Minister Ahmet Davutoglu was seen as too lackluster a supporter of the presidential system. By replacing him, Erdogan aims to unify the AKP behind him just as the nationalist opposition is embroiled in a damaging leadership row and the pro-Kurdish opposition is tainted, in the eyes of some voters, by a surge in violence in the largely Kurdish southeast.

“Now the road to changing the constitution to include a presidential system is completely open,” a second senior AKP official told Reuters.

Popular support for the presidential system is unclear, with a recent IPSOS poll putting it at just 36 percent. The ORC research firm was meanwhile cited in the pro-government Daily Sabah newspaper as putting it at 58 percent.

“The one-man rule has de facto begun, even though not constitutionally,” Ozer Sencar, director of the Metropoll research firm, told Reuters.

Yildirim, who has said his main aim as prime minister will be forging a new constitution, said on Monday the new cabinet list would be prepared quickly and be presented to Erdogan, who must approve it, as soon as he is available.

Investors are most concerned about the shape of the new economic team, in particular whether Deputy Prime Minister Mehmet Simsek, an anchor of confidence in overall charge of economic policy, will retain his post.

A third AKP official, close to Erdogan, said it was crucial to keep an experienced team in place during turbulent economic times but that ultimately it would be the president’s decision.

His advisor Bulut, a former TV commentator who once accused opponents of trying to kill Erdogan through telekinesis, said that economic policy in Turkey would continue to be based on manufacturing, whoever was in charge.

“If the system is solid, if it’s working well, it doesn’t matter who is running it,” he told state broadcaster TRT.

(Additional reporting by Gulsen Solaker and Ece Toksabay in Ankara, Paul Taylor in Brussels; Writing by Nick Tattersall; editing by Anna Willard)

Erdogan’s ally likely new prime minister, cements his hold on government

Turkey's likely next prime minister and incoming leader of the ruling AK Party Binali Yildirim greets party members during a meeting in Ankara

By Humeyra Pamuk and Nick Tattersall

ISTANBUL (Reuters) – Turkey’s Transport Minister Binali Yildirim emerged on Thursday as the likely new leader of the ruling AK Party and therefore the next prime minister, cementing President Tayyip Erdogan’s hold on government as he seeks to extend his powers.

Yildirim, 60, and a close ally of Erdogan for two decades, will be the sole candidate for the AKP leadership at a special party congress on Sunday, AKP spokesman Omer Celik told a news conference after a meeting of the party’s executive board.

A co-founder with Erdogan of the AKP, Yildirim has been the driving force behind major infrastructure projects in Turkey which were one of the pillars of the party’s electoral successes during its first decade in power.

He is seen as likely to champion Erdogan’s aim of changing the constitution to create a presidential system, a move opponents say will bring growing authoritarianism, and to support the president’s determination to crush by force an insurgency by militants in the largely Kurdish southeast.

“We will make every effort by working in full harmony primarily with our founding chairman and leader and then our colleagues within all ranks of our party to fulfill the targets of our great Turkey,” Yildirim told a news conference in Ankara.

He said he would travel straight to Diyarbakir following his nomination, the main city in the southeast, to visit the site of an explosion which killed 16 people last week. The region has seen some of its worst fighting in recent months since the height of the Kurdish insurgency in the 1990s.

“I would like to say this to our nation just before I leave for Diyarbakir, where I will be sharing the pain of our citizens violently massacred there: my nation should not worry, we will remove this terror menace from Turkey’s agenda.”

PUBLIC RIFT

The AKP is electing a new leader after Ahmet Davutoglu announced earlier this month he was stepping down as head of the party and therefore as prime minister following an increasingly public rift with Erdogan.

Erdogan and his supporters see an executive presidency, akin to the system in the United States or France, as a guarantee against the fractious coalition politics that hampered the government in the 1990s. His opponents, including some skeptics within the AKP, say he is merely furthering his own ambition.

Rival candidates have been jockeying for position within the AKP, raising concern about fractures in the party. The Sozcu newspaper, fiercely critical of the AKP, printed a front-page story showing photos of Yildirim’s ship-owner son playing roulette in a casino in Singapore last month. Party officials cast it as an attempt by rivals to undermine his candidacy.

Yildirim said his nomination was the result of consultation among nearly 800 key AKP members and that the congress on Sunday was a chance to “strengthen solidarity, ties and unity”.

AKP sources have said a new cabinet could be announced as early as Monday. Investors will be watching for any changes in the economic management team, particularly whether Deputy Prime Minister Mehmet Simsek, seen as an anchor of investor confidence, remains in office.

ERDOGAN’S MAN

Born in the eastern province of Erzincan in 1955, Yildirim had long been touted as a potential party leader and prime minister, his name again coming to the fore as signs of tension between Erdogan and Davutoglu became more evident.

His ties to Erdogan date back to the 1990s when Yildirim, educated in shipbuilding and marine sciences, was in charge of a high-speed ferry company in Istanbul, where Erdogan was mayor.

“Yildirim’s primary qualification for the positions of AKP leader and PM is not his ability but his servility to the president,” said Wolfango Piccoli of consultancy Teneo Intelligence, adding:

“In this regard, the overriding priority of the new PM and his cabinet will be to introduce an executive presidency.”

Yildirim was among the co-founders when Erdogan formed the AKP in 2001 and was elected as a deputy for Istanbul in November 2002 when the party won its first election. He was appointed transport, maritime and communications minister, a post which he then almost continuously held in successive governments.

Infrastructure development has been a priority for the AKP and an area which Erdogan, party leader until he was forced to renounce formal AKP ties when he became president in 2014, always emphasized at election rallies, regarding it as a powerful vote winner.

Turkey has doubled the number of airports to more than 50, constructed high-speed train lines and built more than 17,000 km (10,500 miles) of highway during Yildirim’s time as minister. He has also overseen some of Erdogan’s pet projects, including an underground train tunnel linking the European and Asian sides of Istanbul, a third suspension bridge across the Bosphorus and a new Istanbul airport, billed to be one of the world’s biggest.

A father of three, he is religiously conservative, describing in 2013 how he rejected the opportunity to attend one of the country’s most prestigious universities after seeing male and female students sitting together in its gardens.

(Additional reporting by Daren Butler; Writing by Nick Tattersall, editing by Peter Millership)

China Now World’s Largest Economy

For the first time since Ulysses S. Grant was president, the United States is no longer the largest economy in the world.

The United States slipped to number 2 in the latest numbers released by the International Monetary Fund on the world economic situation.  The U.S. fell to $17.4 trillion in “real economic output” while China climbed to $17.6 trillion.

The report says that China accounts for 16.5% of the world economy while the U.S. now accounts for 16.3%.

The report is causing massive geopolitical ripples.  The decline of a country in terms of economic dominance is usually closely followed by a decline of power and importance on the world stage.

The decline of U.S. economic power could mean the days of the U.S. being a superpower are ending.