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INTRODUCTION
Turkeys 24th general elections resulted in the election of 550 members to the Turkish Grand National
Assembly on June 7, 2015. According to official statistics, Turkey has 53,765,231 eligible voters
domestically and 2,867,658 eligible voters abroad, and this years participation rate was 84 percent.
According to the unofficial results of the election, the incumbent ruling AK Party lost its Parliamentary
majority and missed the mark to independently form a government, the first time since 2002. With 96.91
percent of the votes counted, the AKP received 40.70 percent of the vote, while the CHP, MHP, and HDP
received 25.16 percent, 16.50 percent 12.99 percent of the vote, respectively. The AKP obtained 254 MPs
in the Parliament, falling short of the 276 that it needed to form a government. The main opposition, the
secularist and social democrat CHP, attained 131 MPs, while the traditional, nationalist MHP and the proKurdish HDP each saw the election of 82 MPs. These results depict voters insistence on maintaining the
Parliamentary system and supporting democracy in Turkey.
Chart I: Unofficial Election Results
WHATS NEXT?
The HDPs success in passing the 10 percent threshold marks the beginning of a new political era in
Turkey. First, the representation of a pro-Kurdish party in the National Assembly will have implications for
the peace process that was initiated by the AKP. A diplomatic presence of the Kurds in the Turkish National
Assembly can ease tensions surrounding ongoing peace talks, but it is not entirely clear whether these
implications will be positive or negative for Turkey.
Most significantly, the admission of the HDP into the National Assembly will end the 13-year period of
single-party rule in Turkey. The ruling AKP lost a sufficient number of seats in the National Assembly to
form a government with only 254 MPs, as 276 MPs are needed to form a government. Moreover, it is
nearly impossible for the AKP to introduce constitutional amendments to a popular vote, since this requires
330 MPs. President Erdoans goal of establishing a presidential system now appears out of reach. This
result is likely to trigger a leadership crisis within the AKP. There is a serious possibility that Turkey will
witness a power struggle between Erdoans staunch supporters and other AKP heavyweights within the
party. Erdoan does not hold legal power over the partys management, so he is likely to place blame on
Prime Minister and AKP Chairman Ahmet Davutolu while high-level AKP officials who have been more
vocal against particular remarks of Erdoan are likely to become more vocal. It should be noted that the
AKP has been very successful in avoiding this kind of a power struggle throughout its history, but this time,
it appears inevitable.
Coalition Alternatives
In order to form a government, the AKP needs the support of an opposition party. During the campaign
season, all opposition parties vehemently stated that they would never consider entering a coalition with the
AKP. In particular, CHP, the main opposition party, is the most unlikely to form a government with the AKP
due to its voter base. One option may be the nationalist opposition party, MHP. Transitivity exists between
the voters of the AKP and the MHP; both their voter bases are traditional, conservative and nationalist. Yet,
in order for the AKP to garner the MHPs support for a coalition, it needs to sacrifice the peace process and
its plans for a presidential system. This would cause the government to utilize a security-oriented approach
to the Kurdish Question and thwart Erdoans ambitions of a presidential system. Many high-level officials
within the AKP have indicated that they are not as eager as Erdogan for a possible transition to a
presidential system. Erdogans influence over the AKP may be definitive in such a scenario. Violent
protests and clashes in the southeastern region of the country may erupt during such a U-turn. This is a
less likely scenario, unless the MHP is offered an appealing compromise.
Another possibility may be for the AKP and HDP to partner to form the government, which would also
include large bargaining chips such as constitutional amendments. HDP co-chair Selahattin Demirta has
explicitly stated that the HDP would never ally with the AKP without the recognition of its principles on
fundamental rights by the AKP, and if he pivots on this issue, this could gravely alienate a large base of
current supporters. Thus, if it were to enter into coalition talks, the bargain would most likely be for
fundamental rights and gains in the peace process. A presidential system would likely be off the agenda,
upsetting Erdoans ambitions. On the other hand, the AKP may not also be very eager to form a
government with HDP as it would be met with disagreement from its conservative and pious voter base and
shift these voters to the nationalist MHP.
Minority Government
If the AK Party fails to form a government, the main opposition party CHP will be the next in line to enter
into coalition talks. Normally, a CHP-MHP coalition would be likely, but they would not have enough seats
in the National Assembly. The HDP would have to be included in the coalition, but a coalition that includes
both MHP and HDP is nearly impossible. The only feasible alternative is likely to be a CHP-MHP coalition
with external support from the HDP, but this government would most probably remain for a year or two
before early elections would need to be called.
Early Elections
If no party is able to form a government within 45 days, the president can call for early elections. Early
media reports and statements from the AKP suggest that the former ruling party is betting on this scenario.
The opposition parties ability to compromise with each other is likely to determine the outcome, should the
AKP fail to, or refrain from, forming the government in the first place. Early elections cannot be held within
the three-month post-election period.
Short-term Economic Implications
Instability regarding the uncertainty of Turkey's government formation is very likely to have a negative
impact on the Turkish economy. The Turkish stock exchange, Borsa Istanbul, is expected to fall between
the levels of 76 - 77,000 base points until the government is formed and uncertainty dissipates. Analysts
are expectng the USD/TRY to reach 2.81 Turkish Liras to the dollar. Once the future of the government
and its formation is more certain, markets will likely find their equilibrium. In the medium term, the election
outcome is likely to have a positive economic effect due to a perceived democratic gain.