Turkey’s nationalists reject coalition, set stage for more turmoil

But Turkey’s best hope for a “grand coalition” collapsed last Thursday as Mr. Davutoglu said the country’s two biggest parties couldn’t bridge “deep divides”.

Turkish Prime Minister Ahmet Davutoglu has announced that his Justice and Development (AK) Party’s negotiations with the Nationalist Movement Party (MHP) have ended without an agreement to form a coalition government.

The talks’ failure on Monday leaves Turkey with little option but to hold new elections.

The nationalist party had set stiff conditions for a partnership with the ruling party, including ensuring that Erdogan – a domineering political figure- does not exceed his constitutional powers and that corruption investigations into people close to the president are reopened.

Prime Minister Ahmet Davutoglu initiated the meeting following earlier failed discussions with the CHP Republican People’s Party.

It took place at Bahceli’s office at the Turkish parliament and lasted for almost two-and-a-half hours.

“Mr Bahceli told me clearly that he saw no possibility to form a government with the AKP“, he told reporters in Ankara.

The country is now facing renewed conflict between the state and the armed Kurdistan Workers’ Party.

Some analysts have suggested Erdogan all along wanted to see a re-run of the election so the AKP could regain an overall majority and realise his dream of creating a presidential system in Turkey.

Traditionally, Davutoglu is required to hand back his mandate to form the government to allow another party leader to have a go.

Erdogan has said he did not have the authority to extend an August 23 deadline to reach a coalition deal, but several commentators have cast doubt on this.

The lira hit a record low of 2.86 to the dollar on Monday.

The government has denied the claims.