President Tayyip Erdogan appointed his son-in-law as Turkey's finance minister on Monday hours after he was sworn in with sweeping new executive powers, promising a "strong government and a strong Turkey". The lira has also fallen by a fifth in value against the dollar this year.
The currency has been battered by concern about Erdogan's drive for lower interest rates and comments he made in May saying he planned to take greater control of the economy after the June 24 elections.
The new system, which dispenses with the office of prime minister, was agreed in a bitterly fought 2017 referendum narrowly won by the "Yes" camp. For some, it is the coronation of a new Turkey. He also promised to "leave behind a system that cost the country heavily because of the political, social and economic chaos it caused in the past", according to Hurriyet Daily News. While martial law would no longer exist, the president would be able to declare a similar state of emergency, giving authorities powers to restrict basic rights and freedoms. Armed forces chief of staff Hulusi Akar was named defence minister.
Meanwhile Mevlut Cavusoglu remains in his post as foreign minister.
Erdogan will this week immediately turn to foreign policy, visiting northern Cyprus and Azerbaijan, followed by more challenging encounters at a North Atlantic Treaty Organisation summit in Brussels where he will meet US President Donald Trump and other leaders. The introduction of the new presidential system marks the biggest overhaul of governance since the Turkish republic was established on the ruins of the Ottoman Empire almost a century ago.
After taking the oath, Erdogan plans to visit the mausoleum of Mustafa Kemal Ataturk, the founder of the modern, secular, Turkish Republic.
But Cemil Ertem, a senior advisor to Erdogan, said a new decree on the governor's term would be published later on Monday, adding that governors would still be appointed for a five-year term.
Magnificent England will have too much for jaded Croatians
Kane recalls with affection the buzz from watching past tournaments, dreaming one day of pulling on the England jersey. I call them karaoke tunes. "We are hungry for more and we want more and hopefully we can show that on Wednesday".
Turkish President Recep Tayyip Erdogan greets deputies during a meeting of the Grand National Assembly of Turkey in Ankara, Turkey on July 7, 2018.
Russian Prime Minister Dmitry Medvedev was present, in a new sign of the warm ties between Ankara and Moscow, as was Venezuelan President Nicolas Maduro, regarded with disdain by Washington but an ally of Erdogan.
In other words, Turkey will be an institutionalised autocracy.
Turkey-based news channel TRT World reported that "22 heads of state and 28 prime ministers and speakers of parliament [were] scheduled to attend the ceremony" and over 10,000 people were anticipated to attend. The only European Union leaders are set to be Bulgarian President Rumen Radev and Hungary's strongman Prime Minister Viktor Orban. North Atlantic Treaty Organisation member Turkey's relations with its Western allies have been strained by disputes with the United States over military strategy in Syria and by European Union criticism of Ankara's large-scale purges of state institutions, armed forces, police and media following the failed coup.
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The new government faces immediate economic challenges.
The five-year term served as a sort of "shield" for the central bank, helping to ensure its independence from politicians, said Ugur Gurses, a former central banker.