Davutoglu’s Challenges

TURKEY - Report 07 Sep 2014 by Murat Ucer and Atilla Yesilada

Executive Summary

A host of severe policy challenges lie in-wait for Premier Davutoglu. Yet, all of the potential threats to his reign have long gestation periods, meaning that political risk premiums are very likely to range low in the near term.

Ankara is afraid of sustaining collateral damage from Obama’s wow to combat ISIS to the bitter end. But unless ISIS marches on to Erbil or Baghdad, or the Islamist terror reaches Western cities, Ankara’s prevarication should not lead to Western retribution. Mr. Davutoglu intends to push forward with the ‘Peace Process’, as eager...

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