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			 A masterful tactician who has built a career on playing the 
			political underdog, Erdogan is in a tight corner after the AK Party 
			he founded lost its parliamentary majority on Sunday, thwarting for 
			now his ambition of accumulating greater powers. 
 Senior AKP officials, from Prime Minister Ahmet Davutoglu down, have 
			insisted that the party will exhaust efforts to find a junior 
			coalition partner before a new election is considered. But in 
			private, many view a snap poll as Erdogan's best hope of seeing the 
			party he founded claw back its majority.
 
 "Erdogan is giving soft messages now, and will for a while longer, 
			but we will see whether it continues," one senior AKP official 
			involved in party strategy told Reuters, asking not to be identified 
			after Davutoglu urged officials not to discuss coalition options 
			with the media.
 
 "Erdogan wants people to see that the option of a coalition won't 
			work ... Efforts to form a stable government will truly be pursued, 
			but I don't think they can be realized. I believe an early election 
			is first in the list of scenarios right now."
 
 For many in NATO member Turkey memories will be vivid of the 
			fractious, changing coalitions and clashing personalities of the 
			1990s. International financial support programs collapsed, the 
			economy lurched into crisis and the influence of the army was 
			constantly at play.
 
			 Financial markets took succour from the conciliatory remarks of 
			Erdogan, better known for blustery rhetoric, that all parties should 
			work quickly to form a new government and that egos must be set 
			aside.
 The relief, however, was short-lived, with the lira giving up some 
			gains on Friday.
 
 "A period of weak governance wouldn’t necessarily be bad (for the 
			AKP), especially if they look like 'the adults in the room'," said 
			Howard Eissenstat, Turkey expert at St. Lawrence University in New 
			York.
 
 "The economy is likely to head south in the next few months. The AKP 
			can now blame 'instability' rather than its own policies for the 
			downturn," he told Reuters.
 
 Unrest in Turkey's Kurdish southeast could also play to Erdogan's 
			favor, allowing him to take a firmer line that could win over some 
			nationalists.
 
 The AKP remains Turkey's largest party but its support fell to 
			around 41 percent from 49.8 at the last parliamentary election. 
			Votes were lost to the pro-Kurdish Peoples' Democratic Party (HDP), 
			which entered parliament for the first time, and to the right-wing 
			Nationalist Movement Party (MHP).
 
 In the event of a re-run, the AKP would likely struggle to win back 
			many Kurdish votes but could hope to regain those who turned to the 
			MHP and now regret the prospect of an unstable coalition. An IPSOS 
			poll shortly after the results were announced suggested the AKP 
			would have had 4 percent more support if voters had known the 
			outcome in advance.
 
 "At the moment, everyone is planning how they can head into an early 
			election with the most advantage," said Ihsan Aktas, head of polling 
			company GENAR, seen as close to the government.
 
 "At this point, for the AKP, showing a transparent attitude and 
			being respectful toward coalitions will be noticed by voters. It 
			will help their votes," he told Reuters.
 
 POLITICAL THEATER
 
 After parliament is sworn in later this month, Erdogan is expected 
			to formally give the AKP the mandate to try to form a government. If 
			no working government can be formed after 45 days, he has the power 
			to call a new election.
 
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			Eyeing a snap vote, none of Turkey's major parties have an interest 
			in being seen to scupper a deal, meaning coalition negotiations 
			could be drawn out potentially for months. "We will not be the 
			ones closing the road," said a senior member of the secularist 
			Republican People's Party (CHP), the second biggest group in 
			parliament, adding that a coalition with the AKP could not be ruled 
			out.
 That would mean bridging a gaping ideological divide, the image of 
			the CHP as a bastion of the secularist elite being anathema to the 
			religiously conservative AKP grass roots.
 
 In a conspicuously conciliatory move, Erdogan hosted former CHP 
			leader Deniz Baykal in his first political meeting after the vote, 
			even eschewing his controversial new palace and using a more modest 
			Ankara residence.
 
 "Erdogan wants to be seen acting as a president above the political 
			frame but in reality he is a central participant in the ongoing 
			saga," Fadi Hakura, a Turkey expert at London-based think-tank 
			Chatham House, told Reuters.
 
 "He was so involved in the election campaign and sided with the 
			ruling party that it will be exceptionally difficult if not 
			impossible for him to act as an impartial and nonpartisan 
			president," he said.
 
 So far, Erdogan is choosing his words carefully and the AKP is at 
			pains to demonstrate willing. Deputy Prime Minister Bulent Arinc 
			even hinted corruption cases against four ex-ministers could be 
			brought back to parliament, a key opposition demand.
 
 The AKP may have been chastened by Sunday's election, but as St. 
			Lawrence's Eissenstat noted, it still won the lion's share of votes 
			and occupies the "sweet spot" of Turkish politics as a center-right 
			party in a fundamentally center-right nation.
 
 Few predict its, or Erdogan's, demise.
 
 He remains far and away Turkey's most popular politician, with no 
			real rivals in the opposition parties. He has bounced back from 
			adversity before, including several months in prison at the hands of 
			a secularist-led coalition in 1999 after reciting a poem invoking 
			religious imagery.
 
			
			 
 "The election was a rebuke for Erdogan’s ambition and his 
			capriciousness ... but he remains an extremely savvy politician with 
			powerful support in the base. He has the power of an expanded 
			presidency and a bureaucracy dominated by the AKP," Eissenstat said.
 
 "The AKP took a well-deserved drubbing, but when the dust settles, 
			they are still well placed to dominate Turkey’s politics for years 
			to come."
 
 (Additional reporting by Ercan Gurses, Tulay Karadeniz and Ece 
			Toksabay; Writing by Nick Tattersall; editing by Ralph Boulton)
 
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