Erdogan promotes Turkey's army commander to overall armed forces chief

Under the new presidential system Erdogan will have the power to dissolve Parliament, appoint or remove vice presidents, ministers, judges and high level officials as well as issue executive decrees and lift or impose a state of emergency.

Erdogan narrowly won a referendum a year ago to replace Turkey's parliamentary democracy with a system featuring an all-powerful presidency, and followed that with a hard-fought election victory last month to the newly strengthened post.

Turkish Prime Minister Binali Yildirim will on Monday go down in history as the 27th and final holder of a post that has existed since Mustafa Kemal Ataturk founded modern Turkey, and whose origins date back to the Ottoman Empire.

"Albayrak becoming the finance minister is not a good sign, especially because of his close relationship with President Erdogan".

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.

Armed forces chief of staff Hulusi Akar was named defence minister. "Both are about the main political choices of the government regarding how Turkey integrates with the outer world and how these choices will help it fix its broken image in the eyes of the global community", Demirtas said.

Marc Pierini, a former European Union ambassador to Turkey and visiting scholar at Carnegie Europe, said Erdogan's new powers effectively make him a "super-executive president".

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He says the changes, the biggest overhaul of governance since the modern Turkish republic was founded from the ruins of the Ottoman Empire nearly a century ago, are needed to drive economic growth and guarantee security.

"We are leaving behind the system that has in the past cost our country a heavy price in political and economic chaos", he said.

His supporters see them as just reward for a leader who has put Islamist values at the core of public life, championed the pious working classes and built airports, hospitals and schools.

Amir H H Sheikh Tamim bin Hamad Al Thani attended the inauguration ceremony of President Recep Tayyip Erdogan for a new presidential term as the first President of the Turkish Republic after the new constitutional amendment. No major Western leader featured on a list of 50 presidents, prime ministers and other high-ranking guests published by state news agency Anadolu.

Investors are also keen for details on Erdogan's new economic team, which is expected to be announced later on Monday. At the center of the quarrel is the president's demand for a greater say over monetary policy and his insistence - against economic orthodoxy - that interest rates need to be lowered to tamp down inflation that's more than triple the government's 5 percent target. In 2016, a coup to depose him failed.

Before Erdogan took oath for a new term in office, the government removed a clause that had stated the central bank governor was appointed by cabinet decision for five years, and could be re-appointed. Political pressure on the central bank not to raise rates in the face of accelerating inflation has also stoked worry about the policymaker's independence.

"For the cabinet appointments in the past several years, the most important issue has been the presence of the current deputy prime minister, Mehmet Simsek", said Inan Demir, a senior economist at Nomura International.

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