Bloomberg reports: Turkey is headed for early elections after coalition negotiations with the opposition CHP party failed, Prime Minister Ahmet Davutoglu said on Thursday. His comments sent the lira to a record low.

Davutoglu, who’s also head of the governing AK Party, told a televised news conference in Ankara that there were deep divisions on education and foreign policy with the opposition party. The AK Party offered to establish a coalition government that would rule only until new elections are held, a proposal that the CHP rejected, Davutoglu said.

The AK Party, co-founded by President Recep Tayyip Erdogan, lost its parliamentary majority in June’s inconclusive election for the first time in more than a decade. Coalition talks with the nationalist MHP party broke down partly due to disagreements over Erdogan’s role in governing the country.

“An early election is the only option ahead,” Davutoglu said after meeting with CHP leader Kemal Kilicdaroglu in Ankara. “It would be better if the parliament decides on early elections through dialogue.” [Continue reading…]