Turkish Prime Minister Tayyip Erdogan named Ali Babacan as his new economy tsar today to tackle an economy expected to go into recession this year, part of a wide reshuffle aimed at shoring up his party's popularity, Reuters reported. Babacan leaves as foreign minister to take charge of the economy ministry but with a larger portfolio, a move that was welcomed by analysts as a sign Erdogan might move swiftly on sealing a loan agreement with the International Monetary Fund. Babacan, who led Turkey's successful recovery from a deep crisis in 2001 as economy minister between 2002-2007, replaces Mehmet Simsek, who was appointed finance minister. In another key appointment, Ahmet Davutoglu, the architect of Turkey's expanded Middle East policy, was named foreign minister, a signal Ankara might give more priority to the region at the expense of its troubled European Union membership bid. The appointments are unlikely to bring major changes to economic and political policy in the European Union candidate as Erdogan, still Turkey's most popular politician, has a firm grip on power. But a reshuffle is seen as a reinvigorating step for the Islamist-rooted AK Party after it posted its worst election result since 2002 in local polls in March amid record unemployment at almost 16 percent. Eight ministers were sacked, including Deputy Prime Minister Nazin Ekren.
