Turkey's political and military leaders met on Thursday over a coup plot probe that has raised tensions between the secular armed forces and Islamist-rooted government, rattling investor faith in the EU-candidate country, according to Reuters. The meeting is taking place as prosecutors get set to question and possibly charge former commanders of the air force and navy at a courthouse in Istanbul, threatening to aggravate the showdown between the ruling AK Party and military. Prime Minister Tayyip Erdogan and President Abdullah Gul began a meeting with armed forces chief General Ilker Basbug at 11 am (0900 GMT) with room for compromise to prevent the crisis from spinning out of control seen as limited. Some 50 senior officers were detained on Monday in an unprecedented move against the armed forces. Twenty of them, including several admirals, have already been charged with plotting in 2003 to overthrow the government, which hardline secularists believe harbours a hidden Islamist agenda. Commanders of the military, whose role as guardian of Turkey's secular system has been eroded by European Union-backed reforms, warned of a "serious situation" after an emergency meeting on Tuesday to discuss the investigation. Retired Air Force Commander Ibrahim Firtina and ex-navy chief Ozden Ornek, the most high profile among 50 detained officers in the police operation earlier this week, arrived at the court for questioning on Thursday. The tensions have taken a toll on Turkey's financial markets and fed speculation that elections due next year could be brought forward. With investors eyeing the meeting between Gul, Erdogan and Basbug for signs an all-out confrontation might be avoided, stocks and the lira regained some ground on Thursday. The lira recovered to 1.5460 to the dollar, having struck a seven month low on Wednesday when it closed at 1.55. The stock market rose 1.66 percent in early trade, after losing 3.4 percent on Wednesday. "The room for a compromise in the short-term is closing," said Eurasia Group analyst Wolfango Piccoli. "The most immediate risk is that the military may react stridently in public against the arrests, which could deepen the already tense tussle with the government." The military has ousted four governments since 1960, but has said the days of coups are now over. Nevertheless, General Basbug is believed to be under intense pressure from within the armed forces to uphold the prestige of the services. Adding to the concerns, Chief Prosecutor Abdurrahman Yalcinkaya said on Wednesday he was looking into statements made by two AK deputies, although he has not reached the stage of opening a formal investigation against the party. If he does so, it could prompt a call for snap elections by the AK Party, which narrowly survived a bid by Yalcinkaya to have it banned for anti-secular activities in 2008. Parliamentary elections are due in 2011. The AK Party, first elected in 2002 in a landslide victory over established parties blighted by corruption and accusations of misrule, is also embroiled in a dispute with the judiciary -- another pillar of the orthodox establishment.
