Turkey to Be Transformed as Erdogan Sworn in With Vastly Expanded Powers

Turkish President Recep Tayyip Erdogan leaves his seat to address members of parliament from his ruling party in Ankara Turkey

The event at parliament in the capital, Ankara, concludes the country's transition from a parliamentary system to an executive presidency, in line with the constitutional changes approved in a referendum a year ago.

After taking his oath, Erdogan visited the mausoleum of Mustafa Kemal Atatürk, the founder of modern Turkey.

This time he has broad, sweeping powers, including the ability to dissolve Parliament.

Amir H H Sheikh Tamim bin Hamad Al Thani with Sudan's President, Omer Al Bashir and former president of Turkey, Abdullah Gul, during the inauguration ceremony of Turkish President Recep Tayyip Erdogan.

Under the new system, Erdogan will not only run the executive branch but also lead his Justice and Development Party in parliament where he is six short of a majority and therefore allied with a nationalist party.

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Erdogan's restructuring is the most significant adjustment of the country's political system since the formal establishment of modern Turkey.

"We, as Turkey and as the Turkish people, are making a new start here today", Erdogan said in an address late on Monday.

He then unveiled the first cabinet under the new system, appointing his son-in-law Berat Albayrak, 40, to the crucial post of finance minister, in a move that appeared to rattle markets.

Those attending the ceremony at the presidential palace on Monday evening will include Russian Prime Minister Dmitry Medvedev, in a new sign of the warm ties between Ankara and Moscow.

The post of prime minister will be scrapped.

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The Turkish lira lost 3.5 percent in value on the news to trade at 4.73 lira to the dollar.

The lira has been battered by concern about Erdogan's drive for lower interest rates and by comments in May that he planned to take greater control of the economy after the election, which he won on June 24. Erdogan has described the consolidation as a means to eliminate governmental inefficiency, and his base views his consolidation of authority as a deserved outcome for a leader who has instilled Islamic values in public life, according to Reuters. "We are leaving behind the system that has in the past cost our country a heavy price in political and economic chaos". A senior adviser to Erdogan later said that governors would still be appointed for a five-year term.

Albayrak will be in charge of a new ministry of treasury and finance, replacing roles previously held by Deputy Prime Minister Mehmet Simsek, a former Merrill Lynch banker, and Finance Minister Naci Agbal.

There are 16 ministers in Erdogan's streamlined new cabinet, which Erdogan has said will be more efficient and act faster. Erdoĝan has repeatedly clashed with strategic allies such as the United States and the European Union in recent years over the war in Syria, Turkey's accession to the EU, human rights abuses by Ankara, Europe's failure to support Turkey during the coup attempt, and rising Islamophobia in Europe.

Inflation surged last month above 15 percent, its highest level in more than a decade, despite interest rate hikes of 500 basis points by the central bank since April.

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