The ruling AK Party suffered defeat over a presidential poll on Tuesday in Turkey’s highest court which Erdogan labelled “a bullet aimed at democracy”. The party’s presidential candidate, Foreign Minister Abdullah Gul, is a former Islamist.

“We made a decision which will end all of the controversies and give the word to the nation. Our dear nation will present its preference of the future,” Erdogan said in televised remarks to his party.

The AK Party has submitted a proposal to parliament for the election to be brought forward to June 24 from November 4. Erdogan is expected to win a second term after five years of strong economic growth since his party came to power in 2002.

The AK Party will also propose the president is in future elected by voters, not by lawmakers, Erdogan said.

Deniz Baykal, leader of the secularist main opposition Republican People’s Party (CHP), said it was too late for this parliament, elected in 2002, to overhaul the constitution.

“This is about a fundamental power struggle. Erdogan is saying ‘ok, you’re using everything in order to stop me, then I am going to the public and I will ask them (what they want)’,” said Mehmet Ali Birand, a leading Turkish commentator.

A threat by the army, which regards itself as the guardian of Turkey’s secular system, to intervene in the presidential poll, an opposition boycott of the first round vote in parliament and a anti-government rally of up to one million people on Sunday sharply increased tensions in Turkey.

The decision to move the election to June provided relief for financial markets which suffered their biggest fall in a year over the last two days on fears of instability. Turkish shares and the lira recovered somewhat on Wednesday.

The European Commission welcomed Erdogan’s proposal for an early poll. Italy said recent events in Turkey showed caution over its admittance to the 27 nation bloc appeared justified.

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