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In this issue

Saddled with the fallout from protests this summer, Turkey’s prime minister is gearing up for a series of elections next year. Foreign relations with both EU and Middle Eastern neighbours are posing problems, while trade links with Israel provide some optimism

Sleeping giant stirs amid fiery rhetoric

The protest fallout and the eventual ending of US financial stimulus pose big problems for Erdogan’s government

Economics: Reliance on foreign capital inflows raises concern

The country needs to end its dependence on US

Call to increase birth rate draws sceptical response from women

Erdogan plea reflects concern over ageing population

Turkey at loggerheads with the EU

A dynamic nation in need of renewal risks permanent exclusion from club that was once a motor of change

Foreign relations: Ankara takes slow road to rapprochement with Israel

Growing trade suggests that common interests trump diplomatic chill after flotilla attack

Popularity slumps as policies fail to win over near neighbours

Hopes that the nation would be a stabilising force have been dashed

Turkish politicians tap into middle-class housing dream

Desire for homes can be transmuted into election gold

Democratic themes underpin festival

The city has all the necessary ingredients to stage an international event

Touch of the exotic that is on the beaten track

The pleasures and temptations of a first visit to Turkey

2012 report

Rising power, growing questions

The Erdogan era has brought prosperity but there are calls for the political system to be modernised, writes Daniel Dombey

Opinion: Ambitions threatened by problems in own backyard

There is little sense that an awakened Arab world is looking at Turkey as a regional leader

Market view: Economy may be booming but room for manoeuvre is limited

Dependence on EU banks makes growth precarious, warns Stefan Wagstyl

Investment: Priority is more long-term funds, less hot money

Further reforms should stimulate new inflows, writes Vincent Boland

Politics: Tinderbox summer in store

Challenges await as Cyprus takes over the EU presidency and the debate over Kurdish rights simmers, writes Daniel Dombey

Guest column: Lessons from Ottoman past risk falling on deaf ears

The film ‘Conquest 1453’ captures a growing mood that Turkey no longer needs to cling to the coat-tails of its western allies, writes Andrew Finkel

Syria: Best of friends becomes neighbour from hell

Ankara is desperate to be rid of its former ally Bashar al-Assad but direct intervention would be too risky, says Daniel Dombey

Trade and tourism: Businesses rebalance away from Europe

Russia and Middle East are the target markets, writes David O’Byrne

Energy: Growth fuels demand but sucks in imports

Policy is to diversify mix of sources, says Dan Dombey