The coalition government of Prime Minister Mesut Yilmaz collasped on 6 June only three months after its formation. This opens the way for negotiations about a new coalition, possibly including the Islamist Welfare Party (Refah), which has the largest number of seats in parliament. However, analysts say it might be necessary to hold new elections.
Yilmaz handed in his resignation to President Demirel on the eve of a parliamentrary censure motion which Yilmaz was set to lose.
The collapse of the coalition came after a round of local elections dominated by Refah.
The Islamists took 33.5 per cent of the vote, prompting Refah leader Necmettin Erbakan once again to claim his party would come to power alone soon