Osman Orsal / Reuters

The ruling Justice and Development Party (AKP) made verbal submissions to the Constitutional Court yesterday in the closure case lodged against it in March. The outcome of the case is now likely to be affected by developments in the widening investigation of the 'Ergenekon' group of hardline secularists allegedly seeking to undermine the AKP through illegal acts. Aside from the political issues at stake, there is a widespread belief that the closure case against the AKP is affecting, and will go on affecting, the performance of the economy. However, June inflation figures released yesterday showed a (probably temporary) interruption in the rise in consumer prices, which fell 0.36% month-on-month. In fact, the political situation has not affected the economy demonstrably so far, but it may help to deter financial and real investments by Turks and foreigners alike in the months to come. The economic situation may affect politics as well as vice versa. A weak economy could cost the AKP support among entrepreneurs and the electorate, and increase the likelihood of defections.