Turkish goverments anti-secularism actions are hurting the country, experts say

The warning came as Erdogan's more than three-year-old government appears to have lost steam, with reforms aimed at EU membership coming to a standstill and the economy showing signs of trouble. Critics say the government has been bent on raising Islam's profile in recent months, leading to tensions between secular and Islamic-oriented Turks.

Omer Sabanci, chairman of the Turkish industrialist businessmen association TUSIAD, and Mustafa Koc, a prominent board member, issued a warning saying acts challenging secularism were eroding Turkey's "rising prestige," causing instability and harming the economy.

The scathing criticism was a clear indication of the powerful group's waning confidence in the government, the AP reports.

Recently, parliament speaker Bulent Arinc, a key member of Erdogan's party, called for a new interpretation of secularism and several mayors from the party issued religious-oriented publications, drawing the ire of the secular establishment.

Erdogan himself has become increasingly vocal on his party's desire to lift a ban on the wearing of Islamic-style headscarfs in public offices and universities, criticizing in particular a court decision to bar a teacher from being promoted because she wears an Islamic-style headscarf off-duty.

Markets were deeply concerned by a government move in March to appoint the general manager of an Islamic finance group - which does not use interest - as the Central Bank governor. The move raised concerns the government was more intent on appointing figures with Islamic-orientations than people most qualified for the post. The appointment was later blocked by President Ahmet Necdet Sezer, an ardent secularist.

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