Turkish PM reportedly to form new party if AKP closed

ISTANBUL (Reuters) - Turkish Prime Minister Tayyip Erdogan will form a new party if his ruling AK Party is closed down by the Constitutional Court for Islamist activities, local media reported on Monday.

Last week the AK Party submitted its preliminary defence in the controversial case, under which a prosecutor also aims to ban from politics for five years 71 members of the party, including Erdogan.

The case has rattled financial markets, triggered fears of months of political uncertainty and drawn criticism from the European Union, which Turkey hopes to join.

Broadcaster Kanal D said on its website that preparations for the creation of a new party were complete. It said Erdogan disclosed the information at a dinner with a small group of journalists on Saturday evening.

Officials at the prime minister's office were not immediately available for comment.

"We will not create tensions for Turkey," Vatan newspaper quoted Erdogan as saying.

"This case will be completed by July," he said, adding that the Turkish economy could not cope with the process being extended.

Erdogan said he did not expect the court to actually shut the party down and that he would not seek constitutional changes to avert the closure.

The AK Party, which won a sweeping re-election last July, rejects the prosecutor's charges that its members were engaged in anti-secular activities and says the case is politically motivated.