GOOD MORNING--TURKEY PRESS SCAN ON JUNE 4

HURRIYET

--HIGH EUROPEAN COURT REJECTS APPEALS OVER HEADSCARF

The European Court of Human Rights renewed a decision on Tuesday to reject appeals by two Turkish school teachers who argued that their right to religion and conscience was violated as they were not allowed to attend classes wearing a headscarf. Following an earlier case by a Turkish female university student, the court once again confirmed that "the headscarf ban was legitimate," ruling for no compensation to the plaintiffs.

--ANNUAL INFLATION SOARS DOUBLE-DIGIT AGAIN

The inflation rate in Turkey continued to increase in May and the annual consumer price index has increased to double-digit figures once again in thirteen months to reach 10.74 percent, Turkey's statistical authority said. On the monthly basis, inflation consumer prices climbed 1.49 percent in May.

MILLIYET

--TURKEY GETS BIGGEST AWARD

Ahmet Ozturklevent, a Turkish caricaturist, won the award in Aydin Dogan International Caricature Competition, which is one of the most prestigious caricature competitions in the world.

The jury examined 189 caricatures of 161 caricaturists from 57 countries. Agim Sulaj of Albania came second, and Gerhard Gepp of Austria was awarded second runner-up in the competition.

--TARGET IS REVISED

Annual inflation was 10.74 percent in Consumer Prices Index and 16.53 percent in Producer Prices Index. The Turkish Central Bank wrote a letter to the government and wanted a revision in 4 percent target.

State Minister Mehmet Simsek said the proposal was considered as positive and the government found 7.5 percent inflation target as appropriate for 2009.

SABAH

--INFLATION RATE IN DOUBLE DIGITS

The inflation rate in consumer prices was 1.49 percent in May, which was over expectations. The annual inflation was 10.74 percent, reaching double-digits.

--GLOBAL FINANCE CHOOSES AKBANK AS BEST BANK OF YEAR

Global Finance magazine chose Akbank as the "best bank of Turkey" in its survey of "best emerging market banks in Central and Eastern Europe in 2008." Akbank was defined as the best bank for its growing assets, profitability, strategic relations, customer services and competitive pricing.

VATAN

--ECHR REJECTS HEADSCARF AGAIN

The European Court of Human Rights (ECHR) rejected cases filed by two teachers of Sakarya Imam-Hatip (theology) school who wanted to give lessons wearing a headscarf.

National Ministry High Discipline Board removed Fatma Karaduman and Sevil Tandogan from office on Feb. 14, 2001 as they insisted on attending the lessons wearing a headscarf.

The two teachers applied to the ECHR saying the ban on headscarf contradicted human rights and freedom of religion. The ECHR announced its decision on Tuesday and said "no" to the removal of ban on headscarf, saying that a ban on headscarf was neither a violation of freedom of religion nor discrimination.

--INFLATION ALARM

As the inflation rate in May was above expectations, the Turkish Central Bank wrote a letter on Tuesday evening asking the figures to be revised. State Minister Mehmet Simsek said the government considered the inflation target to be updated as 7.5 percent for the year 2009.

CUMHURIYET

--OUR PARTNERSHIP RESTS ON SECULARITY, U.S. TELLS TURKEY

U.S. Deputy Assistant Secretary of State Matt Bryza said Turkey had a long tradition of democracy which had embraced secularity and rule of law since the time of modern Turkey's founder Mustafa Kemal Ataturk.

"And we cherish these principles highly and we see them as the basis of our partnership," Bryza said. The U.S. diplomat said they were not concerned with the closure case against the ruling Justice and Development Party (AKP), and Turkey had a democratic system to figure it out.

--TURKEY-U.S. NUCLEAR COOPERATION IN EFFECT

The U.S. State Department said an agreement between Ankara and Washington on peaceful nuclear cooperation went into effect after the two sides changed diplomatic notes on June 2.

"The agreement has an initial term of 15 years, with provision for automatic renewal in increments of five years each unless either party decides to terminate it. It will permit the transfer between the two countries of technology, material, reactors, and components for nuclear research in such areas as medicine and agriculture, and for nuclear power production," it said.

RADIKAL

--IF ERDOGAN IS BANNED FROM POLITICS...

People voting for the ruling AKP were asked if they would vote for the same party which lacked Premier Recep Tayyip Erdogan. A total of 61 percent of these people voted "yes", whereas the majority of people who withdrew their support were women.

According to a survey carried out by A&G company for Credit Suisse, 61 percent of supporters of the ruling AKP would vote for the same party "lacking Erdogan". While 14.9 percent of party supporters, the majority of which were women, said they would not vote for the party in that case.

The rate of those who do not know whether or not to vote for the party in such a case is 20 percent.

--INFLATION IN DOUBLE DIGITS AFTER THIRTEEN MONTHS

The annual inflation in consumer prices was 10.74 percent in May, and thus the inflation figure reached a double-digit rate after thirteen months.

Consumer prices were up 1.49 percent and producer prices were up 2.12 percent in May. In May 2007, consumer prices were up 0.50 percent monthly, and 9.23 percent annually. Under a proposal of the Turkish Central Bank, the government shelved its inflation target of 4 percent.

The new inflation target is 7.5 percent for 2009, 6.5 percent for 2010 and 5.5 percent for 2011.

YENI SAFAK

--JAPANESE RATING AGENCY SAYS IMF IS STILL AN IMPORTANT ANCHOR FOR TUKEY

In a quarterly review, the Japanese Credit Rating Agency (JCR) said that a new agreement with the IMF was vital for the security of Turkish markets as Turkey needed foreign capital due to its current account deficit.

The JCR report said that the EU process was important for the continuation of reforms in Turkey. The JCR listed progress on IMF-led economic reforms and progress on reforms geared for EU membership as Turkey's positive factors, however warned that "Turkey's weak fiscal position and heavy public debt burden, heavy external debt, high current account deficit and political uncertainty are negative factors."

--FORMER SWEDISH DIPLOMAT SAYS CAN'T UNDERSTAND WHY MANY MEMBERS OF TOP BUSINESS GROUP WOULD FAVOR RULING AKP CLOSURE

Former Swedish ambassador to Ankara Ann Dismorr said that a lot of members of the influential Turkish Industrialists' and Businessmen's Association (TUSIAD) supported a closure case filed against Turkey's ruling Justice and Development Party (AKP). "During their unofficial contacts, a lot of TUSIAD members express support for the judiciary to close ruling AKP, which I cannot understand," Dismorr said.