President Tayyip Erdogan vowed on Monday to correct any mistakes that led to his party's defeat in Turkey's local elections where the opposition capitalized on economic woes and alienated Islamist voters, casting uncertainty over his reform plans.

Key Takeaways

Sunday's vote marked Erdogan and his AK Party's (AKP) worst defeat in more than 20 years in power, revitalizing the opposition party and strengthening Istanbul Mayor Ekrem Imamoglu's standing as the president's main rival.

Election Results

Redrawing a political map long dominated by the AKP, the Republican People's Party (CHP) won the popular vote for the first time in decades and swept most of the main cities, penetrating far into conservative central Turkey.

Analysts said voters lost patience with both a cost-of-living crisis driven by near 70% inflation and Erdogan's divisive political style.

Reform Plans

The result bruised Erdogan's hopes of adopting a new constitution, which could potentially extend his rule beyond 2028 when his term ends. Though AKP and its allies have a majority in parliament, Erdogan would need broader support or a successful referendum for a new constitution.

President's Response

Erdogan delivered a somber and introspective speech in the early hours of Monday. "This is not an end for us, but actually a turning point," he said, acknowledging a "loss of altitude" for the AKP.

"If we made a mistake, we will fix it," he told crowds gathered at AKP headquarters in Ankara, without indicating what changes he might make within his party or in policy.

Impact on Economy

In response, Turkish stocks rose and the lira - which has shed more than 80% of its value in five years - touched another record low versus the dollar on a holiday for many world financial markets.

Challenges Ahead

AKP overall "suffered due to over-confidence hubris," Piccoli said, pointing to the success of the Islamist New Welfare Party, which emerged as the third biggest party in a big surprise, with 6.2% support.

Consider the context

The CHP - the party of modern Turkey's founder Mustafa Kemal Ataturk - won near 38% support nationwide, more than two points ahead of the AKP and shattering the ceiling of 25% support it has had this century.

Opposition Cumhuriyet newspaper called it "A historic victory," that taught Erdogan a lesson.