CHP Leadership Crisis Deepens; Lira at Record Low; Kurdish Peace Process Stalled

As of May 24, 2026, Turkey faces simultaneous political and economic pressures. The CHP remains in institutional limbo after the May 21 court ruling annulling Özel's leadership and reinstating Kılıçdaroğlu as interim chair; the party announced plans to appeal at the constitutional court while opposition MPs called the ruling an act of political warfare. Istanbul Mayor Ekrem İmamoğlu continues his detention on corruption and espionage charges — a case the EU and US have labeled politically motivated — with the trial expanding into late 2026. On the economy, Turkey's annual inflation came in at 32.37% in April (above market consensus of 31.25%) while the lira trades near record lows above 45.5 per USD; year-end 2026 inflation is now projected at 26%, well above February's 15–21% forecast. The Kurdish peace process remains at a standstill: the PKK formally dissolved in May 2025 and began symbolic weapons-burning in July 2025, but the political roadmap demanded by Kurdish groups — including constitutional amendments and improved status for Öcalan — has not advanced in parliament.