Turkish Prime Minister Ahmet Davutoglu formally ended attempts to form the next government on Tuesday after weeks of coalition talks failed, raising the prospect of a fractious interim administration leading the country to a new election.
Davutoglu had been trying to find a junior�coalition partner�since the ruling Justice and Development Party lost its parliamentary majority in an election in June, leaving it unable to govern alone for the first time since it came to power in 2002, Reuters reported.
Davutoglu officially handed the mandate back to�President Tayyip Erdogan�at an evening meeting in the capital Ankara, Erdogan�s office said in a statement.
AKP spokesman Besir Atalay said the party would hold a congress on September 12. That meeting could be crucial for its strategy going into a fresh election.

Davutoglu met the leader of the right-wing opposition Nationalist Movement Party on Monday in a last-ditch effort to agree a working government, but the nationalist leader�refused all the options he presented.
Erdogan could theoretically now hand the mandate to form the next government to the Republican People�s Party, Turkey�s second biggest, although it is also highly unlikely to be able to agree a working coalition before an August 23 deadline.
Under the terms of the constitution, if no government is formed by then, Erdogan must dissolve Davutoglu�s caretaker Cabinet and call on an interim power-sharing government to lead Turkey to a new election in the autumn.
Any new poll is likely to take place in late November, although Turkey�s election board has the power to cut the 90-day period by half and told Anadolu news agency on Tuesday that it could hold elections in 45 days if the call is made.

Paralysis Looms
Such a temporary arrangement would theoretically hand Cabinet positions to four parties with deep ideological divisions, paralyzing policymaking and deepening the instability that has sent the lira currency to a series of record lows.
But even forming such an interim �election Cabinet� is likely to be difficult.
The pro-Kurdish�Peoples� Democratic Party said it would offer representatives to take part, but the nationalist MHP has made clear it would not countenance doing so.
Senior AKP officials had been betting that the nationalists, virulently opposed to greater Kurdish political power, would do anything possible to avoid a scenario in which HDP held Cabinet seats, and that they might support a short-lived minority AKP government in return for a new election.
But nationalist leader Devlet Bahceli has ruled that out, leaving an interim powersharing Cabinet as virtually the only option. He is apparently calculating that the prospect of Kurdish politicians in ministerial positions will so enrage those on Turkey�s political right that they will flock to support his party at the next election.
Parliament could in theory also vote to allow the current Cabinet to continue working until a new election, but the MHP has already said it would vote against such a move and other opposition parties have little incentive to do any different.
NATO member Turkey has not seen this level of political uncertainty since the fragile coalition governments of the 1990s. The uncertainty coincides with Ankara�s two-pronged war against Islamic State militants in Syria and the Kurdistan Workers� Party camps in Iraq, though the offensive so far has focused far more on PKK forces.

By Financial Tribune