The political and social instability rocking Turkey needs to be resolved quickly and the political vacuum in the country filled if it is to prosper, analysts have warned.
Turkey has been rocked by a series of terrorist attacks over the past few days following the country's decision to launch air raids against terrorist organization Islamic State and Kurdish separatists. All this is happening against a background of political uncertainty.
The leaders of Turkey's main political parties appear confident they can form a coalition government this week after months of protracted talks.
Turkey's ruling Justice and Development Party (the AKP) and the main opposition Republican People's Party (CHP) will make a final decision this week on whether to form a coalition government, according to various media reports.
Party officials said the leaders of both parties would meet again on Thursday or Friday to make a decision on forming a coalition.
The parties have until August 23 to agree to a working coalition, otherwise President Recep Tayyip Erdogan could call a fresh election, which could happen in the fall.
Both parties are eager to avoid new elections and a CHP spokesman told reporters in Ankara on Monday evening, after four hours of talks between the party leaders, that "the two leaders made various evaluations in the broadest spectrum in a move not to leave the country without a government."
The talks come after inconclusive elections in Turkey in June in which the ruling AK party lost its parliamentary majority in the face of the mounting opposition from nationalist and pro-Kurdish parties.
However, Lubomir Mitov, chief economist for Central and Eastern Europe at UniCredit, told CNBC that there was a 50 percent chance of an agreement being reached but that time was running out.
"As time goes on it seems that the chance is really diminishing," he told CNBC Europe's "Squawk Box" Tuesday. Mitov said that as well as remaining differences between the CHP and AKP.