While the lifting of a state of emergency sounds like a move in the right direction, analysts say that not much will change in Turkey.
William Jackson, senior emerging market economist at Capital Economics, told CNBC that lifting the state of emergency is generally positive but concerns over the direction of travel in Turkish politics and economic policy remain.
"Although the lifting of the state of emergency is symbolically positive, in that the clampdown we saw after the coup has come to an end... I'm not sure this is going to make a very big difference," he said.
"From an economic perspective, lots of people are looking at Erdogan holding the levers over economic policy-making too. Erdogan has been influencing the central bank for five or six years now, but he now has the ability to appoint a central bank governor. The path which policy making is taking in general is quite worrying."
Robin Bew, chief executive of the Economist Intelligence Unit, tweeted that “Turkey’s emergency law may be ending, but it won't feel like it."
George Dyson, the lead Germany and Turkey analyst at Control Risks, agreed. “In some ways, the new presidential system of government gives him (Erdogan) more power, more clearly than the state of emergency did,” Dyson told CNBC on Thursday.
“I wouldn’t go so far to say that this is a ‘state of emergency mark two’ situation, but the practices and attitudes of the government will continue like before.”
The European Union’s spokesperson for foreign affairs and security policy, Maja Kocijancic, published a statement Thursday saying that while the EU welcomed the lifting of the state of emergency, “At the same time, we believe the adoption of new legislative proposals granting extraordinary powers to the authorities and retaining several restrictive elements of the state of emergency would dampen any positive effect of its termination.”
“We also expect Turkey to follow through and reverse all measures that continue to impact negatively on the rule of law, independence of the judiciary and the fundamental freedoms that are at the core of any democratic state."