EU welcomes Turkish court ruling on AK Party

BRUSSELS (Reuters) - The European Union welcomed a decision by Turkey's highest court on Wednesday not to ban the ruling AK Party and called on its biggest candidate country to resume a drive for modernization.

"We have to read it now in more detail, but it is positive. Turkey is living a tense situation and we very much hope that the decision by the court will contribute to restore political stability," Cristina Gallach, spokeswoman for EU foreign policy chief Javier Solana said.

The constitutional court imposed financial penalties on the party but dismissed the public prosecutor's case to have the AK Party closed down and to bar Prime Minister Tayyip Erdogan and other leading members from party activity for five years.

The AK Party denied charges of violating the secular constitution by supporting Islamist activities.

"I encourage Turkey now to resume with full energy its reforms to modernize the country," European Commissioner for Enlargement Olli Rehn said in a statement.

"In this context, I encourage the relevant parties to work towards sustainable reforms based on a consensus forged through a broad-based dialogue with all sections of Turkish society. Alignment of Turkey's rules on political parties with European standards is essential."

The French EU presidency had no immediate comment but a diplomat familiar with EU thinking said the ruling was welcome because it removed a potential obstacle to Turkey's slow-moving accession process.

"This is excellent news because having the sword of Damocles hanging over the main party which democratically controls the government and institutions was terrible," one EU diplomat said.

Another said the French presidency, during its six months in the chair, intended to open negotiations with Ankara on two or three additional policy areas out of the 35 into which EU law is divided, provided there was no big political setback.

German Foreign Minister Frank-Walter Steinmeier said he was relieved by the decision.

"Now it is important that all decision-makers make a contribution to reconciliation and political stability and stick to the path of reform," his statement said.

"For Turkey to get closer to the EU ... it is now of the greatest importance that Turkey further strengthens its democratic institutions in the framework of constitutional reform."

Turkey's friends in the 27-nation EU would have regarded banning the AK Party, which has roots in political Islam, as a clear departure from European democratic standards.

Joost Lagendijk, an EU lawmaker with close ties to Turkey, said: "Closing down AKP on the basis of this indictment clearly goes against European rules on closing down political parties and would have been an anti-democratic decision.

"Hopefully, the AKP will draw the right conclusions from the court ruling and will take action now."

He appeared to be referring to party's attempts to lift a ban on women wearing the Muslim headscarf in universities, which the constitutional court overturned but which fuelled secularist concerns at the party's agenda.