Erdogan said on Tuesday the Turkish parliament would pass the amendment of the controversial article 301 of the Turkish Penal Code next week and speed up the EU reforms.

Turkey's chief prosecutor filed a lawsuit against AKP demanding its closure on March 14. The AKP government, under pressure due to the case, is expected to give a new impetus to the EU process after a period of slowdown in reforms.

Erdogan told in his party meeting on Monday parliament would pass next week the amendment to the controversial article 301 of the Turkish Penal Code. "Other steps which will bring Turkish democracy forward will follow this on a fast track," he said without elaborating.

Observers say the AKP's move to push for a wider reform package to enhance democracy rather than amending the constitution to save the party is likely to reduce tension and gain greater support.

"It is out of question that we shall weaken our efforts for our EU goal," Erdogan said. "The process from now on will once more show our government's determination on the EU road. We will have the opportunity to evaluate the road map, with Barroso-Rehn, for the future." European Commission President Jose Manuel Barroso and Enlargement Commissioner Olli Rehn will visit Ankara on Friday.

An AKP deputy chairman told reporters on Monday after a six-hour meeting of the Central Decision-Making and Administrative Comittee (MKYK), working groups, appointed by Prime Minister Tayyip Erdogan, will handle the court process.

"Our search for consensus will continue within the political framework in order to develop the solution that will strengthen our legal system and democracy in this test," Dengir Mir Mehmet Firat said. Meetings with the opposition parties will be held "as soon as possible," he added.       

Firat said, "It is the task of the politics to predict the political and economic consequences of this process beforehand and to take measures to safeguard the mutual interests, tranquility, unity and integrity of the nation."

The closure case was discussed in detail and MKYK members expressed their views on how to carry out the related process and they focused on a fundamental defense strategy, he added.

The AKP was reportedly working on a formula to amend the Constitution to prevent a closure decision, and planning to take the package to a referandum; analysts say such a referandum would likely intensify the polarization, heightening tensions further.

Analysts say the AKP's decision to let the case run its natural course is a positive development but remain cautious. Finansbank economist Inan Demir said less the confrontational tone of the Committee statement will serve to ease the political tension.

"We have to show caution, there are still questions hanging (over the case). For instance, we do not know how the opposition parties will react to the “democratization” package, and how the AKP will behave if a compromise fails to materialize. Moreover, the closure case and its uncertain outcome will remain as a source of vulnerability for the next 6-8 months, at least," he said in a note to clients.