In a sharp break from the past, Turkey’s AK Party government now openly accepts the existence of a domestic Kurdish problem, and views it moreover as being mutually interrelated with the rise of separatism among Iraqi Kurds and the problem of PKK terrorism. Turkey now has official contacts with the Iraqi Kurds and is working to find a lasting solution to the Kurdish problem by implementing socio-economic and cultural measures in addition to the military one. While the Iraqi Kurds, the American administration and Turkey are beginning to reconcile their differences concerning the Kurdish issue, Turkey faces internal division; certain parties such as the General Staff, the National Movement Party and the Democratic Society Party continue to push for radical measures. Today, there seems to be little opportunity to find common understanding. But as existing conditions deteriorate and pressure mounts both within the domestic sphere and from the international community, it grows increasingly important for Turkey to find a lasting solution to the Kurdish issue.