Iran invests in Turkey's rulling party...

A wise investment, no??

Western diplomats say they are alarmed by reports that Mr Erdogan has negotiated a deal with Iranian President Mahmoud Ahmadinejad for Tehran to make a substantial contribution to the campaign funds of Turkey's leading Islamic party.

Under the terms of the deal Iran has agreed to transfer $12 million to the AKP, with further payments of up to $25 million to be made later in the year. The money is said to be meant to help support Mr Erdogan's campaign for re-election for a third term in next year's general election.

The Turkish government denied having received the money from Iran.