President Sezer can challenge the law in the constitutional court
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The Turkish parliament has passed an EU-inspired reform for a second time, overturning a presidential veto.
The move increases freedom of expression by scrapping part of an anti-terror law, which bans the propagation of separatism.
The law was widely used to jail writers and intellectuals sympathetic to the country's Kurdish minority.
The Turkish Government is committed to a major programme of democratic reforms which are necessary to promote its bid for EU membership.
President Sezer said that abolishing Article Eight of the anti-terror law would hinder the fight against terrorism, as he wielded his veto last month.
Military worries
He suggested instead that it should be amended to bring it into line with international law.
He now has the option of asking the constitutional court to rule on the validity of the new law, stripped of Article Eight.
The Turkish military is also reported to be anxious about parts of the government's reform programme.
Kurdish rebels fought a 15-year battle for autonomy in the south-east of the country.
EU concerns
A number of the EU's concerns about democracy in Turkey relate to the Kurdish minority, estimated to number about 12 million.
It is also keen to ensure that there is civilian control of the military, rather than vice-versa.
The government is currently working on another package of reforms.
The EU will decide in December 2004 whether Turkey is ready to start membership negotiations.