ANKARA, Turkey (CNN) -- An independent lawmaker asked to form Turkey's next government announced Wednesday that he was abandoning his bid after losing the support of key allies.

Yalim Erez, who had hoped to become Turkey's next prime minister, suffered a major setback in the deeply divided parliament on Monday when ex-premier Tansu Ciller said she would not support him.

"As I was working towards setting up a government, it became apparent that another alternative government could be formed... What's important is that Turkey does not stay without a government and that is what has happened," Erez said.

Political uncertainty has dealt a blow to Turkey's ambitious privatization program and hindered attempts to restructure debt and reform finances.

As recently as Monday Erez had expressed confidence he would marshal support to take the country to early elections in April.

But his talks with the main Islamist opposition party, Virtue, may have raised concerns among the country's military.

The armed forces, self-appointed guardians of Turkey's 75-year-old secular republic, have watched with increasing concern as the country's political leaders wrangled over the formation of a government.

Turkey has not had an established government since November, when parliament toppled conservative Mesut Yilmaz on accusations of corruption. Yilmaz is currently serving as caretaker premier.

Land forces commander Atilla Ates, in a speech to troops in the city of Kayseri, hinted at dissatisfaction over the personal rivalries that have marked Turkish politics for decades.

"Everyone should put the country's interests first in such a critical period. No opinion or consideration should be more important than the national interest," he said.

The armed forces have carried out three coups in less than 40 years. Last year they exerted pressure to bring about the fall of the country's first Islamist-led administration.

The way appeared open after Erez's declaration for the formation of a broad-based secular coalition, excluding the Islamist Virtue, to take the country to April elections.

Some expect the reappointment of veteran leftist Bulent Ecevit as premier-designate, who appears to have sufficient backing to survive a confidence vote in parliament. Ecevit failed last month in a bid to create an administration.

Erez, a former businessman of Kurdish origin, was designated two weeks ago.

The Associated Press and Reuters contributed to this report.