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Turkey and European Union has long time been engaged in a notorious relationship.Turkey has applied to join into the European Union in 1987.Since then, there have been significant milestones in order to achieve full membership status.But both international and interior political structures have prevailed and delayed the accession process of Turkey into the Union.Finally, in 1999, Turkey has been an official candidate state.After 6 years later in 2005, the negotiation process has been officially started by fascinating celebrations.The negotiation process is challenging and tough as it is known,particularly for small, iron curtain countries at the East.On the particular subject of Turkey, the negotiation process with mainly Christian rooted countries, as an only major Muslim background country on the continent has gained a unique meaning.This challenging negotiation process withholds great furore prospects in regard of mutual interests of both sides.The long negotiation process has proven that neither Turkey nor European Union would like to lose each other as an important political, strategic, military and geographical ally.In such a strategical context of Turkey-EU integration process, the need of detailed lists and analyze of "the challenges" and "the future prospects" regarding both sides gained more importance.So, hereby this thesis is born and aimed at meeting the mentioned academic need.While preparing this thesis, main arguments and challenges paving the way for long delays and deadlocks have been sorted out in a detailed line.Main arguments blocking the way for Turkeys accession have been impartially evaluated.The impartiality and neutrality have been two primary importances in preparation of this thesis.Due to the strong academical and personal conviction, great attention has been paid not to put or reflect subjective approaches into the thesis.Turkish statesmen and European Union policymakers quotes have been often footnoted below the numbered articles.Each sorted out challenge has been clarified and analyzed with the specific background of its particular problem as well as the future prospects within it.Likewise, each European Union member county and their specifically possible or present challenges as well as prospects with Turkey have been analyzed in a detailed method.Its aimed at bringing a scientific, impartial and objective academical research to the field of Turkish-EU relations literature.In the context of academical research studies of Turkey-EU negotiations, carried done in Chinese Universities; this study is expected to carry an unique importance.Due to the strong conviction of unjust and partial politics produced by both sides, hereby study will be an altemative resource bringing an constructive approach or at least providing the reader more comprehensive and solid under standing in regard of the core challenges between Turkey and the EU.Its also aimed at analyzing the main arguments within their origin, their ongoing process and the related prospects within them.Its expected to help the reader gain broader horizons for under standing the core challenges between Turkey and the European Union, as well as improving the conscience of the future prospects of two sides. Key Words:European Union; Eastern Europe; Acquis Communautaire; Turkey and the EU Relations.