Europeans are worried Turkey's handling of protests over a minor urban development in Istanbul is damaging the whole EU-NATO peacemaking and security project in Syria.

Turkey has staked its reputation as a non-partisan, non-Arab arbiter of disputes and flare-ups in its neighborhood and as the modern inheritor of the mantle of the old Ottoman Empire.

Arabs tolerated Turkey's role as a mediator and facilitator despite strong reservations about Ottoman rule over their lands before independence or creation of modern Arab states, preferring it to British and French mandates.

But Turkey bared new ambitions during the turmoil in Iraq after the 2003 allied invasion that brought down Saddam Hussein and more recently in Syria, both former colonies of its Ottoman predecessors.

As Syria plunged deeper into strife and thousands of Syrians sought refuge in southeastern Turkey, Ankara could convincingly argue it had a stake in Syria's future.

Europe saw Turkey as a valuable rear guard as it tried to shield itself from political and security fallout from Syria. As the Syrian conflict threatened to spill over into Turkey along with the fleeing multitudes, European defense commanders promptly sent and installed Patriot missile batteries along Turkey's Syrian border.

But it all appeared to be going wrong as Turkish Prime Minister Recep Tayyip Erdogan, riding high approval ratings amid what Turks saw as their country's resurgence as a regional power, began to implement a long-cherished Islamization of the country's deeply entrenched secular society.

Last month authorities began shutting down establishments that served alcohol or what Erdogan aides saw as the lewd westernization of society. With his popularity on the rise, Erdogan easily silenced critics who saw his measures as an attempt to recast Turkey after his own Islamist model.

Turks in general are not against some Islamic elements marking day-to-day pursuits and lifestyle that link them to their heritage and tradition, but most draw a line at what they see as going beyond "moderation" -- a term open to heated debate over the decades since Kemal Ataturk ushered in the republic in 1922.

Erdogan is adamant that forces inimical to his rule rather than Turkish masses turned the Istanbul protests into a movement increasingly questioning his legitimacy.

He also shocked European partners by insisting his handling of the protests was mild compared to what EU partners would have done in similar circumstances.

European criticism of Erdogan has been sharp but cautiously coded.

The protests have also demonstrated that, through years of exposure to mainland Europe and yearning for Turkey's eventual entry into the club of nations, Turks are more Europeanized than the ruling party's ideologues.

Most Turks see the government's conduct as indicative of its eastward push rather than a westward reach to Europe and democratic values enshrined in EU rules for letting new members in.

Turkey has been vying for EU entry since 2005 but lags behind almost everyone being considered as part of EU enlargement. The eight new potential entrants are Albania, Bosnia, Croatia, Iceland, Kosovo, Montenegro, Serbia and Turkey.

EU Enlargement Minister Stefan Fuele, who was in Istanbul for talks, delivered a public reproach.

"Peaceful demonstrations constitute a legitimate way for groups to express their views in a democratic society," Fuele said.

"Excessive use of force by police against these demonstrations has no place in such a democracy."

The widely publicized chastisement was music to the ears of Erdogan's many foes on the right, left and center of Turkey's volatile political spectrum. The civil strife complicates Turkey's overt support for Syria's armed opposition, based in Istanbul, and a dangerous balancing act with eastern Kurdish factions known to have strong links with armed groups in Syria, Iraq and Iran.

Turkey is a major player in international peacemaking efforts now under way in Syria, involving negotiators from the EU, the United Nations, Russia, the United States and the Arab world.

Erdogan has banked on continued popularity, a robust economy and a strong power base within the political establishment, but his response to the protests threatens to change all that.

Istanbul and the southwestern tourism belt were the worst hit after the protests, with hotels reporting mass cancellations. Turkey's service sector provides the bulk of the national earnings -- up to 63 percent according to latest data.

As the sixth most popular tourism destination in the world, Turkey drew 31 million tourists in 2011. This week the Turkish stock market was reeling under the impact of the protests. Analysts predicted job losses in the service sector, a potent new flashpoint.