Finance Minister Simsek calls out Europe’s lack of fair play regarding Türkiye

Finance Minister Mehmet Simsek challenges Europe’s leadership and urges equal footing for Türkiye in competition, emphasizing Türkiye’s full membership in the EU would boost Europe’s currently weak productivity

The Minister of Treasury and Finance Mehmet Simsek criticized Europe, emphasizing a lack of leadership and strategic perspective regarding Türkiye.

During an event titled “Türkiye: Progressing in the European Ecosystem” at the Bruegel think tank in Brussels, Finance Minister Simsek underscored Türkiye’s commitment to stabilizing prices and reducing inflation as its foremost priority.

“Fiscal adjustments will assist in lowering inflation,” Minister Simsek said, asserting that traditional monetary policies are being pursued rather than resorting to extraordinary measures.

Minister Simsek further highlighted that the Turkish Central Bank’s stance regarding monetary policy would support inflation expectations.

Addressing the importance of combating inflation, Minister Simsek forecasted a peak in inflation in May, followed by a significant slowdown annually after that.

He projected inflation to be around 38% by the end of this year, with a decrease to 14% next year and a return to single-digit figures by 2026.

Türkiye’s effective economic program 

Minister Simsek also remarked on the effectiveness of the economic program, indicating a comprehensive agenda for structural reforms that has reinstated investor confidence. He noted ongoing rebalancing processes and a substantial decline in inflation expectations.

Additionally, Minister Simsek highlighted improvements in the Turkish Central Bank’s reserves and a reduction in credit risk premiums, along with credit rating agencies acknowledging the economic recovery in Türkiye through rating upgrades.

The biggest issue is lack of fair play

The minister emphasized the substantial trade volume between Türkiye and the European Union, amounting to $200 billion annually, with Türkiye being the EU’s fifth-largest trading partner.

However, he criticized Europe for its lack of leadership and strategic perspective concerning Türkiye, particularly in ensuring equal competition.

Minister Simsek urged continued economic integration in Türkiye’s EU accession process, emphasizing its current politicization within Europe.

He advocated for the deepening and expansion of the Single Market to maintain Europe’s relevance in the global economic arena, suggesting the inclusion of new members for this purpose.

Equal terms and conditions regarding the Customs Union

Regarding the Customs Union, Simsek demanded equal conditions for competition, questioning Europe’s reluctance in this regard.

He highlighted disparities in visa liberalization between Europe and countries significantly misaligned with its standards and values, stressing the necessity for the EU to forge closer ties with Türkiye, a country of immense potential.

“Updating the Customs Union will not do us any favors. We want to compete on equal terms and conditions. Supposedly, these are European values. So why are you holding back on this issue?” Simsek stated. 

Source: Newsroom