2101 L Street, NW Suite 800 Washington, DC

+1 (202) 776-7770 [email protected]

TUSIAD Turkey Letter: 03 September 2014

TURKEY LETTER September 3, 2014
This week:

Foreign Policy

  • Erdoğan to talk to Obama, Merkel over spying crisis
  • Turkey heralds EU’s new leadership team
  • Pentagon chief to discuss foreign fighters in Mideast during upcoming Turkey visit

 Economy and Energy

  • Banks’ borrowing raises Turkey’s foreign debt: Fitch
  • Turkey Leaves Key Rate Unchanged as Easing Cycle Pauses
  • Turkish inflation reaches 9.5 percent in August, rising above expectations

 Domestic Politics

  • New Cabinet in Turkey Mirrors That of Last Premier
  • Key corruption probe targeting President Erdoğan’s son dismissed
  • New government to focus on EU and Kurdish bid

 

Foreign Policy

Erdoğan to talk to Obama, Merkel over spying crisis

Turkish President Recep Tayyip Erdoğan has said he will talk to U.S. President Barack Obama and German Chancellor Angela Merkel about an ongoing “spying feud” on the sidelines of an upcoming NATO summit.

~~~

Hurriyet Daily News, September 3, 2014, Erdoğan to talk to Obama, Merkel over spying crisis, http://www.hurriyetdailynews.com/Default.aspx?pageID=238&nID=71258&NewsCatID=510

 

Turkey heralds EU’s new leadership team

Turkey has welcomed the European Union’s new leadership team, voicing support for Polish Premier Donald Tusk as the next EU president and Italian Foreign Minister Federica Mogherini as the new head of the EU’s diplomatic service. Both Tusk and Mogherini are citizens of countries that support Turkey’s EU membership bid.

~~~

Hurriyet Daily News, September 3, 2014, Turkey heralds EU’s new leadership team, http://www.hurriyetdailynews.com/turkey-heralds-eus-new-leadership-team.aspx?pageID=238&nID=71253&NewsCatID=510

 

Pentagon chief to discuss foreign fighters in Mideast during upcoming Turkey visit

U.S. Secretary of Defense Chuck Hagel and his counterpart İsmet Yılmaz will discuss the issue of foreign fighters joining Islamic militant groups in the Middle East in his visit to Turkey next week, according to a Pentagon spokesman.

~~~

Hurriyet Daily News, September 3, 2014, Pentagon chief to discuss foreign fighters in Mideast during upcoming Turkey visit, http://www.hurriyetdailynews.com/pentagon-chief-to-discuss-foreign-fighters-in-mideast-during-upcoming-turkey-visit-.aspx?pageID=238&nID=71239&NewsCatID=359

 

 

Economy and Energy

Banks’ borrowing raises Turkey’s foreign debt: Fitch

 Turkish lenders’ borrowing that jumped by almost threefold has been the main driver of the eye-catching rise in the country’s external debt, rating agency Fitch has said in a report, warning this puts the banks’ ratings at risk.

~~~

Hurriyet Daily News, September 3, 2014, Banks’ borrowing raises Turkey’s foreign debt: Fitch, http://www.hurriyetdailynews.com/banks-borrowing-raises-turkeys-foreign-debt-fitch.aspx?pageID=238&nID=71240&NewsCatID=344

 

Turkey Leaves Key Rate Unchanged as Easing Cycle Pauses

Turkey’s central bank left its benchmark repurchase rate unchanged for the first time since April, vowing to maintain a “tight monetary policy stance” to curb inflation.

~~~

Bloomberg, August 27, 2014, Turkey Leaves Key Rate Unchanged as Easing Cycle Pauses, http://www.bloomberg.com/news/2014-08-27/turkey-central-bank-cuts-lending-rate-leaves-benchmark-on-hold.html

 

Turkish inflation reaches 9.5 percent in August, rising above expectations

Turkey’s inflation rate rose above expectations again by climbing to 9.54 percent in August, dashing hopes of attaining its expected year-end target.

~~~

Hurriyet Daily News, September 3, 2014, Turkish inflation reaches 9.5 percent in August, rising above expectations, http://www.hurriyetdailynews.com/turkish-inflation-reaches-95-percent-in-august-rising-above-expectations.aspx?pageID=238&nID=71241&NewsCatID=344

 

 

 Domestic Politics

 

New Cabinet in Turkey Mirrors That of Last Premier

 Turkey’s prime minister-designate, Ahmet Davutoglu, announced a new cabinet on Friday that is dominated by holdovers from the administration of his predecessor, Recep Tayyip Erdogan. Mr. Erdogan is now the president and seeking to maintain a grip on power after moving to what until now has been a largely ceremonial office.

~~~

New York Times, August 29, 2014, New Cabinet in Turkey Mirrors That of Last Premier, http://www.nytimes.com/2014/08/30/world/europe/new-cabinet-full-of-erdogan-holdovers-is-announced-in-turkey.html

 

Key corruption probe targeting President Erdoğan’s son dismissed

The Istanbul Chief Prosecutor’s Office has ruled that there are no legal grounds for the prosecution of 96 suspects, including President Recep Tayyip Erdoğan’s son Bilal Erdoğan, who were accused by prosecutors of bribery and corruption in the Dec. 25 investigation.

~~~

Hurriyet Daily News, September 1, 2014, Key corruption probe targeting President Erdoğan’s son dismissed, http://www.hurriyetdailynews.com/key-corruption-probe-targeting-president-erdogans-son-dismissed.aspx?pageID=238&nID=71159&NewsCatID=338

 

New government to focus on EU and Kurdish bid

Turkey’s 62nd government, led by Prime Minister Ahmet Davutoğlu, is set to outline its program on Sept. 1, placing strong emphasis on the “new Turkey” theme as well as boosting the Kurdish peace process, European Union accession talks, and bringing about fresh economic reforms.

~~~

Hurriyet Daily News, September 1, 2014, New government to focus on EU and Kurdish bid, http://www.hurriyetdailynews.com/new-government-to-focus-on-eu-and-kurdish-bid.aspx?pageID=238&nID=71147&NewsCatID=338