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TUSIAD Turkey Letter: 11 August 2014

This week:

Domestic Politics

  • Turkey’s Premier Is Proclaimed Winner of Presidential Election
  • TUSIAD urges reform and calls for an end to polarization in society
  • Most likely scenario: Davutoğlu to be PM
  • CHP leader criticized over presidential defeat

Foreign Policy

  • NATO says would help defend Turkey if threatened by Islamic State

Economy and Energy

  • Political risk still high in Turkey following Erdogan’s win: Fitch
  • Moody’s estimates Turkey growth between 2.5-3.5 percent
  • Turkish economy minister sees lower rates as vital after elections
  • Turkish Markets Reverse Brief Rally After Erdogan’s Victory in Presidential Elections

DOMESTIC POLITICS

Turkey’s Premier Is Proclaimed Winner of Presidential Election
Prime Minister Recep Tayyip Erdogan, who has led Turkey for more than a decade, is set to become the country’s first popularly elected president, apparently cruising to a victory on Sunday that positioned him to be the dominant political figure here for at least five more years.
TUSIAD urges reform and calls for an end to polarization in society
The business world has urged Turkey’s new president to end the deepened polarization and escalated institutional disharmony present in the country, according to a statement by the Turkish Industry and Business Association.
TUSIAD, August 11, 2014, TUSIAD Statement
Most likely scenario: Davutoğlu to be PM
With Recep Tayyip Erdoğan’s election as president, politics in Ankara is now focused on the next prime minister and chairman of the Justice and Development Party (AKP), who is expected to be announced by Erdoğan in the coming days.
Hurriyet Daily News, August 11, 2014, Most likely scenario: Davutoğlu to be PM
CHP leader criticized over presidential defeat
The defeat of the two main opposition parties’ joint candidate has begun to create problems in the Republican People’s Party (CHP), as dissidents within the party are requesting those responsible to be identified concerning the choice for their candidate.
Hurriyet Daily News, August 11, 2014, CHP leader criticized over presidential defeat
ECONOMY & ENERGY

Turkish Markets Reverse Brief Rally After Erdogan’s Victory in Presidential Elections
Turkey’s markets slumped as persistent concerns about the country’s economy reversed a brief rally that followed Prime Minister Recep Tayyip Erdogan’s victory in Turkey’s first direct presidential elections on Sunday.
Turkish economy minister sees lower rates as vital after elections
The Turkish government will maintain its calls for lower interest rates following Prime Minister Tayyip Erdoğan’s victory in the country’s first direct presidential election, the economy minister said on Aug. 11.
Moody’s estimates Turkey growth between 2.5-3.5 percent
Moody’s rating agency has estimated Turkey’s growth performance at 2.5-3.5 percent, below the government’s 4 percent medium-term economic targets, citing the suppressing effects of interest rates and high inflation in emerging economies.
Hurriyet Daily News, August 11, 2014, Moody’s estimates Turkey growth between 2.5-3.5 percent
Political risk still high in Turkey following Erdogan’s win: Fitch
Global ratings agency Fitch has claimed political risks to Turkey’s economy are still high following Prime Minister Recep Tayyip Erdogan’s presidency win, warning tensions are “likely” to dominate the country’s agenda ahead of the parliamentary elections.
FOREIGN POLICY

NATO says would help defend Turkey if threatened by Islamic State
NATO would take all steps necessary to defend alliance member Turkey if it were threatened by Islamic State fighters who have made gains in neighboring Iraq and Syria, Secretary-General Anders Fogh Rasmussen said on Aug. 11.