Recep Tayyip Erdoğan

Erdoğan announces new economic and democratic reforms in Turkey

In a speech to businessmen, Erdoğan promised to pass a reform package as soon as possible to boost investment and curb inflation.

Turkish President Recep Tayyip Erdoğan announced on Friday that his government is preparing new economic and judicial reforms that will propel Turkey into a new era in economy and democracy.

“We are determined to bring in a flourishing new era for Turkey’s economy and democracy,” Erdoğan said during a speech at the Expo 2020 fair organised by the MÜSIAD business association in Istanbul. “We are going to take all steps to gain the trust of investors, we will do whatever is necessary,” he insisted, adding that the new reforms will be presented to parliament for approval as soon as possible.

“We are working both to strengthen our economic policies and increase the level of democracy and freedoms, while making life easier for our citizens,” said the Turkish president, who already last week announced a series of new measures to promote foreign investment and improve the efficiency of the judicial system.

With regard to the coronavirus pandemic in Turkey, where the increase in infections in recent days has forced the government to increase restrictions and reinstate curfews, Erdoğan said that the necessary measures are being taken to protect the health of the citizens and guarantee the maintenance of production and employment, highlighting the government’s efforts to support companies during the crisis.

“Turkey must get out of the spiral of inflation, interest rates and exchange rates”

“Turkey is in a relatively better position at a time when the entire world is being devastated by the second wave of the coronavirus pandemic,” underlined Erdoğan, who asked businessmen and citizens to bet on Turkish lira to strengthen the national currency and reduce the volume of foreign currency in deposits.

He also called on entrepreneurs to invest in employment, production and exports: “By mobilising entrepreneurs in Turkey and abroad, we will ensure acceleration of investments that will have lasting results in production and employment,” said the Turkish president, who referred to the sharp rise in interest rates recently approved by the Central Bank as a “bitter medicine” but necessary to contain inflation and stabilise the lira.

“It is essential that Turkey moves away from the (upward) spiral of inflation, interest rates and exchange rates … If not, we will have to pay its price. The problem is interest rates; inflation is the result“, Erdoğan reiterated. In addition to the economic reforms, there is a new package of democratic and judicial reforms that he promised to bring to parliament as soon as possible. “We are going to finalise and implement the human rights action plan with a much broader consensus,” he said.