TURKEY: TUSIAD Sees 2014 as Realistic Date for EU Entrance

The Brussels-based representation of TUSIAD, the Turkish Industrialists' and Businessmen's Association, has released a statement in which it identifies 2014 as a realistic date for Turkey to join the EU. If growth continues at the current rate of 7 percent per year, "Turkey is expected to reach around fifty percent of the EU's per capita income by this date," says TUSIAD.

According to Turkish businessmen, only a strong and united Europe including Turkey can meet the challenges of the 21st century such as energy supply and external security. They predict that, in seven years' time, when Turkey is ready for EU membership, the country will be fully democratic and well advanced in terms of economic reforms.

TUSIAD is convinced that Turkey's accession will have a positive long-term impact on the future of the European Union and Europe in general. The EU would be able to take advantage of the strategic location of Turkey for its energy corridors and common foreign polices, say Turkish businessmen. "The young, vibrant, rapidly emerging and geo-strategically well-located Turkish market will be easily accessible to EU investors," says TUSIAD.

ECONOMY

The Turkish economy has been doing well in the last couple of years. The one-party government formed in 2002 by Prime Minister Recep Tayyip Erdogan, the leader of the Justice and Development Party (AKP), has been able to stabilise the economy following the 1999-2001 banking crisis and bring the chronically high (averaging over 60% a year) inflation down to less than 10% in 2006 (9.7%, Dec.05-Dec.06). Average real GNP growth over the past three years has been close to 8%. Turkey has been systematically rebuilding its reputation among foreign investors.

The inflow of foreign direct investment to Turkey has grown from USD 2.9 bn in 2001 to USD 19.8 bn in 2004. These are striking achievements and underline the enormous potential of the Turkish economy. But to keep developing, Turkey must continue with reforms. According to the International Monetary Fund, the objective now is to raise the potential rate of growth that can be achieved without fuelling inflationary pressures. That will accelerate the growth of incomes of Turkish citizens.

DOUBLE ELECTIONS

The forthcoming presidential and parliamentary elections in Turkey, scheduled for May and November 2007 respectively, might, however, pose a threat to the stability of the Turkish economy. Erdogan is seriously thinking of not standing again as prime minister but standing in the presidential elections instead. According to TUSIAD, this would be a mistake. In a statement released in Turkey on 1 March, TUSIAD appealed to Erdogan to stay at the head of the AKP and stay on as prime minister. TUSIAD believes that, were Erdogan to become president, this "would disturb the balance in domestic politics and negatively affect the country's economy".
Source: Reproternet