Turkey Financial News

Following the Justice and Development Party’s (AK Party) victory in the general elections on Sunday, all eyes are upon the economic theorists who are to enter Parliament.

According to these theorists, who have a background in the real sector, the market or the business world, the most important problem is unemployment. The new deputies believe that the solution to unemployment lies in decreasing the tax and social security premium burden on employees. Reducing inflation and interest rates also make the deputies’ list in addition to other issues such as imports, the energy problem and the water shortage.

As the winner of the Sunday elections, the AK Party is expected to revise its economic program. It is believed that winds of change will blow with the economic team that is to be composed of the former 59th government’s State Minister Ali Babacan, Minister of Treasury Kemal Unakıtan, former Transportation Minister Binali Yıldırım, State Minister Kürşad Tüzmen, Minister of Labor and Social Security Murat Başesgioğlu, Minister of Energy Hilmi Güler, Ministry of Industry and Trade Ali Çoşkun and Agriculture Minister Mehdi Eker. Mehmet Şimşek, who has transferred from Merrill Lynch in order to serve in the 60th government, and Ankara Chamber of Industry (ASO) Chairman Zafer Çağlayan are widely expected to serve in the government. Şimşek has been mentioned for the state ministry of treasury post, while Çağlayan is expected to serve as minister of industry and trade. There is a possibility of a change in the ministries of labor, transportation and energy, and for these posts former State Waterworks Authority (DSİ) General Manager Veysel Eroğlu’s and Undersecretary to the Prime Minister Ömer Dinçer’s names have been mentioned.

Former Merrill Lynch economist Mehmet Şimşek: “Turkey has experienced a democracy test. The people chose to grow with stability. From now on Turkey will go further. Our citizens gave us a large authority as well as responsibility. We will have two core issues. One is to increase the competitiveness of Turkey and the other is to decrease unemployment, because to increase the general welfare we have to create job opportunities. That’s why we have to deepen the current reforms. We, as the government, must not abandon fiscal discipline.”

Former State Waterworks Authority (DSİ) General Manager Veysel Eroğlu: “First we will take the demands of the people into consideration. An important segment of the citizens are still involved in agriculture, and that’s why we have to spread modern irrigation facilities all over the country. We will have projects on new fresh water sources in urban areas. The energy need will increase in the future, and we have to utilize our hydroelectric power plants at full efficiency to decrease dependency on natural gas. Also, the usage of renewable energy sources must be increased.”

Turkish Craftsmen and Artisans Coope-ratives Union (TESKOMB) President Kadir Akgül: “I will work to fulfill my promises to tradesmen. My projects on small enterprises will be launched in a short time. My primary responsibility will be to increase the limits of loan interests and decrease interest rates to one-digit numbers. I believe we will achieve our ‘0 interest’ goal soon. Moreover, standby credits for tradesmen to export to EU countries will be provided.”

Economic deputies of AK Party

* Mehmet Şimşek: chief economist of Merrill Lynch