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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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