Chapter 17 on Economic and Monetary Policy was opened to negotiations on 14 December 2015 at the Intergovernmental Conference held in Brussels.

A new chapter is opened to negotiations approximately two years after the opening of Chapter 22 on Regional Policy and Coordination of Structural Instruments to negotiations. This shows that Turkey’s EU accession process is being pursued regardless of all obstacles. The chapter constitutes one of the most important requisites for harmonisation with the EU concerning economic and financial management. It was one of those blocked by former French President Nicolas Sarkozy under the argument that “ Chapter 17 is directly linked with membership”. With the opening of Chapter 17, the number of chapters opened to negotiations has increased to 15 out of 35.

Chapter 17 covers specific rules requiring the independence of central banks in Member States, prohibiting direct financing of the public sector by the central banks and prohibiting privileged access of the public sector to financial institutions. Member States are expected to coordinate their economic policies and are subject to the Stability and Growth Pact on fiscal surveillance. New Member States are also committed to complying with the criteria laid down in the Treaty in order to be able to adopt the euro in due course after their accession. Alignment with the principles of open market economy based on free competition, single currency and the price stabilisation targets establishes the basis of this chapter. Turkey’s level of alignment with the Economic and Monetary Policy legislation is considered to be partial. Turkey has the organisational structure, human resources and institutional capacity to fulfil its obligations in terms of harmonisation with the related legislation.

The 2015 Turkey Progress Report of the European Commission states that further progress is needed to ensure the independence of the Central Bank. There are some remaining incompatibilities regarding the principle of independence of the Central Bank and the prohibition of privileged access of the public sector to financial institutions. The Progress Report also recommends Turkish authorities to avoid any political interference in the independence of the Central Bank and to submit fiscal notifications and the Economic Reform Programme by the set deadlines regarding Chapter 17.

Turkey needs to meet two technical closing benchmarks: First, Turkey should align its legal framework in order to ensure full Central Bank independence, the prohibition of monetary financing of the public sector and of privileged access by public authorities to financial institutions, and the full integration of its central bank into the European System of Central Banks (ESCB), including the compatibility of the central bank's objectives with that of the ESCB. Second, Turkey should align its legal framework in order to ensure compliance with the requirements for national budgetary frameworks as laid down in Council Directive 2011/85/EU.

Turkey’s level of alignment with the Maastricht Criteria is considered to be at a satisfactory level especially regarding level of public debt and deficit. The fulfilment of the Maastricht criteria is imperative for a candidate country to join the Euro Area once joining the European Union.

The opening of this chapter to negotiations will give further impetus to Turkey’s EU negotiation process and will strengthen its economic position in the international arena. These developments in the economy affect positively on Turkey’s external trade and investments as well as its economic growth.