IKV Chairman Ayhan Zeytinoğlu has reacted to some of the latest developments in Turkey-EU relations.

In his remarks, IKV Chairman Zeytinoğlu pointed out to the importance of Turkey-EU relations and further added that Turkey needs a strong partner and anchor such as the EU in terms of tackling political, economic and security issues. He also indicated that the EU perspective is of critical importance from the business community perspective and he added as follows:

“Tension has increased in our relations with the EU lately. The lack of support and sensitivity shown by the EU as a result of the failed coup attempt in Turkey has some role in this. The EU accession negotiations have been pursued for the last 10 years and the Cyprus issue continues to pose a hurdle for the opening of new chapters by blocking further developments in the process. This has also led to the reduction in the credibility of the membership perspective.

Nonetheless, one should add that renouncing to the EU’s membership goal it would be taking the easy way for Turkey. We should act with cold blood instead of showing emotional reflexes”.

 “THE CUSTOMS UNION WOULD HELP TURKEY IN ESCAPING THE MIDDLE INCOME TRAP”

Indicating the business community’s approach with respect to the middle income trap, IKV Chairman Zeytinoğlu pointed out to the need of implementing EU reforms and that the process of modernisation of the Customs Union would play a critical role for Turkey to escape the middle income trap:

“Each step where we have seen progress with the EU has contributed in accelerating the development process of Turkey. When the Customs Union came into force in 1996, it opened a new era from the perspective of competitiveness and productivity of our industry. With the reforms which opened the gate to our candidate status in Helsinki and the decision to open accession negotiations in 2004, it led to an increase in foreign investments in Turkey. Today, more than ever, Turkey needs a new impetus which would accelerate structural reforms and stimulate economic growth. As the business community, we strongly feel this need. The expectation of the business community is for the EU accession process to be pursued and revitalised as well as to realize the modernisation process of the Turkey-EU Customs Union”.

Moreover, IKV Chairman Zeytinoğlu noted that according to analyses that have been made with respect to the process of modernisation of the Customs Union, it is expected that Turkey’s economy would benefit by an increase of 1.44% in its real GDP and grow by 12 billion euros and that such an increase would be around 60% in 10 years.

 “THE EU OBJECTIVE IS A PROJECT FOR TURKEY. IT HAS NO ALTERNATIVE”

Finally, IKV Chairman Zeytinoğlu affirmed that there is no alternative but EU integration for Turkey:

“We are experiencing problems in our relations with the EU. We do wish that such problems can be solved by resorting to close cooperation and diplomacy. The EU objective is a project for Turkey which has been adopted by all governments from the beginning. Relations have had their ups and downs and crises similar to the current one have been experienced. However, the current crisis has much more serious dimensions. Indeed, for the first time, there are talks about the possibility for the end of Turkey’s EU perspective. Above all, this problem should be tackled from approach which takes into consideration Turkey’s strategic objectives and its international status. It is also of utmost importance for the EU to show the necessary will to resolve this crisis and show a more consistent approach towards Turkey. Nonetheless, it is also critical for Turkey not to enter into a point of no return and focus on solving the current issues in our relations with the EU”.