Vice President Yılmaz's statement on the decline in rents: He spoke through the numbers

Vice President Cevdet Yılmaz provided striking information on political and economic topics while answering questions about the agenda.

Speaking on a live broadcast on HaberTürk, Yılmaz said the following:

The world's debate has shifted to this point right now. Turkey started this process much earlier. A revolution has taken place in the defense industry over the last 22 years. We have now become an exporter. We are now exporting products to others that we could not even buy in the past, despite having paid for them. The essence of the Steel Dome is a multi-layered integrated air defense system. It is an effective defense system where different systems work in an integrated manner. The defense industry is also a very important part of the economy. It increases economic added value, creates exports, and generates employment. As our defense industry develops, Turkey will build an economy with higher added value. These technologies also permeate civilian industries. The progress we have made in the defense industry is important in every respect. Today, we have a project portfolio of over 100 billion dollars. The recent partnership with Indonesia regarding Kaan is a very important project. The Steel Dome is a very important project and initiative that crowns these successes.

"WE SUPPORT PEACE"

The security dimension has risen above everything else in the world. On one hand, the EU has allocated a budget of 800 billion Euros. Germany has accepted that the budget deficit is not a constraint. Decisions have been made as if this rule does not apply when it comes to defense. We are going through a period where defense system expenditures are increasing all over the world. As Turkey, we are, of course, a country that favors peace, not conflict. We are becoming a country that uses effective diplomatic power on one hand, and a deterrent force on the other. We are implementing both at the same time. It is our duty to be prepared for all possibilities and to be a deterrent force. We will continue our efforts in this direction without interruption.

"A TERROR-FREE TURKEY IS A VERY IMPORTANT INITIATIVE"

The Century of Turkey forms the importance of the matter in a terror-free Turkey. We are experiencing many developments in our region. The Middle East and our surroundings are going through a period where geopolitical tensions are increasing. The terror-free Turkey initiative is very important both for our own internal peace, development, and progress, and within the framework of thwarting the games being played over our region. Mr. Bahçeli's initiative was important. The burning of weapons in the organization has begun. A commission has been formed right now. One party did not join, but all other parties are there. And so far, God forbid, it is going very well. We have suffered a lot from terrorism for more than 40 years. Turkey put up a great fight and actually succeeded. An environment of peace and security had already been largely established internally. A terror-free Turkey actually means a terror-free region. Syria is going through an important period. A cruel regime is gone, and now a new Syria is taking shape. A management approach that encompasses everyone living in Syria—Arabs, Kurds, Turkmens, Druze, Nusayris—a management approach where everyone finds themselves, and at the same time, the unity, integrity, and non-fragmentation of Syria. Turkey is standing in the right place. It should not be a Syria with different groups, but a Syria where state authority prevails everywhere. We want a Syria where everyone benefits from rights and freedoms. We support the stability and development of Syria. There are powers that do not want stability in Syria. Israel, first and foremost. Our President's message in Ahlat is very important. Those who follow the suggestions of international powers that cannot possibly be permanent in this region are doomed to lose.

"IF THEY DO NOT INTERFERE WITH SYRIA, IT WILL RECOVER"

The reconstruction of a state in Syria, and secondly, the construction of infrastructure and the economy. The Syrian people are an entrepreneurial people. They have a wealth and diversity that comes from history. A port country, a civilization open to the world. I believe that if some do not try to interfere with Syria, it will recover in a very short time. The economic opportunities there will lead to investment from many countries.

"WE ARE IN FAVOR OF SYRIA'S UNITY"

As Turkey, our policy is clear and net; we are in favor of territorial integrity and unity. We will continue to stand by Syria and its people with all our efforts. We respect the different ethnic groups and sects in Syria. Developments in Syria will take some time. Reconstruction is not easy after such great destruction. I attach great importance to the constitutional work. They will hold elections soon. I believe they will demonstrate greater legitimacy and inclusivity. An environment where everyone lives in peace is our desire. We will continue to implement this policy effectively. Turkey is in favor of territorial integrity and in favor of the central government represented by Damascus prevailing over the entire country. The solution to the problem is here. As the state strengthens and gains control over its lands, the atmosphere will change. Natural resources will begin to be spent on the reconstruction of Syria. Everyone will profit from this.

AT WHAT STAGE IS THE PROCESS COMMISSION?

Nothing that is not in Parliament is secret. I honestly do not think there is any under-the-table work. The Bar Association was there today. Former Parliament Speakers will be heard tomorrow. There is intensive work. It is proceeding in unity and solidarity. Let it continue this way. This is a matter of survival. It should not be sacrificed for narrow political calculations. We must get rid of terrorism permanently and move our development and democracy further. Terrorism has direct damages—economic, social, etc. And it has indirect damages. It unfortunately poisons the economic and investment environment. It creates a major barrier to development. In economic terms, it creates an alternative cost. Having gotten rid of these, Turkey will continue its development process much more strongly. The terrorist organization announced that it has disbanded itself. What kind of regulation should be made here? The commission will reveal these. The sooner it ends, the better. There are various powers trying to sabotage this initiative and Turkey becoming terror-free. It is better that these things are done as soon as possible. Of course, the discretion belongs to our Parliament.

NEW CONSTITUTIONAL WORK

Our Parliament Speaker, Mr. Kurtulmuş, visited all the parties. We are governed by a coup constitution. We want Turkey to get rid of this shame. We see that all parties have a new constitution proposal. We have formed a team upon the instruction of our President; it meets constantly, and we are doing our internal work. But this is not something we can do on our own. When Parliament demonstrates the will, we, as a party, will contribute in a prepared manner. This process is a negotiation process. It is not just about getting rid of a past coup law, but, so to speak, a new generation constitution. One must ask what kind of constitution we need for Turkey's future. We are looking for a simpler constitution with internal consistency. We are calling on the opposition. We say, let's do it together. I believe that when we do this, our international prestige will also rise.

"WE HAVE NO PROBLEM WITH THE FIRST 4 ARTICLES"

Our President also made a statement regarding the first 4 articles. He said, 'There is no such issue as changing them on our agenda.' We have no debate regarding the first 4 articles. One must distinguish between commission discussions and constitutional discussions. The constitution is different, the process commission is different. It would be correct to discuss the subject we call the constitution in its own channel. The MHP has been one of the parties working the most. Our advice to other parties is that they should work in their own kitchens and come together. If we can succeed in making a new constitution with the contributions of civil society and universities, it would be a great success.

"WE HAVE COMMON INTERESTS WITH EUROPE"

A new global environment has emerged. The old liberal global order has weakened. There is no such thing as international law left. What Israel is doing is obvious. We are in a new environment. Security concerns have increased all over the world. In this environment, it seems that a new space has opened up in Turkey-EU relations. We cannot, of course, see this only as a security-oriented partnership. Security is, of course, very important. But beyond that, our economic relations are also very valuable. There are issues such as the modernization of the Customs Union, visa liberalization, and facilitation. We have objective common interests. Some member countries of the Union are trying to reflect anti-Turkey policies through the EU. Hopefully, we will overcome these in the new environment. We are in favor of a positive agenda. A close position has been formed on the occasion of Ukraine-Russia. I attended several volunteer meetings at the leaders' level representing our President. I hope these developments will lead to a new perspective. Updating the Customs Union is to the benefit of both sides. The US has made an agreement with Europe. Agreements with China and the Far East have not yet been reached. We are following this issue closely. The tariffs applied to us are at the lowest rates. Turkey is facing great opportunities in the new process. There is visa liberalization and there is visa facilitation. Now, some steps will be taken regarding facilitation. This decision has been made, but we cannot say that it has been fully implemented. Especially for the business world, more relieving steps will be taken. The commission had this decision.

RUSSIA-UKRAINE RELATIONS

Could Zelensky and Putin meet in Istanbul? Why not? Our President managed the process firmly with effective communication. By accepting Ukraine's legal position, on the other hand, he managed the process extremely positively with Mr. Putin. As a leader who can talk to both sides in a relationship of trust, he is at an important point. Concrete results were achieved, from the grain agreement to prisoner exchanges. Turkey is always an alternative for a solution.

NETANYAHU'S 1915 REMARKS

Netanyahu's expressions are unfortunate and null and void. They correspond to neither historical nor legal reality. Netanyahu's clear and net genocide against the Palestinians in Gaza is a matter for which he should be held accountable. Indeed, he is being tried in an international court for genocide. He is putting forward these expressions as a reaction against Turkey's loud defense of the Palestinian cause. We will continue to voice the Palestinian people in all diplomatic platforms with a loud voice. Instead of putting forward empty and invalid claims, what Netanyahu needs to do as soon as possible is to ensure a ceasefire, ensure the uninterrupted arrival of humanitarian aid to Gaza, and produce a political solution with a two-state structure. The words he utters to shadow these have no validity.

"INFLATION HAS BEEN FALLING FOR 14 MONTHS"

We had divided the fight against inflation into 3 stages. One is the transition process, the second stage is disinflation, and the third is permanent price stability. The disinflation process has begun. The inflation rate is falling uninterruptedly. A 42-point drop has occurred. When we look at the end of the year, we easily see it below 30. We see that it will be in the 25-29 range. When you look at the trend, we are going in the right direction. There were out-of-program effects originating from within and outside the country. Drought, frost events. It is not possible for you to foresee these in the program. After the İmamoğlu investigation, attempts were made to stir up the streets. Militant groups taking to the streets. Trump's tariff effect. After Trump announced the new tariffs, the risk premium increased in all countries. There is also the Israel-Iran war. All external factors can have positive or negative effects, but the essential thing is the program. If you implement it decisively, you reach your goal sooner or later. We see 20s figures at the end of this year. The following year; that is, in 2026, we will see 10s figures. We will also reveal our estimate when we complete the MTP. We will continue our struggle until single-digit figures. We want to bring our country back to single-digit figures in 2027.

"WE EXPECT A DROP IN INTEREST RATES"

The trend in inflation is clear. We expect a drop in interest rates. All over the world, households' inflation forecasts are higher than those of market participants. This is the general situation. Households look at the past. Market participants, on the other hand, make more professional, future-oriented forecasts. In our country, the inflation expectation of market participants has fallen to 22.8. Our citizens still have high expectations. Compared to the past, there is also a decline in our citizens' expectations. When the citizen expects that way, they shape their demands accordingly. There are two dimensions to breaking these expectations. First, to reduce inflation. As we reduce it, those perceptions are broken. Second, communication. We have to communicate the trend regarding inflation well. At the G20 meeting, there was a discussion of Central Banks, about the effect of social media on communication. We also need to show more effort on the communication side. It is important to explain the success in inflation and break that psychology. In social sciences, there is something called a self-fulfilling prophecy. If everyone believes in something, right or wrong, the result goes there. We will bring expectations to a more reasonable level with real policies and communications.

"WE ARE WORKING WITH ALL INSTITUTIONS FOR THE MTP"

Macroeconomic indicators, growth, current account deficit, import-export figures in the MTP. An update will be made here. Secondly, the magnitudes of the budget. Thirdly, structural reform topics. We need to complete the macro indicators in the first week of September. We are working with all our institutions. We will announce them when we complete them. We do not expect a very large deviation on the growth side. It may be slightly below the target. The point we have reached in the current account deficit seems to be a figure around 1.5. We are in a better position than the MTP in many indicators. One should not expect to hit the bullseye in forecasts. The world is dynamic, the important thing is the direction.

"THE COST OF EXTERNAL FINANCING HAS DECLINED"

We see industry as very important. We are always in an effort to be by its side. Inflation is in a downward trend. Interest rates have also entered a downward cycle. We can easily state that financial conditions will improve much more in the coming period. Since our current account deficit has fallen, our need for external financing has decreased. Since the country's risk premium has fallen, the cost of external financing has declined. When you look at it in terms of external financing right now, costs are in a downward trend. A financial period was experienced internally, there was a normalization process. Our Central Bank's reserves are in a period of historic rise. We have realized the exit from the KKM. We are aware that there was a recovery in the industry in the second quarter. The recently announced figures point to growth of around 8 percent.

The problem in the industry is in labor-intensive sectors. Such as ready-to-wear, furniture, leather. Increases in wages, developments in exchange rates. Most importantly, the weakness of external demand. We are developing some measures against this. We have started to provide 2,500 TL per employee to our SMEs. Rediscount credits are 27 percent plus. We are providing investment loans. We are doing whatever we can for our industry. We really care about the industry. Some of these difficulties are related to the conjuncture in the world. There is idle capacity in the world. Idle capacity has formed after the pandemic, especially in China. Recently, there has been an increase in concordat within certain limits. It needs to be examined carefully. In periods when financial costs are high, there are those who try to use the finance themselves instead of paying the debt. I am not saying this for all of them. I am saying it for those who abuse it. The wheat should be separated from the chaff. Concordats are realized with external evaluation reports. Some irregularities and deficiencies have been detected there.

"THINGS WILL FALL INTO PLACE"

The loss in question is being experienced in the labor-intensive part of the industry. We have taken measures for this. We have started the application of 2,500 TL support per employee in SMEs. If we are to talk about employment in a general sense, we have many studies from vocational training to new models in working life. We will also implement these. Employment is also an event that changes people's lives. Therefore, we see employment as one of the most fundamental areas. We support youth and women's employment. We have made quite a lot of progress in employment, but there is still a way to go. It is an area that will be resolved with the improvement of the investment environment in the industry, the improvement of financial conditions, and our selective policies. We can say that the perspective in our industry is positive. After a while, things will fall into place more. In addition, there is a need for transformation in the industry. We believe that logistics needs to be strengthened. We have prioritized the connection of ports with railways and organized industrial zones. Our Ministry of Energy has efforts to reduce costs in terms of energy.

RENT AND HOUSING PRICES

Our annual inflation is 33.5. Fuel has increased by 14 percent in the last 1 year. It did not increase more. There is a better trend in food prices. State schools are free. Private education concerns 10 percent of the population. We see exorbitant increases there. This also negatively affects inflation. A decline process has also begun in rent, but it is still high. 28 percent of the society are tenants. A significant part of the society has a house, and some live without paying rent, in their father's or mother's house. The main issue here is in the metropolises. High rents are here. It greatly affects purchasing power. We have been carrying out studies on this subject for a long time. We spent 3 trillion on the earthquake zone. We will deliver 450 thousand residences in the earthquake zone. The social housing campaign is what we really want to do. Mr. Murat Kurum has been preparing for a long time.

"20 PERCENT OF THE SOCIETY LIVES ALONE"

As soon as the earthquake burden eases, we will make a new breakthrough. Rents will come down. We say let's build settlements near organized industrial zones. We have a new demography. Our fertility rate has fallen. 20 percent of the society consists of single-person households. For this reason, we established the Population Policy Board. I am chairing it. We are doing very important work. Developed countries have policies to increase the population. For example, the marriage age has reached 26 for women and 28 for men. People entering working life at an early age is seen as important in terms of population dynamics. There is social housing and increasing food supply, and the issue of energy, logistics. And human capital, vocational training. Together with these, we continue our fight against inflation. These are areas that require effort. We are thinking of announcing our social housing policy by the beginning of the year.

"KKM SUCCESSFULLY PERFORMED ITS DUTY"

When KKM started, there was a Central Bank and a budget leg. Then it was removed from the budget. The Central Bank managed it. Balance sheets are being announced. KKM should be discussed with its pros and cons. It was foreseen as a temporary measure. We even made the law as a temporary article. It was the need of that period and now it has served its purpose and is now exiting the system. I think we also displayed a very successful management. At one point, it had exceeded 140 billion dollars. We brought it to this point in 2.5 years, gradually, without disturbing the markets and without causing anxiety. I can say that it was a very successful operation. It is necessary to study its benefit and cost together. It did its duty.

"FOREIGN INVESTORS HAVE STARTED TO COME"

A serious normalization has been achieved right now. We see this in the reserves. There is a contraction in the world. Even though we are increasing our share, there are no large increases compared to the past. The general pie is in a downward trend. We are doing our best in this regard. We are working with our Presidential Finance Office, which envisions increasing both its quantity and quality. We are in an effort to increase these investments with many studies. The essential thing is the investment environment. When the environment improves, there will be investment both from inside and outside. There is significant relief in many items. In the coming periods, we will see a decline and relief in rents, along with the general macroeconomic trend.

"OUR ECONOMY IS RESILIENT TO SHOCKS"

I can say that we have a financial structure that is very resilient to external influences. Our Central Bank's reserve is at a historic high. Our banking system is strong. The important thing is that transactions are easily carried out within a registered and electronic environment.