Reform message from Mehmet Şimşek

Minister of Treasury and Finance Mehmet Şimşek made statements regarding the SEE reform. Stating that there are 19 SEEs under the control of the central government, Şimşek noted that 8 SEEs are among the 500 largest industrial enterprises recently announced by the Istanbul Chamber of Industry (ISO).

Pointing out that SEEs account for 7.4 percent of GDP and 24 percent of public investments, Minister Şimşek stated that 2 percent of public employment comes from SEEs.

Şimşek indicated that SEEs, which have an important place in the country's economy in critical sectors such as energy, transport, and agriculture, are at the center of public financial management reforms. Emphasizing the importance of reforming SEEs, which account for 6.2 percent of the transfers to be made from the central government budget in 2024, Şimşek announced that they have included the work in the Medium-Term Program (MTP).

Noting that the current regulation does not fully meet commercial principles and that a new regulation is therefore inevitable, Şimşek stated that the reform consists of two parts. Şimşek said, "We have completed the first phase of our reform work, which we initiated to increase transparency and accountability in SEEs, and we have presented our work to the Economic Coordination Council."

"OUR STANCE ON FISCAL DISCIPLINE IS CLEAR"

Pointing out that the boards of directors of SEEs will be made more professional, Şimşek also drew attention to the fact that procurement procedures will be reorganized around corporate governance principles, efficiency, and profitability.

Stating that they are carrying out this work to ensure that SEEs comply with internationally accepted transparency standards and to strengthen their accountability, Şimşek said, "With this reform, we will bring our state economic enterprises closer to global practices."

Explaining that they will thus bring SEE governance into line with international norms, Şimşek made the following assessment:

"Our reform efforts are consistent with our austerity measures. We are managing our expenditures efficiently. Our fiscal discipline is strengthening with the effective use of public resources. Our stance on fiscal discipline is clear. We are reinforcing the harmony between monetary and fiscal policy. The steps we have taken and the decisions we have made are also reflected in the indicators. We have taken the necessary measures to prevent permanent deterioration in the indicators, and we will continue to do so."