CHP's Karabat to Minister Şimşek: Chasing hot money instead of production reform

Republican People's Party (CHP) Deputy Chairman, Istanbul MP, and member of the TBMM State Economic Enterprises (KİT) Commission, Özgür Karabat, made a post on his social media account titled "The hot money story is being put into play again for inflation."

"AKP WANTS TO ACTIVATE THE PRIVATIZATION PROGRAM"

Karabat stated that the only assurance for Treasury and Finance Minister Mehmet Şimşek's claims that inflation will fall to single digits in 2026 is the inflow of 'foreign resources,' adding, "The AKP wants to activate its privatization program, including selling off the last remaining power plants. By slashing the salaries of workers and retirees, it is already implementing an unofficial IMF program."

Özgür Karabat noted the following in his statement:

"ŞİMŞEK'S ONLY ASSURANCE IS 'FOREIGN RESOURCES'"

Mehmet Şimşek says that inflation will fall to single digits in 2026. Şimşek's only assurance here is the inflow of foreign resources, that is, hot money.

Let's explain this through data. When we look at the inflation table over the years, you can see that the periods of single-digit inflation were periods when there was an intense inflow of hot money into Turkey. Since 2002, the AKP has built an economic model that serves the global financial system and is dependent on foreign inputs and hot money. Turkey's record-breaking exports are similarly dependent on record-breaking imports. The necessary steps regarding the production of intermediate goods and raw materials have not been taken. This is a conscious choice. As a diplomatic concession to some countries, it was said, 'We will import from you.' The export and growth story that the AKP and Mehmet Şimşek constantly mention has no equivalent on a global scale.

"MEHMET ŞİMŞEK WANTS TO SAVE THE DAY"

Turkey has fallen out of the ranking of the 20 largest economies, income inequality has deepened, and poverty has increased. Mehmet Şimşek wants to save the day and is once again chasing hot money instead of implementing production reform. This money will flow into the stock market and interest rather than direct investment, and it will not be a remedy for Turkey's structural problems. As we have stated before, the AKP wants to activate its privatization program, including selling off the last remaining power plants. By slashing the salaries of workers and retirees, it is already implementing an unofficial IMF program. With the diplomatic concessions made and current economic policies, global funds are expected to come to Turkey. Of course, in this process, the US and the EU need to cut interest rates. Due to the uncertainty of global inflation and interest rate targets, the AKP's plans are also faltering. For this reason, they first said 2025 for single-digit inflation, then saw that things were not going as desired in the world, and now they have said 2026.

'THOSE WHO RECEIVE FUNDING WILL TAKE ORDERS TOMORROW'

You see, the AKP is on stage with the same story again. We must not allow this. Those who receive resources as hot money today will take orders from the same places tomorrow.