Financial Times: 'Erdoğan is more concerned with his own political future than the economy'
CHP presidential candidate hopeful and Istanbul Metropolitan Municipality (IMM) Mayor Ekrem İmamoğlu was detained in a raid on his home on March 19. In addition to İmamoğlu, detention warrants were issued for 105 people on charges of terrorism and corruption. Following the operation against İmamoğlu, the dollar rose above 41 TL, while Bloomberg claimed that the Central Bank sold 8 billion dollars to keep the exchange rate under control. The Financial Times (FT) published an analysis on how the detention orders against the opposition would affect the economy, stating that the economic gains achieved during the term of 'market-friendly' Treasury and Finance Minister Mehmet Şimşek could be lost.
12punto
12punto FOREIGN NEWS
The British newspaper Financial Times included an analysis in its economics section regarding the detention of Ekrem İmamoğlu. The newspaper pointed out that the detention process puts the economic program implemented during the Şimşek era at risk. It was noted that the decline in inflation following Şimşek's return to the ministry is now in danger due to recent events.
Reporting that Turkey is an important partner for increasing Europe's defense capacity, the FT recalled that President Recep Tayyip Erdoğan promised to return to orthodox economic policies after the 2023 general elections. The FT also emphasized that Turkey is a key partner in efforts to build a security force for Ukraine.
Touching on Turkey's position within NATO, the FT stated the following:
''As Europe strives to strengthen its defense and build a security force for post-war Ukraine, Turkey, which has the second-largest standing army in NATO and a growing defense industry, is seen as a vital partner. Meanwhile, investors had also begun to believe that Recep Tayyip Erdoğan would return to orthodox economic policies after his presidential victory in 2023. The detention by police of Ekrem İmamoğlu, the popular mayor of Istanbul and Erdoğan's main political rival, has cast a shadow over these hopes and the future of democracy and the rule of law in Turkey.''
Following the volatility in the dollar/TL exchange rate, Şimşek made a social media post, saying, 'Everything necessary for the healthy functioning of the markets is being done. The economic program we are implementing continues with determination.'
'INVESTOR CONFIDENCE SHAKEN'
It was stated that investors' expectations that Erdoğan would return to orthodox economic policies following his 2023 election victory have been shaken by the detention of İmamoğlu. The newspaper shared the information that this situation has increased concerns about democracy and the rule of law in Turkey.
Questioning the promises Erdoğan made regarding economic policies, the FT reported the following:
''The developments threaten the economic gains made since he brought back market-friendly Mehmet Şimşek as finance minister, who helped sharply reduce inflation in 2023. The sharp fall of the Turkish Lira against the dollar on Wednesday is a sign that investors fear the President's commitment to structural reforms cannot be trusted. Many worry that the President is more concerned with his own political future than the economy.''
Drawing attention to the recent depreciation of the Turkish Lira, the Financial Times stated that there is a loss of confidence in Turkey in the markets. It was claimed that the situation of the TL, which experienced a sharp drop against the dollar on Wednesday, weakened the belief in Erdoğan's commitment to structural reforms. The newspaper said that many circles have concerns that Erdoğan is focusing more on his own political future than on economic stability.