| FROM CHIEF | Murat SARAYLI |
| Chairman of the Board of TUGIAD/Confedereration of Young European Businessmen (YES) |
|
LET’S PROTECT THE ECONOMIC STABILITY TOGETHER |
In a sense, the political and economic stability obtained in the last four years have supported and strenghtened each other. In the same period single-digit inflation rate has been obtained for the first time and continuous economic growth has been achieved for the last 18 quarter periods.
Again in the same period the decision to start the negotiations of full-membership on October 1, 2005 following the determination of Turkey about EU and the reforms has also strenghtened the economic stability. The perspective of full-membership to EU has brought Turkey a new place and viewpoint in the international platform with a more comprehensive transformation and development goal beyond the economic stability.
In fact, Turkey has started to constitute a considerable potential with its EU perspective, political stability and economic reforms and performances in the international platform. Turkey has also started to take its place among the emerging economies of the next twenty years with its demographic characteristics. Turkey is considered as a country with a rapid economic growth and development potential together with the countries such as China, India, Russia and Brasil.
This potential of Turkey and its new statute in the international platform has started to accelarate its integration with the world economy. There is a rapid increase in the foreign investments into Turkey. Annual 20 billion dollar inflow foresights is being made when foreign capital inflow was 9.8 billion dollar in 2005. The interest of foreign capital is important and it is the most important indicator of the potential of Turkish economy. It is very important that the economic stability obtained recently is protected in order that Turkey becomes a developed prosperous country in the medium and long term. For this reason, protection of economic stability should be our basic priority and responsibility.
2007 will be a critical and sensitive year in this sense. Our economy can be considerably affected by the domestic and foreign dynamics despite all the positive developments. In fact, early payment of the debts to IMF in April 2006 and expressions regarding the termination of the relations has given harm and it resulted in an interest burden of additional 8.5 billion YTL in 2007 budget.
The agenda of the next year will be focused on policy due to the Presidential elections and general elections. It is expected that the effects of slowdown in the world economy of USA origin will be experienced in the same period. In such a sensitive period it becomes more important to protect the economic stability.
We have many responsibilities to protect the economic stability. However, the heavy burden of this responsibility is on the shoulders of politicians. Turkey should be able to make the presidential election by obtaining the social agreement. Constructive expressions and common sense should prevail also during the general elections.
In this period, it is very important that the government maintains the financial discipline and reforms with the same determination before implementing the election economy. The reforms and legislation studies in the EU process should be maintained without any breakdown. Current account deficit, price stability and unemployment will be sensitive issues in the economy of 2007. The Government should not avoid taking determined precautions in these areas.
In short, sustainability of economic stability that Turkey has reached after long years depends on political stability and political stability depend on social common sense and maturity. For the future of our children, we will succeed, we have to succeed.
