ISTANBUL: Turkey does not expect to face European Union sanctions over a dispute with Greece in the eastern Mediterranean, Foreign Minister Mevlut Cavusoglu said on Monday, a day after a Turkish survey ship pulled out of contested waters.
The EU says it fully supports member states Greece and Cyprus in their dispute with Turkey and has said it is drawing up potential sanctions if dialogue does not begin. The bloc’s leaders could make a decision at a summit on Sept. 24-25.
Cavusoglu repeated Turkey was open to talks without pre-conditions, but added that the seismic research vessel Oruc Reis will soon resume operations after it anchored off Turkey’s southern coast on Sunday.
He said he did not expect EU leaders, who have already agreed modest sanctions against Turkey, to take further steps next week but such measures could not be ruled out.
“It could be against our ship, our company, individuals. They took such decisions in the past. Have we given up on our determination? No, our determination increased,” he told broadcaster NTV.
Tensions have risen over claims and counter claims pitting Turkey against Greece and Cyprus — which are backed by France — to maritime areas potentially rich in natural gas. Several countries have conducted naval exercise in the region, and Turkey has other vessels searching for oil and gas off Cyprus.
The threat of sanctions has in part pushed the Turkish lira deeper into record low territory, complicating the country’s recovery from a sharp economic slump due to the coronavirus pandemic.
Turkey’s Presidential spokesman Ibrahim Kalin tweeted on Monday that a peaceful solution could be found. “Greece and EU countries must not waste the chance given for diplomacy and must take reciprocal steps,” he said, without elaborating.
In a brief visit to Cyprus on Saturday, Secretary of State Mike Pompeo said the United States remains “deeply concerned” about Turkey’s actions at sea. Ankara responded that Washington needed to be more neutral.
Turkey does not expect EU sanctions over eastern Mediterranean dispute
https://arab.news/w3ebn
Turkey does not expect EU sanctions over eastern Mediterranean dispute
- EU fully supports member states Greece and Cyprus in their dispute with Turkey
- Threat of sanctions has in part pushed the Turkish lira deeper into record low territory
Turkiye to forge on with tight economic policy, some fine-tuning, VP Yilmaz says
- The central bank forecasts inflation between 13-19 percent by end-2026
ISTANBUL: Turkiye is committed to carrying on its tight economic policies in order to cool inflation, and though it may fine-tune the program it will not change course, Vice President Cevdet Yilmaz said in comments embargoed to Friday.
“There is no plan to pause our program,” Yilmaz said at a briefing with reporters in Istanbul on Thursday. “All programs are dynamic, and adjustments can always be made.”
Yilmaz, who plays a key role overseeing economic policy at the presidency, said any such adjustments would aim to support production, investment and exports while moderating consumption.
Turkiye has pursued tight monetary and fiscal policies for more than two years in order to reduce price pressure, leading to high financing and borrowing costs that have weighed on businesses and households. Inflation has eased slowly but steadily over the last year but remains elevated at 31 percent annually.
Last month, Is Bank CEO Hakan Aran warned that focusing solely on one target — inflation — could create side effects, suggesting a “pause and restart” might be healthy once the program achieves certain targets.
Yılmaz said the government expects improvements in inflation in the first quarter, which should reflect to market expectations for year-end inflation around 23 percent. The government projects inflation to dip as far as 16 percent by year end, within a 13-19 percent range, and falling to 9 percent in 2027. The central bank forecasts inflation between 13-19 percent by end-2026.
Yilmaz noted inflation fell by nearly 45 points despite pressure from elevated food prices, hit by agricultural frost and drought.
The agricultural sector is expected to support growth and help ease price rises this year, which could help achieve official inflation targets, he said.
Yilmaz said the government wants to avoid a rapid drop in inflation that could hurt economic growth, jobs and social stability.
Turkiye’s economic program was established in 2023 after years of unorthodox easy money that aimed to stoke growth but that sent inflation soaring and the lira plunging. The program aims to dislodge high inflation expectations while boosting production and exports, in order to address long-standing current account deficits.
The central bank, having raised interest rates as high as 50 percent in 2024, eased policy through most of last year, bringing the key rate down to 38 percent.
Asked whether lower rates could trigger an exit from the lira currency, Yilmaz said: “What matters is real interest rates. Lowering rates as inflation falls does not affect real rates, so we do not expect such an impact.”
He added that the government will strengthen mechanisms that selectively support companies while improving overall financial conditions.
