Houthi attacks against Saudi civilians doubled in 2021: Report

Yemen, the poorest country in the Arab world, was plunged into conflict in 2014 when the Houthis, ideologically aligned with Tehran, violently seized the country in a coup. (Reuters/File Photo)
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Updated 21 December 2021
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Houthi attacks against Saudi civilians doubled in 2021: Report

  • More than 4,100 attacks on Kingdom and other targets have been carried out by the Houthis since 2016
  • CSIS experts urge US to provide more support for Saudi air defenses and to raise international awareness of Iran’s enabling of attacks

LONDON: The number of attacks by the Iran-backed Houthi militia in Yemen on Saudi Arabia, predominantly targeting civilian locations, doubled during the first nine months of 2021 compared with the same period a year earlier, according to research by a US think tank.

The report, by the Center for Strategic and International Studies in Washington, also called on the US to provide Saudi Arabia with additional aid to defend itself against the attacks, and to highlight the key role Iran plays in facilitating them.

“Iran and Ansar Allah (Partisans of God), better known as the Houthi movement, have conducted a campaign of high-profile attacks against civilian Saudi Arabian and coalition targets in the Gulf,” according to the CSIS report, which was released on Tuesday.

“The Houthis are orchestrating an increasingly intense irregular warfare campaign against Saudi Arabia and other countries in the Gulf using sophisticated cruise and ballistic missiles, UAVs (unmanned aerial vehicles, commonly known as drones), and other stand-off weapons.”

CSIS studied a total of 4,103 attacks from within Yemen on Saudi locations, and against maritime and other targets, between Jan. 1, 2016, and Oct. 20, 2021. It found that “the number of Houthi attacks per month doubled against Saudi Arabia and other targets over the first nine months of 2021 compared to the same period in 2020.”

It also found that Iran’s Islamic Revolutionary Guards Corps, which answers directly to the country’s supreme leader, “has provided the Houthis with training and a growing arsenal of sophisticated weapons and technology for anti-tank guided missiles, sea mines, explosive-laden UAVs, ballistic and cruise missiles, unmanned maritime vehicles, and other weapons and systems.”

The report noted that the Quds Force, the expeditionary arm of the IRGC, worked alongside Lebanese Hezbollah to improve Houthi capabilities “at a relatively low cost,” especially, it adds, when compared with the cost to Saudi Arabia of improving the air defenses required to negate the threat posed by missile and drone attacks.

“The United States and its allies should conduct a more aggressive campaign to publicly highlight Iranian and Houthi actions and provide additional security assistance to Saudi Arabia and other Gulf states,” it said.

Yemen, the poorest country in the Arab world, was plunged into conflict in 2014 when the Houthis, ideologically aligned with Tehran, violently seized the country in a coup against the internationally recognized government. Saudi Arabia subsequently intervened, alongside an international coalition, against the Houthis and in defense of the UN-backed Yemeni government.

“Not only has there been a rise in the number of attacks against Saudi Arabia over the past year, but Iran and Lebanese Hezbollah continue to provide the Houthis with increasingly sophisticated weapons systems,” the CSIS warned.

“The Houthis now have a growing assortment of cruise and ballistic missiles, UAVs and other stand-off weapons capable of striking targets throughout the Gulf — and beyond.”

One way that Washington could continue to support the Kingdom is by ensuring supplies of Patriot surface-to-air missiles remain forthcoming, according to the report. In addition, it said, the US “should provide additional counter-UAV technology, since Patriot systems have limited utility against small UAVs.”

This would help to mitigate the threat of attacks using small drones, which have become increasingly prevalent this year.

But while counter-drone technology would reduce the physical threat to Saudis it is also key, said the CSIS, that the international community is made more aware of the key role Tehran plays in stoking the flames of war in Yemen.

“Growing public awareness of the extent of Iranian support for the Houthis could also put pressure on multilateral organizations, such as the United Nations, to condemn Iranian intervention more forcefully in the conflict and demand that the Houthis renounce Iranian support as a part of peace negotiations,” according to the report.

In a final warning, the CSIS said: “Without a more effective campaign to publicly highlight and counter these attacks and help Saudi Arabia defend itself, however, Iran and the Houthis will continue to destabilize the region.”


No pollution from ship hit by Houthis in Red Sea, Yemeni minister says

The MV Rubymar cargo ship sinking off the coast of Yemen, Feb. 26, 2024. (Al-Joumhouriya TV/AFP)
Updated 18 sec ago
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No pollution from ship hit by Houthis in Red Sea, Yemeni minister says

  • A Yemeni government official told Arab News on Monday that the UN team, made up of experts from various UN bodies, informed the Aden-based Yemeni government that rescuing the ship was “impossible”

AL-MUKALLA: Yemen’s Water and Environment Minister Tawfeeq Al-Sharjabi said his ministry found no signs of pollution from a ship filled with fertilizer and gasoline that sunk in the Red Sea.

“No leakage has come from the vessel yet, although it remains an environmental concern at all times,” the Yemeni minister told Arab News. He urged the world to assist the war-torn country in recovering the vessel.

In February, Yemen’s Houthi militia fired missiles at the Belize-flagged and Lebanese-operated MV Rubymar, which was carrying 22,000 tonnes of ammonium phosphate-sulfate NPS fertilizer and more than 200 tonnes of fuel while sailing in the Red Sea, severely damaging it and causing a large oil slick in the sea.

The ship eventually sank, prompting warnings from authorities as well as local and international environmentalists that the ship’s cargo could seep into the water or explode.

The Houthi attack on the ship was part of a larger operation targeting naval and commercial ships in the Red Sea, Bab Al-Mandab Strait and the Gulf of Aden, which the Yemeni militia claims is in support of the Palestinians.

At the same time, a UN team that examined the sinking ship in March concluded that it could not be recovered owing to the expense and a lack of equipment, suggesting that the ship be left to sink.

A Yemeni government official told Arab News on Monday that the UN team, made up of experts from various UN bodies, informed the Aden-based Yemeni government that rescuing the ship was “impossible” and advised the Yemeni government to continue monitoring the ship via a remotely operated vehicle, as well as the country’s coastline for signs of pollution.

“The UN team said that they hoped the ship would sink to the bottom of the sea and that the leaking would occur in stages, allowing the fertilizer to disintegrate and causing no harm. Their primary fear is that the leak may occur in a single day,” a Yemeni government official said, adding that recovering the ship would be more difficult the deeper it sank.

As for the ship’s fuel load, the UN team believed that it would not do much harm if it spilled into the water gradually, but they did not rule out the option of sucking it from the ship via pipes, the Yemeni official said.

Meanwhile, the US Central Command said that its forces on Sunday shot down a drone over the Gulf of Aden that was launched by the Houthis from regions under their control. The Houthis have not claimed credit for the new wave of drones and ballistic missiles intercepted by the US-led maritime coalition in the Red Sea since Thursday.

This comes as the EU mission in the Red Sea, known as Eunavfor Aspides, said on Monday that a Dutch warship, HNLMS Karel Doorman, has joined its fleet of ships in the Red Sea to safeguard commercial ships against Houthi attacks.

“We thank the Netherlands for their swift and precious contribution. EUNAVFOR ASPIDES is getting stronger,” the EU mission said in a post on X.

 


Turkiye’s Erdogan hosts Greek PM, sees ‘no unsolvable problems’ in bilateral ties

Greek Prime Minister Kyriakos Mitsotakis (L) and Turkish President Recep Tayyip Erdogan pose before a meeting in Ankara. (AFP)
Updated 2 min 22 sec ago
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Turkiye’s Erdogan hosts Greek PM, sees ‘no unsolvable problems’ in bilateral ties

  • “Despite disagreements, we focus on a positive agenda by keeping our dialogue channels open,” Erdogan said
  • “We showed today that alongside our proven disagreements, we can chart a parallel page of agreements,” Mitsotakis said

ANKARA/ATHENS: Turkish President Tayyip Erdogan told Greek Prime Minister Kyriakos Mitsotakis during talks in Ankara on Monday that there were “no unsolvable problems” between their countries.
Turkiye and Greece, NATO allies and historic foes, have long been at odds over issues including maritime boundaries, energy resources in the eastern Mediterranean, flights over the Aegean Sea, and ethnically split Cyprus.
After years of tensions that brought the two to the brink of conflict, they have started taking high-profile steps to improve ties, especially since both leaders were re-elected last year.
“Despite disagreements, we focus on a positive agenda by keeping our dialogue channels open,” Erdogan told a joint press conference with Mitsotakis.
Mitsotakis said the leaders’ frequent meetings in recent months had “proved that we neighbors can establish an approach of mutual understanding, not as an exception but as a productive normality.”
“We showed today that alongside our proven disagreements, we can chart a parallel page of agreements,” he added.
Erdogan visited Athens last December and the two countries signed the “Declaration of Athens” aimed at setting the base for a roadmap to rebooting relations.
They agreed to boost trade, keep communication channels open, carry out military confidence-building measures to reduce tensions, and work on problems that have kept them apart.
The two leaders disagreed over how to classify the Palestinian militant group Hamas. Erdogan reiterated his view that it is a “resistance movement” and said he was saddened by the Greek view — shared by many other Western countries — that it is a terrorist organization.
“Let’s agree to disagree,” Mitsotakis replied.
“Unprecedented heights”
On Sunday, Mitsotakis told Turkish daily Milliyet that his visit to Ankara — the first in five years — was an opportunity to evaluate progress and to reiterate Athens’ commitment to improving ties.
Erdogan, speaking to Greek daily Kathimerini on Sunday, said the main goal was to “raise the level of our bilateral relations to unprecedented heights,” adding the neighbors had many issues they could agree on while seeking solutions to their problems.
However, the allies remain at loggerheads over several issues including maritime jurisdiction.
Greece’s plan to build a marine park in the Aegean, which it says is for environmental purposes, has upset Turkiye, while Athens was annoyed by Turkiye’s decision to turn the ancient Chora church, previously a museum for decades, into a mosque.


Five Israeli soldiers injured in intense clashes along Lebanese border

Updated 19 min 13 sec ago
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Five Israeli soldiers injured in intense clashes along Lebanese border

  • Drones used in attack were made in Lebanon, Hezbollah says
  • Southern front ‘no less important than what is happening in the Gaza Strip,’ lawmaker says

BEIRUT: Lebanon’s Hezbollah on Monday claimed responsibility for a strike that Israel said wounded five soldiers in the country’s north, the latest casualties in more than seven months of cross-border clashes.

The group said it carried out “an aerial attack with a swarm of suicide drones targeting Israeli soldiers’ sleeping quarters in Beit Hillel.”

The attack succeeded in “killing and injuring Israeli commanders and soldiers … (at a) newly established site for the 403rd Reserve Artillery Battalion of the 91st Division south of Beit Hillel,” it said.

The Israeli Ziv Medical Center reported “the arrival of four injured soldiers due to a fusillade near the Yiftah settlement in northern Israel on the Lebanese border.”

The Israeli army later said that five soldiers had been injured.

Meanwhile, Israel conducted a drone strike on the Lebanese town of Chihine, with no casualties reported.

At the time of the raid, residents were fleeing the area after coordinating with UNIFIL forces operating in the region and the Lebanese Army.

The Israeli army also fired artillery and machine guns at targets on the outskirts of Mays Al-Jabal.

The resumption in hostilities came after a relatively calm Sunday and ahead of a speech by Hezbollah’s secretary-general on Monday evening.

The group also said it “targeted a group of Israeli soldiers in the Israeli site of Birkat Risha.”

Israeli media reported that missiles were launched at Pranit Barracks in Western Galilee in Lebanon.

Hezbollah said it destroyed a Merkava tank with a guided missile and caused casualties “after closely observing the movements of the enemy at the Yiftah barracks.”

It also targeted Israeli soldiers near the Al-Jardah site.

The Israeli army said a drone fired from Lebanon fell in the Zarit area but no one was hurt.

Lebanese security reports said: “Hezbollah introduced new weapons into its military operations. These included heavy missiles and a new drone with optical or thermal guidance to target the Israeli Iron Dome.”

Hezbollah lawmaker Hassan Ezz El-Din said that the support front that Hezbollah had opened in southern Lebanon to help the Gazans was “no less important than what is happening in the Gaza Strip.”

The group “has so far only used traditional weapons developed by brothers working in the national industry. So, these drones are a Lebanese national industry,” he said.

After discussions on a ceasefire settlement on the southern front ended, Lebanese Army Commander Gen. Joseph Aoun met Qatar’s Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani in Qatar.

The Foreign Ministry quoted the prime minister as saying that Qatar would “continue to provide support to the military institution so that it can continue its essential role in preserving Lebanon’s security and stability.”

The ceasefire efforts focus on the implementation of UN Resolution 1701 through the reinforcement of the Lebanese army in the border region and the withdrawal of Hezbollah from it.

Villages and towns in southern Lebanon have been deserted for more than seven months after residents fled the Israeli shelling of their homes. Those that remain have to race to bury their lost loved ones between attacks.

Fadi Hounaikah and his family were killed in an Israeli raid as they examined the remains of the supermarket they once ran and which had been damaged in a previous strike.

A local security source said Hezbollah had advised local people attending funerals not to check on their damaged properties during processions because of the dangers involved.

Residents should instead “accompany the funeral procession and take maximum precautions to ensure their safety,” the group said.

Also, after infrastructure maintenance teams were targeted by attacks, UNIFIL mediated with the Israeli side to allow them set times to carry out essential repairs to water, electricity and telecommunications systems.

However, a technician and a paramedic were killed last week when a maintenance team for a mobile service provider was targeted by an Israeli raid, despite being accompanied by the Lebanese Army.

 


Can Israeli PM Netanyahu achieve his stated war objectives with Rafah assault?

Updated 14 min 24 sec ago
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Can Israeli PM Netanyahu achieve his stated war objectives with Rafah assault?

  • Despite claim there are four brigades in Rafah, it is unclear how many operational fighters Hamas still has
  • Some Israeli analysts say Israel needs to make Hamas ideologically and politically irrelevant, not do the opposite

LONDON: This week, before-and-after imagery released by US commercial satellite company Planet Labs showed the extent of the damage inflicted in just one day by Israeli forces on the outskirts of Rafah, close to the Egyptian border.

This is not the city of Rafah itself — yet. Awaiting a resolution of the political standoff between their government and the US, which has threatened to stop supplying ammunition if Israel invades Rafah, the 98th Airborne and the 162nd Armored divisions are massing to the south of the city.

In the satellite imagery captured on Tuesday, groups of tanks can be seen in the vicinity of the Rafah crossing, which Israeli troops occupied and closed on Monday, and grouped in several other strategic locations.

While they are waiting, however, they have been laying waste to much of the surrounding infrastructure and indulging in some symbolic wanton vandalism: in a video released on Tuesday a tank rolls over a “I love Gaza” sign near the crossing.

Netanyahu has gambled his political future on two objectives tied to a continuation of the devastating and murderous assault on Gaza — the destruction of Hamas and the killing of its top commanders. (AFP)

The contrast between the satellite images taken on Monday and Tuesday is striking. In the course of one day, hundreds of homes, commercial buildings, agricultural plots and other structures on dozens of sites either side of the Salah Al-Din highway were destroyed.

“This,” said a spokesman for the Israeli government on Tuesday, “is the beginning of our mission to take out the last four Hamas brigades in Rafah.”

But although Netanyahu has gambled his political future on two objectives tied to a continuation of the devastating and murderous assault on Gaza — the destruction of Hamas and the killing of its top commanders — after seven months of all-out warfare those objectives seem increasingly unattainable.

Despite the Israeli claim that there are four brigades in Rafah, it is unclear exactly how many operational fighters Hamas still has, or exactly where they are. It is also not clear if they have chosen, as some commentators have suggested, to make a “last stand” in Rafah, or even, after seven months of war, if they have the weapons and ammunition necessary to do so.

Groups of tanks were seen in the vicinity of the Rafah crossing. (AFP)

Even less certain is the location of Hamas military leader Yahya Sinwar, from whom nothing has been heard since the invasion of Gaza began.

Sinwar, Israel’s public enemy number one, has become a ghost, so much so that on Thursday US National Security Communications Adviser John Kirby made a public plea for him to “come clean about what his intentions are.”

Writing in The Spectator this week, Middle East analyst Jonathan Spyer suggested that, “contrary to what Israeli Prime Minister Benjamin Netanyahu might wish, Sinwar, his brother Mohammed, and the Hamas military leader Mohammed Deif are almost certainly not currently besieged in a bunker in Rafah, surrounded and obliged to either agree to the Egyptian (ceasefire) proposal or be crushed beneath the treads of the 98th and the 162nd.”

In fact, added Spyer, director of research at the Middle East Forum, “it is not even certain if the Hamas leaders and their hostages are even still in the Rafah area, or ... in some other part of the strip.”

Gaza, although barely larger than the small Mediterranean island of Malta, has nevertheless proved to be a frustrating landscape for Israeli operations.

“The only way to defeat the Hamas ideology is with a better ideology, and that is to make the two-state solution real to Palestinians,” said Gershon Baskin. (AFP)

On Thursday it emerged that even before the Oct. 7 attack, Israel had tried, and failed, to assassinate both Sinwar and Al-Deif, the commander-in-chief of Hamas’ Al-Qassam Brigades.

In remarks made to a Jewish organization in the US and broadcast on Israeli television’s Channel 12, Israel’s former military chief of staff Aviv Kochavi said a perceived “change with Hamas” in 2021 had led to the decision to try to kill the two men.

“We tried, and it’s hard,” he was reported as having said.

“In a densely populated, heavily built-up area it is very hard. So, we had been working for months in order to procure the operation but we couldn’t.”

Kochavi also added his voice to the growing chorus in Israel critical of Netanyahu’s increasingly unpopular determination to continue military operations in Gaza.

Yahya Sinwar, Israel’s public enemy number one, has become a ghost. (AFP)

“I don’t think there is a way to bring back the hostages without halting for the time being the war,” he said. Furthermore, he added, “I don’t think we can achieve complete victory in months — forget it, it will take years.”

For the Netanyahu government, however, Rafah represents a stage for political theatre — a last opportunity to declare the war won and, in the process, to ensure Netanyahu has a political future.

INNUMBERS

• 120 People taken hostage by Hamas on Oct. 7 still unaccounted for.

• 252 Israelis and foreigners taken hostage in the attack, according to Israel.

• 80,000 People known to have fled Rafah since last Monday after Israeli warning.

“They're looking for a victory,” said Yossi Mekelberg, a professor of international relations and an associate fellow of the Middle East and North Africa Program at London-based policy institute Chatham House.

“They are looking for a photo op: ‘Here is his head, we’ve cut off the head of Hamas, now it’s all over’.”

Although the message from Biden “is very clear — for the United States to even suggest imposing an arms ban on Israel is a huge thing,” Netanyahu is also facing a potential internal revolt by his right-wing cabinet members, such as National Security Minister Itamar Ben-Givr and Finance Minister Bezalel Smotrich, who oppose any ceasefire with Hamas.

Despite the Israeli claim that there are four brigades in Rafah, it is unclear exactly how many operational fighters Hamas still has. (AFP)

Ultra-religious, “they are on a different planet,” said Mekelberg. “It’s not between them and other human beings, it's between them and God. And they are telling Netanyahu if he compromises too much with Hamas they will leave the government, and that there is no point in them staying in government if we don't enter Rafah.”

Whether they would find Sinwar there is anybody’s guess, says Gershon Baskin, a former adviser to Israeli, Palestinian and international prime ministers on the Middle East peace process.

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“I'm sure that he's not just sitting and waiting,” he said. “He has certainly booby-trapped tunnels and bunkers in the whole area between Rafah and Khan Younis, and maybe they also have access to places north of there. We don’t know.”

But if Sinwar is in Rafah, “from my experience with the man there is no way he is going to surrender. He will fight to the death. I think that he believes that he will never survive this war. He’s not afraid of death. In fact, he believes that it’s his duty to become a martyr and he will try to kill as many Israelis along the way as possible.”

For the Netanyahu government, however, Rafah represents a stage for political theatre. (Reuters)

According to Baskin, an all-out ground attack on Rafah would be “catastrophic, for any hostages and the civilian population. There’s no doubt about it. I have heard there are about 40,000 people left in the quadrant that Israel said they wanted people to move out of, and you have another 1.2 million at least in the city of Rafah and its surroundings.”

Humanitarian considerations aside, Mekelberg believes that, even if Rafah is attacked and razed to the ground, Sinwar is killed and victory declared, assaulting the city would be a strategic mistake — and would not deliver the hoped-for existential blow to Hamas.

“The main threat to Israel from Hamas comes from its ideology and politics, not from its military,” he told Arab News.

The contrast between the satellite images taken on Monday and Tuesday is striking. (AFP/Maxar Technologies)

“The military you can deal with. But the Israelis need to convince people that this ideology doesn’t serve the Gazan people or Palestinian people generally, and that there is an alternative that offers hope, and it is doing very badly at that right now.

“Israel needs to make Hamas ideologically and politically irrelevant and it is doing exactly the opposite, making them more and more relevant.”

Baskin agrees.

“The only way to defeat the Hamas ideology is with a better ideology, and that is to make the two-state solution real to Palestinians, to show them that their fight, their struggle for independence and dignity, is on the road to victory,” he told Arab News.

That, he added, “is the only way to defeat Hamas” and, with the right leadership in Israel, and an alternative to Mahmoud Abbas for the Palestinians, doing so would be “easy.”

“All Israel has to do is declare that it recognizes the state of Palestine, and then every other country in the world would do that as well,” he said.

“The main threat to Israel from Hamas comes from its ideology and politics, not from its military,” Yossi Mekelberg told Arab News. (AFP)

“Then what I would do is organize a regional conference, including all of our neighbors, hoping that the Saudis would participate, and asking the Americans and Europeans to join in but not to run the show, and negotiate borders and Jerusalem and refugees and economic relations.”

The stumbling block to all this, he says, is Netanyahu, “who since 2009 has done everything he can to avoid the possibility of a two-state solution and for whom this war is definitely about his own personal political interest.”

 


Turkiye’s new austerity measures: The ‘bitter medicine is not just for ordinary citizens’

People walk through a shopping street in Istanbul, Turkey. (REUTERS file photo)
Updated 13 May 2024
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Turkiye’s new austerity measures: The ‘bitter medicine is not just for ordinary citizens’

  • Measures to reduce luxury spending in public sector under a savings plan unveiled on Monday have symbolic value, analyst tells Arab News

ANKARA: With local elections over, Turkiye’s Vice President Cevdet Yilmaz and Finance Minister Mehmet Simsek on Monday unveiled the much-awaited austerity plan as the country trends toward orthodox policies to ensure its fiscal discipline and a lasting price stability amid rocketing inflation rates.

One thing is clear: To attract investors and curb inflation, Turkiye needs to continue with tax reform and austerity measures in the public sector. So, the bitter medicine is not just for ordinary citizens.

According to the austerity plan, Turkiye is taking strict measures to curb public spending, with only essential state investment projects to be launched in the coming period.

Priority will be given to investment projects with physical progress of more than 75 per cent, projects planned in earthquake zones, green and digital transformation projects, and port-railway projects near industrial zones.

However, experts are skeptical about the implementation of the measures and see them merely as gesture of goodwill that falls short of expectations.

Beyond symbolic measures such as reducing the number of luxury and unnecessary public vehicles or limiting the number of public sector employees, the focus is now on the direction and scope of a meaningful fiscal policy to curb inflationary pressures.

Wolfango Piccoli, co-president of Teneo Intelligence in London, says the new measures do not resemble a coherent package to strengthen fiscal discipline, but are instead a move to appease Turkish voters who are increasingly worried about the rising cost of living.

“Moreover, past similar initiatives have shown that implementing (and monitoring) austerity measures applied to Turkiye’s bloated state apparatus will be challenging,” he said.

“Some of the more eye-catching measures, such as a freeze on the purchase and rental of new vehicles and a limit on hiring new staff, will have a limited impact on 2024 budget spending,” he said.

Piccoli believes that the package aims primarily to bring some control over the public administration but will not repair the deep economic damage caused by the economic policies of recent years.

Turkiye’s annual inflation rate climbed to almost 70 percent in April, and the central bank’s latest quarterly inflation report expects it to peak at 75 percent to 76 percent next month.

By the end of the year, the central bank anticipates that inflation will be brought down to 38 percent.

However, a recent joint study by Koc University and KONDA Research has revealed that households’ year-end inflation expectations rose to 96 percent, up from 72 percent recorded last January.

Departing from its traditional policy, the Turkish Central Bank has already raised its key interest rate by 4,150 basis points since last year.

Under the austerity package, public institutions will be prohibited from purchasing and renting new vehicles and from buying or constructing new buildings for three years.

The salaries of civil servants serving on boards of directors will be restricted. Activities such as trips, cocktails, and dinners will not be organized except for international meetings and national holidays.

At the launch of the package, Simsek said the government would make additional reforms to public finances and accelerate structural reforms.

The number of new public sector employees will for three years be limited to those needed to replace retiring workers, while the funds allocated for purchasing goods and services by state institutions will be reduced by 10 percent and those for investments by 15 percent.

Economy czar Simsek, who was in the US in April for meetings with the World Bank, International Monetary Fund, G20 and many fund managers, expressed confidence in Turkiye’s improving credit rating after S&P’s recent upgrade from B to B+. He attributed this to improved policy coordination and external rebalancing.

“The continuous decline in the annual current account deficit over the last eight months is a success of our program,” he said.

“With the decline in the current account deficit and the positive outlook for external financial inflows, the improvement in our foreign exchange reserves will continue,” he added.

The leader of the main opposition Republican People’s Party, Ozgur Ozel, likened the new plan to a “disguised IMF program.”

Turkiye posted a current account deficit of $4.5 billion in March. Because Simsek did not say how much the austerity package would reduce the deficit in the 2024 budget, experts point out the impossibility of assessing performance.

Piccoli said: “It is expected that in the best-case scenario, the measures will lead to savings of around TL100 billion to TL150 billion ($3.1 billion to $4.65 billion).

“The government's 2024 budget deficit is about TL2.4 trillion, so Simsek’s austerity package amounts to a rounding error,” Piccoli said.

“It is not a coherent, credible austerity plan supporting the disinflation process. At best, it is a show of goodwill. Even if 150 billion liras of savings are realized, the budget deficit will be above 6 percent of GDP in 2024,” he added.

Experts stress the need for a comprehensive and focused reform program with a clear timetable to build confidence in the newly announced measures.

Selva Demiralp, a professor of economics at Koc University in Istanbul, reflects on the early 2000s when Turkey faced a previous major economic crisis. At that time, Kemal Dervis, brought in from the United States, was appointed as the state minister in charge of the economy. He was sworn in on March 13, 2001 and subsequently announced the “Transition to a Strong Economy” program on April 14.

“In that program, steps were taken to increase transparency in public procurement, abolish incentives for low-productivity areas, expand the tax base through the use of tax identification numbers, and increase tax penalties. With the new measures announced today, we see steps towards increasing tax penalties, which is a positive move. Similarly, measures to reduce luxury expenditures in the public sector carry symbolic value,” Demiralp told Arab News.

“If we are entering a period of ‘bitter medicine’ for the economy, it is crucial to signal that the burden is shared not only by fixed-income earners but also by the highest-ranking public sector bureaucrats,” Demiralp added.

However, Demiralp pointed out that luxury expenditures constitute a small proportion of the state budget.

“The main waste stems from non-transparent expenditures such as tenders and incentives in inefficient sectors. We do not see any steps towards transparency in this regard. Academic studies by Turkish professor Ufuk Akcigit show that Turkey is one of the countries providing the most incentives, but these incentives are neither controlled nor monitored,” she said.

Demiralp believes that reducing civil servants’ wages in real terms should not be part of austerity measures. “It is important to anchor inflation expectations and align salary increases with these expectations. However, if we are to achieve this, the central bank must ‘do whatever it takes’ to meet the inflation targets, ensuring that salaried employees are not adversely affected,” she emphasized.

“Foreign investors will value the signaling aspect of the package. Contractionary fiscal policy, in conjunction with tight monetary policy, will undoubtedly assist the central bank,” she said.

“From a foreign investor’s perspective, the primary concern is whether aggregate demand is being restrained, rather than the societal distribution of the austerity program’s costs. Therefore, they will likely be less concerned about the burden placed on fixed-income groups, which I previously highlighted.”