News Scan – March 12th: EP slams Turkey over rights, graft probe in report

EP slams Turkey over rights, graft probe in report

The European Parliament (EP) approved on Wednesday a report criticizing Turkey for setbacks in freedom of speech, separation of powers and the rule of law as well as the government’s response to a massive corruption investigation implicating Prime Minister Recep Tayyip Erdoğan and members of his inner circle.

The report expressed concern that two controversial laws passed in Parliament in the aftermath of the corruption investigation, which erupted with a wave of detentions on Dec. 17, “are taking Turkey away from its path towards the fulfillment of the Copenhagen criteria.” The new laws, one on the Supreme Board of Judges and Prosecutors (HSYK) and the other on the regulation of the Internet, have also faced severe criticism at home, with detractors arguing the laws are meant to expand government control over judicial appointments and Internet content at the expense of freedoms and the principle of separation of powers.

Responding to the report in a statement, the Turkish Foreign Ministry expressed “disappointment” that the EU does not sufficiently understand the Turkish efforts for separation of powers and the independence of judiciary. The Foreign Ministry also called on the EU to keep “channels of communication and cooperation” with Turkey open.

The report, written by Dutch Christian Democrat parliamentarian Ria Oomen-Ruijten, and several amendments to the report were approved with 475 votes for to 153 against, with 43 abstentions, in Strasbourg.

TODAYS ZAMAN

Turkish investors ashamed of gov’t corruption charges

Turkish investors who attend international trade events are having difficulties explaining why and how Prime Minister Recep Tayyip Erdoğan’s government is covering up a corruption investigation which includes serious charges against Erdoğan and his family members, businesspeople have complained.

After the ruling Justice and Development Party (AK Party) government almost brought a corruption investigation to a halt and silenced its prosecutors, market observers warn that the political turmoil is shaking investor confidence and undermining economic growth in Turkey. The investigation, which became public on Dec. 17, implicates Erdoğan, his son and senior party and government officials.

“It has become a headache for Turkish businesspeople to travel abroad and seek new partnerships. Our members tell us most people were very interested in learning what is going on in Turkey and some even make fun of our friends over the government’s failure to address concerns around corruption at high senior,” Turkish Confederation of Businessmen and Industrialists (TUSKON) Chairman Rızanur Meral said during a meeting in Bursa on Tuesday evening.

Meral addressed participants during a meal organized by the Bursa Chamber of Entrepreneurial Industrialists (BUGİAD) on Tuesday.

The TUSKON head said company representatives have been encountering an increasing wave of questions and criticisms from foreign counterparts abroad, adding: “It is very sad to see the prestige we have built in foreign markets being damaged at the expense of some senior government officials not allowing serious corruption allegations to be investigated. … Our friends are even ashamed to say they are from Turkey in most cases.”

TODAYS ZAMAN

Were foreign hands behind the trials against the Turkish army?

I met İlker Başbuğ in his house. He did not look as if he had left jail only three days ago, but rather as if he had just resigned as Chief of General Staff. He was in peace and had an orderly and dignified manner.

Başbuğ had delivered a speech in Balıkesir when he was Chief of General Staff. It was quite a strong speech. I joked about it, writing “Listening to the Chief of General Staff, I find myself hanging a flag on my balcony.”

He turned to me and said, “Did you find my speech when I left the prison strong? Did you catch yourself hanging a flag on the balcony?” I laughed and said, “No, no, I was not sacred this time.”

He was not in a vengeful mood. Obviously he wants those responsible to be accounted for. But he has a clear cut condition, “The trial need to be fair, the opposite isn’t acceptable.”

After a long conversation with Başbuğ, I asked “What will you do from now on?” He said, “I will leave Istanbul and rest a little.”

Başbuğ: The first aim is to finish this oppression

Let me write İlker Başbuğ’s manifesto for “first aims.”

This is what he says: “They ask me, ‘Had Feb. 7 [2012, when the police wanted to question the head of the National Intelligence Organization, MİT] not happened, would we have had this outcome? Had Dec. 17 [2013, when the graft probes began]. Would all this have happened?’ I do not think these questions are relevant for today … What is important for today is to secure the end of this oppression.

HURRIYET DAILY NEWS

FDI inflow to increase after local elections – ISPAT President

Aksam – Turkey’s efforts to further improve its investment environment will gather pace following the local elections to be held on the 30th of March, according to the President of the Investment Support and Promotion Agency of Turkey (ISPAT).

“The ongoing efforts to improve Turkey’s investment environment will be at the top of the government’s agenda following the elections. Foreign investors will greatly benefit from these reforms”, the ISPAT President said, adding that Turkey’s determination to continue implementing structural reforms would give a strong signal to parties interested in investing in Turkey.

ISPAT is running a promotional campaign in 15 countries designated as key sources of foreign investment, Ayci remarked.

Turkey attracted USD 12.9 billion of foreign direct investments (FDI) in 2013. The country attracted over USD 1.2 billion of FDI in January 2014, increasing by 51 percent over the same month of 2013.

Turkey is among the top 20 FDI recipient countries in terms of greenfield investments with USD 9.5 billion worth of such projects realized last year.

INVEST.GOV.TR

Turkey holds immense potential for insurers – Sompo Japan Turkey head

Turkey is the right country to invest in for global insurance companies, according to the head of Sompo Japan’s Turkish unit. The major Japanese insurer, which made its entry into emerging Turkey in 2011 via the acquisition of local insurance company Fiba Sigorta, is enjoying above average growth in a booming market.

“Our performance in the past three years shows that investing in Turkey was the right decision. The Turkish insurance market is poised to grow significantly as it is backed by a growing economy and favorable demographics”, Sompo Japan Sigorta CEO Shinobu Arimoto said as he expressed his views on the industry.

“Things went according to plan right from the start for Sompo Japan in Turkey. There is great potential in Turkey’s insurance sector for global companies”, he noted, adding that an expanding economy and a young population were the essentials that multinationals seek when investing in a new market. “Operating in a fast-growing market like Turkey is very valuable experience”, Arimoto said.

Sompo Japan Sigorta grew 36.8 percent in the non-life category in 2012 when the sector average stood at 18.2 percent. The company’s strong growth continued on to the next year as well, as it reached 23.3 percent when compared to industry average of 21.7 percent.

Turkey presents a huge market for global insurance companies with only a limited portion of its population of about 75 million having coverage. The annual figures announced by the Insurance Association of Turkey (TSB) revealed that insurers in Turkey produced a premium total of TRY 24.2 billion (approx. USD 11 billion) last year, up 22 percent when compared to the TRY 19.8 billion generated in 2012.

INVEST.GOV.TR

Turkish lira slips to fresh low amid escalating political tension

Berkin Elvan’s death on March 11 triggered the biggest demonstrations across the country since last summer’s Gezi Park protests. Elvan went to a coma after being hurt by a gas canister during the protests last June. His story gripped the nation and became a symbol of the heavy-handed tactics used by police to reign in the biggest demonstrations against the government in recent years.

The Turkish Lira has dropped to a weak 2.25 against the U.S. dollar due to escalating political tension with country-wide protests and a steep slide in global markets.

Amid the intensifying pressure on emerging market currencies against the dollar, the demonstrations held across Turkey, which continued through the night of March 11 to denounce the death of 15-year-old Berkin Elvan. Elvan’s death, which came after he had spent 269 days in a coma induced by an injury inflicted from police violence during the Gezi Park protests, fuelled tension in the already shaky politics of the country.

The lira, which was slightly below 2.22 against the dollar at the markets’ closure time, had started to rise during the early hours of the night.

After touching its lowest level of five weeks at 2.26, the lira/dollar ratio stabilized at around 2.247 in the morning despite a slight pick-up.

HURRIYET DAILY NEWS

12.03.2014

This is a news-scan from major Turkish papers and internet sites. However, we do not verify above stories neither do we vouch for their accuracy.