Yesterday’s clash in Parliament between lawmakers from the main opposition and the ruling party is indicative of polarization and tension in Ankara.
It is not the first time that deputies in the great Turkish National Assembly are holding hands. But the scandal that erupted when a Republican lawmaker showed a photo of Home Secretary Suleiman Soilu boarding a businessman’s plane, who is now wanted, underscores how marginal things are. After all, this is not a revelation, but a slap in the face regarding the well-known issue, on which Soilou has already taken a stand.
Erdogan’s insistence on a new model of economy, as he calls it, finds no followers among economists, who see it as empty promises to save time, and it seems that it will continue to cause instability in the Turkish lira exchange rates. This has an impact on the whole economy, as well as on the state budget, which is now almost half in dollars. With all that implies for politics, a year and a half before the 2023 elections.
The pound has not fluctuated significantly in the last three days, but if another interest rate reduction is announced on December 16, it is likely that a new slump will begin. In recent days, the central banker has been trying to make reassuring statements about the markets, stressing that there is no longer much room for maneuver with the interest rate. Next week will show if this is a message to Turkish President Erdogan to stop the interest rate hunt or if it was just talk to amuse impressions in the markets.
Andreas Robopoulos, Istanbul
Source: Deutsche Welle
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Source From: Capital
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