Battle in the polls between Gulen and Erdogan

Battle in the polls between Gulen and Erdogan


Distress signal for the turkish economy

“The devaluation of the lira will have a negative effect on the greek tourism”.

By Manolis Kostidis – Ankara

The poll that was published by the newspaper Zaman, which in turn is published by the order of the hodja Fethullah Gulen, has caused distress to Recep Tayyip Erdogan’s staff.

According to the poll, the governing party of AKP appears to have lost a large portion of its voters, with its percentages dropping to 36.4%, while the main opposition party CHP appears to concentrate 28.8% of the Turkish voters.

Erdogan’s response was prompt, characterizing Zaman’s poll as “a total lie and a creation of the parastate”.

The Turkish Prime Minister announced that the polls the government has in its possession show that the AKP’s percentages reach 47.7% and CHP’s 28.5%.

However, the poll of the turkish newspaper show a significant fact that may affect the future political developments in Turkey. Forty seven percent (47%) of the Turkish public state that they want Abdullah Gul as President, while just 17.5% want Erdogan to take over the presidency this September.

Distress signal for the turkish economy

The former “czar” of the turkish economy, Kemal Dervis, “sounds the alarm”. The former Minister of Finance of Turkey, who was appointed by the IMF in 2002 in order to guide the country out of the financial crisis, in an interview to the newspaper Hürriyet stresses that “we cannot talk of a financial crisis yet, but there is a serious matter of trust and stability. If trust does not return, the measures that are taken by the Central Bank can only have little effect”.

The devaluation of the lira, which in the last few months has surpassed 20% against the dollar and the Euro has caused problems to the turkish economy and especially in constuction. Erdogan’s “pharaonic” construction projects such as the new airport of Istanbul, which was going to be the biggest in the world, is in danger of “freezing”. The construction company that has undertaken the project with self-financing had predicted a cost of $25bn, including the lease to the state and the cost for its construction. Now according to information, there will be limitation to the project’s funding since its cost has been blown out of proporsion due to the lira’s devaluation. At the same time, many other big companies that had borrowed with foreign currency are facing difficulties.

“Turkey, which everone uesed to praise as a leading high-growth economy, now has a week currency and high interest rates. The impending “hart attack” in the economy is coming in a year of public, presidential, and possibly general elections as well. The fear of political instability is affecting the exchange market”, is reported in the Financial Times.

The british newspaper predicts a negative effect to the greek economy that will be caused by the devaluation of the lira, since the turkish currency is becoming more competitive.

“The Greek and the Cypriots have made many sacrifices in order to improve their competitive position through the decrease of wages and prices. The tourism comeback is one of the minima encouraging facts of their economies, which are still in recession. This however ends with the devaluation of the turkish lira. Any tourist that wants to head for the Mediteranean will find out that Turkey is much cheaper”, is mentioned in the newspaper.