Enlargement: Turkey would jumpstart EU economy, says Istanbul Commerce Boss

European Report, No. 3076                 Français

May 2, 2006

Turkey represents a golden opportunity for the EU and the 25-member bloc cannot hope to be a prominent actor in the global economy without Turkey in the coming fifty years, according to the President of the Istanbul Chamber of Commerce, Murat Yalcintas. Talking with journalists late on 26 April in Brussels on the "main economic contributions of Turkey's EU membership", Mr Yalcintas said that Turkey's entry would no doubt entail certain costs for the EU. But he argued that the benefits would far outweigh the costs. Turkey, far from being a burden, would create new opportunities for market growth for the EU.

He dismissed as misplaced fears that Turkish accession would see the EU inundated by a large "immigration wave" – noting that the EU would impose a transition period for movement of workers and that the Turkish Prime Minister had already disclosed that the government was ready to agree to the suspension of the right to the free circulation of labour. Moreover, opinion polls showed that "employment in member countries" ranked low among Turkish citizens' expectations of EU accession.

Rejuvenation

Turkey, Mr Yalcintas stressed, was no longer the "sick man of Europe". Inflation as down to 8% as a result of economic stabilisation; national income per capita had increased from $2,000 to $5,000; average growth for the last four years had been 7.8%; and exports had risen to record levels. "It is self-evident that, with its 70 million-strong population, its GNP of $361 billion and its strong free-market economy, Turkey will jumpstart the EU economy", Mr Yalcintas contended.

He also pointed to the contribution that the "young and dynamic population of Turkey" could make to the EU economy as Europe's population was gradually ageing: Europeans now made up a mere 12% of the world population and this was expected to fall within the next 30 years to 7%. The EU was expected to lose 34 million people between 2000 and 2050. Mr Yalcintas put forward Turkey – where the under-35 age group makes up 70% of the population – as "a convincing and durable solution to this predicament".

Enregy bridge

The Chamber President said that the EU decision to open accession negotiations with Turkey had already had a salutary effect on economic indicators. Turkey would increase Europe's economic clout, create competitive advantage for the bloc and help it penetrate new trade markets. Turkey's membership would also provide the EU with a "guaranteed supply" of energy and raw materials as well as entry into new markets, with Turkey geo-strategically located for energy, transport and communications networks connecting Europe to the East. Turkey's accession would "provide Europe with the possibility of controlling and securely accessing the energy resources of Eurasia, on which it depends so much".

Noting that more than half of Turkey's foreign trade was with the EU, Mr Yalcintas argued that the impetus given to commercial relations by the 1996 Customs Union between the EU and Turkey would spill over upon Turkish accession into financial, technical and research and development cooperation. "The deepening of economic and commercial relations will make it possible for our respective populations to get to know each other better and thus develop a more accurate understanding. In this sense, the economic interests of Turkey and of the EU overlap."

Mr Yalcintas said he believed that Turkey's accession process would result in full membership to the immense benefit of both sides. He argued that politicians who are going to make the decision on the accession of Turkey should "ponder once again" on the importance for themselves and for the EU of all the points he raised.