Middle East

Early election in Turkey would prolong economic risk: FinMin

Prime Minister Ahmet Davutoglu, right, and Nationalist Movement Party, MHP, leader Devlet Bahceli during a meeting in Ankara, Turkey, Tuesday, July 14, 2015. (AP Photo/Adem Altan, Pool)

ANKARA: Uncertainty about the formation of Turkey's next government poses a risk to economic growth and the best scenario would be a strong coalition agreement rather than a fresh election, Finance Minister Mehmet Simsek said Wednesday.

The ruling AK Party lost its majority for the first time in a parliamentary election on June 7, forcing it to seek a junior coalition partner or face a re-run, and plunging Turkey into political uncertainty not seen since the 1990s.

"Everyone wants Turkey to have a strong coalition government," Simsek told a news conference in Ankara to announce June budget developments.

Coalition talks between the AKP and opposition parties entered a third day Wednesday. The parties have until late August to agree on a working government or else President Tayyip Erdogan could call for a new election.

"Having an election again is of course a negative scenario because another election means in a sense facing uncertainty through virtually the whole of 2015," Simsek said.

The central government budget showed a surplus of 3.2 billion lira ($1.21 billion) and a primary surplus of 4.9 billion lira in June, Simsek said, noting that a 15.8 percent rise in tax revenues in the first half had helped.

Inflation was likely to continue its fall this year if oil prices remain low and a normalization in food prices continues, Simsek said. He welcomed Iran's nuclear deal with world powers, saying it could reduce geopolitical tensions and help keep oil prices at a level beneficial to Turkey.

 

Recommended





Advertisement

Comments

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)

comments powered by Disqus

Advertisement

FOLLOW THIS ARTICLE

Interested in knowing more about this story?

Click here