Oct 02 2018

German investors list five preconditions to Turkey’s Erdoğan for economic ties

German investors listed five preconditions for reestablishing the trust needed for strengthening economic ties between Turkey and Germany during their meeting with Turkish President Recep Tayyip Erdoğan in Berlin last week, Deutsche Welle Turkish reported on Tuesday.

Recep Tayyip Erdoğan met German businesspeople last Friday, during his official visit to Germany, which Erdoğan hoped help ensuring German financial and political support Turkey needs to overcome the current economic downturn in the country.

The German investors told Erdoğan that they attached importance to their investments in Turkey, wanted to continue doing business in the country,  DW said. Investors also noted that in order to sustain and expand economic partnership, Turkey first had to regain the confidence of the German businesses. 

Representatives of the German companies listed five preconditions to Erdoğan for reestablishing trust; rule of law, a functioning democracy, independency of the Turkish central bank, respect to the rules of Customs Union between Turkey and the European Union, and an enabling environment for new investments.  

“During the meeting, it was underlined that returning to the rule of law is a precondition for rebuilding trust,” Andreas Krautscheid, Member of the Board of Directors of the Association of the German Banks, said. “Private banks in Germany expects confidence increasing signals from the Turkish government regarding the independency of the Central Bank of Turkey and financial stability.” 

Krautscheid said that there were signs that Turkish nationals had been withdrawing their money in Turkey and transferring it to Germany. “In fact their money is needed for investments in Turkey. This is why it is crucial for the Turkish government to reestablish trust,” he said. 

Dieter Kempf, the President of the Federation of German Industries, pointed to the importance of democratic institutions in boosting investors’ confidence. “A stable Turkey is important for us. In addition to economic reforms, return to the rule of law and ensuring press freedom are also required,” he said.