A highly credible program should be implemented for inflation: ASO

Turkey should immediately implement a highly credible program to fight against inflation, says Nurettin Ozdebir, Chairman of the Ankara Chamber of Industry (ASO). Speaking at the ASO January Assembly meeting, Ozdebir said inflation will continue to be a problem until the impacts of the pandemic disappear. It has now become a structural problem, he said. Nikolaus Meyer-Landrut, the Head of European Union (EU) Delegation to Turkey, who attended the meeting as a guest, made a speech about the EU Green Deal and Turkey-EU relations. 

Inflation is not just the result of the monetary policies, according to the ASO Chairman. “We face a highly imported inflation. Developments in international markets show that 2022 will also not be a good year for inflation. That’s why a high credible program should be implemented for inflation as soon as possible,” Nurettin Ozdebir added. 

“TRY can be balanced at a fair value with rational policies,” Ozdebir said, stressing that there cannot be a decline in interest rates before inflation is controlled. 

The ASO Chairman, who attended the meeting held with ministers prior to natural gas and power outages, also stated that natural gas, solar and wind resources are insufficient for energy independence. “I think that we have no choice but nuclear energy. We’ve been working on the development of thorium-based generation IV reactors. It’s important to accelerate our work with the support of the government. The new generation reactors have important advantages for thorium-rich countries, including Turkey,” Nurettin Ozdebir noted. He also underlined that Turkey could become a pioneering country in new generation reactors with the support of the government. 

Ozdebir also added that the current EU-Turkey Customs Union (CU) has remained in force longer than estimations as Turkey’s full membership to the EU hasn’t been finalized and that quotas have become a systemic problem in transportation. “Apart from the modernization of the CU, joint decision procedures must be implemented for Turkey’s interests,” he said.

Turkey’s green transformation is important for sustainable growth and increase international investments. “Turkey’s involvement in the EU Green Deal process has accelerated the real sector’s green transformation. Compliance is important for Turkey to protect export competition with the EU and third countries,” the ASO President noted. He also emphasized that green transformation steps to be taken by the EU shouldn’t transform into a technical obstacle. 

Modernization of the CU is important for both parties: Landrut

Turkey and the EU are important economic partners, and the modernization of the CU has important potential for both sides, according to Nikolaus Meyer-Landrut, the Head of European Union Delegation to Turkey. Touching on the legally binding aspect of the law which stipulated EU’s net-zero carbon emission goal by 2050, Landrut said collaboration between of Turkey and the EU on climate policies is a necessity. Landrut also called on the Turkish business world to join the EU Green Deal. 

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