The European Parliament adopted a report calling for suspension of Turkey’s full membership negotiations with the European Union (EU). The report voted by 480 members indicate that ‘the EU-Turkish relations are at a historic low point.’ And it recommends that accession negotiations if the country doesn’t reverse the current negative trend immediately in a consistent way.
The report also highlighted the country’s distance from EU values and standards, unwillingness to implement reforms, backsliding on the rule of law and fundamental rights, regressive institutional reforms and hostile foreign policy with an open discourse about the EU opposition.
In response, the Ministry of Foreign Affairs stated that ‘acceptance of such a recommendation included in the European Parliament’s 2019-2020 Turkey Report at a time, when efforts are made to revive Turkish-EU relations, is impossible’. Either we accept it or not, such a negative outlook in Turkey’s relationship with its biggest trade partner will have economic consequences.
In the meantime, USD/TRY climbed over 8.40 after it declined at the beginning of the week. USD/TRY fell to 8.36, while EUR/TRY hovers around 10.21.
Spot gold is traded at USD 1,874 per ounce after it saw the highest level above USD 1,890 yesterday, which was the highest level in the last five months. Oil prices tends to slightly recover following a decline. Brent crude exceeds USD 67 per barrel this morning.
DAILY AGENDA
The non-domestic producer price index (ND-PPI) increased by 35.31% in April, compared to the same month of the previous year, according to the Turkish Statistical Institute (TurkStat). The index also surged 7.14% on monthly basis.
The net international investment position (IIP) posted a deficit of USD 339.3bn in March, according to the Central Bank.
The Central Bank will release international investment position for March (10.00 am).
The Central Bank and the Banking Regulation and Supervision Agency (BDDK) will release money and banking statistics of the week ending on May 7, due to the Ramadan Holiday and the May 19 Commemoration of Ataturk, Youth and Sports Day (2.30 pm).
The Ministry of Treasury and Finance will release central government’s debt stock statistics for April (5.30 pm).
The legislative proposal on amendment of laws on insurance and some other fields and a decree-law will be discussed in the Parliament.
Minister of Technology and Industry Mustafa Varank will attend the groundbreaking ceremony of the aluminum company Duraline Aluminyum Profil Sistemleri (11.00 am).
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