Global Finance = Magazine - Turkey: Leading The Way

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Latest Edition = Features

Turkey: Leading = The=20 Way

Turkey:=20 Leading The Way

LEADING THE = WAY

At the presidential = palace in=20 Ankara on July 21, Turkey=E2=80=99s president, Abdullah Gul, met = with Global=20 Finance for a wide-ranging interview covering Turkey=E2=80=99s = role in the global=20 economy and its international relations.

Global Finance: = Is Turkey=20 indispensable for Europe? Does Europe need Turkey more than Turkey = needs=20 Europe?

President Gul: In = today=E2=80=99s=20 world, everybody is dependent on each other. In that sense, Turkey = is=20 important for the European Union, and Europe is important for = Turkey. The=20 historical realities of the last 500 years prove that Turkey is = actually=20 an integral part of Europe. In the modern day, Turkey=E2=80=99s = importance for=20 Europe is recognized in the strategic report of the European = Commission.=20 This is not just something that I am saying as the president of = Turkey.=20 Before the accession negotiations started, the EU conducted two = studies=20 analyzing what Turkey would contribute to Europe. As a result, the = consensus of the EU summit of 2004 was to start the negotiations. = This=20 recognition by the European Commission and the EU Council was very = significant.

GF: = How=20 soon must the 2,000-mile Nabucco gas pipeline from the Caspian Sea = to=20 Austria, an $11 billion project, be completed?

President = Gul:=20 Regarding the Nabucco pipeline, the importance actually = is the=20 initiation of the project and the signing of the intergovernmental = agreement. As you may recall, when the BTC [Baku-Tbilisi-Ceyhan] = pipeline,=20 the second-largest pipeline in the world, was at the project = stage, people=20 were debating whether it was feasible. Some even said it was a = pipe dream.=20 But the pipeline was built, and the dream of bringing Kazakh oil = to the=20 Mediterranean was realized. The same thing will happen with the = Nabucco=20 pipeline project. The agreement between the countries [Austria, = Bulgaria,=20 Hungary, Romania and Turkey] and the companies involved was signed = last=20 week. Now that agreement has been reached, I don=E2=80=99t believe = the=20 construction will take too long, because technically it is not a = difficult=20 project. The demand is there, and the energy security and safety = issue for=20 Europe is a priority. The natural gas that will feed into this = pipeline=20 could come from a variety of sources, including the northern = countries as=20 well as the southern countries and the Caucasian countries.

GF: What will be = the impact=20 of the Marmaray undersea rail tunnel in Istanbul on = Turkey=E2=80=99s relationship=20 with Europe?

President Gul: = Just as=20 pipelines connect countries in terms of energy supplies, = transportation=20 projects are another opportunity to connect countries. In that = sense,=20 Marmaray is a very important project. It will be implemented next = year.=20 When it is completed, a train will be able to travel from China to = London=20 without any interruption. The railways already exist, although = certain=20 sections are being renovated. The Kars-Tbilisi-Baku railway = [connecting=20 Turkey, Georgia and Azerbaijan], for example, will be completed = next=20 year.

GF: = Masoud=20 Barzani, president of the Northern Iraq autonomous region, has = said that=20 it would like to join Turkey. Do you think he is sincere about = this?

President Gul: = When you=20 look at it from an economic perspective, the north of Iraq is = almost=20 unified with Turkey. My comment should not be misunderstood to = mean that=20 the north is not part of the Iraqi state. We have economic ties = with all=20 of Iraq, but most of these are focused on the north, and many = involve=20 Turkish companies. Of course, Turkey attaches greatest importance = to the=20 territorial integrity and political unity of Iraq.

GF: Can the = Cyprus issue be=20 decided by the end of this year?

President Gul: = Yes, we do=20 hope that settlement will be achieved by the end of this year. It = is one=20 of our greatest wishes. Actually, a great chance was missed in = 2004, when=20 the United Nations=E2=80=99 plan, known as the Annan plan [after = former UN=20 secretary general Kofi Annan] was put to referendum in both sides = of the=20 island. It was rejected by the Greek side and approved by the = Turkish=20 side. With regard to the new round of negotiations [which began in = September 2008], we have the greatest desire to see the issue = resolved.=20 Our vision is that if the Cyprus issue is resolved, then Turkey, = Greece=20 and the Cyprus island as a whole could form a very important = economic zone=20 in the eastern part of the Mediterranean.

GF: How have = US-Turkey=20 relations changed under US president Barack Obama? What will your = role be=20 in the Middle East peace process?

President Gul: = First of=20 all, I would like to indicate that independent from whoever is in = the=20 administration, Turkish-US relations for the past 50 years have = been based=20 on solid principles. In all areas, we have a very strong = partnership. The=20 global vision of President Obama overlaps with the Turkish = perspective=20 regarding these issues. For that reason, we do believe that we are = entering into a stage where our cooperation will be much closer = and the=20 relationship will be strengthened. Soon after President Obama = assumed=20 office, he paid one of his first visits to Turkey, and we had the=20 opportunity to discuss both our bilateral as well as regional = cooperation.=20 Regarding a peaceful settlement in the Middle East, the Turkish=20 contribution is very important because we have a relationship with = all the=20 parties in the Middle East conflict. And we have close contacts = with the=20 Arab countries as well as Israel on this issue. Turkey actually = organized=20 the negotiations between Israel and Syria. It was an indirect = involvement.=20 Turkey will continue to support and take part in all efforts aimed = at=20 achieving peace in the region. In this regard, we welcome the = efforts of=20 President Obama.

GF:=20 Are French president Nicolas Sarkozy and German = chancellor=20 Angela Merkel the main obstacles to Turkey=E2=80=99s EU = membership?

President = Gul:=20 We see no person as an obstacle in the negotiations, = which we=20 started with a decision in which both France and Germany = participated. We=20 are continuing the negotiations in a very determined manner. There = will=20 always be ups and downs and differences of opinion in talks like = these.=20 But the legal framework is set and is binding. We have focused on=20 completion of successful negotiations during this whole = process.

GF:=20 Can you give a time frame for the likely = completion of=20 Turkey=E2=80=99s EU membership bid?

President Gul: Of = course,=20 it would not be right to give any time frame regarding this = negotiation=20 process. But when we look at past developments regarding the = bigger=20 countries, the process has always taken longer. For Spain and the = United=20 Kingdom, for example, it has taken 10 to 12 years. And in addition = for the=20 UK, France has vetoed UK membership twice. So, what is important = for=20 Turkey is to complete its preparations and to maintain a certain=20 momentum.

GF: How are = Turkey=E2=80=99s=20 relations with China and the more than 9 million predominantly = Muslim=20 Uighur people living in China=E2=80=99s Xinjiang region, its = westernmost=20 province?

President Gul: = China is a=20 big country in terms of its population and its economic potential, = as well=20 as global politics. There have been historical ties between Turkey = and=20 China, and today our relations are on very good terms. In fact, I = recently=20 paid an official visit to China at the invitation of President Hu=20 [Jintao]. We had very fruitful deliberations and even concluded = some=20 agreements. We decided to further intensify our economic = cooperation. I=20 traveled to different regions of China, including various cultural = and=20 industrial centers. I also had the opportunity to visit the = autonomous=20 Sincan-Uighur region and its capital, Urumqi. The Uighur people = living in=20 that region are Muslim, with a Uighur and Turkic ethnic = background. Turkey=20 respects the territorial integrity of China. We know that China is = a=20 multi-ethnic and multi-religious society. We want all Chinese = citizens to=20 be treated on an equal basis. The Uighur people enrich the = diversity of=20 China, and we would like to see them living as happy and = prosperous=20 citizens of China. We want them to be satisfied with the = development of=20 human rights and fundamental rights and freedoms in that region. = And we=20 regard the Uighur people as a bridge between China and Turkey, = enhancing=20 further cooperation between the two countries.

Gul: = =E2=80=9CIn today=E2=80=99s=20 world, everybody is dependent on each other. In that = sense,=20 Turkey is important for the European Union, and Europe = is=20 important for=20 = Turkey=E2=80=9D

GF:=20 What is Turkey=E2=80=99s perspective on the global = financial and=20 economic crises?

President Gul: = The global=20 economy is experiencing a period of extraordinary crisis. Turkey = has met=20 the crisis well prepared and stronger due to the serious measures = taken in=20 recent years in terms of macro-economic policies and structural = reforms.=20 Fiscal discipline, reform of the banking system, progress in=20 privatization, the opening of major sectors of the economy to = competition,=20 and a floating exchange-rate regime have all provided the Turkish = economy=20 with an important degree of flexibility. However, because of the = level of=20 integration with the world economy, which has increased noticeably = in the=20 last few years, Turkey was not exempt from the adverse influences = of the=20 crisis. Therefore, it took necessary measures to stabilize the = economy,=20 including reducing taxes, offering financial aid to the = unemployed,=20 providing low-interest loans to small and medium-sized = enterprises,=20 increasing infrastructure investments and allocating more = financial=20 support to local administrations. Another stimulus program was = announced=20 in June, including new incentives for investment. A new employment = package=20 will provide approximately 500,000 jobs in the private sector over = the=20 next six months.

With these measures implemented, = we believe=20 that once the global economic recovery begins, Turkey will be = among the=20 fastest-growing economies. Taking into account the global = dimension of the=20 crisis, it is crucial to adopt necessary [stabilization] measures = with a=20 spirit of global cooperation and coordination. Therefore, Turkey = will=20 continue to contribute to all international efforts to ensure the = recovery=20 of the world economy.

Back=20 to Top

<=20 Prev		Next=20 > =

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