Closer together

A new initiative by European business leaders hopes to nurture

closer ties with Turkey

EUROCHAMBRES, the Association of European Chambers of Commerce and Industry, is launching a new program called “Turkey – EU Business Dialogue (TEBD)” to promote the integration of EU and Turkish business communities and ensure a stronger awareness of the business opportunities between Turkey and the European Union. In an exclusive interview with DUNYA Executive, EUROCHAMBRES President, Christoph Leitl, who was visiting Istanbul for the announcement of the program, underlined the importance of dialogue especially in today’s complex relationship between EU and Turkey and particularly at a time when Turkey’s economy is suffering from the depreciating lira. Known for his strong support for the Customs Union, Leitl and his team is hoping negotiations to modernize the Union will restart with the new environment of dialogue created by the TEBD project.

The goal of the project is to promote positive exchange at a time of complexity in Turkey’s political relationship with Europe. “As business representatives we want to maintain a positive relationship with Turkey and maybe the business community can be an example to our political leaders to have dialogue, to better understand each other, to find partnerships,” Leitl said.

Because entrepreneurs have adopted a ‘wait and see’ attitude, investments are slowing down in the current climate. “So it is more important that economic partnerships continue to exist in politically uncertain times,” he added.

“It is a positive signal from Europe to Turkey,” Leitl said of the TEBD. “And if the other side (Turkey) is willing to strengthen confidence and the rule of law, to make sure that all investments are made in a reliable country, then it will happen.” Leitl noted that EUROCHAMBRES has strong contacts with The Union of Chambers and Commodity Exchanges of Turkey (TOBB) as well as the Turkish Industrial and Business Association (TUSIAD), the largest business organization in Turkey.

“TUSIAD is really reasonable, thinking globally and having demands from the government that it should take into account when acting,” he said.

“Turkey can access Europe”

“I think that we have the opportunity to strengthen also Turkey’s access to Europe. Politically it is difficult but in the economic arena we can do a lot: modernization of the customs union, for instance, including services. We can view Europe as a project in the same way the UK sees it as economic integration and others, like France, political integration. If we, as business organizations, are fostering and strengthening economic integration, I think we are doing our job and creating the basis that all others can follow afterward whenever the time is right.”

“We should tell all the responsible politicians that foreign trade is crucial for the EU. We are demanding and supporting the EU to make free trade agreements with all parts of the world. We have the Customs Union with

Turkey and we should modernize that. The EU is in charge if that. And by separating the political issues from economic issues, you have no problems with the people independent of what European and Turkish people are thinking and feeling. Strengthening economic cooperation will be beneficial for all of them.”

“CBRT should contact ECB”

Evaluating the current investment environment in Turkey for European companies, Leitl said that financial markets and investors should be differentiated. “In principle, the European business environment sees the Turkish economy as very dynamic with very motivated and skilled people, which creates an optimal environment in which to work, if we put aside the turbulences we are facing now,” Leitl said.

“We should wait and see how the turbulence will develop and ask the government to be aware of that. Politics is one side but the economy is what we make a living with. Considering the trade volume and number of European companies located in Turkey, there is a great opportunity for our companies.”

“Turkey has said it wants to be among the top ten economies in 10 years. You can announce that but to realize it you have to work on it. So the economy should not be misused for political threats and the clichés should be avoided. If we foster personal relationships, if we learn to know each other, respect and toler-

ance will grow.”

Leitl noted that some European companies are reluctant and have great concerns over the further development of their businesses. “Because markets are breaking away and the purchasing power of people is shrinking, we have to look at things realistically and think of solutions. Perhaps the Turkish Central Bank could be in close contact with the European Central Bank. This could restore confidence among the financial markets and the TRY can stabilize,” he said.

“We are here to strengthen the confidence in Turkey. That’s why we are launching this project. It is not enough, but it is a signal. If Turkey wants closer contact in economic terms, we want it, too. And politically you have to deal with each other and negotiate. The economy should not be

used for elections or to manipulate the emotions of people. We have to decrease this tone.”

“The situation could change, the crisis can deepen or slow down. All is possible. It depends on the behavior of Turkish politicians. I hope that things get better but for that people should not be terrified, which keeps investors away. We rely on the fact that all responsible people in charge of this country are aware of the situation and will do their best.”

“Turkey can benef t from strong Euro”

Speaking about the European economic environment, Leitl said that Greece has recovered and countries like Portugal and Ireland have strengthened after the 2008 crisis. “I think in 10 years three main currencies will dominate the markets: Yuan, Dollar and Euro.

But behind the currencies there must be a common market and a common economic policy. That’s what we also demand in the future of the European Commission to strengthen the business position of Europe. And if Turkey is in close connection in economic respects with the EU, it will also benefit from a strengthened Euro.”

The press conference on September 7 for the launch of the TEBD was also attended by presidents of the chambers of non-EU countries like Bosnia-Herzegovina, Macedonia, Serbia, the Russian Federation, Montenegro, Kosovo, Belarus, and Georgia. Leitl said that they are part of the business community. “All members of the European Council are also our members. They are dedicated to European values, rule of law, an independent judiciary, etc. We have a regional perspective covering all of Europe, not only focusing on the EU. They are also countries which are of great importance for Turkish investment,” he said.

“The presidents of the Ukrainian and Russian chambers are in close relations, same with Serbia and Macedonia…Business people understand each other. The American Chamber is on the same page as EUROCHAMBRES in terms of free trade and it also suffers from Mr. Trump’s politics. Businesses have a clear philosophy and methodology that is important to know also for Turkey. If you have competence and skills, you will be successful. Politics should do one thing: not to disturb this, but support it.”

By the end of 2020, after the 30-month dialogue program, EUROCHAMBRES expects to see more business, more investments and more confidence on both sides and a more business-friendly policy environment in Turkey and Europe. “This project is not only a symbol. It also has a lot of substance,” Leitl said.

“If we are able to send positive signals to each other, we could open the way for the European Commission to re-enter negotiations over the modernization of the Customs Union. That will be a concrete step and also in the short term bring us closer.”