The new economic reform plan, which the markets had been waiting for since before the March 31st municipal elections, was unveiled yesterday by Turkey’s Treasury and Finance Minister Berat Albayrak. The new reform programme did mention action to address urgent issues facing the Turkish financial sector, such as non-performing loans, with a commitment to provide state-owned banks with USD 5 billion in aid. The plan also included measures to counter inflationary pressures, while at the same time offering a vision for judicial reforms and a fairer tax regime, considered crucial to sustainable economic development. Albayrak also talked about structural reforms in agriculture and pensions. Support for strategic industrial sectors was also proposed, but this was evaluated by many analysts as support for large corporations close to the government.
The new plan did not however encompass the sweeping measures needed to address Turkey’s current economic crisis and was not positively met by foreign analysts. They saw the plan as full of the rhetoric to try and soothe and coax international investors, and totally lacking in detail. Many suspect that the lack of tough fiscal policies in the plan hinted that Turkish President Recep Tayyip Erdoğan may be reticent of implementing such un-popular policies before a possible re-run of the Istanbul municipal elections.