EU Commissioner for Economy and Monetary Affairs: Turkish Economy Adapting Itself to the EU

Iran Materials 12 December 2006 13:07 (UTC +04:00)

(turkishweekly) - While the EU is considering the suspension of membership talks with Turkey, the EU Commissioner for Economy and Monetary Affairs Joaquin Almunia stated that the Turkish economy was rapidly adapting itself to the Union, reports Trend.

Stressing that significant progress has been made since the economic crises in 2001, Almunia also noted that the inflation rate has become one-digit, and that the banking sector especially gained strength and stability. Recalling that the overall debt rate has decreased noticeably, the commissioner said that economic growth in Turkey was achieved through the introduction of reforms and innovations in the economy as well as through the private sector investments.

Almunia however warned that sustainable economic growth was a must for Turkey, as even the remarkable recent progress did not suffice to increase per capita income to a level near EU member countries. Noting that a working market economy did not prove that a prospective member country was ready to introduce the Euro as its currency, Almunia recalled that this issue was not urgent, and could be addressed after the fulfillment of the Maastricht Criteria.

Drawing attention to the sheer volume of the unrecorded economy in Turkey, Almunia noted that this problem should be resolved if a competitive economy was desired.