Politics
Finance Minister Imek denies crisis with Erdoan on monetary policy
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Mehmet Şimşek, Turkish Minister of Treasury and Finance, on April 16 denied allegations of a “crisis” between him and President Recep Tayyip Erdoğan over the restrictive monetary policy that cost the Justice Party local elections and Development (AKP) in power, according to some commentators. .
Şimşek posted a response on his social media account, claiming that reports of a crisis had been fabricated to create a false narrative about the government.
For some time now, attempts have been made to deliberately impose the agenda with fake news.
Our concern is to serve the country, our schedule is busy. We have a lot of work to do to solve our country's problems and increase its potential and performance in this difficult geography.
To reduce inflation,…
– Mehmet Simsek (@memetsimsek) April 16, 2024
The minister assured that Erdoğan fully supports the monetary policy since its implementation in 2023, after the general elections in May.
“We are determined to reduce inflation, finance our current deficit, establish fiscal discipline and resolve structural problems,” Şimşek wrote.
The Counter Disinformation Center of Turkey's Presidential Communications Directorate also issued a statement regarding the crisis allegations.
📌The claim of some media that “a crisis arose between President Erdoğan and Minister Şimşek and the crisis was resolved with the introduction of the global system” is not true.
Our President Mr. Recep Tayyip Erdoğan and Minister of Treasury and Finance Mehmet Şimşek… pic.twitter.com/4RkPdow1Ws
– Center for Combating Disinformation (@dmmiletisim) April 16, 2024
“Certain media claims describing a “crisis” between President Erdoğan and Minister Şimşek are false,” the statement read.
The Center assessed that there was no tension between Şimşek and Erdoğan and said that the “Medium-Term Program” as well as the 12th Development Plan would continue to determine the road map for the Turkish economy.
In the March 31 local elections, the ruling AKP not only lost some of its main municipalities and strongholds to the main opposition Republican People's Party (CHP), but also came second for the first time. times since its creation in 2002.
Some experts interpreted the AKP's unexpected failure in local elections as the result of continued high inflation and deteriorating economic conditions for retirees.
Ankara's annual “medium-term program” marked an important step in a broader policy turnaround in the summer of 2023 after Erdoğan named a new cabinet and central bank chief. Since June, the new central bank has increased interest rates from 8.5 percent to 50 percent.
On April 15, the Ministry of Finance announced a budget deficit of 513.5 billion Turkish liras ($15.8 billion) in the first quarter.
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