One of Turkey's leading business associations, the Independent Industrialists and Businessmen's Association (MÜSİAD) held a press conference yesterday to announced their expectations from the new government. MÜSAİD President Nail Olpak underlined that Turkey needs a new economy direction while keeping what it has already gained. MÜSİADrequested "peace" from the 64th government with "Economic Peace," "Employment Peace," Social Peace" and "Political Peace," the four main headlines of their expectations. Olpak said they believe "consensus and peace is what is required and desired judging by the results of our economy, foreign politics and bureaucracy reports" and that therefore they have included these four headlines within their expectations for the government. Stating that social and democratic reforms will continue and a faster and fairer operating state of law will be established after the elections in November, Olpak said they believe a system that will replace the checks and balances system - which is "in reality not about a separation of powers but confusion of powers" - and a management approach will be established by the new government.
The most important obstacle in front of investments and growth is the current financial system and high interest rates, MÜSİAD said. Project financing should be improved and the banking world should ensure quick access to cheap and high quality financing because without solving the financing issue, investment, growth, more employment and development is not possible. MÜSİAD suggested that the asset-backed financing model and similar non-interest financing models should be supported for a certain share of the market.
"The savings gap is another important problem," Olpak said. In order to increase savings, the Private Pension System should offer new instruments such as the children's safety fund, he added.
As the industrial production's share in GDP decreases, a new development strategy that will not only ensure financial stability but also focus on production-focused value added technologies is needed, the association said. Along with products having high added value, small- and medium-sized enterprises (SMEs) and food-agriculture-stockbreeding areas should be prioritized in order to resolve the current account deficit problem. "The Treasury should change its point of view about taxpayers and a new tax reform should be undertaken," said Olpak, adding that the Treasury "threats taxpayers as potential thieves."
The EU road map, which will include The Transatlantic Trade and Investment Partnership (TTIP), freedom of movement, updated Customs Union and Trans Pacific Partnership and similar formations should not be disregarded, MÜSİAD said.