Turkey: Should become a member of the EU? | Economy Weblog

Turkey: Should become a member of the EU? | Economy Weblog

This week we received the news of an alleged military coup bid in Turkey. It was an alleged plot of 2003 but once again shows the difficulties this country always faces to achieve stability.

Turkey is a founder member of the United Nations, NATO, OECD and the G-20 Economies. Since October 2005 has begun formal accession negotiations with the EU to become a member but this has not been successfully achieved so far.

Why?

Since 2003 there is an accession partnership with Turkey signed by the UE that includes some Political and Economic reforms that have to be enforced within the country. Since 2005 Turkey has developed a great effort in reducing government deficit, easing the access of foreign companies, and developing what is suppose to be a modern Muslim society compatible with the modern world. At the beginning of the 21st century Turkey has the second-largest IMF package in the world so Turkey’s monetary policy is something to look after. The Lira (former new) is now around 0, 50 EUR what is quite as achievement for a country that held the world least valuable currency less that ten years ago. The government efforts to bring the informal economy into the tax net, to cut interest rates, accumulate reserves, secure the banking system and to increase confidence had developed big achievements in the last 8 years.

Do the 2001 economic crisis has been left behind for good? Is the agricultural sector –bigger than any country of the EU- a threat too big for the existing members? Will Erdogan´s AKP bring stability in the next year? May a Muslim country that defends secularism be part of the biggest Christian association of the world?

The Turkey military forces promised to watch closely the party in the government, and as we have seen this week they still do, what is a situation quite unique in a parliamentary democracy in the world