By Barış Soydan
September 8, 2023
Hailed by markets as the “savior” of the Turkish economy, Mehmet Şimşek has in fact launched policies whose price will be borne by large segments of the public. Tax hikes, although narrowing the budget deficit, will further fuel inflation, increasing poverty. In this respect, the new fiscal policy resurrects the paradigm that guided the IMF program in 2001. However, staying true to the spirit of the IMF program is a recipe for political troubles ahead for the Erdoğan regime. With municipal elections due in March 2024, President Recep Tayyip Erdoğan may therefore well conclude that “heterodox” economic policies will have to be resurrected.
The Turkey Analyst is a publication of the Central Asia-Caucasus Institute & Silk Road Studies Joint Center, designed to bring authoritative analysis and news on the rapidly developing domestic and foreign policy issues in Turkey. It includes topical analysis, as well as a summary of the Turkish media debate.