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The postponement of the decision in the lawsuit to cancel the CHP's 38th regular congress brought short-term relief to the markets.
The BIST 100 index gained 5% following the decision. The banking index also gained over 6%. The risk premium reached 261 basis points, the lowest in about six months.
However, according to economists, this picture masks structural problems. The lawsuits determine not only the future of the opposition but also the direction of the Turkish economy.
In his assessment on social media, veteran economist Mahfi EΔilmez said that the postponement of the trial caused the stock market to rise significantly, while gold and the dollar declined slightly.
Financial Markets Expert Iris Cibre stated that the decision was not merely a temporary relief, but created an expectation that the political process would become clearer in October.
According to Professor Sinan Alçın, in an environment where daily politics is so decisive, making and implementing structural decisions becomes hard.
Professor Serap Durusoy, on the other hand, emphasized that postponing the decision would lead to continued uncertainty. βBy surrendering the agenda to political cases, the real economic problems are being covered up. The decision will take Turkey into a completely different situation,β she said.
Economist Arda Tunca said that although there has been a short-term improvement in the markets, the main impact has been on urban middle-class wage earners. Tunca added that the government is unable to produce solutions politically and economically, and that the problems of citizens are not within the government's sphere of interest.
Academic Murat Kubilay also said that the market and foreign exchange reserves could recover quickly and there could be some relief in investments, but he stated that the risk has not completely disappeared.
