Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
The parliamentary National Solidarity, Brotherhood and Democracy Commission held two tense meetings this week, first hearing from Turkey’s bar associations and then from former parliamentary speakers.The MPs on the commission, who had so far avoided direct confrontation, engaged in their first open war of words after bar leaders gave long speeches stressing constitutional rights and the rule of law.
The Turkish Statistical Institute (TurkStat) has released for the first time socio-economic status data at the provincial and district levels, based on 2023. Covering more than 26 million households, the study highlights sharp inequalities across Turkey, measuring income, education, and occupation.
President Recep Tayyip Erdoğan and French President Emmanuel Macron held a phone call on Aug. 21, their first direct contact since the NATO summit in June. The two leaders discussed Russia’s war in Ukraine, the crisis in Gaza, and bilateral cooperation, with Erdoğan again stressing Ankara’s interest in deepening defense ties with France. Both later shared posts on X, tagging each other in messages that underlined common concerns but also revealed different priorities. On bilateral ties, Erdoğan said Turkey valued closer cooperation with France, particularly in the defense industry, and wanted to keep advancing relations across multiple fields. Ankara has long sought approval from Paris to procure European air-defense systems. A green light for the sale of Eurosam GIE’s SAMP/T could accelerate Turkey’s plan to build its own missile shield, described as a “steel dome,” within two to three years.
Foreign direct investment (FDI) in Turkey rose 27% year-on-year to $6.3 billion in the first half of 2025, led by inflows from the Netherlands and Kazakhstan, according to the International Investors Association (YASED).
The government’s first pay offer in collective bargaining—10% for the first half of 2026, 6% for the second half, and 4% for each half of 2027—was rejected by public sector unions representing about four million civil servants and more than two million retirees.
Since Istanbul Mayor Ekrem İmamoğlu’s detention on March 19, the CHP has held 40 rallies despite no upcoming elections, yet failed to shift the political agenda. The party opened İmamoğlu’s first campaign office in its Çankaya stronghold in Ankara, only to see its provincial chair dismissed days later. Though operations against Istanbul Municipality slowed, confessions from businessperson Aziz İhsan Aktaş continue to dominate headlines. A fresh wave of arrests targeted subsidiaries ISFALT and IETT, as well as tender officials.
Ahead of renewed hopes for a peace process, Sözcü — known for its opposition stance — has stirred controversy with successive headlines alleging the mass release of PKK-linked prisoners. The Justice Ministry has twice rejected the newspaper’s reports, which first claimed 200 prisoners had been released and later suggested an additional 700 would follow.
The government's push for austerity in the public sector has failed to deliver results. Despite promises to cut costs—particularly through the disposal of surplus vehicles—public institutions spent 161.2 million lira on new vehicle purchases in the first half of 2024, while generating just 5.1 million lira in sales.
The Central Bank lowered its one-week repo rate from 46% to 43% on July 24, despite warning signs that inflation pressures persist. This was the first cut following the April rate hike. The Monetary Policy Committee also reduced the overnight lending rate from 49% to 46% and the overnight borrowing rate from 44.5% to 41.5%. While June’s core inflation trend remained unchanged, preliminary indicators pointed to a temporary rise in July inflation due to month-specific factors.
The paths of Ekrem İmamoğlu and Mehmet Murat Çalık first crossed in 2014. İmamoğlu had just been elected mayor of Beylikdüzü. Çalık began working with him as deputy mayor. In 2019, when İmamoğlu became Mayor of Istanbul, Çalık was elected mayor of Beylikdüzü in the same elections.
ASELSAN, which led Borsa Istanbul (BIST) in trading volume in April, closed the first half of 2025 as the exchange’s most valuable company.
The process dubbed “Terror-Free Turkey” by the ruling alliance has reached a critical point. The PKK is expected to release its first disarmament footage in the coming days. With such symbolic images looming, both sides are warning of possible provocations, stressing the need to remain vigilant against attempts to derail the process.