TURKISH PARLIAMENT TO HOLD EXTRAORDINARY SESSION ON GAZA
Turkey’s parliament will meet in an extraordinary session on Aug. 29 to discuss Israel’s offensive in Gaza and steps to deliver humanitarian aid.
Analysis
In-Depth Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
DEM PARTY SCHEDULES İMRALI VISIT AS PARLIAMENT COMMISSION HEARS BAR ASSOCIATIONS, FORMER SPEAKERS
The DEM Party delegation will visit Abdullah Öcalan, the jailed PKK founder, on İmralı Island on Aug. 28, following weeks of criticism over limited access.
TURKEY’S UNEMPLOYMENT RATE CLIMBS TO 8.6%
According to the Turkish Statistical Institute’s (TurkStat) Household Labor Force Survey, unemployment increased in the second quarter of 2025 while overall employment declined.
INEQUALITY WIDENS ACROSS TURKEY
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.
ERDOĞAN PUSHES FOR DEFENSE TIES AS MACRON FOCUSES ON UKRAINE SECURITY
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.
İŞ BANK SEES 29% INFLATION, 35% INTEREST RATES AT END-2025
Hakan Aran, head of İş Bank, the country’s largest private lender, said they expect Turkey’s annual inflation to drop to 29% by the end of 2025, with interest rates falling to 35%. Aran shared his predictions regarding the economic normalization process at a press conference. According to Aran, “we may see monthly inflation rates drop below 1% as the normalization process begins in May 2026.”
NETHERLANDS, KAZAKHSTAN TOP TURKEY’S FIRST-HALF FDI SOURCES
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).
GOVERNMENT PAY RISE PROPOSAL SPARKS UNION OUTRAGE
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.
CENTRAL BANK UPS INFLATION TARGETS FOR 2026, 2027
Central Bank Governor Fatih Karahan said inflation is expected to stand between 25% and 29% at the end of 2025, and between 13% and 19% in 2026.
ERDOĞAN EMPTIED DIPLOMATIC TOOLBOX TOO QUICKLY ON ISRAEL
“Turkish newspapers should do more than the Washington Post,” wrote Fatih Selek in pro-government daily Türkiye, recalling that the American newspaper published the names of nearly 20,000 children murdered in Gaza.
AFTER ERDOĞAN–KAVELASHVILI TALKS, GEORGIA DETAINS 14 SUSPECTS
Hours after Georgian President Mikheil Kavelashvili’s visit to Ankara for talks with President Recep Tayyip Erdoğan, Georgian police detained 12 people wanted on Interpol red notices and two sought at the national level in a joint operation with Turkish authorities.
A NEW CHAPTER IN CAUCASUS - IF IT HOLDS
The Caucasus is undergoing a fundamental transformation that could reshape the region’s geopolitical landscape. After decades of failed attempts—such as the 2001 peace process between Armenia and Azerbaijan or the 2009 Armenia–Turkey Zurich Protocols—Armenia and Azerbaijan have now initialed agreements that could pave the way for a historic breakthrough.