Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
An unmanned surface vessel manufactured in the U.S. was found washed ashore in the Ünye district of Ordu, on the Black Sea coast, on March 21. An unmanned surface vessel (USV) of unknown origin struck the Altura, a Sierra Leone flagged tanker which is owned by a Turkish company, Pergamon Maritime, on March 26 in the Black Sea, 15 miles off the coast of the Bosphorus Strait.
Head of the Defense Industries Presidency (SSB) Haluk Görgün refrained from announcing a total export target for the defense industry, instead outlining project-based goals for 2026.
Turkey’s top business association, TÜSİAD, elected Ozan Diren as its new chair at its ordinary general assembly in Istanbul. Diren, the sole candidate, will serve for the 2026–2027 term. He succeeds Orhan Turan, who completed two terms in office.
With the start of 2026, the future of the peace initiative on the Kurdish issue remains uncertain. The mandate of the National Solidarity, Brotherhood and Democracy Commission, which includes representatives from all parliamentary parties except the İYİ Party, was extended by two months, and the commission has once again delayed finalizing its report, now expected in January.
Although unions have refused to participate in the ongoing Minimum Wage Determination Commission meetings, the government is seeking their approval on the 2026 minimum wage — a move seen as an attempt to legitimize a process from which labor groups protest for being excluded.
MHP Chair Devlet Bahçeli said there was no problem with the rally calling for the release of Abdullah Öcalan to be held by the DEM Party in Diyarbakır on Jan. 4, 2026.
Turkish and Greek Cypriot leaders met under the facilitation of United Nations Secretary-General’s personal envoy, María Angela Holguín Cuéllar, on Dec. 11. Tufan Erhürman and Nikos Christodoulides reportedly agreed to expedite a series of confidence-building measures. Talks to resolve the decadeslong Cyprus issue are unlikely to gain traction before mid-2026, as both the north and south prepare for critical elections.
Under the agreement signed between Turkey and the U.K., the £5.4 billion payment to the Eurofighter consortium for 20 Typhoon fighter jets was not included in either the Defense Ministry’s budget or the Defense Industry Presidency's (SSB) budget. The Defense Industry Support Fund (SSDF) can be used as a source of funding for this project, but the cost of the Typhoons is approximately double the annual amount transferred to the fund from taxes collected by the state.
The Defense Ministry’s budget, 623.9 billion lira in 2025, is set to increase 31.9% to 822.9 billion lira in 2026, according to figures released during parliamentary budget talks Nov. 26. This allocation does not cover Turkey’s latest procurement of Eurofighters.
The financial crisis facing companies in Turkey is deepening as the amount of non-performing loans from banks exceeded 519 billion lira as of the week of Oct. 24. In the January-October period of 2025, the number of companies granted a temporary moratorium on debt repayment rose to 2,326, a 72% increase year on year.
As the countdown continues for the NATO Summit to be hosted by Ankara on July 7-8, 2026, preparations are accelerating in the capital. Activity focuses on sites along the approximately 17.5-km route from the Presidential Palace, where the leaders' summit will take place, to the military airfield in Etimesgut.
Funding for space research was increased from 5 billion lira to 8.7 billion lira, but Turkey's first lunar landing project was postponed for another year, according to the 2026 budget bill submitted to Parliament.