Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
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.”
The debate kicked off following an article by journalist Zeynep Gürcanlı, who asked why Turkey did not join the statement issued by the Hague Group during their meeting in Bogota on July 16. Turkey was among 30 countries at the Bogota conference, yet opted not to sign the statement, which included measures against Israel. Among these measures are the denial of arms to Israel, a ban on ships transporting such arms, and a review of public contracts for possible links to companies that benefit from the Israeli occupation.
In Turkey’s grand narrative, Izmir is the perennial contrarian. While Ankara governs and Istanbul dazzles, Izmir lounges by the Aegean, sipping its coffee with a secular smirk. Affectionately dubbed “Güzel İzmir” (Beautiful Izmir) by admirers and “Gavur İzmir” (Infidel Izmir) by detractors, the city has long been a cultural outlier—a place where minarets share the skyline with bell towers, and where the sea breeze carries whispers of both rebellion and repose.
“The first political party leader to be arrested since the September 12, 1980, military coup era after Selahattin Demirtaş.” The arrest of Zafer Party Chair Ümit Özdağ was reported in the media with this headline. However, there is no other similarity that would warrant him being mentioned in the same sentence as Demirtaş. In fact, they belong to entirely different worlds and are entirely opposing figures. Özdağ has been in custody at Silivri Prison for a month since Jan. 21, 2025.
More countries regard Turkey as an ally, according to the Munich Security Report 2025, released ahead of the titular conference which will take place from Feb. 14 to Feb. 16. The rate of people viewing Turkey as an ally, not a “threat,” increased in all of the 11 countries where the survey was held, except France.
Two issues will be of priority in Turkish foreign policy in 2025: post-Assad Syria and the war in Ukraine. Both will be closely linked to the policy preferences of the U.S. President-elect Donald Trump. As the U.S. leader is expected to stop the war in Ukraine, Turkey will be watching his efforts closely and will seek a role to facilitate a reconciliation between Ukraine and Russia, and between Moscow and the West.
When Hakan Fidan addressed the 14th conference of the ambassadors in August 2023, two months after he was appointed as foreign minister, the message was clear to those present in the hall. Having led the Turkish Intelligence Agency for 13 years, it became clear from Fidan’s address that foreign policy would be shaped and implemented from a security perspective. While this might not present an abnormality as the world is becoming highly insecure, Fidan took office at a time when Turkey was seeking to normalize its relations with many of its neighbors.
For some in Turkey whoever wins the White House in next week’s elections, it won’t make much difference. It might not be that simple. It is no secret that ever since the failed coup attempt in 2016, there has been bad blood between Ankara and the Democrats in Washington. The view that part of the U.S. establishment was close to the Gülenist movement and the lukewarm reaction shown to the coup attempt reinforced the conviction among AKP elites that had the coup succeeded, Washington was not going to shed tears for the toppling of the government.