NO MORE TAX BREAKS
The government will discontinue its 'sliding scale' fuel tax offset mechanism at the end of 2026, shifting focus toward boosting budget revenues ahead of potential elections in 2027 or early 2028.
Analysis
In-Depth Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
MEDIUM-TERM PROGRAM DROPS STRONG LIRA POLICY, FUELS ELECTION TALK
The government revealed its new Medium-Term Program (OVP) covering 2027–2029, outlining macroeconomic targets that analysts view as unusually realistic while hinting at election preparations for 2027.
TÜSİAD ELECTS OZAN DIREN AS NEW CHAIR
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.
THREE-YEAR ECONOMIC ROAD MAP UNVEILED; 2025 INFLATION TARGET RAISED 11 POINTS
Vice President Cevdet Yılmaz unveiled the Medium-Term Program for 2026–28, raising the end-2025 inflation target by 11 points from the previous plan. Yılmaz said real GDP growth targets are 3.8% in 2026, 4.3% in 202, and 5.0% in 2028. The inflation path is 28.5% for end-2025, 16% for end-2026, 9% for 2027, and 8% for 2028.
MOON MISSION POSTPONED TO 2027
Turkey has postponed its moon landing project, which it had aimed to carry out in 2023 to mark the 100th anniversary of the Republic but later delayed to 2026, this time to 2027. The government established the Turkish Space Agency in 2018 to coordinate space activities.
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.
FIRST SIGNAL FOR 2027 ELECTIONS
Presidential advisor Mehmet Uçum has weighed in on the possibility of President Recep Tayyip Erdoğan running for office again. In a post on X, Uçum said no constitutional change is required for Erdoğan to seek another term.