The Strategist

Turkey's economy lost $ 100 billion because of the coup

08/03/2016 - 14:45

The military coup failed in Turkey inflected considerable economic damage on the country. This was stated on Tuesday, August 2 in Daily Hurriyet News by Customs and Trade Minister Bülent Tüfenkci. According to him, if we calculate "all these airplanes, helicopters, weapons, ammunition and buildings, according to preliminary estimates, the loss will amount to at least 300 billion Turkish liras (about 100 billion US dollars)".

The minister admitted that after the coup the country lost a large number of orders from abroad, in particular, "many foreigners canceled their trips to Turkey." He also stressed that the armed rebellion has affected image of the state, "as if Turkey is a third world country". He said that people "who saw tanks on the streets and shooting at the parliament" will not come in the country. 

Tüfenkci recalled that the tourism sector continues to experience difficulties. Tense situation in the country made nearly one million tourists to cancel their trips. This is partly obliged to the government's decision to postpone vacancies of more than three million Turkish citizens. He stressed that the tourist industry suffered greatly because of the terrorist attacks, crisis in relations with Russia, and the attempted coup. 

According to the minister, the Turkish authorities need to start a massive advertising campaign to improve the country's image and correct the economic situation. "To do this, many entrepreneurs, artists, athletes and politicians need to work together," - said Head of the Ministry of Trade.

Meanwhile, Turkey's relations with the EU continue to deteriorate. Turkey has put forward an ultimatum to the EU: Ankara demanded to introduce visa-free regime until October. Otherwise, as stated by the country’s Foreign Minister Mevlüt Çavuşoğlu, "we will be forced to abandon implementation of the agreement on refugees of 18 March", quoted by Frankfurter Allgemeine Zeitung.

March 18, Heads of EU member countries agreed on a plan to resolve the immigration crisis in which all illegal immigrants arriving in Greece from Turkey should be returned back. In exchange for each returned illegal migrants, the EU accepts one Turkey-Syrian legal migrant. Brussels also undertook to provide Ankara 6 billion euros for the costs of hosting refugees.

The current requirement is "not a threat", says Head of the Turkish Foreign Ministry. However, Çavuşoğlu said that Turkey has taken "very serious measures" to control the flow of illegal refugees. The future "depends on abolition of visas for our citizens, which is part of the March 18 agreement", Çavuşoğlu stressed. In conclusion, he said that the final agreement may be concluded "at the beginning or the middle of October, but we expect that the specific date will be announced".   

After the failed military coup occurred in Turkey in mid-July, repressions from the Turkish government’s side only increased. This caused another wave of Western concern on the human rights situation in Turkey. Thus, Günther Oettinger, European Commissioner and representative of the ruling CDU party in Germany, said: "We will not have an agreement on visa-free travel by year's end". He added that President Recep Tayyip Erdogan has to answer the EU's concerns about primacy of law in the country.