SEZER VISITS ISRAEL, PALESTINE
President Ahmet Necdet Sezer, accompanied by his wife, yesterday began a two-day visit to the Mideast. Sezer is scheduled to meet with his Israeli counterpart Moshe Katsav and Premier Ehud Olmert as well as opposition Likud Party leader Binyamin Netanyahu today. The Turkish president is expected to proceed to Ramallah tomorrow to have talks with Palestinian President Mahmoud Abbas. He will also visit the mausoleum of late Palestinian leader Yasser Arafat. /Aksam/
ERDOGAN: "OUR EU GOAL IS NO PASSING FANCY"
Speaking about recent political developments yesterday, Prime Minister Recep Tayyip Erdogan emphasized their determination to reach the European Union. "Nobody should doubt this," he said, adding, "Our EU goal is no passing fancy. We are advancing step by step to this target." Speaking at the Justice and Development Party (AKP) group meeting, Erdogan brushed aside criticisms from the Turkish Industrialists' and Businessmen's Association's (TUSIAD) that Turkey's EU reforms had slowed down and the government was reluctant about the EU, saying, "It's easy to destroy but hard to build up. A building that's put up in three years with a great deal of effort can be knocked down in three hours. Nobody should be fooled by how easy it is to demolish something and so see those who do this as powerful. That price won't be paid by the government but by the nation and Turkey. Everybody should watch what they say." In related news, Erdogan today will meet with Chief of General Staff Gen. Hilmi Ozkok. /Star/
TWO SOLDIERS KILLED IN HAKKARI
Fire by PKK terrorists on a military patrol in the Semdinli town in the province of Hakkari yesterday left two soldiers killed and wounded two others. In related news, two soldiers were also heavily injured due to a mine explosion laid by terrorists in the Pulumur town of Tunceli. /Turkiye/
CHP LEADER BAYKAL: "SAYING THERE ARE GANGS MEANS THAT THERE'S NO GOVT"
Main opposition Republican People's Party (CHP) leader Deniz Baykal yesterday proposed to the government a seven-point action plan to overcome the current political crisis. Speaking at a party group meeting, Baykal said that Turkey was passing through a serious period of dissolution and that gangs had become the normal public order in Turkey. "To say that there are gangs means that there's no government," said Baykal and added, "The government's task is to discover these gangs, not to use them." He said that the politics in Turkey was passing one of its dirtiest periods, adding, "It's exactly like the Stalin era, there's an intense disinformation process ongoing." Baykal also said that the government could overcome these difficulties by taking courageous decisions. /Cumhuriyet/
AGAR: "TURKEY NEEDS EARLY ELECTIONS"
Opposition True Path Party (DYP) leader Mehmet Agar yesterday addressed a meeting organized by the Turkish Young Businessmen's Association (TUGIAD) in Ankara. Criticizing the Justice and Development Party (AKP) government's policies, Agar claimed that Turkey had made no progress under three-and-a-half years of AKP rule. Stressing that the government had come to power with hopes of resolving issues, the DYP leader stated that if a country isn't being ruled properly, then the best thing is to hold elections, adding that there were no alternatives in democracies to elections. /Turkiye/
TURKEY, EU START EXPLORATORY TALKS ON TAXATION
Officials from Turkey and the European Commission started exploratory talks yesterday for the screening of Turkish legislation on taxation, one of the 35 chapters on which Turkey and the European Union will hold accession talks. The meeting in Brussels will end today. The EU acquis in the field of taxation covers the area of indirect taxation, namely value-added tax (VAT) and excise duties. The exploratory session on taxation will be followed by a detailed session scheduled for July 11-12. The screening process will continue with an exploratory session on another EU chapter, consumer and health protection, scheduled for tomorrow and Friday. /Turkish Daily News/
TURKEY POSTPONES MILITARY MANEUVERS DUE TO GREEK FM'S VISIT
Turkey has postponed the "White Storm" military maneuvers set to begin on Saturday in order not to risk raising tensions during Greek Foreign Minister Dora Bakoyannis' visit to Istanbul the same day, when she will also meet with her Turkish counterpart. The weeklong Izmir-centered maneuvers planned for June 10-16 in the Aegean Sea have been postponed to a later date. /Hurriyet/
CB HEAD CALLS MONETARY POLICY COUNCIL TO DISCUSS POSSIBLE INTEREST RATE HIKE
Central Bank Governor Durmus Yilmaz is due today to convene an extraordinary meeting of the Monetary Policy Council to discuss a possible interest rate increase. The council, which is expected to discuss domestic and foreign economic developments, interest rates, and the exchange rate, could decide to raise interest. The markets also expect such a rise. /Milliyet/
TOBB: "HIGH EXCHANGE RATE MAY RESULT IN PRICE INCREASES"
Turkish Union of Chambers and Commodities Exchanges (TOBB) Chairman Rifat Hisarciklioglu said yesterday that if the exchange rate continues at this high level, price inflation could be seen in Turkey. Speaking to reporters after a meeting, Hisarciklioglu said that the high exchange rate would have an effect on costs. Asked about the possibility of the Central Bank raising interest rates, Hisarciklioglu stated that the CB was an independent institution and the TOBB supported all independent institutions. "I think that there will be a rate increase," he added. /Milliyet/
VORKINK: "NO CRISIS IS EXPECTED OVER FLUCTUATIONS"
World Bank Turkey Director Andrew Vorkink yesterday predicted that fluctuations in the markets could last for a few months, adding that no crisis was expected. Saying that there were uncertainties over inflation, interest, and elections in Turkey, Vorkink stated that the markets didn't like uncertainties, but it wasn't reacting much to these fluctuations. "I wouldn't be surprised if the Central Bank decides to raise interest rates," he said. "Turkey's economy is sounder than it was in the past. This year inflation could exceed the target of 5%, but a few points of deviation isn't an important problem." /Milliyet/
IMF'S XAFA: "FLUCTUATIONS IN TURKEY'S MARKETS ARE DUE TO POLITICAL CONFLICTS"
Miranda Xafa, a director of the International Monetary Fund, said yesterday that the fluctuations in Turkey's markets were due to political conflicts. Speaking at a conference in Istanbul organized by the American Companies Association, Xafa said that in order to achieve the 5% inflation target, tight monetary policy should be followed. Saying that inflation expectations had risen a few points according to weekly surveys by the Central Bank, Xafa added that an action plan was needed in order to overcome this perception. Asked about the possibility of revisions in the inflation target, Xafa said that this was not expected. She added that with appropriate policies the recent fluctuations could be turned into an opportunity for the economy. /Milliyet/