ERDOGAN: “OUR ECONOMIC SUCCESS SPRINGS FROM A CLIMATE OF POLITICAL CONFIDENCE”
Addressing Parliament yesterday during debates over the 2005 fiscal budget, which later passed, Prime Minister Recep Tayyip Erdogan said that Turkey’s current economic success was the result of a climate of confidence, adding that both exchange rates and the political situation are steady. “The most important indicator of our sound economy is the new Turkish lira” coming on Jan. 1, said Erdogan, adding, however, that some circles were trying to cast aspersions on it. “They claim that the new lira will fuel inflation, which isn’t true,” he said. Touching on the Cyprus issue, Erdogan said that including 10 new European Union members into Turkey’s Customs Union with the EU wouldn’t mean recognizing Greek Cyprus. “We can no longer protect the interests of Turkish Cypriots by insisting on policies of non-settlement and remaining passive,” he said. “Turkey must take courageous steps and always be one step ahead.” He stressed that the most unfair criticism coming from the recent historic EU summit concerned Cyprus, adding that the island was a national cause for the government, which will not tolerate any efforts to jeopardize the interests of Turkish Cypriots. Asked if there would be changes in his Cabinet, Erdogan declined to be specific, saying only that he would do what is needed when appropriate. He is widely expected to reshuffle six or eight Cabinet members. /Aksam/

BAYKAL: “THE ECONOMY ISN’T AS ROSY AS THE GOVERNMENT SAYS”
Addressing Parliament yesterday during budget debates, opposition Republican People’s Party (CHP) leader Deniz Baykal criticized the government’s economic policies, claiming that the economy isn’t as rosy as the government makes it out to be. “Our debt, current account and trade deficits are increasing,” said Baykal. “Real interest rates are not falling. Investment is shrinking and unemployment is rising.” He stressed that the macroeconomic instability was continuing, and commenting on Ankara’s new standby agreement with the International Monetary Fund, asked, “Would such an agreement be signed if the economy could stand on its two feet? The government has agreed to shackle itself for another three years.” Touching on the Cyprus issue, Baykal said that if a resolution is reached by next October, when Ankara is due to begin its European Union accession talks, there would be no problem, but that this was a best-case scenario. “No Turkish government has the right to sacrifice Cyprus,” he added. “Neither the CHP nor the nation will allow it.” /Milliyet/

PARLIAMENT PASSES 2005 BUDGET
The fiscal 2005 budget was approved yesterday by Parliament with 346 deputies voting for and 152 against. The budget is the first to be prepared using the new Turkish lira (YTL), with expenditures set at YTL 155.6 billion, revenues at YTL 126.5 billion, and the deficit at YTL 29.1 billion. /Turkiye/

13 TURKISH CITIZENS RETURN SAFE FROM SOUTH ASIA
Yesterday 13 Turkish citizens returned from south Asia via a private plane provided by the Foreign Ministry. The survivors of the disaster-hit region, including soccer players Emre Asik and Umit Davala, arrived in Istanbul last night. However, as yet no contact has been established with some 40 other Turkish citizens believed to have been in the affected region, said officials. /Aksam/

TRNC PRESIDENT DENKTAS: “I WON’T RUN FOR RE-ELECTION IN APRIL”
A process has begun aiming to end the Turkish Republic of Northern Cyprus (TRNC), charged TRNC President Rauf Denktas yesterday. Denktas also said that he would not stand as candidate in April’s presidential elections, but added that he would continue his struggle against those seeking to unite Cyprus with Greece. /Star/

DEPUTY SEC’Y OF STATE ARMITAGE’S VISIT TO FOCUS ON IRAQ, CYPRUS
US Deputy Secretary of State Richard Armitage is expected to arrive in Turkey on Sunday to discuss a number of issues, including the upcoming Iraqi elections and the Cyprus issue, with Foreign Minister Abdullah Gul. Prime Minister Recep Tayyip Erdogan is expected to tell Armitage that Ankara expects the US to take concrete steps against the PKK/KONGRA-GEL terrorist organization in northern Iraq. /Cumhuriyet/

GOVT ANNOUNCES NEW MINIMUM WAGE OF TL 350 MILLION
The Minimum Wage Commission yesterday announced the new monthly minimum wage of TL 350 million net, TL 489 million gross, set to go into effect as of Saturday, Jan. 1, 2005. In addition, during Monday’s last Cabinet meeting of 2004, the government announced that it would increase Social Security Authority (SSK), Social Insurance for the Self-Employed (BAG-KUR) and agricultural workers’ retirement pensions by a total of 12.36 percent this year, in two incremental hikes in January and July. /Turkiye/

AKP’S BALANDI LEAVES PARTY
Reyhan Balandi, a ruling Justice and Development Party (AKP) deputy from Afyon, yesterday officially resigned from the party. She had submitted her resignation to Prime Minister and AKP leader Recep Tayyip Erdogan before Dec. 17, she said, adding that she had waited for the end of the European Union summit. With her resignation, the number of AKP seats in Parliament fell to 367. /Sabah/

EKMELEDDIN: “THE OIC WILL PLAY A MORE ACTIVE ROLE IN PROMOTING WORLD PEACE”
Turkey’s Ekmeleddin Ihsanoglu, the new secretary-general of the Organization for the Islamic Conference (OIC), yesterday pledged that the organization would play a more active role in promoting world peace. At a ceremony in Jeddah, Saudi Arabia where he took over the post from his predecessor Abdulvadid Belkaziz, Ekmeleddin stated that a number of reforms would be made to ensure that the OIC it works more actively and efficiently, adding that the organization would take a greater interest in world events. He remarked that as a first step, a delegation would be sent to observe Palestine’s presidential elections set for Jan. 9. /Turkiye/

DRUG SMUGGLER DETAINED, RELEASED IN BRITAIN
Wanted drug smuggler Nurettin Guven, who has been sought by Turkey and France through Interpol, was arrested in Britain last week. Officials said that despite Turkey’s request to extradite Guven, Britain released him after an investigation. Guven was also involved in the Susurluk scandal and faces sentences of 15 years in Turkey and 10 years in France for drug smuggling. /Hurriyet/