BABACAN VOICES BACKING FOR CENTRAL BANK POLICY
Deputy Prime Minister for the economy Ali Babacan yesterday expressed support for the Central Bank’s latest moves to cool the economy, praising the bank’s policies as "authentic." Meeting with some 50 bank CEOs and representatives of other financial institutions in Ankara late Wednesday, Babacan said that Turkey won’t be seized by the populism seen in some developed countries, but is ready to take difficult measures if necessary. In its Monetary and Currency Policy in 2011 document released Tuesday, the CB suggests the government should help fight a widening current account gap, which in the 12 months up to this October soared to $40.8 billion, or nearly 5.6 percent of Turkey’s gross domestic product. "We expect the current deficit to exceed $40 billion by the end of the year. But we don’t foresee any problem financing it," Babacan said. "Our government won’t hesitate to take measures to ensure confidence and stability. In our medium-term program, we aim to reach a 5 percent growth rate and reduce inflation to 5 percent for the 2011-2013 period. Our target is to protect and further strengthen financial and macroeconomic stability." He added, "If you look at our financial policies over the last few weeks, you can see that they are authentic." /Hurriyet Daily News/

IN HISTORIC DEAL WITH TURKEY, SYRIA PLEDGES AMNESTY, JOBS FOR EX-PKK MEMBERS
Prime Minister Recep Tayyip Erdogan and Syrian Prime Minister Muhammad Naji al-Otri, during his visit to Turkey earlier this week, signed a historic deal dealing with how members of the terrorist PKK in northern Iraq will be treated. Under the agreement, PKK terrorists and leaders in northern Iraq will be encouraged to settle in Syria, which is planning a general amnesty for PKK militants. Syria is also promising an employment scheme for those who want to come back from northern Iraq and reintegrate into Syrian society. If these militants can be relocated to and kept in Syria, this would ease Turkey’s anti-terrorist task tremendously, said a senior security official who asked not to be named. The deal also marks a historic point in relations between the two countries. Syria was the PKK’s number one supporter in the region until 1998, when Turkey threatened war. In recent years, Syria and Turkey have declared the PKK a common enemy. /Today’s Zaman/

LEADERS SHARE VISIONS OF PROSPERITY, COOPERATION AT ISTANBUL ECO SUMMIT
Boosting intraregional trade and prioritizing energy, transportation and finance among member countries were the key issues discussed yesterday at the 11th Summit of the Economic Cooperation Organization, held in Istanbul’s Ciragan Palace. "Other ECO members expressed their desire to be partners of the ECO Commerce and Development Bank, established in 2008 by Turkey, Iran and Pakistan to better finance projects in the ECO framework," President Abdullah Gul told a press conference. "We are working to achieve regional dialogue and cooperation mechanisms," Gul said in his opening speech at the summit, adding that these are crucial for boosting stability and prosperity in the region, as well as creating a more just world order. All members of the Economic Cooperation Organization, a group of Central Asian states, should sign ECOTA, a free trade agreement signed by five ECO countries in 2008 to foster economic integration in the region, Gul said. "Intraregional trade (among ECO countries) has remained at very low levels of 7 percent, and we must accept that this is a failure for all of us," Gul said, calling regional economic and commercial cooperation crucial. He also called for wider participation in the activities of the ECO Bank, which started operating in Istanbul in 2008. Pointing to ECO countries’ strategic geographical position and wealth of natural and human resources, Gul called on all ECO members to work to revitalize the targets of ECO Vision 2015. /Hurriyet Daily News/

TALKS ON SIDELINE OF SUMMIT DISCUSS IRAN NUCLEAR DISPUTE
While working to reduce the tension over Iran’s nuclear program, Turkey is hoping that next month’s talks between six world powers and Tehran in Istanbul will facilitate this, Foreign Minister Ahmet Davutoglu said late on Wednesday. Davutoglu was speaking to reporters on the sidelines of a regional economic summit in Istanbul after meeting with acting Iranian Foreign Minister Ali Akbar Salehi. Iran’s President Mahmoud Ahmadinejad and Salehi were in Turkey to participate in a summit of the 10-member Economic Cooperation Organization (ECO). "Our overall goal is extremely clear," Davutoglu told reporters, namely that Turkey wants to see the entire world free of nuclear weapons. Turkey wants to reduce tensions via the peaceful use of nuclear energy, he added. "We will do our best" at next month’s meeting in Istanbul, he said. "But our role is clear: We are the host. We will give whatever support the parties ask for." /Today’s Zaman/"

VERHEUGEN: "THE EU URGENTLY NEEDS TURKEY"
The European Union needs Turkey more urgently than Turkey needs the EU, said Gunter Verheugen, former European Union commissioner in charge of enlargement, in an interview with an Austrian daily published yesterday. Verheugen said that though the negotiation process with Turkey is continuing, there are governments that don’t want Turkey in the 27-nation bloc regardless of how the negotiations end up. Verheugen singled out Austria’s anti-Turkish policies for criticism, saying, "Austria’s policy makes Turkish-EU relations difficult." At a time of such negative attitudes, it is difficult to demand that Turkey fulfill its obligations under agreements and continue democratization, Verheugen stressed. Arguing that new members bring a positive atmosphere to the EU, Verheugen added that it would be wrong to put enlargement on the back burner just because of the economic crisis. New members could help the EU be more dynamic, he said. /Hurriyet Daily News/

AS TIME RUNS OUT ON ARMENIAN RESOLUTION IN US CONGRESS, ANKARA CALLS FOR DIALOGUE
Foreign Minister Ahmet Davutoglu yesterday welcomed the US Congress’ decision not to vote on a resolution to declare the killing of Armenians in the final days of the Ottoman Empire a genocide, saying that now is the time to resolve disputes with Armenia. "We are pleased that there was no development in the US Congress potentially dealing a blow to Turkish-US and Turkish-Armenian ties," Davutoglu told reporters on the sidelines of a regional summit in Istanbul. Saying that "common sense has prevailed once again," Davutoglu said Turkey is ready to face history and to work for reconciliation with Armenians. He added that efforts to pass resolutions on history in third-party countries’ parliaments and to use such resolutions to "blackmail" Turkey are unacceptable. "Such efforts lead to a completely unnecessary waste of time and energy," said Davutoglu. "Now is the time for dialogue and compromise. We must work harder towards that end in order to bring peace to our region." Supporters of the resolution made a push for approval in the final days of the US Congress, despite opposition from the Obama administration. The measure was opposed strongly by Turkey, and the administration feared it would have damaged relations with its NATO ally. Instead, the House of Representatives ended its final session before a new Congress takes its seats without taking up the matter. /Today’s Zaman/

TURKEY, JAPAN IN EXCLUSIVE TALKS OVER NUCLEAR PLANT
After failing to reach an agreement with South Korea, Turkey is holding exclusive talks with Japan over building a nuclear power plant, and hopes to conclude a deal within three months, Energy Minister Taner Yildiz said yesterday in Tokyo before holding talks with Toshiba, Tokyo Electric Power and Itochu Corp. "Within three months, the main frameworks should be drawn," including financing, insurance, partnerships and power tariffs, he said. He added that his visit to Japan comes after officials from Toshiba and the Japanese government held two rounds of technical meetings in Turkey on the project. "They told us their first impression is quite positive," he said. Yildiz and his Japanese counterpart Akihiro Ohata are due today to sign a memorandum of understanding on nuclear power cooperation. Tomorrow Yildiz is scheduled to visit Tokyo Electric’s Kashiwazaki Kariwa nuclear power plant, the world’s biggest atomic power station. /Hurriyet Daily News/

"MADE IN TURKEY" BOOMS IN NORTHERN IRAQ
Turkey’s trade ties with northern Iraq have come to dominate the region’s retail and construction markets. Approximately 60 percent of companies in northern Iraq are from Turkey, and the number of Turks working or running businesses in the region recently exceeded 15,000, while a further 20,000 truck drivers work to transport goods from northern Iraq to Turkey, according to data gathered by the Anatolia news agency. Atlas Jet, a Turkish carrier, has eased access to the region, with daily flights scheduled from Istanbul to Erbil International Airport. Turkish Airlines (THY) is also preparing to launch direct flights to Erbil, as thousands of Turkish businessmen and business organizations visit the country every year seeking investment opportunities. Turkey has opened a third consulate in Erbil due to the developed trade relationships and several banks, including state-owned Ziraat Bank, Vakif Bank and the country’s biggest lender Isbank, have decided to open branches there, a development set to ease mutual trade. Tarkan Kadioglu, the head of the Eastern and Southeastern Industrialists’ and Businessmen’s Federation, said northern Iraqis see Turkey as a gateway to Europe. "But northern Iraq is Turkey’s gateway to Iraq in general and the Middle East," he added. /Hurriyet Daily News/

TUSKON PLANS MAJOR BUSINESS VISIT TO TAJIKISTAN NEXT YEAR
In response to an invitation extended by Tajik President Emomali Rahmon, Turkish Confederation of Businessmen and Industrialists (TUSKON) head Rizanur Meral said Wednesday that the group will make an investment visit to Tajikistan next year. Speaking at the Turkey-Tajikistan Trade and Investment Forum sponsored by TUSKON, Meral told how Turkey was the first country to recognize Tajikistan’s independence in 1992, and that it will always stand with its Central Asian cousin. "Today, many Turkish companies are operating in Tajikistan," he said. "That the number of Turkish companies and the business they do rises each day gives us hope that our economic ties will boom. TUSKON will do whatever is necessary towards that end." He stressed Tajikistan’s unique position in possessing 60 percent of all water resources in the entire Central Asian region. "The large opportunities Tajikistan offers in building hydroelectric power plants will make the country a key attraction for Turkish businessmen," he added. TUSKON’s forum brought together some 530 businessmen from both countries. Stressing how important it is to improve economic ties with Tajikistan, President Abdullah Gul told the forum how he instructed the Turkish ambassador to Dushanbe and the Tajik ambassador in Ankara that their biggest task is to facilitate business in the two countries. "Economic activity will enrich the people of both countries," he added. "The way before you is clear; just go and share your experience there." /Today’s Zaman/