EGF Turkey File, December 2011

Insights into Turkish Domestic and International Politics

December 2011 

Key Points:

• The TSK mistakenly bombs unarmed Kurdish smugglers near the Iraqi border, adding yet another incident that sets back Turkish-Kurdish relations and possibly fueling further violence.
• Military, economic and political ties are severed between France and NATO ally Turkey following the National Assembly"s vote to move an Armenian genocide bill forward.
• Turkey"s Central Bank sells off over $1 billion in dollars to combat rising inflation, though by month"s end the rate had surpassed 10%.
• Azerbaijan and Turkey agree to a new gas transport and supply deal for the Shah Deniz field, upsetting some in Brussels who feel the new pipeline could undermine the time consuming progress for NABUCCO.