EGF Turkey File, January 2014

Insights into Turkish Domestic and International Politics

January 2014

By John VanPool, EGF Turkey and Black Sea Regional Analyst

Key Points:

• The AKP government effectively halts the corruption investigations by conducting the largest judicial reshuffle in the Republic"s history.
• Fethullah Gulen defends prosecutors" actions but denies any complicity on part of his Gulen Movement as part of a conspiracy against the government.
• Prime Minister Erdogan takes a softer tone in a hostile Brussels as he visits the seat of the EU for the first time in five years.
• Capital flight continues to harm Turkey"s economic prospects as the lira faces longest consecutive days of losses against the dollar since 2001.
• Defying the prime minister"s warnings that an interest rate hike is part of a conspiracy, the Central Bank acts in an emergency meeting, raising interest rates more than 4 percent.