EGF Turkey File, January 2014

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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.

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