EU says satisfied with Turkey’s economic performance

Today’s Zaman - The European Union is expected to announce its satisfaction with Turkey's economic performance in line with guidelines set forth by the EU in Copenhagen in 1993. In an annual progress report due to be released on Nov. 5, the European Commission notes that Turkey implemented economic policies in line with the commission's recommendations and successfully completed a stand-by agreement with International Monetary Fund (IMF) in May 2008. It says, however, that Turkey needs to make further reforms in its economic programs. "The impact of financial turbulence on Turkey and on Turkish banks has remained limited," the report notes. It attributes the health of the financial system in Turkey to significant improvements in the policy environment, including prudent regulations, close cooperation amongst Turkish financial institutions, high risk awareness in the banking sector and coherent monetary and fiscal policies. The commission also analyzed the economic integration of Turkey into the EU, concluding in its report that liberal trade policies have increased marginally. While the share of exports to the EU grew slightly from 56% to 56.4% in 2007, imports from the EU declined, from 42.6 % to 40.4%. It highlights that the EU remains Turkey's largest trading and investment partner.