EU leaders warn of tough year ahead
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nstead of celebrations came warnings from the leaders of euro powerhouses Germany and France that following the market maelstrom of the past year, 2012 carried further risks for the battered single European currency. “The debt crisis is still keeping us in suspense,” German Chancellor Angela Merkel said in her New Year’s message which warned of a difficult year in the eurozone. Europe, she insisted, was growing through this crisis, even if “the path to overcome it remains long and will not be without setbacks. Page 7
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.S. auto giant Ford plans to invest $1 billion in its Turkish facilities in 2012 said Science, Industry and Technology Minister Nihat Ergün. In addition to Ford, Ergün said Japanese Toyota and Nissan also had Turkish investments in the pipeline. “There will probably be investments in new models,” said Ergün, most likely to include light-weight vehicle models similar to plans for the new generation Toyota Corolla. Page 6
Ankara scored a serious discount for Russian gas
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January 2012 Year: 11 No: 112 ISSN 1300-2260
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Foreign automakers increase their investments in Turkey
Turkey to stand stable despite global uncertainties Turkey aims to make Istanbul a ‘UN center’ Foreing Minister Prof. Dr. Ahmet Davutoğlu
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avutoğlu said the government wanted to make Istanbul a center for poli-
tics and diplomacy as a “U.N. city.” “We want all countries’ flags to wave in Istanbul. It’s a diplomatic
perspective. “We aim to make Istanbul a U.N. center for issues of mediation, peace and issues concerning the future of humanity,” Davutoğlu said. “We agree with the U.N. on these matters and determined we have an important place [in these discussions].” The foreign
minister also said the government hopes Istanbul will become a center for finance, a main center for global economic influx and a main station for transportation lines. He said Turkey has already had talks with Switzerland and Luxembourg on the subject. Page 6
Merkel and Sarkozy vow fast action as crisis bites
Merkel
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ERLIN- Germany’s Angela Merkel and France’s Nico-
Sankozy las Sarkozy call for rapid action as the ongoing eurozone crisis is showing
little sign of easing. The leaders say Greece cannot get anymore support without implementing serious measures The leaders of France and Germany vowed to speed up various measures to ease the eurozone crisis, as the euro flirted with new lows on the market amid signs of heightened banking tensions. French President Nicolas
Sarkozy said after talks with Chancellor Angela Merkel that an agreement on stricter budgetary rules tying in all EU members except Britain should be signed by March 1. Merkel said negotiations on a text were progressing well and also announced Paris and Berlin were ready to accelerate payments into a permanent fund for future possible bailouts. Page 8
Turkey may revise down its growth target for 2012 Economy Minister Zafer Caglayan
Deputy Prime Minister Ali Babacan
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eputy Prime Minister Ali Babacan noted that if the economic situation in Europe were to deteriorate in the coming months, Turkey might be forced to pull down its ambitious 4 percent growth projection for 2012. Turkish economists already warned that the government’s 4 percent growth target was not realistic and a growth rate of around 2 percent would both be more prudent and likely. Babacan said Turkey would wrap up 2011 above a 7.5 percent growth rate but might have to slightly revise down its 4 percent growth target for 2012 depending on developments in Europe. Page 6
Turkey to focus on high-tech exports via entrepreneurship
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aving attracted nearly $11.5 billion in foreign direct investment in the first ten months of last year, Turkey should attract foreign funding institutions aiming to boost their presence in the country through entrepreneurship funds for high-tech industries said Turkey’s economy minister. “Nearly 50 international funds invested in 150 Turkish firms specializing in high-tech industries last year,” said Zafer Çağlayan, Turkish Economy Minister speaking before the meeting on entrepreneurship funds with private firms’ executives in Istanbul. 50 Turkish firms have reached a total export volume of $1.5 billion last year, he said. Page 9
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NKARA-Turkish Central Bank Governor Erdem Başçı pledges a stronger year in terms of stability and predictability, but cannot avoid speaking of increasing global concerns and volatilities. Big uncertainties will mark the global economy in 2012, according to Central Bank Gov. Erdem Başçı, who said Turkey’s monetary policy would maintain flexibility while increasing predictability. “This will be a year in which policy flexibility remains and policy predictability increases rapidly [for Turkey],” Başçı said during a meeting with journalists in Ankara. Başçı said the Bank would track financial stability in 2012. “We will not only focus on price stability but also go on with ensuring financial stability.” Noting the Bank’s inflation projection for the next three years stood at 5 percent, the governor said the rate
Turkish Central Bank Governor Erdem Basci
may exceed 10 percent in December. “Core inflation is expected to decline after peaking in January 2012. Page 9