IKV’s Trustee Organisations:

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ISSUE: 63 JULY-AUGUST 2020 www.ikv.org.tr / contact: [email protected] EU’S POLITICAL AND ECONOMIC LEADER IN THE DRIVER’S SEAT: GERMANY’S EU PRESIDENCY

Under the motto “Together for Europe’s Recovery”, Germany will focus on overcoming the effects of the coronavirus crisis, digitalisation, Brexit and creating a sustainable and fair Europe.

ermany, one of the EU’s six increasing the EU’s competitiveness. founding members and Germany’s EU Presidency Gthe locomotive of the EU, programme briefly touches took over the Presidency of the upon the enlargement policy. Council of the EU from Croatia for While Germany’s EU Presidency a six-month period on 1 July 2020. programme mentions that This marks Germany’s 13th Council maintaining a credible accession Presidency and the first time since perspective for the Western Balkans 2007. Two German conservative is in the EU’s own strategic interest, politicians, current European sadly it makes no specific reference Commission President Ursula von to . der Leyen and German Chancellor As known, since 2016 Turkey’s Angela Merkel, will work together EU accession negotiations have and aim to steer EU policies until 31 been at an impasse due to the December. blockages in the EU Council. The The German EU Presidency talks aimed at the modernisation is the first presidency within the of the Customs Union have not scope of the 18 month-long been launched, nor has the Germany-Portugal-Slovenia years-long dream of visa-free Presidency trio. During its EU term travel for Turkish citizens been presidency, Germany is expected realised. Recently, Turkey-EU to serve both as an engine and as a ties have been strained over the mediator. disagreements regarding the Libyan conflict and hydrocarbon Germany’s Presidency Priorities Germany’s term presidency. In this which will last until 1 January 2021. discuss reform proposals on foreign exploration in the Eastern Germany has announced its regard, facilitating an agreement Given the fact that London has policy. Mediterranean. Nevertheless, Turkey EU Presidency programme on 30 on the next long-term EU budget declined seeking an extension According to Merkel, Africa will sees Germany’s EU Presidency as June. Acting in line with the motto and the 750 billion-euro recovery to the transition period, a new receive special attention during an important opportunity and “Together for Europe’s Recovery”, fund proposed by the Commission agreement will need to be signed Germany’s EU Presidency, the main wants to revitalise its relations Berlin will focus on six areas during known as “Next Generation EU” between the UK and the EU before objective being the development of with the EU. Turkey’s main goal its six-month long EU Presidency. will be at the centre of Germany’s the end of the year. a new partnership between EU and during Germany’s EU Presidency These areas have been defined efforts. The plan is expected to be German Chancellor Merkel Africa by looking at Africa as the is launching the talks aimed at the as “overcoming the long-term discussed at the European Council has touched upon digital continent of the future. Engaging modernisation of the Customs consequences of the coronavirus meeting scheduled for 17-18 July. transformation as another priority with China will be another priority Union. In addition to the associated crisis as well as economic and social Besides the urgency of area under Germany’s Presidency. for Berlin. Chancellor Merkel economic benefits it would bring recovery”, building “a stronger and addressing the effects of the Highlighting that Europe should stated that they remained open to to both sides, the modernisation more innovative Europe”, “a fair coronavirus pandemic, Germany is be technologically and digitally dialogue with China on the rule of of the Customs Union is seen as an Europe”, “a sustainable Europe”, “a expected to take the first steps in independent; Merkel stated that law, human rights and the future important step which would inject Europe of security and common the implementation of the action the pandemic crisis clearly showed of Hong Kong. She also said that new dynamism into Turkey-EU values”, and “an effective EU for plan known as the “European Green in which digital areas Europe was they wanted to continue working relations. Turkey also expects a a rule-based international order Deal” which aims to make Europe dependent. with Beijing on the EU-China revised refugee deal addressing its anchored in partnership”. the world’s first climate-neutral Indicating that the EU should Comprehensive Agreement on concerns regarding the efficiency The coronavirus pandemic, continent. The European Green take on more responsibility globally, Investment and climate change. and delivery of financial aid as which is regarded as the greatest Deal is also at the centre of EU’s Merkel has advocated a greater role well as the EU’s failure to deliver challenge the EU has ever faced, COVID-19 recovery plan. for the EU in promoting concepts Germany’s EU Presidency and on the commitments made in the puts great responsibility on Another important objective such as human dignity, democracy Turkey deal. We hope that Germany’s EU Germany’s EU Presidency. German for the EU during this period will be and freedom. Moreover, she has During its EU Presidency, Presidency will be an opportunity Chancellor Angela Merkel will have reaching a deal on the post-Brexit underscored the Conference on Germany’s main focus will be on for a breakthrough in Turkey-EU ties to make great efforts to address relationship with the UK. Having the Future of Europe, which is set managing the negative effects of by building on the numerous areas the socioeconomic consequences left the EU on 31 January, the UK to begin during Germany’s EU the coronavirus crisis, ensuring of common interest and restoring of the pandemic crisis throughout has entered into a transition period Presidency, as an opportunity to digital transformation and trust in the relations. 1965 2020

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IKV AGENDA

TH IKV HELD ITS 58 GENERAL CONSTRUCTION OF ASSEMBLY MEETING PRODUCTION PLANT FOR he 58th Ordinary General Assembly Meeting revitalisation of Turkey’s EU accession process. Tof IKV was held via video conference on 13 July In his speech, IKV Chairman Zeytinoğlu stated TURKEY’S AUTOMOBILE BEGAN 2020 with the participation of the presidents of IKV’s that the pandemic affected Europe and the EU founding and trustee institutions, representatives of profoundly and emphasized the importance of he groundbreaking ceremony for TOGG wish for the success of Turkey’s Automobile, supporting organisations and delegates. creating a new normal instead of going back to the TEngineering, Design and Production President Erdoğan congratulated everyone President of Istanbul Chamber of Commerce past in the post-pandemic normalisation period. IKV Facilities was held with the participation of who supported and contributed to the (ICOC) Şekib Avdagiç was elected as Assembly Chairman Zeytinoğlu pointed out that in this new era, President Recep Tayyip Erdoğan in Gemlik project in reaching this stage, and offered President while Istanbul Chamber of Industry (ICI) Vice global value chains dependent on a single centre will district of Bursa on 18 July 2020. TOBB and his thanks to TOBB and TOGG President M. Chairman İrfan Özhamaratlı was elected Assembly be replaced by regional production centres close to Turkey’s Automobile Joint Venture Group Rifat Hisarcıklıoğlu and his administration, Vice President and IKV Secretary General Assoc. Prof. the EU. Indicating that Turkey had an advantageous (TOGG) President M. Rifat Hisarcıklıoğlu, and the Ministry of Industry and Technology. Çiğdem Nas was elected clerk. position in this regard, IKV Chairman Zeytinoğlu Parliament Speaker Mustafa Şentop, Vice Speaking at the ceremony, TOBB and The opening speeches of the General Assembly stressed the need to restore Turkey-EU relations by President as well as numerous TOGG President M. Rifat Hisarcıklıoğlu meeting were delivered by IKV Chairman Ayhan overcoming the current challenges. ministers and senior officials attended the said that they would invest 22 billion liras Zeytinoğlu, Deputy Minister of Foreign Affairs and IKV Chairman Zeytinoğlu stated that the groundbreaking ceremony for Turkey’s first in Turkey’s Automobile in 15 years and 1 Director for EU Affairs Ambassador Faruk Kaymakcı, revitalisation of Turkey’s EU accession negotiations, domestic car plant. million vehicles would be produced by the Union of Chambers and Commodity Exchanges modernisation of the Customs Union, completion In his address at the ceremony, 2032. TOBB President Hisarcıklıoğlu stated of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu, of the visa liberalisation process, continuation of President Recep Tayyip Erdoğan that Turkey’s dream of half a century was ICOC President Şekib Avdagiç, ICI Vice Chairman İrfan the cooperation on refugees, relations with the UK underscored that Turkey’s first domestic taking another giant step forward. TOBB Özhamaratlı and Turkish Exporters’ Assembly (TİM) in the post-Brexit period and contributing to the car plant would change the perception of President Hisarcıklıoğlu indicated that Chairman İsmail Gülle. Representatives of IKV’s trustee Conference on the Future of Europe were the priority a factory in people’s minds with its varying Turkey’s Automobile implied a technological institutions underscored that Turkey’s EU membership areas identified in IKV’s 2020 work programme. facilities and said, “We plan to complete the transformation and a transition to the digital perspective has become even more important in the Chairman Zeytinoğlu indicated that IKV was working construction of the factory in 18 months and economy. “While the automotive world is aftermath of the COVID-19 pandemic and pointed tirelessly and with determination in line with its take our first vehicle from the production changing, I hope Turkey will become an to the key role IKV has been playing as “Turkey’s EU founding values. Zeytinoğlu concluded his remarks line in the last quarter of 2022.” President important player at the table. Hopefully now Expert” in this process. Recalling the EU’s significant by extending his gratitude to IKV’s founding and Erdoğan stated that it was a historic step we’ll move on to the winning side. Because share in Turkey’s trade and foreign investments, they trustee institutions including TOBB, and supporting to realise a 60-year-old dream to produce this is car of the 83 million,” Hisarcıklıoğlu voiced the business community’s expectation for the organisations. Turkey’s first domestic car. Expressing his added.

IKV CHAIRMAN ZEYTİNOĞLU ASSESSED THE HISTORIC DEAL ON THE EU RECOVERY PACKAGE

This includes the EU’s 7-year budget with a size from its initial approach during the global agreement was not possible. The importance of 1.074 trillion euros and a recovery fund called financial crisis. of safeguarding the rule of law was mentioned. “Next Generation EU” with a size of 750 billion We see an increasing realisation that EU Now the deal will need to be discussed and euros. Through these financial instruments, the countries are economically interdependent approved in the EP.” EU aims to overcome the negative effects of and their fates are united. On the fifth day of Chairman Zeytinoğlu highlighted the COVID-19, strengthen its capacity in the field of the marathon meeting, a deal was reached and importance of the deal for Turkey as follows: health and research, and channel resources to naturally some concessions were made. The “Despite the pros and cons, the agreement its new priorities. In other words, while adopting Netherlands, Sweden, Austria and Denmark, reached is important. Turkey as a candidate a recovery package to get out of the crisis, the known as the , wanted the share of country needs to monitor closely the reform EU also plans to modernise its economy beyond grants in the package to be reduced and the use process in the EU which is also our largest trading recovery.” of grants and loans to be made conditional. As a partner and take the necessary steps in the area IKV Chairman Zeytinoğlu made the following result, EU leaders agreed on 390 billion euros in of legislative alignment and implementation. n 21 July 2020, IKV Chairman Ayhan comments on the deal’s consequences for the grants and 360 billion euros in loans instead of EU’s priorities such as the Green Deal, Digital OZeytinoğlu issued a press statement EU: “The first proposal for a recovery fund was the original proposal. Some cuts were made in Single Market and economic resilience should regarding the agreement reached by EU leaders put forward by French President Macron and the budget, particularly in the areas of research, also be taken into consideration by Turkey. First on the 2021-27 EU budget and the COVID-19 German Chancellor Merkel in May. The European health, external action, investment and the green of all, we should consider the new trends in trade recovery fund. Highlighting the importance of Commission has put flesh on this proposal. 500 economy. Benefiting from the recovery fund will and industrial policies of the EU as our top export the historic compromise reached at the Special billion euros out of the 750 billion euro package depend on the decision of the Member States. market. Furthermore, the EU is a major player in European Council meeting, IKV Chairman were to be given out as grants and 250 billion However, Member States, which want to benefit the global trading system which is marked with Zeytinoğlu stated the following: were to be given as loans. Under the proposal, from the recovery fund, will need to align with increased protectionism and competition. Thus, “The EU Summit, which has been going on for the first time, the European Commission the reform priorities of the EU particularly in the maintaining cooperation with the EU could yield for four days, has resulted in a positive outcome, will borrow from the international markets on areas of digital transformation and the Green important benefits for Turkey. As IKV, we will and Member States have reached a deal on the behalf of the EU and make it available to the Deal. continue to monitor and analyse these processes budget and the recovery package. Accordingly, Member States. Germany’s support for common Linking the EU funds to the rule of law was closely and continue to provide guidance to the there is a package of 1.82 trillion euros in total. borrowing marked a fundamental departure yet another controversial issue on which an the business community.”

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19 65 1965 www.ikv.org.tr 19 65 2018 IKV AGENDA TIMELINE JULY 2020 Germany assumed the rotating 1 IKV attended the 6th meeting IKV CHAIRMAN ZEYTİNOĞLU presidency of the EU Council. of the Customs Union 2 Modernisation and Brexit Foreign Minister Çavuşoğlu and Working Group. COMMENTED ON THE EU-VIETNAM FTA Tourism Minister Ersoy visited Germany. 3 n 23 July 2020, IKV Chairman OAyhan Zeytinoğlu issued the following statement on the 4 EU-Vietnam Free Trade Agreement (FTA) which is set to take effect on 5 1 August: “As of 1 August, another FTA will EU High Representative Borrell be added to EU’s new generation paid a two-day visit to Turkey. 6 FTAs. This time, the country in European Commission released question is Vietnam, which with its Summer Economic Forecast. 7 its export surge, stands out as an alternative market to China. Foreign Minister Çavuşoğlu paid Vietnam is the second Southeast a working visit to the UK. 8 Asian country after Singapore to MEPs held a debate on Turkey sign an FTA with the EU. The EU and the situation in the 9 presents the agreement as the most Mediterranean. ambitious FTA it has concluded with a developing country. As soon as EP approved an additional 485 10 IKV participated in Trade the agreement enters into force, million euro aid for Syrians in Ministry’s online event on the European Green Deal. 71% of customs duties will be lifted Turkey. 11 in Vietnam’s exports to the EU, and with delays. Meanwhile, the third in textiles, shoes, and electronics the rest will be phased out in seven country obtains the right to sectors. Therefore, Vietnam will years. Moreover, the EU-Vietnam FTA export to Turkey tariff-free due become an important competitor 12 IKV’s 58th General Assembly prohibits non-tariff barriers and sets to the Customs Union whereas for Turkey both in terms of exports EU foreign ministers held a Meeting was held via video out conditions for the protection of Turkey cannot obtain the same and as an investment destination. debate on Turkey-EU relations. 13 conference. intellectual property rights, workers’ advantage. This asymmetry was In addition, the urgency of IKV Chairman Zeytinoğlu rights and sustainable development. to be tackled in the context of the extending the scope of Malta’s Foreign Affairs Minister attended the workshop on The agreement also covers the Customs Union modernisation Turkey-EU Customs Union is 14 Bartolo visited Turkey. EU’s post-pandemic trade and services and public procurement process, but the negotiations increasing every day, since its current industrial strategies. sectors. Along with the FTA, the could not be launched due to scope is limited to industrial goods. The 15th EU-India Summit was 15 parties signed an agreement on the political reasons. Turkey has made The EU-Vietnam FTA on the other IKV and the EU-Turkey Forum held via video conference. protection of bilateral investments.” an attempt to sign an FTA with hand, is a deep and comprehensive organised a webinar on Turkey-EU relations and IKV Chairman Zeytinoğlu Vietnam, but negotiations have FTA which also covers sectors such The European Court of Justice 16 drew attention to the following not started, and this leaves Turkey as services, agriculture, and public invalidated the EU-US Data Germany’s EU Presidency. regarding the FTA’s significance for in a disadvantaged position. procurement, and sets investor-state Protection Shield. 17 IKV Chairman Zeytinoğlu Turkey: “A major area of concern However, the main problem dispute resolution mechanisms. participated in the roundtable regarding the Turkey-EU Customs about the agreement is that as of The Customs Union needs to be hosted by UND. The groundbreaking ceremony Union is the asymmetry resulting 1 August exports from Vietnam modernised as soon as possible, 18 for Turkey’s first domestic car from EU’s FTAs. When the EU to the EU and EU’s investments otherwise Turkey risks not only plant was held in Gemlik, Bursa. concludes an FTA with a third in Vietnam are likely to increase. losing ground in the EU market 19 IKV Secretary General Nas country, a similar agreement needs According to projections, Vietnam but also losing its position as an assessed the negotiations on the to be signed between Turkey and will increase its exports to the EU attractive destination for European recovery package to Mediascope. the third country which occurs by almost 42.7% by 2025 especially investments.” 20 IKV Chairman Zeytinoğlu issued a EU leaders reached a landmark 21 statement regarding the deal on deal on the EU budget and the EU budget and recovery fund. IKV published a report on EU TURKEY-EU RELATIONS UNDER GERMANY`S recovery fund. 22 and Turkish legislations on EU PRESIDENCY DISCUSSED AT IKV WEBINAR industrial accidents. 23 IKV Chairman Zeytinoğlu issued he webinar entitled “EU-Turkey a statement on the EU-Vietnam FTA. TRelations under the German The European Commission 24 Presidency: A Breakthrough presented its Capital Markets Opportunity?” was organised by IKV Recovery Package and renewed 25 in association with the EU-Turkey Security Union Strategy. Forum on 16 July 2020. IKV Chairman Ayhan Zeytinoğlu, EU-Turkey Forum 26 IKV Secretary General Chair MEP Kris Peeters and Head Nas assessed the latest of the EU Delegation to Turkey Spanish Foreign Minister developments in the EU in a González Laya visited Turkey. 27 Ambassador Christian Berger podcast with “Vote and Beyond.” delivered the opening speeches of th the webinar which was moderated The 8 EU-China High-Level 28 by EU-Turkey Forum Secretary Trade and Economic General Laura Batalla Adam. Dialogue was held via Issue 25 • December 2016 3 video conference. 29 Following the opening speeches, the webinar proceeded with a diplomatic correspondent of Die Sánchez Amor. During the panel discussion. The speakers Zeit journal Michael Thumann. webinar prospects and challenges 30 of the panel were IKV Secretary The webinar concluded with for Turkey-EU relations under General Assoc. Prof. Çiğdem Nas, closing remarks by EP’s Standing Germany’s EU Presidency were 31 IEP-Berlin Director Funda Tekin and Rapporteur on Turkey Nacho discussed in detail.

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IKV AGENDA

IKV CHAIRMAN ZEYTİNOĞLU IKV CHAIRMAN ZEYTİNOĞLU ATTENDED THE EVENT ON EU’S PARTICIPATED IN THE POST-PANDEMIC TRADE STRATEGY ROUNDTABLE HOSTED BY UND

KV Chairman Ayhan Zeytinoğlu, Secretary (UND) on 17 July 2020. In the roundtable IGeneral Assoc. Prof. Çiğdem Nas and meeting entitled “A General Evaluation of Strategy and Business Development Turkey-EU Relations and the Reflections on Director M. Gökhan Kilit participated in the Logistics Sector”, views were exchanged the roundtable meeting organised by the on the state of play in Turkey-EU relations and n 14 July 2020, TOBB Vice President and EU Delegation to Turkey Ambassador Christian International Transporters Association the issues concerning the logistics sector. OIKV and Kocaeli Chamber of Industry Berger delivered speeches at the event which Chairman Ayhan Zeytinoğlu attended the was moderated by Kocaeli Chamber of Industry online workshop entitled “Post COVID-19 Assembly President Hasan Tahsin Tuğrul. EU’s Changes to EU Trade and Industry Strategies response to the COVID-19 pandemic, and Their Impact on Turkey” jointly organised Turkey-EU trade and economic relations as well by the Kocaeli Chamber of Industry and the as expectations for Turkey-EU relations in the Turkey-EU Business Dialogue Project (TEBD). IKV post-pandemic period were discussed during Chairman Ayhan Zeytinoğlu and Head of the the event.

IKV ATTENDED TRADE MINISTRY’S CUSTOMS UNION MODERNISATION WORKING GROUP AND EUROPEAN GREEN DEAL EVENT IKV SECRETARY GENERAL NAS SPOKE AT THE INTERNATIONAL CONSUMER QUALITY SUMMIT

KV Secretary General Assoc. Prof. Çiğdem Prof. Nas delivered a speech on the pandemic INas participated in the 33rd International crisis and the future of the EU in the session Consumer Quality Summit held in Istanbul entitled “Challenges from Global to Local in on 19 July 2020. IKV Secretary General Assoc. the COVID-19 Pandemic Era.”

NEW IKV PUBLICATION ON THE PREVENTION OF MAJOR INDUSTRIAL ACCIDENTS n July, IKV took part in various online events relations, modernisation of the Customs Union Iheld by Turkey’s Ministry of Trade. On 1 July and Turkey’s expectations from Germany’s EU he report entitled “The Industry- 2020, IKV Secretary General Assoc. Prof. Çiğdem Presidency. TEnvironment Relationship: EU and Nas and Strategy and Business Development On 10 July, IKV Secretary General Turkish Legislations on the Prevention Director M. Gökhan Kilit attended the 6th Assoc. Prof. Nas and Strategy and Business of Major Industrial Accidents” (in Turkish) meeting of the Customs Union Modernisation Development Director Kilit participated in an prepared by IKV Junior Researcher Melis and Brexit Working Group which was chaired online event on the European Green Deal. Bostanoğlu was published in July. The by Trade Ministry’s Director General for During the event, which was chaired by Trade report offers a comparative analysis of International Agreements and EU Affairs Ministry’s Director General for International EU’s SEVESO Directives on the control Hüsnü Dilemre. Speaking at the meeting, IKV Agreements and EU Affairs Hüsnü Dilemre, of major accident hazards involving Secretary General Assoc. Prof. Nas shared her the implementation of the European Green dangerous substances and Turkey’s views on the recent developments in Turkey-EU Deal was discussed. related national regulations.

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TURKEY-EU WATCH EU LEADERS REACHED A LANDMARK DEAL ON THE BUDGET AND RECOVERY FUND After 90 hours of marathon talks, EU leaders reached a historic agreement on the next long-term budget and the COVID-19 recovery fund.

eeting in-person for the first time for the EU. Significant increases to the rebates Msince the beginning of the COVID-19 as well as the increase in the portion of the pandemic at the Special European Council customs duties the Member States can keep meeting to discuss the next Multiannual for their own budget are among the other Financial Framework (MFF) for 2021-27 and concessions given to reach an agreement. The the all-important recovery fund called “Next inclusion of the possibility of an “emergency Generation EU”, EU leaders finally agreed brake” on payments to be triggered by any on a deal on the morning of 21 July 2020, Member State in case of inadequate reforms, the fifth day of exhausting discussions and “settling for less rule of law”, “regrettable” excruciating negotiations. The European cuts to funds for certain programmes on Council meeting was originally scheduled to research and climate change as well as take place over a two-day period on 17-18 health initiatives proposed to deal with the July and turned out to be nearly the longest pandemic and discarding of the “solvency one in the European Council history. instrument” are issues of controversy and The total financial package approved criticism. by the EU leaders amounts to 1.82 trillion However, the fact that the EU arrived at this euros, with 1.074 trillion euros for the seven- pivotal moment only since May should be seen year budget and the rest comprised of 390 as a big achievement considering the initial billion euros in grants and 360 billion euros response of the Member States when first faced in loans coming up to a total of 750 billion with the crisis. As a result of the deal reached, euros within the framework of the recovery it can now be said that the EU is showing fund. Although the total amount approved solidarity and unity. It is a success for the Ursula is the same as in the European Council von der Leyen Commission for the creation of President Charles Michel’s proposal dated the recovery fund and for Charles Michel for 10 July, compromises have been made and agreement on borrowing jointly to issue the amount of grants had to be reduced from negotiating and finalising the deal. Yet, the concessions have been given during the 90 recovery grants to countries badly affected 500 billion euros, as originally proposed by ordeal is not over as the EP’s approval is needed hour negotiations in order to come to an by the crisis. Although as a result of the Germany and France, to 390 billion euros in for it to take effect, and from the statements agreement. opposition voiced by the Frugal Four - the favour of loans finalised at 360 billion euros, made since, it seems like the MEPs are going to One very important outcome is the Netherlands, Austria, Denmark and Sweden- it is still considered to be a great leap forward put up a good fight to improvethe deal.

EU’S SAFE TRAVEL LIST SPARKED CONTROVERSY EP GREENLIGHTED ADDITIONAL FUNDING IN TURKEY FOR REFUGEES IN TURKEY As the EU started re-opening its borders to non-essential travel from third countries, Turkey’s exclusion from the so-called “safe list” has created disappointment.

The list has been the subject of controversy both within the EU and in Turkey. Ankara has criticised the EU’s decision to maintain travel restrictions on Turkey despite the downward trend in the number of new cases in the country for being politically motivated. In a written statement on 1 July, Turkish Foreign Ministry Spokesperson Hami Aksoy he EU has begun lifting the temporary over when and to whom they will re-open expressed disappointment over the Council Ttravel restrictions imposed on third their borders. Although the recommendation recommendation and called on the EU to correct countries due to the COVID-19 pandemic on calls for coordinated action, some Member its mistake, reminding that Turkey’s efforts and n 10 July 2020, the EP approved the 1 July 2020. After days of lengthy and tough States have announced that they would not successful track record in the fight against OCommission’s proposal dated 3 June to negotiations, the EU Council on 30 June implement the recommendation. COVID-19 have been deemed exemplary by support the Syrian refugees in Turkey with adopted a recommendation outlining the The list will be reviewed every two weeks, the World Health Organisation (WHO). Hungary an additional funding of 485 million euros. criteria and the initial set of third countries taking into account the number of new has announced that it would only partially The funding will allow the EU to extend two whose residents will be allowed to travel to COVID-19 cases, the trend of the infection implement the recommendation and included flagship humanitarian programmes; the the EU. The Council decided to include the rate and the overall response to COVID-19. Turkey on its safe list. Similarly, the UK, which Emergency Social Safety Net (ESSN) and the following 15 countries in the so-called “safe Following the first review, Montenegro and is currently in the Brexit transition period, has largest EU-funded humanitarian education list”: Algeria, Australia, Canada, Georgia, Japan, Serbia have been taken off the list on 16 included Turkey among the 59 countries in its programme, Conditional Cash Transfers for Montenegro, Morocco, New Zealand, Rwanda, July due to an increase in the number of safe travel list. On 4 August, as a result of intense Education (CCTE), in Turkey until the end of Serbia, South Korea, Thailand, Tunisia, Uruguay COVID-19 cases while no new countries have diplomacy by Turkey, Germany announced 2021. While ESSN enables over 1.7 million and China. It was stated that the lifting of the been added. In early August, the number of the lifting of the travel warning for the Turkish refugees to meet their basic needs, CCTE travel restriction for China would be based countries in the list stood at 11 as Algeria and cities of Izmir, Antalya, Aydın and Muğla. Berlin’s enables over 600,000 refugee children to go on reciprocity. The list is not legally binding Morocco were dropped for the same decision to lift the travel warning for Turkey’s top to school regularly. and the EU capitals have the ultimate say reason. tourism destinations was welcomed by Ankara.

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TURKEY-EU WATCH

EUROPEAN COMMISSION PUBLISHED TURKEY-EU RELATIONS ITS SUMMER ECONOMIC FORECAST DISCUSSED AT THE EP AND THE FOREIGN AFFAIRS COUNCIL number of critical assumptions. It is assumed that containment measures in the EU will be lifted further and no major second wave of infections will lead to new restrictions. However, continuation of measures is presumed to affect adversely the sectors requiring interpersonal contact. Although fiscal and monetary policy measures are expected to support the economies, insolvencies and employment losses across he European Commission of the pandemic started being felt Member States are likely to occur. Tpublished its “European Economic considerably on the economy in the Furthermore, the deteriorating effect Forecast Summer 2020 Report” on 7 first quarter, the economic output is of the continued rise of infections July 2020. The report evaluates the expected to have contracted more on the global outlook, particularly economies of Member States and in the second quarter. The shock to in the USA and emerging markets is presents projections on the main the EU economy is symmetric as the expected to have a negative impact indicators of the countries. pandemic has hit all Member States. on the European economy. n his return from his visit to and said that the EU would wish According to the report, the However, the scale of the impact Major risks to the economic OTurkey and Malta and a few to see the relations strengthened EU economy will experience a and strength of the recovery in 2021 outlook for the EU stated in the days before the critical Foreign and developing. He stressed the deep recession this year due to are estimated to differ significantly report include a new wave of Affairs Council meeting on Turkey, fact that this should be done in the coronavirus pandemic. Despite across Member States. Under these infections and COVID-19 induced EU High Representative for Foreign respect of EU values, principles the policy measures taken at circumstances, the EU economy is economic shocks, such as Affairs and Security Policy Josep and interests. Stating that there both EU and national levels, as expected to contract by 8.3% in 2020 more widespread employment Borrell gave a speech at the EP was a consensus among Member the lifting of lockdown measures and grow by 5.8% in 2021 while the destructions and corporate on 9 July 2020. The speech was States that the Turkey-EU relations are implemented gradually, the Euro Area economy is projected to insolvencies leading to a slower geared towards informing the are under strain due to several impact of the pandemic on the EU contract by 8.7% in 2020 and grow recovery. The failure to agree on MEPs about the situation with issues affecting the EU’s interests economy will be more serious than by 6.1% in 2021. a deal on the future relationship Turkey and the particulars of in the Eastern Mediterranean and anticipated in the Commission’s The European Commission’s between the EU and the UK is his visit. He touched upon the Libya, he made the point that spring forecast. Although the effects summer forecast is based on a another important risk factor. problematic issues between Turkey these problematic issues must be and the EU and specifically some addressed to change the current of its Member States, namely confrontational dynamic and Greece and the Greek Cypriot create an environment of trust. HAGIA SOPHIA CONVERTED INTO A Administration concerning Syria, In this regard, the Council Libya, the Eastern Mediterranean asked Turkey, in line with the and the Aegean Sea. At the same previous Council conclusions and MOSQUE AFTER 86 YEARS time, he also acknowledged that statements, to end its actions in there are areas of mutual interests the Eastern Mediterranean and ollowing the Council of and stressed the need to work to respect the commitments it FState’s annulment of the through the discrepancies and made regarding the situation in 1934-dated Council of Ministers’ build on the common interests Libya during the Berlin process. decision to convert Hagia Sophia to stop and reverse the current The Turkish decision about Hagia into a museum on 10 July negative trend in the relations Sophia was condemned and the 2020, President Recep Tayyip between Turkey and the EU. Council asked for a revision of the Erdoğan issued a decree declaring The speech was followed by a decision. Borrell concluded his Hagia Sophia as a mosque after debate where the MEPs discussed speech by saying that he was given 86 years and placing it under the Turkey-EU relations regarding the task to find other ways to lower administration of the Religious these aspects and their negative the tensions between the parties Affairs Presidency. The Council of impact on the stability and security and reach an understanding on State’s ruling was based on the in the region. During the debate, issues stressing the Turkey-EU fact that “the Hagia Sophia was MEPs from all political groups relationship. a property of the Fatih Sultan expressed their criticisms on all As it is, Turkey-EU relations Mehmet Han Foundation and its fronts and called on the EU to take are going through tough times. status was listed as a mosque”. a tougher stance against Turkey. The accession process is already Hagia Sophia will be opened for Borrell responded to these remarks burdened as a result of the issues by stating that the many issues relating to Customs Union and worship on 24 July. The move to change and Security Policy Josep Borrell, that exist within the framework adherence to the Copenhagen Hagia Sophia, which is among Hagia Sophia’s status has in a statement issued on 11 of Turkey-EU relations should be criteria. The stance that the EU the world’s top historical and drawn some criticism from July, expressed regret over the approached with firmness but took at the Foreign Affairs Council cultural heritage sites, was built Western countries. Especially ruling and the decision to place through dialogue and negotiation. meeting and the recent EP debate in the sixth century during the Greece, France and the USA the monument under the He said further tension should be on the Turkish involvement in Syria, reign of the Byzantine Empire and expressed concern over administration of the Religious avoided and emphasized that the Libya and the East Mediterranean served as the seat of the Eastern the decision, claiming that Affairs Presidency. Meeting on current negative trend in relations seem to be pivotal for the future Orthodox Church. Following the Turkey’s move could result in 13 July, EU foreign ministers must be stopped and reversed. of the relations. Efforts from both Ottoman conquest of Istanbul in clashes between the Christians of said that they condemned the The EU Foreign Affairs Council sides are needed to overcome 1453, Hagia Sophia was converted the world and Turkey. Meanwhile, decision. Turkish Foreign Minister meeting on 13 July has been the challenges burdening the into a mosque. Under the Republic UNESCO announced that World Mevlüt Çavuşoğlu rejected the pivotal. The statement made by relationship and to build trust and of Turkey, the monument was Heritage Committee would review condemnation and indicated that Josep Borrell referred to Turkey as dialogue to revitalise Turkey-EU transformed into a museum and Hagia Sophia’s status. EU High it was an issue concerning Turkey’s an important country for the EU relations. opened for visits on 1 February 1935. Representative for Foreign Affairs sovereign rights.

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19 65 1965 www.ikv.org.tr 19 65 2018

HIGH-LEVEL EXCHANGES

EU HIGH REPRESENTATIVE HIGH-LEVEL VISITS BETWEEN BORRELL PAID AN OFFICIAL VISIT TURKEY AND EUROPE INTENSIFIED TO TURKEY IN JULY

n July, high-level visits between Turkey and another topic raised during the visit. Ankara IEU Member States intensified. Firstly, Turkish intends to secure for its citizens a special Foreign Minister Mevlüt Çavuşoğlu and Culture regime similar to the Ankara Agreement and Tourism Minister Mehmet Nuri Ersoy paid once the UK starts implementing its new an official visit to Germany on 2 July 2020. immigration regime. Bilateral relations in the n 6 July 2020, EU High Representative accordingly. Moreover, recalling that Turkey’s exclusion from the EU’s safe travel list post-pandemic era, cooperation in areas Ofor Foreign Affairs and Security Policy France’s claims about an incident involving and Germany’s decision to prolong the travel such as tourism, health and defence along Josep Borrell paid a two-day visit to Turkey Turkish frigates allegedly harassing a French warning for 160 countries including Turkey with regional issues were also discussed in and met with Turkish Foreign Minister Mevlüt frigate taking part in a NATO mission in the were the main topics on the agenda of the the context of the visit. Çavuşoğlu. During Borrell’s second visit to Mediterranean had been proven wrong, visit. German Foreign Minister Heiko Maas Foreign Minister Çavuşoğlu continued Turkey in four months, the parties discussed Foreign Minister Çavuşoğlu urged France to informed that Germany will be reviewing the his exchanges with his counterparts from the future of Turkey-EU relations, along with apologise to Turkey. Lastly, referring to the situation regarding Turkey with European the EU in Ankara. On 14 July, he met with the latest developments in the Mediterranean state of play in the visa liberalisation dialogue, authorities every two weeks. Foreign Minister Malta’s European and Foreign Affairs Minister region. EU High Representative Borrell Çavuşoğlu said that Turkey was expecting a Çavuşoğlu expressed Ankara’s intention to Evarist Bartolo. Speaking at the joint press also came together with National Defence positive step from the European side. develop Turkey-EU relations in a healthier way conference, Foreign Minister Çavuşoğlu Minister . For his part, High Representative Borrell during Germany’s EU Presidency. stressed Ankara and Valletta’s desire for Speaking at the joint press conference, emphasized Turkey’s importance as a key Foreign Minister Çavuşoğlu visited the stability and peace in the region, and Foreign Minister Çavuşoğlu stressed that partner of the EU and a candidate country for UK on 8 July and came together with Prime expressed Turkey’s willingness to intensify Turkey was transparent and open to dialogue accession. “The fact that we in Europe discuss Minister Boris Johnson and Foreign Secretary bilateral relations with Malta. concerning the Libyan crisis, the Eastern extensively and frequently about Turkey just Dominic Raab. The main topic on the agenda On 27 July, Foreign Minister Çavuşoğlu Mediterranean, and Turkey’s EU bid, and it reflects the importance that we attach to of the visit was the FTA to be signed between came together with Spain’s Foreign Affairs, EU had all the right to expect the same attitude this relationship”, he added. While describing Turkey and the UK. Since the UK is Turkey’s and Cooperation Minister Arancha González in return. Foreign Minister Çavuşoğlu said the situation as being far from ideal, Borrell second largest trade partner, concluding an Laya. At the meeting, bilateral relations and that if the EU chose to impose sanctions indicated his belief that Turkey and EU had FTA right after the Brexit transition period regional issues including Libya and the concerning developments in the Eastern a mutual interest to get out of this situation is of utmost importance. Immigration was Eastern Mediterranean were discussed. Mediterranean, Turkey would respond and chart a new and positive trajectory.

EEAS RELEASED A STATEMENT ON WHO AND TURKEY SIGNED AN AGREEMENT FOR AN OFFICE IN ISTANBUL THE BÜYÜKADA RULING

Action Service (EEAS) issued a statement in the aftermath of the ruling. In the statement, EEAS Lead Spokesperson Peter Stano depicted the situation as “deeply regrettable” and indicated that it further deepened EU’s concerns regarding Turkey’s backsliding in fundamental urkey’s Health Minister Fahrettin Koca and highlighted that the office to be opened in areas. Inviting Turkey to WHO Regional Director for Europe Hans Istanbul will be highly helpful particularly show concrete progress T n 3 July 2020, four then Amnesty International Henri Kluge on 9 July 2020 in a joint press for Europe. Moreover, Kluge praised Turkey’s regarding the rule of law and Ohuman right defenders chair Taner Kılıç who was conference in Ankara announced that Turkey success in the fight against COVID-19 by fundamental freedoms as a were sentenced to prison detained a month earlier. and WHO signed an agreement to set up an highlighting the relatively low mortality rates candidate country to the EU terms in the Büyükada Following 12 court hearings office in Istanbul. The office, which will focus among the elderly, stemming the spread of the and a member of the Council case in Turkey, three years over three years, the court on humanitarian and health emergencies, is virus, as well as Turkey’s delivery of medical and of Europe since 1949, it was after being arrested during sentenced rights defenders, expected to play a significant role in meeting pharmaceutical devices to over 100 countries stressed that freedom of a workshop in Büyükada İdil Eser, Günal Kurşun and the future requirements. around the globe. WHO Regional Director expression and assembly (Prince’s Island). They were Özlem Dalkıran as well as WHO Regional Director for Europe Kluge Kluge also emphasized the vast number of were the fundamental pillars charged with terrorism Taner Kılıç. underlined the organisation’s desire to take tests, contact tracing and effective treatments of a democratic society. offences together with the The European External lessons from the coronavirus pandemic and provided in Turkey.

ISSUE 63 . July-August 2020  1965 2020

19 65 1 1965 ISSUE: 63 JULY-AUGUST 2020 9 65 2018

EXPERT VIEW TURKEY-EU TENSIONS: ANY HOPE FOR A RENEWED DIALOGUE?

The only thing which could lead to moderation in the relations would be dialogue, a willingness by the EU to resolve root causes of problems and giving the green light to meaningful steps in Turkey’s EU perspective.

Assoc. Prof. Çiğdem NAS sovereign rights of EU Member States Affairs issued a statement outlining IKV Secretary General and to international law, must come Turkey’s approach to the issue to an end.” Turkey was also asked to arguing that “The Oruç Reis will carry contribute to a solution of the Libyan out exploration in an area that was imilar to the saying “The first conflict and respect commitments previously covered by the country’s casualty when war comes is of the Berlin process including the first seismic exploration vessel, the Struth” (first expressed by US UN arms embargo. The decision of Barbaros Hayreddin Paşa, and lies Senator Hiram Warren Johnson in the government to convert Hagia within Turkey’s own continental shelf 1918), the first casualty of the growing Sophia into a mosque was also registered with the United Nations. tension in Turkey-EU relations has condemned since this decision would Greece’s claim to a 40,000-square- been trust and dialogue between the “inevitably fuel mistrust, promote kilometer continental shelf through an parties. The Turkish leadership feels renewed divisions between religious island 2 kilometers away from Anatolia itself more and more unbound by EU communities and undermine efforts at and 580 kilometers away from the commitments such as adherence to dialogue and cooperation.” Greek mainland is not rational and Copenhagen criteria and obligation Turkey’s relations with two contradicts international law”. At of candidate countries to align with Member States, France and Greece the time of writing, the situation the EU acquis including foreign and also worsened since the beginning continued to display an escalating security policy statements. Despite of July. Turkey’s intervention into trend towards greater strain and the occasional repetition of Turkey’s and the decision not to close any of for “a new, positive trajectory, avoiding the Libyan conflict on behalf of the tension in the relations. commitment to EU membership, the chapters as a reaction to Turkey’s any kind of incident that could spark UN-backed government against the While the EU has already debated criticisms from the EU regarding decision not to accept any ships or more troubles”. Borrell also added: forces of General Haftar caused fury on further sanctions against Turkey, it is problems in rule of law, democracy planes from the GCASC to its ports “I think that Turkey has become a the part of President Macron. The naval doubtful whether the EU possesses and fundamental rights and freedoms and airports. This has been regarded regional relevant actor and the EU incident between a French frigate and any means at its disposal to alter the have not been effective in igniting a as a violation of Turkey’s obligations has to set up again an approach that a Turkish frigate off the coast of Libya course of Turkey’s actions. Accession renewed reform process. Reasons for under the Customs Union. Hence, takes into account all the issues that and NATO’s refrainment from taking negotiations have been de facto this have been numerous including the accession process which started are part of this complex relationship… direct action against Turkey led France frozen since 2016; the Customs Union failure of the accession process, in 2005 was stillborn since GCASC I think that our relationship with to withdraw from NATO Operation Sea modernisation talks, which were political obstacles due to the Cyprus had already been accepted into the Turkey has become one of the most Guardian. Macron accused Ankara of planned to start as of 2017, cannot issue, slowdown in EU enlargement EU without a prior settlement of the important and pressing issues of “playing a dangerous game and going be opened due to political obstacles policy and democratic backsliding Cyprus issue. The Annan Plan, which the foreign policy of the EU.” Borrell against its commitments made at the in the Council; visa liberalisation has and systemic changes in international promised to resolve the problem and also emphasized that his visit was Berlin conference” and announced that not been completed. Hence without relations which witnessed the bring about a new Cypriot state, was part of a preparation for a round of he will not “tolerate the role that Turkey a serious engagement between ascendance of authoritarian powers. rejected in a referendum held in the negotiations and talks between Turkey is playing in Libya.” Turkey and the EU, it seems quite Foreign policy issues have also south of the island. The effects of the and the EU and between Turkey and Relations with Greece have impossible for the EU to exert a been a point of serious contention unresolved Cyprus issue cast a long some Member States such as Greece also been dangerously straining in determining influence over Turkey’s between Turkey and the EU. Turkey’s shadow over Turkish-Greek Cypriot, and GCASC. response to Turkey’s issuance of a policies. Coupled with the tensions operation in Northern Syria and Turkish-Greek and Turkey-EU relations. On 9 July, the EP held a debate NAVTEX reserving a large part of the and trouble spots around Turkey such recent incursions into Libya seriously As GCASC signed agreements with on Turkey where several MEPs continental shelf south of the island as the Syrian and Libyan conflicts, disturbed the EU and particular companies such as Italy’s ENI for voiced their criticism towards the of Kastellorizo -which is also claimed refugee movements which made Member States. Beforehand, natural natural gas explorations, Turkey Turkish government with regard by Greece- for seismic surveys by Turkey the country hosting the gas exploration by Turkish ships off the resented the exclusion of Turkish to its operations in Syria and Libya the Oruç Reis research vessel until greatest number of refugees, and coast of Cyprus had been condemned Cypriots from such drills and retaliated and explorations in the Eastern 2 August. Greek Prime Minister the agreements that took place by the EU Council several times. Turkey by instigating explorations under the Mediterranean. Several MEPs called Mitsotakis responded to this act by between GCASC, Greece and Israel was criticised for not respecting the permission of the TRNC. for a definitive ending of Turkey’s EU arguing that EU could place sanctions which ignored Turkey’s legitimate sovereign rights of a Member State Turkey’s foreign policy activism accession negotiations while some on Turkey if Ankara continues to interests in the Eastern Mediterranean, of the EU, Cyprus. As may be known, has been a cause of concern for of them such as Tineke Strik said that “challenge Greek sovereignty”: “The it should not come as a surprise that Turkey does not recognise the current the EU. Operations in Syria and such approaches were oversimplifying imposition of sanctions by the EU Turkey has engaged in an increasingly administration in Nicosia as the incursions into Libya in support the situation which was more against Turkey will be a one-way defiant course against the EU and “Republic of Cyprus” since the Cypriot of the internationally recognised complex, and called for a regional street. It is up to Turkey to choose acted heedless of EU interest and state which was established in 1960 government have been criticised and comprehensive approach. On what relationship it wants to have expectations. The following days are had been dismantled by the coup quite starkly by the Council of the 13 July, Foreign Affairs Council of the with Greece, with Cyprus, with Europe. likely to continue to be strenuous d’etat by Sampson supported by the EU and Member State leaders, EU met and debated relations with But I think at the moment it seems to and problematic. The only thing Greek military junta in 1974. Until the especially France and Greece. EU Turkey. The meeting was initiated due be choosing the wrong path.” Turkish which could lead to moderation in settlement of the Cyprus issue, Turkey High Representative Josep Borrell to a naval incident between Turkey President Recep Tayyip Erdoğan the relations would be dialogue, an only recognises the Turkish Republic visited Ankara and met with Turkish and France and took place against fiercely reacted to these allegations understanding and willingness on the of Northern Cyprus (TRNC) and calls Foreign Minister Mevlüt Çavuşoğlu the backdrop of straining relations and put forward that Turkey did not part of the EU to resolve root causes the administration in the south as to discuss the situation in the Eastern based on the differing positions in the need “anyone’s permission for our of the current problems such as the the Greek Cypriot Administration Mediterranean, Libyan and Syrian Libyan conflict. The Council gave a seismic vessels and floating drilling resolution of the Cyprus issue and of Southern Cyprus (GCASC). The conflicts and overall Turkey-EU warning to Turkey: “it was stressed that rigs.” He added that Turkey is acting giving the green light to meaningful Cyprus complication resulted in the relations. Borrell noted that Turkey’s unilateral actions, in particular within the framework of Law of the steps in Turkey’s EU perspective suspension of 8 chapters of the acquis Turkey-EU relations were going in the Eastern Mediterranean, which Sea and “will continue in the same such as the start of Customs Union in Turkey’s EU accession negotiations through a difficult period and called run counter to EU interests, to the way.” Turkey’s Ministry of Foreign modernisation process.

On behalf of IKV: Istanbul Office Preparation for Publication Art Director Printing House: Ayhan Zeytinoğlu Esentepe Mahallesi Harman Sokak Melis Çinçinoğlu Ankara Ofset Editor -in- Chief: TOBB Plaza No: 10 Kat: 7-8 Editor Büyük Sanayi 1. Cadde

Assoc. Prof. Çiğdem Nas 34394 Levent Istanbul/Türkiye Belma Özgen Necatibey İş Hanı Alt Kat No:

5 6 General Director

9 1 Graphic Designer Editorial Directors: Tel: +90 212 270 93 00 Levent Akbay 93/43-44 Cem Demir Yeliz Şahin Faks: +90 212 270 30 22 General Assistant Director İskitler - Ankara / TÜRKIYE JULY-AUGUST 2020 No: 63 JULY-AUGUST Selvi Eren E-posta: [email protected] Umutcan Akbay

 ISSUE 63 . July-August 2020