Turkish businessman: Reform process counts more than actual EU accession 

Murat Yalçintas is the president of the Istanbul Chamber of Commerce. He is currenty also serving as the president of ASCAME, the Association of Mediterranean Chambers of Commerce and Industry. 

To read a shortened version of the interview, please click here. 

What could you promise the Europeans in terms of the economic benefits Turkey can bring to the EU? 

Turkey will definitely bring certain economic benefits to the European Union. The addition of Turkey to the European Union is a win-win situation. Turkey will benefit from it and the EU will benefit from it. When you look at Turkey's economy, it is the 17th largest economy in the world with a gross per capita income of around $10,000 and a population of 70 million. The average age is 29. 

This is very important from two sides: first, the manufacturing side. It means we have a young educated workforce who can fill a gap. It is also a huge market. 

Secondly, Turkey is at a transport crossroads. When I say this I mean transportation of goods, of course. When you look at the East and West, it is very obvious that the road goes through Turkey. 

Turkey is also a gateway of energy. There are energy producing countries, such as Middle Eastern countries, and on the other side there are the energy users and consumers, in the western hemisphere. If you want to transport energy safely and efficiently, Turkey is a real prerequisite in this respect. That is why I believe that from this issue regarding Turkey, it will give the European Union a very big strategic leap. At that moment the European Union will have a very big say, economics-wise, in the control, proximity, security and transport of energy. 

You mentioned energy, which is of course a concern of many Europeans right now. Maybe you can comment on the Nabucco pipeline? Also, what is Russia's role in this? Do you see Turkey as a mediator between the EU and Russia?

Of course, because when we say Turkey is a gateway, we say it in terms of economics. But we are also a gateway from a social, political and cultural point of view. Turkey is at the crossroads of different cultures. We have many European and Asian characteristics. The Asian companies who want to invest in Europe usually put their headquarters in Turkey. They do this because they can use Turkish labour and enter the European market more easily. 

In the same way, European companies who want to go to the Asian markets are coming to Turkey. It is easier for them to penetrate Asian markets through Turkey. There is a same picture in the political issue. 

On the Middle Eastern issue, Turkey is a mediator. In the conflict between Israel and Syria we are the mediator because we understand their mentality, but at the same time we are very close to the universal values which are at this point, shall we say, championed by the EU. So that is why they prefer us as a mediator. 

The same goes for the discussions, as you mentioned, with Russia. For a more stable world, for a world that understands itself better, Turkey is a must. The Turkish model is a must. 

What is the view of European businesses towards Turkish accession to the EU? Do you see it more pragmatic than politicians?

From an economic point of view, since we are already a member of the Customs Union, Turkey is already a member of the EU - from a company or economic point of view. Turkish and EU companies are already working very closely with each other. If you look at the FDI since 2006 in Turkey, we got more than $20 billion. Most of this has come from EU investors. There are many foreign companies in Istanbul and a large share of them are European companies. At this moment 55% of Turkish foreign trade is with the EU. So we are already a member of the EU. 

The potential benefits are somewhat non-existent in the European debate on Turkish membership. Do you blame the EU member states for this?

No, I don't blame the EU member states because Turkish membership means much more than mere membership for the EU. By accepting or rejecting Turkey as a member, the EU is making a decision which will affect and shape its future. The EU is going to decide whether they prefer a large Europe, which is decentralised with many cultures and diversities, but at the same time it can be a world power. The EU has to decide whether they want a more centralised Europe, a tighter Europe, a more uniform Europe, but a regional power. 

I think this is a decision that the European Union and the European people have to make. No one can say that one choice is better than the other. These are two different choices and two different approaches to the world, and Europe will choose one of them. If Europe chooses to be a tighter, regional power, then they have to keep Turkey out. But if Europe prefers to be a world power then they have to take Turkey. 

If the new treaty is ratified, there will be different voting procedures with 55% of the states and 65% of the population. So the moment you accept such a decision-making mechanism, and you take Turkey in, it is very clear that with Germany, Turkey will have a major say in European policies. 

When I see discussions in Europe, these are not discussions that concern Turkey only but that concern the future, shape and identity of the EU. That is why I never feel disturbed. 

The main concerns from the European side are the AKP closure case in Turkey, the headscarf ban debate, secularism and religion. Do you understand these concerns? 

Of course I understand these concerns. In Turkey we are also following what is happening in the political arena very closely. Turkey is a big country, and the Turkish people are a people with a lot of history. There may be some turmoil, and this is a time of turmoil, but it will pass. 

Then you can look at Turkish accession. We started in 1960, three years after the European Community. For more than 45 years we are following it. Sometimes we went up slowly and sometimes we went down fast, but we were always on track. You cannot compare the processes of a small country with those of Turkey. This is wrong. So the process continues. 

What is the public mood like in Turkey? A recent survey shows how 60% of the Turkish population is still in favour of accession despite opposition from some EU member states.

You don't dance alone. You need two to dance. While looking at the Turkish mood is important, you also need to look at the European mood. There is always a mutual effect. When the Turkish people listen to Mrs. Merkel, when the Turkish people listen to Mr. Sarkozy, then of course the mood is not so bright. 

So what do you expect from the French Presidency? Kouchner said he would open up six more chapters with Turkey, while Sarkozy said he would stop the talks if he had the choice. 

Neither Turkey nor the EU are simple structures which change direction with a change in – I will use a business term – management. Turkey has its path and the EU has its path. 

Of course, the Presidencies, the Prime Ministers, the management, they all have a certain effect. No one can deny they don't have an effect. Of course they do. But this effect cannot change the direction of the European Union or of Turkey. 

Presidencies may make things go faster or slower and make minor changes, but the direction remains the same. 

What do you think are the main economic challenges facing Turkey? 

The main challenges are what the world is facing now. There is the credit crunch and the cooling down of the financial markets will affect Turkey. Global inflation is pushing prices up, food prices are up, oil prices are up. These are major issues for the Turkish economy, and we are trying to develop mechanisms to make sure the Turkish economy can withstand them. 

Two more negotiation chapters were opened in June – company law and intellectual properties. 

For Turkey, the reform processes are much more important than the target. It can be compared to Cavafy's poem Ithaca. A young man goes travelling in search of a mythical city – Ithaca. The journey takes him to many ports and cities, and at the end of the journey, after many, many years he reaches Ithaca. 

But when he reaches Ithaca, he realises it is no longer a dream city. He then asks himself if reaching the city was really the aim of his life. He then realises what he got from the journey, which was the journey itself. The beauties, the experiences and the transformation he went through. He believes Ithaca is the journey. The same thing can be applied to Turkey. We are going to Ithaca, but for us, Ithaca is the journey. 

What is the Turkish view on Sarkozy's proposal for a Mediterranean Union? 

The important thing is how it will be constructed. If you formulate the mechanism in a way that will keep the third countries or negotiating countries out, then it won't work. 

But if you formulate it in a way that will enable countries to work hand in hand and unite the northern and southern shores of the Mediterranean, then it is a perfect mechanism. 

So does Turkey feel a little excluded from this club? 

We are waiting for 13 July, you know there is a meeting and there will be a roadmap. When you see this, it will be much clearer. The Commission is preparing a framework. Once that is out it will be much easier and safer to talk about. 

From a business perspective, do you feel Turkey is becoming a more European country? 

Europe will keep its own identity. The Danes will still be Danish, the German still German, etc. While keeping a local identity, we can still live in a bigger environment harmoniously. 

There is no such notion of Turkey being Asian or European: Turkey will always be Turkish. Keeping ones identity is always important. Europe is not putting cold water and hot water together to get warm water – this is not Europe. Turkey will continue to be Turkey. We are doing a reform process, and reform is a must. Reform is not for some countries but for everyone. 

A few months ago I met Condoleezza Rice in Washington, and she said that the US should undergo a reform process in social development. Last month I was in Hanover with Chancellor Merkel who said Germany should continue to reform to boost its exports. This means that the world is changing, and due to this changing world, countries should continue to change. 

The same thing is true for Turkey, but we should change at a faster rate to keep up with the rest of the world. But reforms do not mean we are doing them to become more European. No. We are doing them for the benefit of our own country. Not for anyone else.