TUSIAD urges gov't steps to boost domestic demand, EU reforms

The main issue is to boost domestic demand in order to overcome the affects of the global crisis on Turkey, Arzuhan Dogan Yalcindag, the chairwoman of the Turkish Businessmen's and Industrialists' Association said in the last High Advisory Council meeting of 2008.

"The most appropriate instrument to achieve this is to lessen the burdens on economic operations. The central bank's interest policy will also support this. The loss in revenue for the government while targeting steps to boost the economy could be compensated by cutting spending and curbing funds allocated to local administrations," she said, adding that otherwise the country’s tax base would deteriorate in an economy that shows a negative growth.

The Turkish government has been under fire for underestimating the global credit crisis. However, the government has announced some measures to lessen the impact of the global financial crisis on Turkey, which observers say are lacking, with the need for a complete package, and would not be sufficient to cushion the impact of the crunch.

Yalcindag also said Turkey should again enliven its relations with the European Union and continue with its progress with democratic reforms inline with this target.

Turkey should not overlook long-term priorities while it searches for solutions to urgent problems, she said, adding it is also necessary to compromise with society.

"There will always be some people who exploit the relations with the EU. The reforms required for the EU accession process are also vital in order to boost the country’s global competitiveness."