Former Turkish President: If the AKP loses, that will be because of inflation

Former Turkish President Abdullah Gul blasted the government’s approach to handle the inflation in Turkey and the lack of merit in the bureaucracy, especially the institutions concerning the economy, in an interview with Karar newspaper. 

“What I am most amazed at is the underestimation of inflation. Now is the last time to fight decisively. We have to understand that inflation is a great scourge, source of immorality and public theft. Otherwise, we will not be able to address it,” he said, adding that inflation could never be defeated by palliative, tactical methods, which only exacerbate it.

If the AKP (Justice and Development Party) loses elections, that will be because of inflation, the veteran politician said. 

“Data from the recent national income surveys show how drastically the share of wages, salaries and fixed incomes in total national income has fallen, and how profits, rents, interest rates have increased. This is appalling. It shows mathematically how this middle class has regressed and how this income distribution has deteriorated,” Gul said.

He added: “While countries with 6-7% of inflation mobilize themselves around the world, I believe that Turkey should enter into a greater struggle. The first condition is that the internal and external credibility and trust of the staff who will fight against it, namely those responsible for the economy and finance, must be established.”

Turkish president Erdogan has fired two finance ministers and three central bank governors since mid-2019 who failed to follow his instructions.

Gul said that the central bank, whose primary duty is to ensure financial stability in the country, acts as if it has no such legal responsibility.

“If the Central Bank supports growth and employment policies without forgetting its main responsibility, then it can help the government and contribute to its success. … the Central Bank must be independent from political directives. This is the biggest factor in losing trust and credibility,” former President said.

He warned about possible populist policies and failed expenditures ahead of next year’s elections and said that if the economic indicators turn out to be much more negative that would affect the future generations of Turkey.

“No matter who comes to power, Turkey will fall behind and break further from the world. …we will all lose,” he said.