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Turkey unveils Economic Reform Action Plan

Turkey unveils Economic Reform Action Plan

Country to implement all measures under plan until March 2023.
24.03.2021 - 13:03

The Turkish Treasury and Finance Ministry unveiled the country's Economic Reform Action Plan on late Tuesday.

The action plan contains several measures under 10 main titles – including public finance, price stability, financial sector, current deficit, employment, corporate governance, investment incentives, easing internal trade, rivalry and market surveillance.

The ministry’s action plan covers detailed measures and a calendar.

All measures under the plan will be implemented until March 2023.

Earlier this month, Turkish President Recep Tayyip Erdogan had announced details of the new economic reform package.

PUBLIC FINANCE

Under the plan, expenditure discipline will be ensured, public debt management will be strengthened and taxational regulations will be simplified.

Investor-friendly predictability-booster steps will be taken and public procurement tenders will be reformed.

Public-private cooperation framework law will be enacted and a reform for public economic enterprises will be made.

PRICE STABILITY

The country will found Price Stability Committee as of June 2021 in line with the action plan.

An early warning system for preventing price fluctuations due to climate, diseases, and harvest will be set up.

Food loss and waste will be reduced.

FINANCIAL SECTOR

Asset quality of the banking sector will be improved and the capacity of asset management companies will be strengthened as part of the plan.

The country will empower non-interest financial system and corporate structure of the financial sector.

CURRENT DEFICIT

The structural current account deficit will be decreased.

Health Industries Presidency will be found to develop a competitive, innovative and strong health industry in the country as of December 2021.

The country will also establish Software and Hardware Industries Presidency for boosting domestic capabilities in newly-emerging technologies, encouraging youth employment and gaining global competitive power as of December 2021.

Turkey will form a precious minerals and stones market under the international standards. The country will support green transition in the industry and increase competitiveness of its exporters.

EMPLOYMENT

Employment incentives will be revised, employment financing convenience will be provided.

Steps for increasing the youth employment and quality of labor force will be taken.

New generation working methods will be popularized and labor force transition to future jobs will be accelerated.

CORPORATE GOVERNANCE

The Financial Stability Committee will be established as of June 2021 to deepen markets and increasing savings.

The country will also form the Economic Coordination Committee as of June 2021. The committee will be chaired by Turkey’s vice president and ensure coordination and success of the country's Medium Term Program, Annual Program and Development Plan.

Institutional structures will be strengthened.

INVESTMENT INCENTIVES

A law to protect the private sector investments will be enacted.

The state’s supports and incentive investment system will be reformed.

EASING DOMESTIC TRADE

The country will take steps to ease domestic trade and preventing unfair activities in the retail trade to provide a well-functioning and fair supply chain.

Amendments will be made in cooperatives to ensure more transparent, effective and professional management structure.

COMPETITIVENESS

A bill will be prepared to regulate digital markets and ensure healthy competition.

Measures will be taken to prevent the restriction of the competition or the misuse of data stored on the digital platforms as well as to maintain a competitive and fair environment in digital markets.

MARKET SURVEILLANCE

Independent Market Surveillance Institution will be formed for consolidating different mechanisms in the market.

The institution will prevent the market supply of products that do not meet the minimum safety conditions for the human health, life and property safety, animal and plant health, environment and consumer.