Top business groups reiterate call for new gov’t, reforms

Two of Turkeyand’s leading business conglomerates have repeated over the weekend their call for the formation of a coalition government, stressing the need to resume reforms in the economy at the earliest. The 13-year stand-alone administration of Turkeyand’s Justice and Development Party (AK Party)ame to an end after the June 7 general election, leaving the four parties in Parliament in search of a coalition government or bracing for a snap election this autumn. The turnout rate in the June 7 election was 83.92 percent, meaning that 47.5 million out of a total of 56.6 million registered voters went to the voting booths.
and”Turkish voters have done their part, and now it is time for the elected to do theirs and agree to form a government as soon as possible. andhellip It is crucial step towards peace and reconciliation,and” Sabanci Holding Chairwoman Ganduler Sabanci told a meeting in Istanbul on Saturday. Sabanci said Turkey needs to see a new Parliament that will commence work on areas including markets before wasting further time. Turkish economic growth has stalled, slipping to 2.9 percent last year, from more than 4 percent in 2013. Critics say Turkey relies too much on construction, private consumption and debt, and desperately needs to accelerate structural reforms and boost savings. Ratings agency Standard Poorand’s (SP) said last week it expected uncertainty to persist in Turkey over the next few months after an inconclusive election and, in the event of snap polls, to intensify by year-end and potentially hinder growth. Likewise, Koandc Holding Chairman Mustafa Koandc also said over the weekend that the formation of a coalition government will be for the benefit of Turkish markets. In remarks made to Turkish daily Bugandun, Koandc said: If Turkey is the common ground we all share, then the parties need to reach an agreement to form a coalition within the framework of certain principles.and”
Koandc asserted that the politicians should not oppose the formation of a coalition as well. He said it is best to push for a coalition government so Turkey wonand’t have to face early elections.
and”Thatand’s what they [parties] have to do. Can you think about it, if Turkey were to get back into an election atmosphere in just two months? Turkey couldnand’t handle it. It shouldnand’t handle it,and” he added.
Turkish Industrialists and Businessmenand’s Association (TanduSiAD) board members headed by Chairwoman Cansen Baiaran-Symes paid a visit to all of the four political parties in Parliament last week. Mustafa Koandcand’s brother Ali Koandc, also attended those meetings. According to the Constitution, if no government can be formed within 45 days after the election of the speaker of Parliament, which is expected to take place in the final week of June, the president is authorized to call early elections.
As regards the state of the Turkish economy in the face of political uncertainties, Koandc said it was premature to think that the economy was doing well after the tense election campaign, pointing out that it would take at least two to three months to properly evaluate. Earlier this month, rating agency Fitch has said political uncertainty in Turkey could increase risk to the countryand’s sovereign credit profile, but said the possibility also depends on how policy-making is affected.
Coalition talks are already under way behind closed doors between representatives of parties with a government between AK Party and the Republican Peopleand’s Party (CHP) or AK Party and Nationalist Movement Party (MHP) being seen more likely than other options.

SOURCE: Today’s Zaman