Merkel urges Turkey to keep hands off central bank
August 13, 2018
It is in Germany's interest for Turkey to be "economically prosperous," said Chancellor Angela Merkel. But she warned this couldn't be at the expense of state interventions, as the Turkish lira continues to drop.
"Nobody has an interest in the economic destabilization of Turkey. But everything must be done to ensure an independent central bank," Merkel said during a press conference in Berlin. "Germany would like to see an economically prosperous Turkey. This is in our interest."
German Chancellor Angela Merkel said a "prosperous" Turkish economy is crucial to the EUImage: picture-alliance/A.Hosbas
Businesses on watch
While the Turkish lira has steadily depreciated over the past year, the latest nosedive has put some on edge. Frank Kaiser, managing director of the German-Turkish Chamber of Commerce in Istanbul, told DW that German companies were waiting to see what the fallout would be.
"For German companies, the decline of the lira certainly means Turkey as a market will become much more difficult," said Kaiser.
Germany's VDMA engineering association said the "negative development" could continue "in the coming months," pointing to US President Donald Trump's decision to impose sanctions against Turkish officials and higher tariffs on the country's aluminum and steel exports.
'Facilitate a solution'
German Foreign Minister Heiko Maas said Turkey could do more to improve ties with the US and Germany. Resolving problems, such as the detention of US and German citizens, would likely ease pressure on the Turkish economy, Maas said.
"I believe that would help to facilitate a solution, including to the economic problems," Maas said in a statement.
Trump's decision to target Turkish officials and exports stemmed from Ankara's decision to keep a US pastor under house arrest. Turkish authorities have accused Andrew Brunson, an evangelical pastor, of maintaining ties with self-exiled cleric Fethullah Gulen.
A Turkish court has ruled to release US pastor Andrew Brunson, whose detention has strained diplomatic ties between the US and Turkey. Who is Brunson, and why did the Turkish government put him behind bars?
Image: picture-alliance/dpa/AP Photo/E. Tazegul
Alleged connection to failed military coup
US pastor Andrew Brunson was first arrested in October 2016, when Turkey was in the immediate throes of a crackdown on suspected instigators of the failed July coup attempt. He is accused of supporting exiled cleric Fethullah Gulen as well as Kurdish militants. Ankara claims Gulen masterminded the coup bid.
Image: picture-alliance/Zaman/AA/B. Ozkan
Espionage charges
Brunson was charged of "committing crimes on behalf of terror groups without being a member" and espionage. The 50-year-old pastor spent two years in jail, facing a prison sentence of up to 35 years if convicted on both counts.
Image: picture-alliance/dpa/S. Suna
'No credible evidence'
In July, 2018, Brunson was allowed to leave prison and remain under house arrest, but his request to leave Turkey was denied by authorities. Washington has maintained that there is no credible evidence to support the charges brought against him. "Release Pastor Andrew Brunson now or be prepared to face the consequences," US Vice President Mike Pence warned Turkey.
Image: picture-alliance/dpa/AP Photo/E. Tazegul
'No one dictates to Turkey'
US President Donald Trump threatened to slap "large sanctions" on Turkey if it refused to free the Christian pastor. Trump took to Twitter to demand that the pastor be freed, writing: "This innocent man of faith should be released immediately!" In a tit-for-tat tweet, Turkish Foreign Minister Melvut Cavusoglu responded by saying that, "No one dictates [to] Turkey."
Image: Reuters/K. Lemarque
US sanctions
In early August the White House announced it was imposing sanctions on two top members of the Turkish government – Justice Minister Abdulhamit Gul (above right) and Interior Minister Suleyman Soylu – for their roles in Brunson's detention. President Erdogan has said that he will not be swayed by sanctions.
Image: picture-alliance/AA/S. Yordamovic/A. Ozler
'Constructive' dialogue
But signs of a diplomatic thaw began to appear after US Secretary of State Mike Pompeo and Turkey's Cavusoglu met in Singapore on the sidelines of a regional summit on August 3. "They [Pompeo and Cavusoglu] spoke about a number of issues and had a constructive conversation," State Department spokeswoman Heather Nauert said.
Image: picture-alliance/AA/F. Aktas
Found guilty, but set free
Eventually, a court in Turkey's Aliaga found Brunson guilty on terror charges and sentenced him to over three years in prison. At the same time, however, the court said he would not serve the term due to the time he had already spent behind bars. The preacher was allowed to leave the country.
Image: Reuters/Depo Photos
Shaky US-Turkey ties
The Brunson row is the latest in a series of diplomatic and military disputes between the two NATO allies. The US uses bases in Turkey for its military operations across the Middle East, but the two countries have sparred over numerous issues, including Washington's support for Kurdish fighters in Syria, whom Ankara sees as a threat to its political stability.
