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Turkish President Erdogan Drops Opposition to Sweden's NATO Bid Amid Economic Crisis

Turkish President Erdogan Drops Opposition to Sweden's NATO Bid Amid Economic Crisis

Turkish President Recep Tayyip Erdogan made a sudden shift in policy this week, dropping his long-held objection to Sweden's request to join the North Atlantic Treaty Organization (NATO).
The move comes as Erdogan looks for solutions to Turkey's deepening economic crisis, which has been exacerbated by inflation hovering at nearly 40% and a plummeting currency.

Erdogan's sudden change of heart has been seen as a sign that he is taking a more constructive approach with the United States and European allies, who have been worried about democratic backsliding in Turkey.

In exchange for his about-face, Turkey is now set to receive a long-awaited delivery of F-16 fighter jets from the United States, and Mr. Erdogan says that the European Union is "positive" about reviving Turkey's bid to join the EU and moving forward on visa liberalisation.

The Turkish leader met with US President Joe Biden, UK Prime Minister Rishi Sunak, German Chancellor Olaf Scholz, and Ukraine's President Volodymyr Zelenskiy at the NATO summit in Vilnius, Lithuania, where there were numerous photo opportunities.

French President Emmanuel Macron and Italian Prime Minister Mario Draghi also had bilateral meetings with Erdogan.

While Erdogan's sudden change of heart has secured commitments from foreign powers, it also highlights his ability to pivot quickly to address Turkey's economic woes.

Inflation in Turkey has been stubbornly high, hovering at nearly 40%, and the nation's lira currency has plummeted this summer.

However, the economic situation in Turkey remains dire, with businesses struggling to keep up with rising costs.

Baker Burhan Morkoc says that inflation has made it increasingly difficult to produce and sell bagel-like pastries, with the cost of ingredients and rent rising significantly.

Despite the challenges facing Turkey, Erdogan's sudden pivot to the West could signal a new approach to addressing the country's economic crisis.

Turkish Finance Minister Mehmet Simsek, a former Wall Street executive, has vowed to restore "rational economic policy" in Turkey after years of high inflation and economic instability.

As part of his efforts, Simsek and newly-appointed central bank governor Hafize Gaye Erkan raised interest rates from 8.5% to 15% last week, the first increase in 27 months.

However, business owners such as baker Batu Coskun remain skeptical of the government's ability to address the economic challenges facing Turkish businesses.

Coskun works up to 20 hours a day and is concerned about the impact of high inflation on his business, but he is not convinced that the government understands the urgency of the situation.

"Come and stand here for 18 hours, 20 hours.

I work with three hours of sleep.

Let [Mehmet Simsek] do this.

It is easy to sit on a seat and make decisions.

It doesn't work that way," he said.

Economists agree that repairing Turkey's economy will take time and patience.

"There's really no quick, magical cure in sight.

You have to prioritize the problems and perform triage," said Murat Gulkan, head of OMG Capital Advisors.

"That involves cooling down the economy, which of course is politically undesirable." President Recep Tayyip Erdogan has also made winning back the confidence of foreign investors a priority, and will travel to Saudi Arabia, Qatar, and the United Arab Emirates next week to try and bridge some of the gap.

However, his relationship with Russia remains complex, and Simsek will need to balance his efforts to build stronger ties with the West while maintaining good relations with Russia.

Despite the challenges, Turkish business owners such as Coskun remain optimistic about the future.

"We have to continue working here.

We don't have any other choice," he said.

"We will survive.

We will make it through."
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