Turkish unionists and employers on Monday, October 29, criticized the government's tough economic program as "failing" and urged Ankara to take more measures to pull the country out of its deepest economic crisis in years.
"The problems of the business sector are growing with each passing day. The current economic program is moving towards failure," said a joint statement issued after a meeting in Ankara of the country's biggest labor unions with two influential business groups.
"Measures encouraging investment, production and exports must be introduced," the statement said. It also called for incentives to increase the number of jobs and humane working conditions.
The Turkish economy plunged into crisis in February when the government abandoned a pegged exchange regime, causing the lira to tumble against the dollar and breaking the backbone of a disinflation program supported by the International Monetary Fund. The lira has fallen more than 50 percent against the US currency since then.
In May, Turkey began implementing a program of strict economic measures with multibillion-dollar aid from the IMF and World Bank. But recently, Turkish Prime Minister Bulent Ecevit has said that Ankara needed "a comprehensive amount" of additional financial support to help bolster the country amid global economic turmoil.
Monday's meeting also called for financial support to revitalize businesses, which had closed down or were in trouble, and asked for the reduction of tax and social security premium contributions.
"Value-added tax rates must be reduced" to encourage spending, the statement said. "The government must broaden the tax base and install a just tax system," it added.
It also called for the restructuring of a cumbersome public administration to ensure an "effective, transparent, law-abiding" system. "Corruption must be wiped out," the statement said. It also called for strengthening social welfare systems to help the poor.
Scores of businesses have closed down and thousands of workers have been laid off since February. The Turkish economy is expected to shrink by up to eight percent this year. ― (AFP, Ankara)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
