TURKEY’s  big business association TUSIAD blasts Erdogan  after long silence

Turkey’s most influential business association delivered a rare and scathing criticism of the government and warned of deepening economic instability, political interference in the judiciary and the erosion of democratic institutions, marking one of its strongest public rebukes in years. The decision to speak out now reflects growing frustration within Turkey’s business elite over the state of the economy and governance. With inflation soaring, foreign direct investment declining and financial markets under strain, many in the private sector worry that continued mismanagement could lead to long-term damage. TUSIAD may also have been alarmed by two recent  pieces of  legislation, which grant Erdogan-controlled State Inspection Board and Savings and Deposit Insurance Fund to appoint trustees to NGOS, municipalities and companies without judicial review. The Turkish Industrialists and Businessmen’s Association (TÜSİAD) expressed its concerns during its annual general assembly on Thursday, where top executives pointed to a growing crisis of trust among investors, the business community and the general public.   TÜSİAD’s High Advisory Council President Ömer Aras and Chairman Orhan Turan underscored mounting economic and political risks and pointed to rising government intervention in the private sector, executive control over the judiciary and worsening economic hardship. [embed]https://www.youtube.com/watch?v=Dv0mKx2HT5E&t=17s[/embed] Aras blamed systemic failures for recent disasters, including the Kartalkaya hotel fire that killed 78 people and a deadly mine accident last year as well as the high death toll in the 2023 earthquakes. “These are not accidents; they are the result of a crumbling system where safety regulations are ignored and accountability is absent,” he said.   Turan, in his remarks, directly challenged the government’s economic policies, stating: “Neither industrialists nor workers are happy. Large businesses struggle, and so do small enterprises. Entrepreneurs in both the east and the west are suffering. Who is benefiting from this system?”   The business leaders also decried the mass dismissal of newly graduated military officers from the Turkish Armed Forces and the increasing number of politically motivated arrests of opposition figures, journalists and businesspeople. They warned that judicial instability was creating systemic risks for the economy by discouraging investment and fostering uncertainty.   “A modern state is founded on the rule of law. If there is no trust in justice, instability and uncertainty will spread,” Turan said just before the broadcast was interrupted and the network prematurely switched to commercial breaks.   The ruling Justice and Development Party (AKP) quickly condemned TÜSİAD’s statements, with Justice Minister Yılmaz Tunç warning that “no organization is above the national will” and vowing to respond “with the strongest legal measures.” [embed]https://www.youtube.com/watch?v=7CPMaykYYJs&t=712s[/embed] AKP spokesperson Ömer Çelik accused TÜSİAD of attempting to interfere in politics and undermine democracy. “TÜSİAD must confront its own troubled history regarding democracy,” Çelik said, referencing the group’s past perceived alignment with military-backed governments before the AKP’s rise to power.   Observers say the government could retaliate against TÜSİAD members through targeted audits, regulatory scrutiny or exclusion from lucrative state contracts.   Some suggest that TÜSİAD’s bold stance came in response to the recent passage of a controversial law granting Turkey’s State Inspection Council (DDK) sweeping powers to remove public officials, including military officers, without judicial oversight as well as granting a government body the ability to appoint trustees to companies without a judicial order.   The law, backed by the AKP and its far-right allies, enables the DDK to dismiss individuals deemed an “obstacle” to investigations, a measure critics warn could be used to purge political opponents. The main opposition Republican People’s Party (CHP) announced plans to challenge the law in the Constitutional Court, arguing that it effectively allows the government to rule by decree.   The legislation is seen as part of a broader effort to consolidate control over key institutions following the 2024 local elections in which opposition parties gained ground. TÜSİAD leaders criticized the removal of elected mayors and their replacement with government-appointed trustees, calling it a “grave threat to democracy.”   The business association’s rare criticism was met with cautious support from opposition figures. CHP Chairman Özgür Özel called TÜSİAD’s remarks “an honest assessment of Turkey’s trajectory.” TÜSİAD was once viewed as a powerful force in Turkish politics, particularly in the early 2000s when its statements carried significant weight in shaping government policy. However, since a failed coup attempt in 2016, the association has largely avoided direct confrontations with the government, as many business leaders feared economic and legal repercussions.   The decision to speak out now reflects growing frustration within Turkey’s business elite over the state of the economy and governance. With inflation soaring, foreign direct investment declining and financial markets under strain, many in the private sector worry that continued mismanagement could lead to long-term damage.   Source:  Turkish  Minute   IMPORTANT DİSCLOSURE:  PA Turkey intends to inform Turkey watchers with diverse views and opinions.  Articles in our website may not necessarily represent the view of our editorial board or count as endorsement.    Follow our  English language YouTube videos  @ REAL TURKEY:   https://www.youtube.com/channel/UCKpFJB4GFiNkhmpVZQ_d9Rg