Turkey’s 15 month old austerity program is in deep trouble with rising pressure from all quarters for its front man Mehmet Simsek to resign. Even though both the presidency and Simsek batted down the rumors, the controversy will not go away, because it reflects a much deeper and fiercer battle about fiscal cuts.
This video explains the loud debate about new taxes and spending cuts and why they are crucial to the advancement of the austerity program. It will be up to President Erdogan to greenlight new fiscal measures, in the context of the new policy document called MTEP, to be unveiled by mid-September.
A vast majority of experts believe that Erdogan will yield to public pressure not to allow Simsek to trim the budget deficit. Is this the way Turkey’s austerity program dies? What happens if Simsek is sacked or choses to resign afterwards?
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