Economic Protocol With Turkey Criticised

North Cyprus News - PM Faiz Sucuoğlu - Turkish Vice President Fuat Oktay - sign economic protocol
[PM Faiz Sucuoğlu – Turkish Vice President Fuat Oktay sign the economic protocol]
Sunday, 22 May 2022 

The Economic and Financial Cooperation Protocol signed by Turkey and the TRNC on 14 April has come into effect, Yeniduzen reported.

The protocol was signed by the then Prime Minister Faiz Sucuoğlu and Turkish Vice President Fuat Oktay.

Yeniduzen writes that the terms of the protocol have drawn a lot of criticism because of the limits it places on union activities, the granting of TRNC citizenship to Turkish citizens, privatising ports, broadening the scale taxes and strengthening religious influence in the country, which is largely secular.  

The newspaper states that the terms of the protocol go far beyond “Financial Economic Cooperation”, and is more like an agreement to hand over autonomy.

The article stating “Necessary measures will be taken to remove the obstacles to the highest level of reflection of the will of the nation to the administration” was also included in the protocol as part of “financial and economic cooperation”.

It is noteworthy that the restrictions such as the minimum company capital and partnership share stipulated for Turkish citizens are removed with the new protocol.

Yeniduzen also recalls that in the 36 days between signing the protocol and its ratification, the cabinet changed twice and three different governments were formed. Prime Minister Faiz Sucuoğlu who signed the protocol was removed from office.

Trade Unions

The new protocol includes legal regulation against trade unions acting on political ideology which goes beyond their founding purposes. Collective Bargaining Agreements will be rearranged automatically after the deadline expires. A move which was said to be unconstitutional, Yeniduzen writes. 

Necessary measures, including legislative arrangements, will be taken to prevent trade unions from engaging in political and ideological activities that go beyond their founding objectives and to prevent trade union discrimination”, an article in the protocal states.

Protocol Financing

A total of 4.25 billion Turkish lira will be granted as grants of 3.2 billion and loans of 1.5 billion Turkish lira.

Budget Deficit

It is estimated that the TRNC budget will run at a deficit of at least 4.5 billion Turkish lira. The budget allocated for the deficit and other public expenditures is 1.5 billion Turkish lira.

Reform Support Allowance

A provisional 450 million TL will be available as a reform support allowance. However, unless the instructions given under the name of “reform” are followed, this allowance will not be granted.

It was noted that the protocol only covers this year – 2022.

Use of Turkish Lira Expanded

Instead of using a stable currency or adopting the euro, there is a commitment to increasing use of the Turkish lira. The protocol states that “the use of foreign currency and dependence on foreign currency will be reduced in the TRNC ”.

The use of the national currency, the Turkish Lira, and national payment systems will be expanded, the use of foreign currency will be reduced”, a clause in the protocol states.

Currency Protected Deposit  is not included in the protocol.


Other Stories

Ads Blocker Image Powered by Code Help Pro

Ad Blocker Detected

We have detected that you are using extensions to block ads. Please support us by whitelisting our website in your ad blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock