Its economy suffers from a large budget deficit and a high level of public debt, which have resulted in anemic economic growth averaging one percent over the last three years. Prime Minister Simitis has pledged that his administration will focus substantial attention on addressing these problems. Turkey is also a close ally, sitting upon a strategic crossroads connecting the Balkans, the Mid-East, and the Newly Independent States. It too is a democracy in a part of the world where democracy is not firmly rooted. Turkey remains a strongly secular country in a region of growing religious conservatism.
Turkey also faces major economic problems, including severe inflation.
The new government is setting a course to correct this with reform and privatization. The recently concluded Customs Union with the European Union offers particular promise in this regard. Despite all the similarities between these two important allies, there remains a long history of mistrust and a number of current problems which divide them. We must do what we can to help these neighbors and partners come together. Flexibility is needed to address them.