EN    EN EN 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 5.11.2008 
SEC(2008) 2699 
  
COMMISSION STAFF WORKING DOCUMENT 
 
TURKEY 2008 PROGRESS REPORT  
 
  
accompanying the 
 
COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIA MENT AND THE COUNCIL 
 
Enlargement Strategy and Main Challenges 2008-2009
 
{COM(2008) 674} 
EN 2   EN  
TABLE OF CONTENTS 
1. Introduction................................................................................................................ .. 4 
1.1. Preface................................................................................................................... ....... 4 
1.2. Context ................................................................................................................... ...... 4 
1.3. Relations between the EU and Turkey......................................................................... 4 2. Political criteria .......................................................................................................... .. 6 
2.1. Democracy and the rule of law .................................................................................... 6 2.2. Human rights and the protection of minorities .......................................................... 11 2.3. Regional issues and international obligations............................................................ 28 3. Economic criteria ....................................................................................................... 29 3.1. The existence of a functioning market economy ....................................................... 29 3.2. The capacity to cope with competitive pre ssure and market forces within the Union
............................................................................................................................... ..... 34 
4. Ability to assume the obligations of membership...................................................... 36 4.1. Chapter 1: Free movement of goods .......................................................................... 37 4.2. Chapter 2: Freedom of movement for workers.......................................................... 39 4.3. Chapter 3: Right of establishment and freedom to provide services ......................... 40 4.4. Chapter 4: Free movement of capital......................................................................... 41 4.5. Chapter 5: Public procurement................................................................................... 43 4.6. Chapter 6: Company law............................................................................................ 44 4.7. Chapter 7: Intellect ual property law........................................................................... 45 
4.8. Chapter 8: Competition policy................................................................................... 46 4.9. Chapter 9: Financial services ..................................................................................... 48 4.10. Chapter 10: Information society and media............................................................... 50 4.11. Chapter 11: Agriculture.............................................................................................. 51 4.12. Chapter 12: Food safety, veteri nary and phytosanitary policy .................................. 52 
4.13. Chapter 13: Fisheries.................................................................................................. 54  
4.14. Chapter 14: Transport policy ..................................................................................... 55 4.15. Chapter 15: Energy .................................................................................................... 56 
EN 3   EN 4.16. Chapter 16: Taxation.................................................................................................. 58 
4.17. Chapter 17: Economic and monetary policy.............................................................. 59 4.18. Chapter 18: Statistics.................................................................................................. 5 9 
4.19. Chapter 19: Social policy and employment ............................................................... 60 4.20. Chapter 20: Enterprise and industrial policy.............................................................. 63 4.21. Chapter 21: Trans-European networks....................................................................... 64 4.22. Chapter 22: Regional policy and coordi nation of structural instruments .................. 64 
4.23. Chapter 23: Judiciary an d fundamental rights ........................................................... 66 
4.24. Chapter 24: Justice, freedom and security ................................................................. 71 4.25. Chapter 25: Science and research .............................................................................. 75 4.26. Chapter 26: Education and culture............................................................................. 76 4.27. Chapter 27: Environment ........................................................................................... 76 4.28. Chapter 28: Consumer and health protection............................................................. 78 4.29. Chapter 29: Customs union........................................................................................ 79 4.30. Chapter 30: External relations.................................................................................... 80 4.31. Chapter 31: Foreign, secur ity and defence policy...................................................... 81 
4.32. Chapter 32: Financial control..................................................................................... 84 4.33. Chapter 33: Financial an d budgetary provisions........................................................ 85 
STATISTICAL ANNEX 
EN 4   EN COMMISSION STAFF WORKING DOCUMENT 
TURKEY 2008 PROGRESS REPORT 
1. I NTRODUCTION  
1.1. Preface 
Following the conclusions of the Luxembourg European Council in December 1997, the 
Commission has reported re gularly to the Council and the Parliament. 
This report on progress made by Turkey in prep aring for EU membership largely follows the 
same structure as in previous years. The report: 
– briefly describes the relations between Turkey and the Union; 
– analyses the situation in Turkey in term s of the political criteria for membership; 
– analyses the situation in Turkey on the basi s of the economic criteria for membership; 
– reviews Turkey's capacity to assume the obligations of membership, that is, the acquis 
expressed in the Treaties, the secondary legislation, a nd the policies of the Union.  
The period covered by this repor t is from 1 October 2007 to early October 2008. Progress is 
measured on the basis of decisions taken, legisl ation adopted and measures implemented. As a 
rule, legislation or measures which are under preparation or awaiting Parliamentary approval 
have not been taken into account. This approach  ensures equal treatmen t across all reports and 
permits an objective assessment. 
The report is based on information gathered and analysed by the Co mmission. In addition, 
many sources have been used, including contri butions from the government of Turkey, the 
Member States, European Parliament reports1, and information from various international and 
non-governmental organisations. 
The Commission draws detailed conclusions rega rding Turkey in its separate communication 
on enlargement2, based on the technical analysis  contained in this report. 
1.2. Context 
The Helsinki European Council of December 1999 granted the status of candidate country to 
Turkey. Accession negotiations with Turkey were opened in October 2005. 
The Association Agreement between Turkey and the then EEC was signed in 1963 and 
entered in force in December 1964. Turkey and the EU formed a customs union in 1995. 
1.3. Relations between the EU and Turkey 
Accession negotiations with Turkey  continued. During the preparat ory analytical phase the 
level of preparedness to star t negotiations on indi vidual chapters has been assessed on the 
                                                 
1 The rapporteur for Turkey was Ms Oomen Ruijten. 
2 Enlargement Strategy and Main Challenges 2008-2009. 
EN 5   EN basis of screening report s. Of a total of 33 screening report s, one has still to be delivered by 
the Commission to the Council whilst nine  are being discussed in the Council. 
So far, negotiations have been  opened on eight chapters ( Enterprise and industry, Statistics, 
Financial Control, Trans-European Networks, Consumer and health protection, Intellectual 
property law, Company law ) one of which ( science and research)  was provisionally closed . In 
addition, the EU informed Turkey about the prog ress needed to reach a satisfactory level of 
preparedness to start negotiations on elev en chapters. The December 2006 Council decision3 
remains in force. 
The enhanced political dialogue between the EU and Turkey has continued.  Political 
dialogue meetings were held in  May and September 2008 at minist erial level and in February 
and July 2008 at political direct or level. These meetings focuse d on the main challenges faced 
by Turkey in terms of the Copenhagen political  criteria and reviewed progress being made 
towards fulfilment of Accession Partnership prio rities. Foreign policy  issues related to 
regional areas of common interest to the EU and Turkey, such as Iraq, Iran, the Middle East 
and the Caucasus, were al so regularly discussed. 
The EC-Turkey customs union  contributed to a further increase in bilateral EU-Turkey trade, 
which was nearly € 100 billion in 2006, thereby making Turkey the EU's seventh trading 
partner. The EU asked Turkey to remove all re maining restrictions on the free movement of 
goods, including restrictions on means of tran sport regarding Cyprus. A number of Turkey’s 
commitments on technical barriers to trade, import licences, State aid and enforcement of 
intellectual property rights remain unfulfilled. No progress can be reported concerning Turkey's longstanding ban on imports of live bovine  animals, beef and other animal products. 
The EU provides guidance to the author ities on reform priorities through the  Accession 
Partnership . The Council adopted a revised version of  the Accession Partnership in February 
2008. Progress on these reform priorities is en couraged and monitored through the bodies set 
up under the Association Agreement. The A ssociation Committee met in March 2008, the 
Association Council in May 2008. Eight sectoral  sub-committees have been held since 
November 2006. 
Turkey has not pursued the negotiations on a readmission agreement with the European 
Community since December 2006. 
As regards financial assistance , some € 540 million have been  earmarked for Turkey from 
the Instrument for Pre-accession Assistance (IPA) in 2008. The Multi-Annual Indicative 
Planning Document 2008-2010, which provides the strategic multi-annual framework for all 
programmes at national level,  was adopted by the Commissi on on 25 July 2008. In addition, 
Turkey is benefiting from a series of regional and horizontal programmes under IPA. 
In relation to IPA preparations, Turkey's focus in  the last year has been on finalisation of the 
first set of programmes under all components, the negotiati on of a Framework Agreement 
with the Commission and preparations for the se tting up of implementation systems. Delays 
have occurred in these prepar ations, which put some of th e IPA 2007 programme allocations 
                                                
 
3 The decision sets out that negotiations will not be opened on eight chapters relevant to Turkey's 
restrictions regarding the Republic of Cyprus and no chapter will be provisionally closed until the 
Commission confirms that Turkey has fully implemented the Additional Protocol to the Association 
Agreement. 
EN 6   EN at risk. Turkey needs to vigorously address remaining system weakness findings and to 
further improve the quality and efficiency  of the project a nd programme cycles. 
2. P OLITICAL CRITERIA  
This section examines progress made by Turk ey towards meeting the Copenhagen political 
criteria, which require stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and prot ection of minorities. It also  monitors the respect for 
international obligations, regional coopera tion, and good neighbour ly relations with 
enlargement countries and Member States. 
2.1. Democracy and the rule of law 
On 14 March 2008 the Chief Public Prosecutor applied to the Constitutional Court for the 
governing AK party to be dissolved and for 71 fo rmer and present part y officials, including 
the President of the Republic and the Prime Mi nister, to be banned fr om being member of a 
political party for five years. The charges brought against the pa rty alleged that it was a focal 
point for anti-secular activities. On 30 July, th e Constitutional Court fell short of the required 
majority to close down the part y, but considered that the latt er had carried out activities 
against the secular principles of the Republic. It thus ordered that 50% of the government 
funds due in 2008 be cut off. ( See also section on freedom of association ). 
Pursuant to Articles 68 and 69 of the Constitution a nd to the relevant provisions of the Law on 
political parties, on 16 Novemb er 2007 the Chief Public Prosecu tor at the Court of Cassation 
applied to the Constitutional Court for closure of the Democratic Society Party (DTP). He 
also requested that 221 former and present members of the party be banned from being 
member of a political party for five years. The party is accused of  engaging in activities 
against the unity and integrity of the country. This case is pe nding before the Constitutional 
Court. 
An investigation started in 2007 into an alle gedly criminal network, known as Ergenekon, led 
to the arrest of a number of pe ople, including retired Army ge nerals. The indictment against 
Ergenekon, presented on 14 July 2008 by the Istanbul  Public Prosecutor Office, is based on 
charges such as forming a terrorist organisatio n and attempting to overthrow the government 
and to undermine its operation by use of violent means. During the course of the investigation, there were repor ts regarding the insufficient safeguarding of the rights of 
defence and the excessive duration of detentio n period without indictme nt. The first hearing 
of the trial, first of this kind on such a scale, was held as planned on 20 October.  
Constitution 
The governing party gave a group of academic s a mandate to revise the 1982 Constitution 
with a view, among other things, to aligning  Turkey with intern ational standards on 
fundamental rights. 
However, no draft has been pres ented either to the public or  to parliament, and no clear 
timetable has been se t for discussing it.  
Instead, in February 2008, the Parliament amended Article 10 ("Equality before the law") and 
Article 42 ("Right and duty of tr aining and education") of the Constitution, with the aim of 
lifting the headscarf ban for uni versity students. The amendmen ts were adopted with the 
EN 7   EN support of the governing Just ice and Development Party (AKP) and of the opposition 
Nationalist Movement Party (MHP) and Democratic Society Party (DTP).  
Following an appeal by the opposition Republican People's Party (CHP) and Democratic Left 
Party (DSP), on 5 June 2008 the Constitutiona l Court annulled the amendments on the 
grounds that they were against the secular na ture of the State. A minority of two judges 
argued that the Court can only ex amine constitutional amendments with regard to their form 
and not their content. 
Parliament 
The Parliament - the Turkish Grand National Assembly - adopted 116 bills. Since October 
2007 the government submitted 397 draft bills, while 313 were submitted by individual members of Parliament. 
In March 2008 an amendment to the Law on elections and electora l rolls was adopted, 
extending the right of Turkish citizens living abro ad to participate in parliamentary elections, 
in line with the recommendations of the OSCE Election Monitoring Report. 
However, in response to an appeal filed by the CHP, the Constitutional Court ruled in May 
that the possibility of postal voting is unconstitutional. The CH P referred to the Constitutional 
Court a total of 16 laws adopt ed in 2008, some of which we re intended to introduce EU-
related democratisation reforms (including, for example, the law on Foundations and the 
amendments to the Law on the public service broadcaster). 
President 
The new President has exerted efforts to play a c onciliatory role with regard to political actors 
and civil society. He establ ished a good working relationshi p with the government, while 
repeatedly calling for an acceleration of the pace of EU-related reforms.  
He played an active role in foreign policy and travelled extensively abroad. In September 
2008, at the invitation of the Arme nian President, he paid the first-ever visit by a Turkish 
President to Armenia, with a view to establishing a bilateral dialogue leading to the 
normalisation of bilateral relations.  
Government  
The government expressed its commitment to the EU accession proce ss and to political 
reforms.  
However, despite its strong political mandate, th e government did not put forward a consistent 
and comprehensive programme of political re forms. On 1 September 2008 the Government 
announced a draft National Progra mme for the Adoption of the Acquis , and started a 
consultation process with civil society and the opposition. The Programme remains to be adopted. The staff and resources of the Secretar iat General for EU Affairs (EUSG), the main 
coordinating body in charge of EU affairs, remain weak.  
As regards local government , Parliament adopted a Law on municipalities in March 2008. 
This Law established 43 new districts, me rged 239 municipalities and closed down 863 of 
them. In July 2008, Parliament adopted a Law to increase the revenue of local Governments, 
EN 8   EN aimed at enabling them to fulfil their mandate more effectively. The implementation of local 
administration laws and capaci ty-building has continued.  
However, the Law on municipalities adopted in  March 2008 is still under review in the 
Constitutional Court, following the appeal by th e CHP. There has been no progress regarding 
the adoption of the Framework Law on public ad ministration, which aimed at devolving more 
powers to local Government. 
City councils, which are designed to be a platform to enhance ci tizens' participation in local 
government, have been functioning effectively in  only a limited number of cities. Efforts are 
needed to strengthen all city councils. Accountability systems and transparency also need to 
be strengthened.  
Overall, as concerns the legislative and execu tive functions, while the new President played a 
positive role by calling for further political refo rms, the government did not put forward a 
consistent and comprehensive programme of political and constitutional reforms. 
Furthermore, the lack of dial ogue and spirit of compromise be tween the main political parties 
had a negative impact on the smooth functioning of  the political institutions. The work of the 
newly elected parliament was affected to a considerable extent by legal cases aimed at 
dissolution of two parties. As regards local government, the recently adopted local 
administration laws need to be implemented a nd decentralisation of powers in favour of local 
governments to be strengthened.  
Public administration  
As part of the efforts to reduce red tape, the government issued a circular in May 2008 
instructing all public agencies to use the ID sh ared data base (KPS) for residence and birth 
records of citizens, instead of  requesting them from citizens. The current recruitment and 
promotion procedure (up to mid-career level) is based on a merit-based competitive examination, managed by an autonomous body.  
However, the politicisation of se nior level appointments has b een criticised. As regards the 
reform of public administration, a number of i ssues remain to be addressed, such as reducing 
administrative burden, ensuring simplification, establishing regulatory impact assessments 
(RIA), developing administrative procedures , enhancing transparen cy and improving policy-
making and coordination systems.  
Strategy development units, whic h are pillars of fi nancial management and policy-making, 
need to be strengthened. Efforts are needed to secure full implementation of the Public 
Financial Management and Control Law.  
Parliament has not received a comprehens ive draft law on the Civil Service.  
Overall, there has been limited progress on pub lic administration reform. The civil service 
system needs to be modernised.  
Civilian oversight of the security forces 
Political control over the military was applied in practice in the context of military operations 
aimed at terrorist targets in Northern Iraq. Such  operations were authorised by the parliament 
and decided upon by the government.  
EN 9   EN However, the armed forces have continued to  exercise significant po litical influence via 
formal and informal mechanisms. Senior member s of the armed forces have expressed their 
opinion on domestic and foreign policy issues going beyond their remit, including on Cyprus, 
the South East, secularism, political partie s and other non-military developments.  
No change has been made to the Turkish Armed Forces Internal Service Law and the Law on 
the National Security Council. These define th e role and duties of the Turkish military and 
grant the military wide room for manoeuvre by providing a broad definition of national security. No progress has been made on enha ncing civilian contro l over the Gendarmerie
 
when engaged in law enforcement activities. 
An internal military memorandum leaked to the press identified NGOs that had received 
financial aid from foreign organisations, incl uding the EU. The memorandum was not denied 
by the General Staff. 
The 1997 EMASYA  secret protocol on security, public order and assistance units remains in 
force unchanged. The protocol allows military operations to be carried out for internal security matters under certain conditions without a request fr om the civilian authorities. 
No progress has been made on strengthening parliamentary oversight of the military budget 
and expenditure. The Parliamentary Planning and Budget Committee reviews the budget of 
the Ministry of National Defence. However,  extra-budgetary funds  are excluded from 
parliamentary scrutiny. The Defence Industr y Support Fund (SSDF), from which most 
procurement projects are funded, is still an extra-budgetary fund. 
As regards auditing, under the Constitution the C ourt of Auditors can carry out external ex-
post audits of military expenditure. In 2007, some  25% of all military accountancy offices 
were audited. In July 2008, the Co urt of Auditors decided that it has a mandate to audit the 
SSDF. However, the Court remains unable to audit assets belonging to the military, pending adoption of the revised legislation on the Cour t of Auditors, which is overdue. Furthermore, 
the 2003 Law on public financial ma nagement and control, which provides for internal audits 
of security institutions, has yet to be properly implemented 
Overall, no progress has been made in ensuri ng full civilian supervis ory functions over the 
military and parliamentary oversight of defence expenditure. Senior members of the armed forces have made statements on issues going beyond their remit.  
Judicial system  
The Ministry of Justice has been working on a draft judicial reform  strategy, which it 
presented in spring 2008. The document is compre hensive and covers issues related to the 
independence, impartiality, efficiency and effec tiveness of the judiciar y, enhancement of its 
professionalism, the management system and measures to enhance confidence in the 
judiciary, to facilitate access to justice and to  improve the penitentiary system. Judges and 
prosecutors discussed th e draft strategy at a meeting in Antalya.  
In 2007, a total of 846 judges and prosecutors were  appointed. The total number of judges and 
prosecutors on 1 May 2008 was 6,914 (6,785 on  1 May 2007) and 3,917 (3,744 on 1 May 
2007) respectively. On the same date, the total number of vacant posts for judges and prosecutors was 4,166. The funds available to the judiciary in 2007 totalled € 865 million. This covers salaries and social security pa yments for all members of the judiciary, plus 
services and real estate acquisition for the judiciary. 
EN 10   EN However, there have been no developments on establishment of the regional courts of appeal. 
This is a matter of concern. U nder the law, these should have  been operational by June 2007. 
In addition, there is a need to strengthen efforts to ensure that interpretation by the judiciary of 
legislation related to human rights and fundament al freedoms is in line with the ECHR, with 
the case-law of ECtHR and with ar ticle 90 of the Turkish Constitution. 
Concerns remain about the impartiality  of the judiciary . On some occasions senior members 
of the judiciary made public political comments  which may compromise their impartiality in 
future cases. As regards independence, there has been no progress on the composition of the High Council of Judges and Prosecutors
4 or on the reporting lines of judicial inspectors5 (See 
also Chapter 23 – Judiciary and fundamental rights ). 
The Şemdinli case was transferred to the Van military court following a decision of the Court 
of Cassation6. The Van military court ordered the re lease – pending trial – of the accused.  
Other high-profile cases underlined  the importance of the quality  of the investigation. This 
pointed to the need to improve the institut ional relationship between, on the one hand, the 
police and the gendarmerie and, on the other, the judiciary. 
Overall, the work to date on the draft ju dicial reform strategy has been a positive 
development. The Ministry of Justice needs to continue and expand the consultations with all 
stakeholders, including civil so ciety, and build the necessary broad support for the strategy. 
However, concerns remain as regards the inde pendence and impartiality of the judiciary.. 
Reforms in the area of the judiciary are a priority of the Accession Partnership. 
Anti-corruption policy  
Turkey has implemented one third of the recommendations made in GRECO's 2005 joint first 
and second round evaluation report. It has made e fforts to ensure practical implementation of 
the existing anti-corruption legislation, inter alia  by enhancing training on corruption 
detection and investigation for law enforcement officers, establishing guidelines on seizure 
and confiscation and developing systems for monitoring the impact of anti-corruption 
measures.  
However, the Government failed to prepare a comprehensive anti-corruption strategy. Policy 
making in this field has not received adequate political support. 
                                                 
4 The composition of the High Council is not representative of the judiciary as a whole: only senior 
members of the judiciary from th e Court of Cassation and the Council of State are members of this 
Council. 
5 The judicial inspectors, who are responsible for evaluating the performance of judges and prosecutors, 
are attached to the Ministry ra ther than to the High Council. 
6 This case concerns the bombing in November 2005 that killed one person and injured others in the town 
of Şemdinli in Southeast Turkey. The prosecutor on the case published the indictment in March 2006. 
The indictment included also accusations against high-ranking military comma nders. The General Staff 
criticised the indictment and urged those bearing co nstitutional responsibility to take action. In April 
2006, the High Council of Judges and Prosecutors dismissed from office the Şemdinli prosecutor. The 
disproportionate character of this decision raised questions on the independence of the High Council 
form other state institutions. A first instance civ il court sentenced the accu sed - two non-commissioned 
officers and a PKK informant - to a total of thirty -nine (39) years of impr isonment. On appeal, the 
Court of Cassation ruled that the of fences had not been pr operly constituted and that the case falls under 
the jurisdiction of the military court. 
EN 11   EN Furthermore, several of GRECO's most important  recommendations have not been addressed, 
such as the recommendation to entrust an oversight body, involving ci vil society, with the 
responsibility of overseeing implementation of  national anti-corruptio n strategies and of 
proposing new strategies. 
Corruption incidents, involving in particular real  estate agencies, local government and 
universities, were frequently reported by the media. As a resu lt, law enforcement agencies 
have conducted a series of high-profile corrupti on investigations in various agencies. In the 
context of a fraud case against the charity association Deniz Fe neri in Germany, the Regional 
Court of Frankfurt am Main convicted three charity’s managers for having misused funds 
collected as donations. The Court al so stated that part  of the funds have been channelled to 
entities based in Turkey. In this  context, an Ankara prosecutor initiated an i nvestigation, and 
asked the Ministry of Justice to request the necessary documents from the German Court.  
There has been no progress on limiting the immun ity of Members of Parliament and there is 
no legislation in place on election campaign fi nancing. The European Court of Human Rights 
noted in a ruling that that no objective criteri a had been set to define the conditions under 
which immunity could be lifted7.  
No progress has been made regarding new legi slation on the Court of Auditors. There has 
been no progress on strengthening Parliament ary oversight over public expenditure. 
Overall, there has been limited progress in the area of anti-corruption . Corruption remains a 
widespread issue. There has been limited progr ess towards strengthening the legal framework 
and institutional set-up to fight  corruption. The continuing ab sence of an overall strategy, 
action plan and coordination mechanism is a caus e for continuing concern in this area. Turkey 
needs to develop a track record of investigatio ns, prosecutions and indictments of allegations 
of corruption.  
(See also Chapter 23 – Judici ary and fundamental rights) 
2.2. Human rights and the protection of minorities 
Observance of international human rights law 
There have been no developments as regards ratification of human rights instruments. The 
Optional Protocol to the UN Convention against Torture (O PCAT), signed in September 
2005, has not been ratified. The ratification of  the UN Convention on the Rights of Persons 
with Disabilities is pending. Turkey has not rati fied three additional Protocols to the European 
Convention on Human Rights (ECHR)8. 
During the reporting period, the European Court of Human Rights  (ECtHR) delivered a 
total of 266 judgments finding that Turkey had vi olated the ECHR. Simila rly to last year, the 
total number of new applications to the ECtHR continued to increase, with 3,705 applications 
during the reporting period. The majo rity of these new applicati ons concerned the right to a 
fair trial and protection of prope rty rights. Few of them concerne d violations of  the right to 
life or torture and ill-treatment. 
                                                 
7 Kart v. Turkey  (Application 8917/05). 
8 Protocols n° 4, n° 7 and n° 12. 
EN 12   EN Turkey abided by the final judgment of the EC tHR in the majority of cases. However, a 
considerable number of ECtHR judgments ar e awaiting enforcement by Turkey. This is 
sometimes because general legislative measures are required. For instance, the legal provision 
preventing the re-opening of domestic proceedings in certain circumstances following a judgment by the ECtHR remains in force. Th e Committee of Minister s of the Council of 
Europe indicated that continuati on of this situation amounts to a manifest breach of Turkey's 
obligation under the ECHR. Furthermore, Turkey  has not adopted legal measures to prevent 
repetitive prosecution and conviction of conscien tious objectors. Other cases pending before 
the Committee of Ministers awaiting adoption of  the necessary implementing measures relate 
to control of the activities of security forces, e ffective remedies against abuses and restrictions 
on freedom of expression. 
In the Cyprus v. Turkey case, the issue of missi ng persons and the rest rictions on the property 
rights of Greek Cypriots living permanently in  the northern part of Cyprus remain pending. 
The compensation mechanism put in place to address the property rights of displaced persons fulfils in principle the requirements indicated  by the ECtHR and has continued to receive 
requests for compensation. On 22 April 2008 the Court welcomed settlement in the case of 
Eugenia Michaelidou Developments Lt d and Michael Tymvios v. Turkey  brokered by the 
Turkish Cypriot Immovable Property Commission, which provides for the payment of USD 1 
million and a property exchange. However, the ECtHR has not assessed whether the available 
remedy is effective for all relevant issues. Turkey has not yet fully implemented the ECtHR judgements on the Loizidou and Xenides-Arestis cases. 
Overall, Turkey has continued to make pr ogress on the execution of  ECtHR judgments. 
However, further efforts are needed in this co ntext. Furthermore, there has been no progress 
on ratification of international human rights in struments, including in particular OPCAT.  
Several State-sponsored bodies have the task of ensuring the promotion and enforcement of 
human rights . These include the Human Rights Presiden cy under the Prime Minister's office 
and the Human Rights Boards (931 in all). The latter have the task of visiting places of 
detention and State-sponso red social services.  
At parliament level, the Human Rights Inve stigation Committee has established two sub-
committees to investigate torture and ill-treatment in prisons and detention centres and the murder of journalist Hrant Dink. The latter Co mmission finalised its report in July 2008. The 
report came to the conclusion that there was negl igence, error and lack of co-ordination in the 
activities of the security organisations and of th e gendarmerie in failing to prevent the murder. 
These findings need to be properly followed-up. 
The institutional framework for human rights promotion and enforcement does not meet the 
independence requirement and lacks financial aut onomy and transparency. There is a need for 
greater public awareness of the work of these institutions. The Human Rights Advisory Board 
– a body representing NGOs, experts and minist ries – has not been  operating since the 
publication of a report on mi nority rights in October 2004. 
Furthermore, the establishment of the Ombudsman has been outstanding since 2006, 
following the application of former Presiden t Sezer to the Constitutional Court for the 
annulment of some provisions of the Law. Th e Constitutional Court suspended the entry into 
force of the Law pending its fi nal ruling. In the abse nce of an Ombudsman system, there is no 
alternative remedy, other than the judiciar y, for investigating complaints against 
administrative decisions at central and local le vel, as regards the re spect of human rights, 
EN 13   EN liberties, law and justice. The establishment of a scrutiny mechanism via the Ombudsman 
would help defuse tensions between different s ections of society by strengthening the rule of 
law and the protection of  individual rights.  
Human rights defenders have faced criminal pr oceedings because of their work. Some faced 
threats from extremist groups, and were subsequently placed under police protection. 
Overall, the institutions for the promo tion and enforcement of human rights lack 
independence and resources. The introduction of an Ombudsman is overdue and is of key 
importance to prevent tensions  in society. Furthermore, th reats to personal safety and 
occasional criminal proceedings have an ad verse effect on the work of human rights 
defenders. 
Civil and political rights 
The rights of detainees are pr otected by a comprehensive set of  safeguards which serve to 
prevent cases of torture and ill-treatment  in custody. This includes medical examinations of 
detainees in police custody. Efforts are ongoing to  ensure compliance with these provisions. 
They include training for judge s, prosecutors and forensic e xperts with a view to better 
implementation of the Istanbul Protocol, whic h provides guidance on effective investigation 
and documentation of torture and ill-treatment cases.  
The Ministry of Interior conti nued its work for the establishm ent of an independent national 
mechanism to investigate citizens' complaints ag ainst law enforcement officers. As a next step 
the establishment of this m echanism requires public consu ltations on its structure and 
function.  
The Council of Forensic Medicine is prepar ing for ISO quality ac creditation, which will 
enhance the credibility of its reports. The Council has seven bran ch offices, and efforts are 
ongoing to increase the resources for forensic me dicine in the country through the creation of 
units in each of Turkey's 81 provinces.  
However, the number of applications to NGOs in  relation to cases of torture and ill-treatment 
has increased, in particular outside official pl aces of detention, notably during apprehension, 
transfer, or in the open with no detention regi stered. Furthermore, there are cases where the 
legal safeguards in place failed to prevent or stop the occurrence of torture and ill-treatment 
while in custody or in prison. These de velopments are a matter of concern.  
Amendments to the law on the duties and legal po wers of the police, adopted in 2007, provide 
that the police are not entitled to use forc e unless confronted with resistance. These 
amendments, together with the instructions given to members of the security forces, appear to 
align the Turkish legislation with  the ECHR standards. However, there are concerns that the 
implementation of this law has resulted in cas es of ill-treatment during routine identity 
checks. Strict implementation of the amende d provisions needs to be monitored by the 
Turkish authorities in order to prevent human right violations. 
Pending the ratificat ion of OPCAT (s ee Ratification of international human rights 
instruments) , that requests Parties to designate or establish an independe nt national preventive 
mechanism for monitoring places of detention, ther e is no such mechanism in place. Visits by 
the Human Rights Boards are often not follo wed up and the boards do not have sufficient 
expertise. 
EN 14   EN The use of statements obtained in the absence of legal counsel or not confirmed before a 
judge is prohibited by the Criminal Procedur e Code. However, the Court of Cassation ruled 
that the ban on use of such statements does not  apply retroactively. There have been cases 
where lower courts have not removed such ev idence from the case file, although allegations 
of ill-treatment were made by the defendant. 
Medical reports established upon admission to and exit from  police custody are sometimes 
inaccurate due to lack of resources or expertise.  Furthermore, for their own security, the legal 
framework allows doctors to request the presen ce of a law enforcement officer during medical 
examinations of detainees. However, in some  reported cases, law enforcement officers were 
present during examinations without th e request of the doctor in charge.  
Victims of torture and ill-treatment rely esse ntially on rehabilitation services provided by 
NGOs. This is partly due to the lack or inaccessibility  of State-sponsored services for victims 
of torture and ill-treatment. 
As concerns impunity , the Minister of Justice expressed a public apology for a recent case of 
death following torture in detention. However, im punity for human rights violations is a cause 
for concern. There is a lack of prompt, im partial and independent investigation into 
allegations of human rights vi olations by members of securi ty forces. None of the 70 
complaints submitted to the prosecutor in rela tion to the Diyarbakir incidents in March 2006 
have been closed so far. Furthermore, judicial  proceedings into allegations of torture and ill-
treatment are often delayed by th e lack of efficient trial pr ocedures or abuse of such 
procedures.  
Overall, there have been limited e fforts as regards the prevention of torture and ill-treatment . 
A comprehensive set of safeguards is in place. However, allegations of torture and ill-treatment during detention or outside official places of detention are a cause for concern. The 
efforts to prevent torture and ill-treatment need to be enhanced. The ratification of the OPCAT and the fight against impunity are key in this context.  
As regards access to justice , reports indicate that in urban ar eas most detainees have access to 
a lawyer immediately after detention. In rural areas, however, in particular in the South-East 
of the country, there have been cases where defendants have not had access to a lawyer on 
terms equivalent to those in urban areas. 
As regards prison  conditions, the physical infrastructure  of prisons continued to improve. 
Twelve new prisons have been complete d and a further 22 new prisons are under 
construction.  
Staff training continued to improve. There are f our prison staff training centres, which deliver 
pre-service, in-service and prom otion training. The trainers ha ve been trained under the EU's 
judicial modernisation and pena l reform (JMPR) programme.  
Greater transparency was introduced to the opera tions of the Penal Institutions and Detention 
Houses Monitoring Boards. These boards carry out  regular visits to pr isons and the findings 
of their reports are now publicly  accessible. Furthermore, the Law provides for the publication 
of an annual report on the activities of the Penal Institu tions and Detention Houses 
Monitoring Boards.  
However, the national framework for prison mon itoring falls short of the requirements of the 
OPCAT ( see Torture and ill-treatment ). 
EN 15   EN Restrictions on prisoners' corres pondence and inadequate health/p sychiatric resources remain 
a problem. The total number of prisoners is  95,551 for a total pris on capacity of 90,558. 
Prisons in big cities are especi ally faced with the problem of overcrowding. Implementation 
of the circular on high-securi ty F-type prisons has failed to remedy the shortcomings as 
regards communal activities for inmates. Proper  implementation of the circular depends on 
increasing the numbers and training of sta ff, and making more rooms available for the 
activities of different groups of prisoners.  
Provisions allowing solitary confinement of  persons sentenced to aggravated life 
imprisonment remain in force. In its 2006 re port on Turkey, the Council of Europe Committee 
for the Prevention of Torture indicated that such rules need to be applied for as short a time as 
possible and must be based on an individual ri sk assessment of the prisoner concerned.  
Cases of ill-treatment by prison staff have been  reported, but few lawsui ts have been launched 
to probe these allegations.  
Overall, good progress was made on improving in frastructures and on tr aining of staff. 
However, shortcomings as regards restri ctions on prisoners' conditions, on solitary 
confinement and on occasional ill-tr eatment remain to be addressed. 
Open debate continues in the Turkish media on a wide range of issues, including those 
perceived as sensitive by Turkish society. In  April, the Turkish parliament adopted 
amendments to Article 301 of the Turkish Criminal Code with the intention of strengthening the safeguards for freedom of expression  in Turkey. The amendments changed the wording 
of the article
9, lowered the upper limit of the penalty  and abolished the higher penalty for 
insults in a foreign country. Furthermore, the amendments introduce a requirement for permission to be obtained from the Justice Minister in order to launch a criminal investigation. A circular on implementation of  the amended article was issued on 9 May 
2008
10.  
Following the adoption of the amendments to Article 301, Turkish courts had forwarded, by 
September, 257 cases to the Minister of Jus tice for prior authorisat ion. This requirement 
concerns cases at the investigation stage or fo r which judicial proceedi ngs have started. By 
September, the Minister had reviewed 163 cases and refused to grant permission to proceed in 
126 cases.  
However, the wording of Article 301 remains largely the same and the prior authorisation 
requirement opens up the possibility that th e article will become subject to political 
                                                 
9 The amended article 301 reads as follows:  
1. A person who publicly degrades the Turkish nation, th e State of the Republic of  Turkey, the Turkish Grand 
National Assembly, the Government of the Republic of Turkey and the judicial bodies of the State, shall be sentenced to a penalty of imprisonment for a term of six months to two years 
2. A person who publicly degrades the military or security organisations of the State shall be sentenced to a 
penalty in accordance with the first section 
3. The expression of an opinion for the purpos e of criticism does not constitute an offence.  
4. The conduct of investigation for such offence shall be subject to the permission of the Minister of Justice. 
10 The circular referred to the relevant case law of the ECtHR on freedom of expression and pointed out 
that international conventions on human rights automatically become part of the Turkish legal order - 
without any additional legislative steps for transposition - once they have been adopted by the Parliament. Furthermore, the circular establishes, that for offences against Article 301, statements 
cannot be taken from the suspect without permission from the Minister of Justice in order not to 
discredit the suspect in the eyes of the public. 
EN 16   EN consideration. So far, the Minister  of Justice authorised the crimin al investigations to continue 
in 37 cases. This includes one case which wa s initiated following a statement made by a 
Turkish writer on the Armenian issue shortly afte r the assassination of th e Turkish journalist 
of Armenian origin, Hrant Dink. Furthermore, there is legal uncertainty as regards cases 
which had been granted authorisation by the Mi nister of Justice under the former Article 159 
of the Turkish Criminal Code.  
Other legal provisions that rest rict freedom of expression re main a cause of concern. For 
example, Articles 215, 216 and 217 of the Turkish Criminal Code, that criminalise offences 
against public order, and the Anti-Terror Law ha ve been applied to prosecute and convict 
those expressing non-violent opinions on Kurdis h issues. Turkish judges and prosecutors 
apply a wide interpretation of the provision on "inc itement to violence" or "public interest", in 
particular as concerns Kurdish-related issues. This is not in line with the ECtHR case law on 
freedom of expression and implies in particular  a lack of differentia tion between violent and 
non-violent opinions. Moreover, press articles on ongoing judicial proceedings have led to 
prosecutions and convictions under  Article 288 (attempt to infl uence a fair trial) of the 
Turkish Criminal Code or under the Press Law.  Similarly, public statements on the right to 
conscientious objection are prosecuted under Ar ticle 318 (discouraging the people from 
military service) of the Turkish Criminal Code.  
Furthermore, there have been statements by se nior figures strongly cr iticising the press, in 
particular following press reports on alleged co rruption cases and the fi ght against terrorism. 
Another problematic area is the frequent webs ite bans, which are disproportionate in scope 
and duration. Along with other we bsites, the popular You Tube site has been closed down 
several times.  
The Turkish Armed Forces still deny access to military receptions and briefings to some 
journalists and me dia organisations. 
The case against 53 DTP mayors for sending a lette r to the Danish Prim e Minister requesting 
that Roj TV not be closed was finalised in April 2008. The Court sentenced the defendants to 
2 months and 15 days imprisonment, which was commuted to a fine. The Court's ruling 
cannot be appealed. 
Overall, with the amendment of Article 301 th ere has been some progress in the efforts to 
strengthen the safeguards for freedom of expr ession, which is a priority of the Accession 
Partnership. However, only a consistent track record of implementation will show whether or not the revised article is adequa te. Moreover, further legislative reforms are needed to ensure 
full respect of freedom of expre ssion, in law and in practice, in line with the ECHR and the 
ECtHR case law. Against the background of pr essures on the press and electronic media, 
there is a need to guarantee an atmosphere conducive to full respect of the freedom of the 
press. 
The legal framework for freedom of assembly  is broadly in line with European standards.  
However, as regards implementation, arbitrary lim itations have been applied in practice to the 
right to peaceful assembly. Th e Turkish police used disproportionate force against protestors 
and trade union representatives who ignored the ban on 1 May demonstrations in Taksim 
Square in Istanbul. The Kurdish Newroz  Spring celebrations in March 2008 resulted in 
violence against demonstrators in several provi nces, in particular Hakkari, Yuksekova and 
Van. Three citizens died during the course of the Newroz  demonstrations in Van. 
EN 17   EN Investigation files are pending on the circumstances  of these deaths in the Van Chief Public 
Prosecution Office.  
Investigations have been initia ted into the allegations of disp roportionate use of force by the 
police during demonstrations. However, in such  cases, the opening of a criminal case depends 
on the authorisation of the Gove rnor. In certain cases, the aut horisation has been refused for 
lack of conclusive evidence, against the finding s of prior investigations. Furthermore, some 
protestors who allege police ill- treatment during demonstrations have faced criminal charges. 
The criminal investigation into the cases of disproportionate force by the police during the 1 
May 2007 demonstrations in Istanbul resulted in charges being pressed against two police 
officers. However, the para llel disciplinary i nvestigation was closed without any 
administrative sanction against the police o fficers on duty during th e demonstrations.  
Overall, further efforts are needed to ensure freedom of assembly in practice in line with 
European standards, as arbitrary limitations  and disproportionate use of force against 
demonstrators still occur. 
As regards freedom of association , the legal framework further improved with the adoption 
of the amendments to the Law on foundations in February 2008. The scope of the new Law 
extends to all existing foundations. The new provi sions relax the conditions for establishing a 
foundation and ease the regulatory framework for th eir activities, in pa rticular on selecting 
board members, acquiring or sel ling assets, receiving  funds from abroad and co-operating 
with foreign foundations. The previous ban on fo reigners establishing foundations in Turkey 
has been replaced by the principle of reciproc ity. The new Law provides tax incentives for 
donations to all foundations and allows tax exemptions for the repair, restoration and 
landscaping of cultural properties that belong to foundations. Furthermore, the Law provides 
for the establishment of the Foundations C ouncil as the highest decision-making body for 
foundations. As a positive step, the foundations th emselves are represented in this new body. 
However, the obligations imposed by the Law on associations to notify the authorities before 
receiving financial support from abroad and to provide detailed documents on such support 
continue to place a burden on associations' opera tions. Furthermore, frequent inspections of 
NGOs receiving funds from abroad, including EC funds, remain a cause of concern. Certain NGO activities were videotaped by the security  forces, especially in East and Southeast 
Turkey.  
The registration of the Turkish Armenian Bu siness Development Council was rejected by the 
Governorate of Istanbul, without clear legal grounds. Following a case brought by the Istanbul 
Governorate, an Istanbul court decided in  May to close down a lesbian, gay, bisexual, 
transgender/transsexual (LGBTT) association. The Istanbul Governorate is accusing Amnesty 
International (AI) of illegal money collection. The competent Istanbul Administrative Court 
heard the case and decided in favour of AI. The Governor ha s appealed the case before the 
Council of State. 
As regards political parties, the closure cases against the AKP and the DTP ( see section on 
Parliament ) illustrate that the current legal provisions applicable to political parties do not 
provide political actors with an adequate level of protection from the st ate's interference in 
their freedom of association and freedom of expression.  
Overall, there were improvements to the legal framework on freedom of association. 
However, some associations faced disproporti onate administrative difficulties or judicial 
EN 18   EN proceedings. Furthermore, in the light of the r ecurrent closure cases against political parties, 
the legal provisions on political parties need to  be amended in line with the case law of the 
ECtHR and best practices in EU Member St ates, as outlined by the Council of Europe's 
Venice Commission. This is a priority of the Accession Partnership. 
As regards civil society organisations , governmental bodies regularly consult NGOs. 
However, there is no coherent legal framew ork organising this cooperation. As a result, 
consultations are held on an ad hoc  basis, with unclear selecti on criteria, and do not result in 
tangible policy outputs. Po litical pluralism would be enhanced if participation of civil society 
and other stakeholders in policy-making were increased. Furthermore, the breadth and scope 
of civil society organisations needs to be strengthened. 
As concerns freedom of religion , freedom of worship continue s to be generally respected. 
The Law on foundations adopted in February 2008 addresses, among other things, a number 
of property issues regard ing non-Muslim minorities (S ee Right to property and Freedom of 
association ). 
The court case on the killing of three Protes tants in Malatya in April 2007 continued. A 
leading defence lawyer was provided with prot ection after receiving thre ats. A limited number 
of court decisions have ruled against use of th reats or insults against representatives of non-
Muslim minorities.  
As regards the Alevis, the government announced  an initiative aimed at improving dialogue 
with this community and addressing its concerns . In what was noted as a first decision of its 
kind in the country, a municipa l council recognised a Cem house as a place of worship and 
applied mosque tariffs to its water charges. 
However, the government's initiative has not been  followed through. Overall, Alevis continue 
to face the same problems as before, in particul ar as regards education and places of worship. 
This has led an AKP Alevi MP to resign from the position of Advisor to the Prime Minister 
on Alevi issues. 
As regards education, under Article 24 of the Tu rkish Constitution religio us culture and ethics 
classes are compulsory in the curricula of pr imary and secondary education. This was not the 
case previously, i.e. before the entry into fo rce of the current Constitution in 1982. In October 
2007, further to an application lodged by a fam ily who are followers of Alevism, the ECtHR 
11 found that these classes did not just give a general overview of religions but provided 
specific instruction in the major principles of th e Muslim faith, including its cultural rites. The 
Court requested Turkey to bring its educati onal system and domestic legislation into 
conformity with Article 2 of Protocol No1 to  the ECHR. This ECtHR judgment needs to be 
implemented. In August 2008 an Alevi Federation applied to the Committee of Ministers of 
the Council of Europe complaining that this j udgment is not being implemented and claiming 
that the new textbooks include superficial inform ation on Alevis part of  which could also be 
considered misleading. In March 2008, in two separate cases, the Council of State (CoS) 
decided that children of Alevi families were en titled to be exempted from these religious 
education classes. 
As regards places of worship, two cases regarding Alevi places  of worship (Cem houses or 
Cemevi) are pending before the courts, one of them  before the Council of State. In both cases, 
                                                 
11 Hasan and Eylem Zengin v. Turkey case (Application 1448/04).  
EN 19   EN Alevis were refused plots to construct Cem houses. These are not re cognised as places of 
worship and, as a result, receiv e no funding from the authorities . Two Protestant  churches and 
a Jehovah's Witnesses assembly have been unabl e to register their places of worship.  
Attacks against non-Muslim clergy and places of worship have been  reported in a number of 
provinces. Missionaries continue to  be portrayed and/or perceived as a threat to the integrity 
of the country and to the Muslim religion. Th e Turkish Alliance of Protestant Churches 
submitted a report to Parliament's Human Rights Committee on the state of religious 
minorities in Turkey. This report pointed out th at non-Muslim groups in the country had been 
the targets of attacks, provided a list of such incidents and noted that no suspects had been 
arrested. Implementation of the Ministry of In terior circular of 19 June 2007 on freedom of 
religion of non-Muslim Turkish citizens has not yet had the desired effects. 
Non-Muslim communities – as organised structur es of religious groups – still face problems 
due to lack of legal personality. Restrictio ns on the training of clergy remain. Turkish 
legislation does not provide for private higher  religious education for these communities and 
there are no such opportunities in the public education system . The Halki (Heybeliada) Greek 
Orthodox seminary remains closed. There have b een reports of foreig n clergy who wish to 
work in Turkey facing difficulties in obtaining work permits. The Ecumenical Patriarch is not free to use the ecclesiastical title Ecumeni cal on all occasions. In January 2008, Prime 
Minister Erdogan declared that use of the tit le "ecumenical" should not be a matter on which 
the State should rule.  
Judicial proceedings against conscientious obj ectors have continued and there have been 
frequent allegations of ill-treatment of consci entious objectors in prison. Furthermore, public 
statements on the right to conscientious  objection have led to convictions ( see section on 
freedom of expression  and observance of international human rights law ).  
Overall, there has been some progress, in pa rticular as regards adoption of the Law on 
foundations. However, the implementation of the Law, together with the resolution of the 
outstanding property-related issues regardi ng non-Muslim minorities remains a challenge. 
Furthermore, Alevis continue to face the sa me problems, including on education and places of 
worship. A legal framework in line  with the ECHR has yet to be  established, so that all non-
Muslim religious communities and Alevis ca n function without undue constraints. Turkey 
needs to make further efforts to create an e nvironment conducive to fu ll respect for freedom 
of religion in practice and to ca rry out consistent in itiatives aimed at improving dialogue with 
the various religious communities. 
Economic and social rights 
As regards women's rights , the Prime Ministerial circular  on combating honour killings and 
domestic violence against women has help ed to improve cooperation between public 
institutions. Awareness-raising ac tivities have been organised for members of the judiciary 
and law enforcement bodies. To date, 30 000 law enforcement officers have reportedly 
participated in training with a further 10 000 planned by the end of 2008. Gender sensitivity 
training programmes have also been conducted for health workers. The number of shelters for 
EN 20   EN women victims of domestic violence has marg inally increased. Courts have applied the 
amended Law on protection of the family12. 
There are some notable examples of high-leve l presence of women in Turkish society in 
business, academia, the civil service and politics.  Parliament adopted the "Employment 
Package" amending the Labour Law and certain other laws in order to promote women's 
employment. ( See Chapter 19 – Social policy and employment ). The gender gap in primary 
education decreased further to 2.3% ( See Children's rights ). 
However, gender equality remains a major ch allenge in Turkey. According to official 
statistics, participation by women in the labour force is low ( 24.8 % in 2007), and on a 
decreasing trend. The rate of women's employ ment is the lowest among the EU Member 
States and the OECD countries. 
Political representation of wome n, at both national and regional levels, is very low. Civil 
society organisations have submitted proposals to a ddress this issue, in particular with a view 
to the forthcoming municipal elections scheduled for 2009.  
Documents posted on the Diyanet's (Presidency fo r Religious Affairs) site contain language 
perceived by NGOs as discriminatory against women. 
Women's access to education is the lowest among the EU Member States and the OECD 
countries. The good results on reducing the gender gap in primary education need to be sustained and strengthened, in particular by en suring the continuing attendance of girls at 
school and identifying and addr essing school drop-outs ( see children's rights ). 
Domestic violence, honour  killings, and early and forced ma rriages are still a serious problem. 
The Court of Cassation ruled th at sentences for honour killings  are given only if there is 
evidence showing that the murder was committed following a decision of the family assembly. This decision was criticised by a memb er of the Court, who claimed that it would 
complicate efforts to eradicate these killings. According to the Prime Ministry Human Rights 
Directorate, 220 honour killings were reported in the count ry in 2007, most of which 
happened in big cities. This is an increase co mpared with 2006 and illustrates the need to 
target efforts to raise awareness on women's rights among urban migrants. Finally, there is a 
need to improve reliability of data on all these issues. 
Women are reportedly reluctant to have recourse to the police or  the courts due to lack of 
confidence in provision of effec tive protection. Women's economic fragility further reinforces 
this attitude. The Law on municipalities
13, in particular the provisi ons on shelters, are not yet 
fully implemented and the number of shelters re mains lower than provided for under that law. 
Women's NGOs are conducting surveys to defi ne the number and capacity of properly 
functioning shelters. NGOs have re ported that it is not possible to obtain information about 
the scope or an assessment of the imp act of awareness-ra ising campaigns.  
A Gender Equality Body and a Parliamentary Comm ittee on Gender Equality have still to be 
established. Women's civil soci ety organisations have requested  the establishment of a fully-
                                                 
12 Amendments have extended the Law to all individuals in the family, including family members living 
separately. They have also abolished all fees for ap plications and administrative transactions related to 
court proceedings.  
13 The 2005 Law on municipalities provides for establishment of shelters for women in metropolitan 
municipalities and in municipalities with a population of 50 000 or more. 
EN 21   EN fledged committee that could play an essential role in mainstreaming women's issues in all 
policy areas. 
There have been complaints from civil society organisations about the consultations organised 
by the government on the directi on and implementation of gender policy. These relate to both 
the limited number of civil society organisatio ns consulted, but also the extent to which 
positions expressed are eventually taken into account. 
Overall, the legal framework guaranteeing women's rights and gender equality is broadly in 
place. However, further significant efforts ar e needed. To reduce the gap between men and 
women in economic participation and oppor tunity, educational attainment, access to 
healthcare, and political empowerment. Effo rts to prevent honour killings and domestic 
violence have continued. However, these issues  remain a serious problem, and efforts need to 
be stepped up. 
With respect to children's rights , there was an increase in net primary school enrolment from 
90% in the 2006/2007 school year to 97% in 2007/200814. Over the same period, the gender 
gap in primary education was halved from 4.6%  to 2.3%. The number of pupils in pre-school 
education has increased by 28%  over the last three years,  from 550,000 in 2005 to 700,000 in 
2007. The government target is to  attain a 50% pre-school enro lment rate from the current 
25%. The Ministry of National Education has es tablished an e-school  database containing 
information on school attendance. The Ministry can  thus identify children that are out of 
school and try to ensure thei r enrolment or provide catch -up education. In May 2008, the 
Education Board approved the catch-up education programme: this is meant to give a second chance to children of 10–14 years of age who e ither never enrolled or who dropped out. This 
measure is targeted mainly at working and Roma children. In addition, mobile schools are trying to reach out to childr en working in agriculture. 
The proportion of children under 15 years of age in households experiencing poverty 
decreased from 27.7% in 2005 to 25.2% in 2006. The Social Services and Child Protection 
Agency (SHCEK) has collected data on domes tic violence and child abuse and on children 
living and working on the streets. However, these data have not yet been made public. 
Minimum standards on care and protection for child ren living outside parental care have been 
developed, and efforts to strengthen and monito r the parenting system have intensified. The 
new Social Insurance and General Health In surance Law provides fo r coverage for every 
citizen under 18 years of age. Parliament ha s ratified the Hague Convention on the Civil 
Aspects of International Child Abduction, wh ich provides for a simplified procedure for 
returning children to their legal custodian. 
SHCEK has recruited new members of staff. The number of specialised staff such as 
psychologists, child development experts and so ciologists increased dur ing the same period. 
Staff of institutions involved in child care, including members of the judiciary, have been 
trained on juvenile justice. SHCEK has also made efforts to improve the quality of the 
services it provides and has assumed more resp onsibilities in implementation of the Law on 
                                                
 
14 This is partly due to the revised method of calculation of the total population. The Turkish Statistical 
Institute (TURKSTAT) revised its population figu res based on its new address-based population 
registration system. Thus, the Ministry of National Education's formal education statistics for 2007-08 
apparently paint the clearest picture yet of enrolment ra tes at various levels of the school system and of 
the gender gap in access to education. 
EN 22   EN child protection. Reception centres have been ope ned in a number of provinces for children 
who are perpetrators or witnesses of crimes or victims of violence. Six (6) such centres were 
established for the first time in 2007 in accord ance with provisions of the Child Protection 
Law. Four (4) of these centres are "Protectio n, care and rehabilitation centres" and assist 
children involved in criminal activities; two (2) are "Care and social  rehabilitation centres" 
and assist child victims of violence and abuse. 
However, respect for and implementation of ch ildren's rights continue to be a matter of 
concern. Children out of school remain a problem : the e-school database has revealed that 
approximately 450 000 children between 6 and 14 years of age do not attend school. 
Implementation of minimum standards of care  and protection of ch ildren living outside 
parental care needs to be improved. SHCEK n eeds to make the data on domestic violence 
against children and child abuse and on children  living and working on the streets publicly 
available in order to improve policy-making and public debate. Efforts to combat child labour 
in the field need to improve and shortcomings in legislation15 must be addressed. 
Despite some progress in the juvenile justice system, the number of child courts is still 
inadequate16, there is a lack of social  workers in these courts a nd their workload is heavy. 
This results in longer trials17 and, thus, possibly in children bei ng deprived of th eir liberty for 
longer periods of time. There has been an increase  in the number of chil dren in detention. The 
conditions in detention centres need to be im proved, both in terms of physical conditions and 
as regards the quality of  the services provided. The probation system should also be improved 
to prevent recurrence of the offence and to support children and their families. 
Overall, there has been progress on access to education, social services and the juvenile 
justice system. However, efforts need to conti nue in all areas related to children's rights, 
including administrative capacity, education, the juvenile ju stice system and child labour. 
As regards socially vulnerable persons and/or persons with disabilities , the State will pay 
the social security premiums for people with disabilities to promote their employment. There 
was an increase in the resources allocated to care services for people with disabilities. A 
circular was issued with a view  to immediate placement of peopl e with disabilities who are in 
need of urgent care. As regards mental health, progress has been made in the field of electro-
convulsive therapy which is implemented in hos pitals in line with medical standards and 
respecting patients' rights. 
However, people with disabilitie s are not receiving adequate publ ic services. This is mainly 
due to lack of awareness of the available services and problems in accessing the services, 
especially physical barriers. The lack of data an d research on persons with a disability and on 
conditions of care for mentally  ill persons is preventing in formed policy-making. Community-
based services are not sufficiently developed as an alternative to institutionalisation, and 
                                                 
15 The labour law prohibits night work for children under eighteen (18) only for the industry sector; it does 
not provide protection for children working in agricultural enterprises employing less than fifty (50) 
employees; and it does not regulate the work of children in artistic and cultural activities and in the 
media. Lastly, the current legisla tive framework does not tackle the issue of children working on the 
streets. 
16 Under the 2005 Law on child protection, child courts need to be established in every province. 
However, currently there are such courts in only 40 of the 81 provinces in the country. 
17 On the basis of 2005 data, the average duration of tria ls in child courts is 326 days, compared with 234 
days in ordinary courts. 
EN 23   EN resources continue to be limited in relati on to needs. There is an ongoing problem of 
insufficient general medical care and treatment in mental health hospitals and rehabilitation 
centres. 
On labour rights and trade unions , the pending legislation amending the Trade Unions and 
Collective Bargaining, Strike and Lockout Laws has not moved forward substantially. Turkey 
needs to ensure that trade union rights are fully respected in line with EU standards18 and the 
relevant International Labour Organisation (ILO ) conventions, in particular the rights to 
organise, to strike and to bargain collectively. This is a pr iority of the Accession Partnership. 
There are reports about restri ctions on the exercise of ex isting trade union rights and 
dismissals due to trade union membership. Soci al dialogue mechanisms, including at tripartite 
level, are weak ( See also Chapter 19 – Social policy and employment ). 
The principle of anti-discrimination  is enshrined in the Constitution and upheld in several 
laws. Homosexual relationships between consenting adults in private are permitted in Turkey. In recent years, associations of the lesbian, gay, bisexual and transg ender (LGBT) community 
registered for legal status in Turkey and pr osecutors refused to pr ess charges following a 
request by the Ministry of Interi or to close them. This has enabled them to start advocating 
and defending the rights of lesbian, ga y, bisexual and transgender people.  
However, the law does not duly mention all th e grounds of discrimination, such as sexual 
orientation, and provisions of the Turkish Cr iminal Code on "public exhibitionism" and 
"offences against public morality" are sometimes used to discriminate against LGBT. In May 
2008, upon an appeal by the Istanbul Governorate,  an Istanbul court decided to close down 
Lambda Istanbul, as its statute was considered against general morality. An appeal has been 
lodged before the Council of State in this case.  
Homosexuals have the right to exemption from  military service. If they request such 
exemption, their sexual orientation is veri fied by means of degrading medical and 
psychological tests or by demanding proof of homosexuality. 
Transsexuals are occasionally subjected to p hysical assaults, including by the police. 
Homophobia has also resulted in cases of phy sical and sexual violence. These allegations 
require prompt and e ffective investigation. 
With respect to property rights , the Law on foundations was adopted in February 2008
19. 
This Law was first voted by Parliament in No vember 2006, but was subsequently vetoed by 
the then President Sezer. The Law addresses a large number of issues faced by religious 
communities, mainly over management and acqui sition of property. In particular, under the 
Law, community foundations can own propert y and manage it without prior permission20. 
Foundations can establish companies and commerc ial bodies and can participate in existing 
companies with a view to achieving their ob jectives and generating income. Non-Muslim 
community foundations can regi ster in the Land Registry, under their names, immovable 
                                                 
18 Turkey maintains its reservations on article 5 (right to organise) and article 6 (right to bargain 
collectively) of the revised European Social Charter. 
19 In March 2008, the opposition Republican People's Party (CHP) filed an application with the 
Constitutional Court requesting annulment of Articles 5(3), 6(3), 11, 12(1), (2) and (3), 14, 25, 26, 41 
and 68 of the Law. The Law entered into force on 28 February 2008. 
20 A court decision should be issued when foundations sell immovable property or rights acquired on their 
establishment, whereas only a decisi on by the competent body of th e foundation is needed to sell 
immovable property or rights acquired at a later stage. 
EN 24   EN property which is either entered in their 1936 declara tions, under figurative or fictitious names 
or was purchased by or bequeathed or donate d to community foundati ons after their 1936 
declarations but registered under the name of the testator or of the donato r or of the Treasury 
or of the Directorate-General for Foundations  because of restric tions on owning property. 
Donations of immovable property to foundations  cannot be seized or  mortgaged. Properties 
which are no longer used, wholly or in part, fo r their original purpose, can be transferred to 
another foundation of the same community, leased or have their use changed. The 
Directorate-General for Foundations  issued a Circular in May 2008 that deals with the process 
of restitution of properties of non-Muslim founda tions registered under figurative or fictitious 
names, or in the name of the Treasury or  the Directorate General for Foundations. An 
implementing regulation was published in the Official Gazette in September 2008. 
However, the Law addresses neither  the issue of properties seized and sold to third parties nor 
that of properties of foundations  that were fused before the a doption of the new legislation. In 
addition, implementation will be crucia l to attaining its objectives.  
On 8 July 2008, the ECtHR decided21 on the claim of the Ecumenical Patriarchate  that had 
been deprived of its property acquired in 1902 and dedicated to a specific use in 1903 via the 
Foundation of the Büyükada Greek Orphanage for Boys. The applicant alleged, in particular, 
that by ordering registration of its real esta te in the name of the orphanage, under the 
management of the State Directorate-General for Foundations22, the domestic courts had 
breached its right to peaceful enjoyment of its property. The Court held that the Turkish 
authorities were not entitled to deprive the owner of its property without providing for 
appropriate compensation, and that ther e had been a violation of the ECHR. 
Problems encountered by Greek nationals in inheri ting and registering property continue to be 
reported, in particular as regards, inter alia, the application by the Turkish authorities of the 
amended Land Registry Law. With resp ect to that issue, the ECtHR held23 that there had been 
a violation of Article 1 of Pr otocol 1 (peaceful enjoyment of  possessions) to the ECHR and 
ordered either the retu rn of the property or the financia l compensation of the applicants. 
Syriacs continue to face difficu lties in relation to property. Co mplaints about the seizure of 
their properties have increased, in particular in the context of the establishment of the 
cadastre. This concerns both private individuals and reli gious institutions. 
Overall, adoption of the Law on foundations ha s been a welcome step forward. However, 
implementation of the Law will be crucial. The outstanding issues also need to be addressed. Finally, the quality of the di alogue between the authorities and the communities concerned 
will be instrumental in creating an e nvironment conducive to achieving progress. 
Minority rights, cultural right s and protection of minorities 
Turkey's approach to minority rights , which refers to the  1923 Treaty of Lausanne
24 remains 
unchanged. Without prejudice to th e Treaty, the Turkish authoritie s consider Turkish citizens 
                                                 
21 Fener Rum Patrikligi (Ecumenical Patriarcha te) v. Turkey case (application 14340/05) 
22 The Directorate-General for Foundations considered the orphanage a "defunct" foundation in 1995 and 
took over its management. 
23 Apostolidis & Others vs. Turkey (Application No. 45628/99) . 
24 According to the Turkish authorities, under the 192 3 Treaty of Lausanne minorities in Turkey consist 
exclusively of non-Muslim religious communities. In practice, the minorities which the authorities 
associate with the Treaty are Jews, Armenians and Greeks. 
EN 25   EN as individuals with equal rights before the law,  rather than as indivi duals belonging to the 
majority or to a minority. This should not prevent Turkey, in accordance with European 
standards, from granting specific rights to certain Turkish citizens on the grounds of their 
ethnic origin, religion or language, so that they can preserve thei r identity. Full respect for and 
protection of language, culture a nd freedom of association, asse mbly, expression and religion 
and effective participation in public life for all citizens irrespective of their background or 
origin, in accordance with th e principles laid down in th e Framework Convention for the 
Protection of National Minorities and in line with best practice in Member States, have yet to 
be fully achieved. 
Turkey is a party to the UN International C ovenant on Civil and Poli tical Rights (ICCPR). 
However, its reservation regarding the rights of minorities and its re servation concerning the 
UN Covenant on Economic, Social and Cultural  Rights (ICESCR) re garding the right to 
education are causes for concern25. Turkey has not signed the Council of Europe Framework 
Convention for the Protection of National Minorities or the European Charter for Regional or 
Minority Languages. 
The repeated requests of the OSCE High Co mmissioner on National Mi norities (HCNM) to 
follow up on his last visit to Turkey of December 2006 were not accommodated. There is a 
need to start a dialogue between Turkey and the HCNM on issues such as the participation of 
minorities in public life and broadcasting in minority languages. This would facilitate 
Turkey's further alignment with internationa l standards and best practice in EU Member 
States. 
Management of minority schools, including the du al presidency, remains an issue, pending an 
implementing regulation. Work is under way to  remove discriminatory language from 
textbooks. 
The Greek minority continues to  encounter problems with educ ation and propert y rights. In 
June, the Parliamentary Assembly of the C ouncil of Europe (PACE) adopted a Resolution26 
on the Greek minority on the is lands of Gökçeada (Imvros) and Bozcaada (Tenedos). The 
resolution calls for preserving the bicultural ch aracter of the two Turkish islands as a model 
for cooperation between Turkey and Greece. Fu rthermore, it takes account of positive 
gestures made by the Turkish authorities, main ly in connection with the Greek community's 
architectural heritage, and calls on Turkey to maintain up the momentum by taking additional 
measures, in particular on property and education issues. 
Overall, Turkey has made no progress on ensu ring cultural diversity and promoting respect 
for and protection of minorities in a ccordance with European standards. 
As regards cultural rights , following the June 2008 amendments to the relevant Law , TRT - 
the public service broad caster - is allowed to broadcast na tionally all day long in languages 
other than Turkish. Since 2004 this ha s only been possible for half a day.  An appeal against 
the Law is pending before the Constitutional Court.  Furthermore, a new local radio channel, 
Muş FM, has received authorisati on to broadcast in Kurdish.  
                                                 
25 Extract from the reservation to the ICCPR: "The Re public of Turkey reserves the right to interpret and 
apply the provisions of Article 27 of the Intern ational Covenant on Civil and Political Rights in 
accordance with the related provisions and rules of the Constitution of the Repub lic of Turkey and the 
Treaty of Lausanne of 24 July 1923 and its Appendixes."  
26 Resolution 1625 (2008). 
EN 26   EN However, the launching of a channel broadcastin g in languages other than Turkish has been 
delayed on several occasions. Furthermore, two of  the four local TV and radio channels that 
started broadcasting in languages and dialects tr aditionally used by Turkish citizens closed 
down during the reporting period. Time restricti ons laid down in the law on the Radio and 
Television Supreme Council (RTÜK) continue to  apply, with the exception of films and 
music programmes. Educational programmes teach ing the Kurdish language are not allowed. 
All broadcasts, except songs, must be s ubtitled or translat ed into Turkish.  These restrictions 
make broadcasting in languages other th an Turkish cumbersome and non-viable 
commercially.  The police and the Radio and Television Supreme Council (RTÜK) apply a 
policy of strict monitoring of broadcasts in Kurdish. Several court cases and investigations 
against GÜN TV - the only TV channel curren tly broadcasting in Ku rdish - are ongoing, in 
relation to the wording of Kurdis h songs the channel has aired.  
Children whose mother tongue is not Turkish ca nnot learn it in the Turkish public schooling 
system. Under the current legislation such education can be provided only by private 
educational institutions. However, in th e case of Kurdish, courses which had opened 
following the changes to the law have now clos ed down. As a result, there are currently no 
opportunities to learn Kurdish in either the public or privat e schooling system. 
No measures have been taken to facilitate  access to public servic es for non-speakers of 
Turkish, although interpretation is usually av ailable in courts. The case against the 
municipality of Sur (Central Diyarbakir) in June 2007, in which the Council of State 
dismissed the mayor from office and disso lved the Municipal Council for providing 
multilingual municipal services, is now before the ECtHR. A vice-governor will continue to 
serve as mayor of Sur until new elections, scheduled in March 2009, although by law by-elections should have been held w ithin 60 days of the dismissal.  
According to the Law on political parties, th e use of languages other than Turkish remains 
illegal in political life. In this context, a large number of investigations and court cases have 
been launched against officials and executives of the Democratic Society Party (DTP).  
As regards Roma , no steps have been taken to amend the Law on the Movement and 
Residence of Aliens, which author ises "the Ministry of Internal  Affairs to expel stateless and 
non-Turkish citizen gypsies and aliens that are not bound to the Turkish culture", thus 
promoting discrimination against Roma. This provi sion needs to be repealed. Turkey has yet 
to establish a strategy to address the problems of Roma. Turkey is not participating in the 
2005-2015 Decade of Roma Inclusion. 
Roma, who comprise other similar but dis tinct ethnic groups such  as Dom, Lom and 
Travellers, face social exclusion and marginalis ation in access to education, discrimination in 
health services, exclusion from employment opportunities, difficulties in accessing personal 
documentation and exclusion from participa tion in public affairs and public life.  
As regards housing, the Roma population has faced several instances of demolition of 
communities, forced evictions and exposure to  poor living and sanitary conditions without 
recourse to any publicly a ccountable process. In many cases, Roma who have been 
dispossessed as a result of demolition join the ra nks of IDPs, with all the social problems that 
this entails. As regards demolition of the Roma  neighbourhood in Istanbul’s Sulukule district 
and the relocation of its members, which star ted in spring 2008, the Pr ime Ministry's Human 
Rights Commission has called for an inquiry into  any possible infringement of human rights. 
EN 27   EN In addition, civil society organisations ha ve filed a suit for cancellation of the urban 
regeneration project in Sulukule.  
Overall, Turkey made some limited progress on cultural rights,  but restrictions continue, 
particularly on the use of langua ges other than Turkish in broa dcasting, in political life and 
when accessing public services. There are no opportunities to learn these languages in the 
public or private schooling systems. There ha s been no progress in the situation of the Roma , 
who frequently face discriminatory treatment in access to adequate housing, education, social 
protection, health and employment. Demolitions  of Roma neighbourhoods, in some cases 
involving forced evictions, continue. 
Situation in the East and South-East 
In May 2008 the Government announced the guidel ines and general content of a plan for 
development of the South-East. The Government pledged to allocate total funding equivalent 
to €14 billion to complete the ongoing South-Ea st Anatolia Project (GAP) between 2008 and 
2012, thus increasing the original ly planned spending on the proj ect by €10.2 billi on. The four 
pillars of the action plan are: economic devel opment, social development, infrastructure 
development and institutional strengthening. Most investments will concentrate on the energy 
and agriculture sectors.  
Terrorist attacks by the PKK, which is on the EU  list of terrorist organisations, continued in 
the South-East, but also throughout the country and claimed many lives. Following 
parliament's authorisation the government orde red air strikes against terrorist hideouts in 
Northern Iraq. The "temporary security zones" established in June 2007 in the provinces of 
Sirnak, Siirt and Hakkari close to th e Iraqi border remain operational. 
The Newroz  spring celebrations were marked by tensi ons in the provinces of Van and Hakkari 
(see section on freedom of assembly ). No incidents were reported  in other provinces, such as 
Diyarbakir and Istanbul, where de monstrations were allowed.  
Landmines remain a security concern for both military personnel and civilians. The 
government reported ongoing use of anti- personnel mines by the PKK/KONGRAGEL. 
During the reporting period there have been 66 cas ualties among civilians and security forces 
due to anti-personnel landmine explosions. Under the Convention on the Prohibition of the 
Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on Their Destruction 
(the 'Ottawa Convention'), of which it is a signa tory party, Turkey has undertaken to destroy 
all antipersonnel mines in mined areas as soon as possible, but no la ter than 1 March 2014.  
Refugees and internally displaced persons 
The process of compensation of losses due to  terrorism and the fight against terrorism 
continued to make progress. By May 2008, 313 829 cases had been filed under the relevant 
Law. Some 40% of these, i.e.126 945 cases ha ve been finalised, out of which 82 893 obtained 
a favourable response. The deadline for appl ications for compensation expired on 31 May 
2008.  
However, despite the efforts made by the Gove rnment to improve the situation, reports on 
shortcomings in implementation of the Law, in  particular as regard s uneven and inequitable 
calculation of compensation betwee n provinces, have continued. Furthermore, due to lack of 
resources and the heavy workload of the Da mage Assessment Commissions, progress in the 
assessment and payment of compensation has been slow. 
EN 28   EN The situation of IDPs in urban areas remains a cause for concern. IDPs suffer from economic 
and social marginalisation and have little or  no access to social, educational and health 
services. Return of IDPs is prevented by a nu mber of factors. These include mainly the 
security situation, but also the lack of basic infrastructure, lack of capital, limited employment 
opportunities and the threat posed by the village guard system.  
There is no overall national strategy to addr ess the situation of IDPs. The insufficient 
institutional capacity of departments responsible  for IDPs remains a challenge. There is a 
need to involve civil society further in the development of IDP policies.  
No steps have been taken to abolish the system of village guards. Arbitrary cases of refoulement , although not numerous, remain  a high concern. There are 
reports that one of them ended in life loss. ( For the situation of asylum seekers and refuges 
see chapter 24, Justice, Freedom and Security ). 
Overall, as regards the East and South-East, the government's decision to complete the South-
East Anatolia Project is a st ep in the direction of addr essing the economic and social 
difficulties of the region. Further efforts are needed in order to  create the conditions for the 
predominantly Kurdish population to enjoy fu ll rights and freedoms. Compensation of 
internally displaced pe rsons (IDPs) has continued. However, the government lacks an overall 
national strategy to address the IDP issue. The village guard system still has to be phased out. 
2.3. Regional issues and international obligations 
Cyprus The Turkish government has continued to ex press its commitment to a comprehensive 
settlement of the Cyprus probl em under the auspices of the United Nations. It welcomed the 
start full-fledged negotiations  in September between the leaders of the two Cypriot 
communities under the Good Offices Mission of th e UN Secretary General. Turkey needs to 
take concrete steps to contri bute to a favourable climate fo r a comprehensive settlement.  
Since the Council's decision of December 2006, Turkey has made no progress towards fully 
implementing the Additional Protocol. 
Turkey has made no progress on normalising bila teral relations with the Republic of Cyprus. 
Turkey continues to veto Cyprus's membership of several internationa l organisations and of 
the Wassenaar Agreement on the Code of Condu ct on Arms Exports and on Dual-Use Goods.  
Peaceful settlement of border disputes 
Turkey and Greece have continued their effo rts to improve bilateral relations. The 40
th round 
of exploratory talks was held in  July 2008 in Athens. Explorator y talks have b een continuing 
since 2002. 
In November 2007, the Turkish and Greek Prime Mi nisters met at the bo rder to inaugurate a 
natural gas pipeline. In January 2008, the Greek Prime Minister paid an  official visit to 
Turkey - the first of this kind in 49 years. Both Prime Minist ers expressed their commitment 
to improving bilateral relations. 
EN 29   EN So far 31 agreements have been signed and 24 confidence-building measures have been 
agreed since 2000. The th ird joint exercise between milita ry disaster response units was 
conducted in May in Athens. Contacts at military  level continue. The Greek Chief of General 
Staff paid an official visit to Turkey in May 2008.  
The threat of "casus belli" in relation to the possible extension of Greek territorial waters in 
the resolution adopted by the Turkish Grand National Assembly in 1995 still remains. The 
Council highlighted in December 2007 that “Tur key needs to unequivocally commit to good 
neighbourly relations and to the peaceful settlement of disput es in accordance with the UN 
Charter, including, if necessary, jurisdiction of the International Court of Justice. In this 
context, any threat or action which could nega tively affect good nei ghbourly relations and the 
peaceful settlement of disputes should be avoided”. 
During the reporting period, Greece formally complained to Turkey about continued airspace 
violations. 
As a full member of the Barcelona process, Turkey  participated in the launch of the Barcelona 
Process: Union for the Me diterranean in July 2008.  
Bilateral relations with other enlargemen t countries and other neighbouring Member 
States  have been  developing positively. Turkey continues to play a positive role in the 
Western Balkans . Relations with Bulgaria  remained positive. 
As regards the International Criminal Court (ICC) , see Chapter 31 – Common Foreign and 
Security Policy. 
3. E CONOMIC CRITERIA  
In examining the economic developments in Turkey, the Commission's approach was guided 
by the conclusions of the Eur opean Council in Copenhagen in June 1993, which stated that 
membership of the Union requires the existe nce of a functioning market economy and the 
capacity to cope with competitive pressure and market forces within the Union. The period 
the Commission took into consideration run up to end of September. 
3.1. The existence of a functioning market economy 
Economic policy essentials Turkey broadly implemented the economic po licy agreed with the Commission and with 
international financial institutions and successfully completed the stand-by arrangement with the International Monetary Fund (IMF) in May 2008. The pre-accession economic 
programme submitted to the Commission in D ecember 2007 adequately reflected the needs 
for, and commitments to, further reform. At times, the domestic political crisis hampered the decision-making process with regard to refo rms. The fragmentation of responsibilities 
between government bodies has been partly addressed in the new government's programme 
by assigning the role of coor dinating economic policy to a De puty Prime Minister. However, 
coordination of budgeting and medium-term econo mic policy-making has so far only partially 
benefited. Decisions sometimes appear to be taken on an ad hoc  basis and impact assessments 
are either lacking or based on partial information. In conc lusion, consensus on economic 
policy essentials has been maintain ed and coordination has improved.  
EN 30   EN Macroeconomic stability 
In 2007, GDP growth slowed down to 4.6% from  6.9% one year earlier, mainly due to 
contraction in agricultu re and weaker aggregate demand. There was a slowdown or stagnation 
in many sectors of the economy from construction to textiles, while agri culture was severely 
hit by a drought. Private consumption growth remained weak in 2007 growing by 3.8%, in spite of a strong surge (up 6.3%) in  the third quarter. The public sector purchased significantly 
lower volumes of goods and services and mark edly reduced construc tion after sizeable 
spending increases in these areas in the run-up to the July 2007 elections. The contribution of 
the external sector to growth fell substant ially, as imports grew by 14.4% and 15.7% year-on-
year in the third and fourth qu arters respectively, while export growth wa s 2.5% in the fourth 
quarter, down from 12.5% in the first quart er of 2007. The slowdown in domestic demand 
was triggered mainly by a tighter monetary st ance, higher interest rates and lower lending. 
In the first half of 2008, the ec onomy slowed down, due to the global financial turbulence and 
the domestic political uncertainty, and GDP grew by 4.2%. GDP growth slowed down to 
1.9% in the second quarter of 2008 from 6.7% in th e first. Agriculture contracted by 3.5% in 
the second quarter after output had increased by  2.6% in the first quarter. Final consumption 
of households lost steam in the second quart er, as expenditure rose by 2.8% after a 7.6% 
increase in the first. In March 2008, the GDP methodology was aligned with the European 
System of Accounting (ESA95). Consequentl y, one third was added to the size of the 
economy, which resulted in a 2006 GDP of  more than TRY 750bn (about EUR 380bn). 
Although economic growth has slowed down, due to a combination of weaker aggregate 
demand and higher uncertainty linked to the gl obal financial crisis and domestic political 
developments, overall economic performan ce demonstrated that the foundations and 
resilience of the Turkish economy are substan tially stronger today than some years ago. 
The thorough revision of Turkey's national accounts in March 2008 reduced the current 
account deficit relative to GDP by on e third to more benign levels. The sharp rise in oil prices 
has been putting pressure on Turkey's current account. This has become more pronounced in 
recent months as oil prices have soared to record levels. The curre nt account deficit in the first 
half of 2008 totalled about 6.3%  of GDP, compared with 5. 7% in 2007 and 6.2% in 2006. The 
same indicator, excluding energy, was below 2.8%  throughout the period. This pointed to a 
trade deficit of about 7% in the first half of 2008. As in previ ous years, over on e third of the 
gap is covered by services, mainly tourism, which performed better in 2007 and 2008 than in 
2006. On the capital account, capital inflows ha ve more than funded the current account 
deficit, leading to an increase in official reserves. Recently almost 40% of the current account 
deficit has been financed by foreign direct i nvestment (FDI) and the remainder by long-term 
inflows, comprising long-term external borrowi ng by the private corporate sector and banks. 
The share of portfolio investments declined significantly and became negative from March 
2008 on. FDI inflows totalled 3% of GDP in 2007 and 2% in the first half of 2008. The 
services sector (mainly banks and telecommuni cations) accounted for almost two thirds of 
total FDI. Turkey's external debt rose by al most 20% in nominal terms to roughly 45% of 
GDP by mid-2008. Private external debt makes up two thirds of the total and is rising fast, 
which is a source of potential risk. International reserves  increased by over 15% to EUR 47 
billion, or about six months of imports. Al though higher oil and commodities prices put 
pressure on Turkey's current account, long-term capital inflows remained high, leading to an 
increase in official reserves. Turkey's ex ternal position remained solid throughout 2007 and 
the first half of 2008. 
EN 31   EN So far (by mid-October 2008), the global financia l crisis has caused a correction in Turkish 
asset prices and in the currency, which could also  lead to further output losses and inflationary 
pressures. The impact on the Turkish banking system has remained limited so far, largely due to previous restructuring measures and co mfortable prudential indicators. However, 
considerable external financing needs stemming from large external deficits in combination 
with the private sector's significant reliance on external financing and a sizeable - albeit 
falling - debt stock make Turkey potentially vulne rable to changes in investor sentiment. The 
quality of financing of the current account de ficit has deteriorated, gradually moving away 
from equity investment towards debt accumulation. The close cooperation amongst Turkish financial authorities as well as with the intern ational and European financial institutions, the 
existence of strong prudent regulations, the impl ementation of restrictive monetary and fiscal 
policies as well as the continuation of structural  reforms are providing a stabilising effect to 
financial markets and the economy.
 
Labour market conditions remained challenging.  The working-age population increased by 
over 700,000 in 2007. Fewer than 300,000 of them join ed the workforce; the rest remained 
outside the labour market.  Consequently, the employment rate hovered around 43% in 2007-
2008. In particular, the female employment rate remained low at less than 24% of the total 
working-age population. The unemploymen t rate remains between 10% and 11%.  
Unemployment was much higher among the young (about 20%). Long-term unemployed 
accounted for more than half of job-seeker s. Agriculture typica lly employs many unpaid 
family workers. This leads to a statistically lower rate of unemployment, but suggests large 
pockets of underemployment in this sector a nd the economy at large. Job creation continued 
to be hampered, in part, by labour market rigi dities (for example, high severance payments 
and the sizeable social security wedge), by the skills mismatch between labour demand and 
supply and by the cost of hiring and firing. Over all, labour continues to act as a brake on 
employment. 
Annual inflation rose to 8.4% by the end of 2007 and to  10.6% by mid-2008, well above the 
inflation target, partly due to  soaring food and energy prices . Excluding unprocessed food and 
energy, underlying inflation ro se to 10.4% in mid-2008, a four-year high, depreciated 
substantially vis-à-vis the euro  in September and October 20 08. The Central Bank maintained 
the formal inflation targeting policy adopted in  January 2006, but chose to raise its inflation 
targets in June 2008 in an effort to anchor infl ationary expectations more firmly. At the same 
time, the Central Bank decided to  raise rates by a cumulative 150 base points, after having cut 
them by 225 base points in th e course of 2007 and early 2008.  It has also announced a 
tightening bias with the aim of fighting sec ond-round effects on prices. This action was seen 
as a reaffirmation of the independence of the Central Bank and a strong signal of its continued 
commitment to fighting inflation. Credit to the private sector remained broadly constant on 
around 30% of GDP and is therefor e not seen as a significant th reat to price stability. In 
conclusion, price stability has weakened significan tly over the last year, pa rtly due to external 
factors. 
Fiscal performance has been satisfactory, a lthough the government mi ssed its 2007 fiscal 
targets. Public debt (ESA95 definition) fe ll from 46.1% of GDP in 2006 to 38.8% in 2007 and 
is expected to continue to fall over the medi um term, improving fiscal sustainability. The 
2007 primary surplus – which excludes interest  payments – equalled 3.5% of GDP (ESA95 
methodology), down from 5.5% in 2006. In June  2008, the authorities announced the 
introduction of a five-year (2008-2012) medium -term fiscal framework (MTFF), which offers 
good visibility over the government's medium-ter m fiscal strategy. The MTFF seeks to reduce 
public debt from around 39% in 2007 to 30% in  2012. This is to be achieved by means of a 
EN 32   EN primary surplus of 3.5% in 2008 (unchanged co mpared with 2007), declining to 2.4% in 
2012. The overall deficit is projected to rema in below 1.7% over the five-year period. The 
fiscal space gained from reduci ng debt service is to be used to finance three major policy 
initiatives: an employment p ackage and social security refo rm, the South Anatolian project 
(mainly infrastructure investment) and decentralisat ion to municipalities. Fiscal targets for the 
first half of 2008 have been met, in large part due to the higher – mainly tax – revenue which 
kept pace with inflation.  
The recent depreciation of the Turkish currency  caused a limited decrease in government debt 
in the first few months of 2008. Recent interest-rate increases had much less impact on the 
debt stock, which increasingly comprises fi xed-rate government securities. However, 
domestic financial markets remain relatively shallow and the debt service dynamics are still 
closely related to movements on global fina ncial markets. The average maturity of 
government debt securities ther efore fell in the first quarter of 2008 to 23.5 months, from 25.7 
months in 2007. By mid- 2008, almost 60% of tota l government securities were in the hands 
of banks, up by almost 2% from 2007, and thus mitigating the decline in non-residents' share. 
Completion of the IMF stand-by agreement, combined with the perceived uncertainty regarding the future direction of economic policy and the protra cted global financial crisis, 
call for stronger anchoring of th e fiscal position. In addition to the MTFF, introduction of a 
robust and binding fiscal rule w ould substantially reduc e uncertainty and th e vulnerability of 
Turkey's public finances to further turbulence  on the financial markets. Overall, fiscal 
sustainability has been further strengthened tha nks to a prudent fiscal policy, but the fiscal 
position remains vulnerable to shocks and requires  stronger anchors in the face of heightened 
uncertainty and the ongoing financial crisis.  
In 2007, several coordination and control bodies were  set up within the Mi nistry of Finance. 
Accountability, efficiency and transparency  of the budgeting process have benefited 
substantially. This is illustrated, for example, by  the development of the MTFF. As last year, 
some key elements are still lacking, in particular unifying all tax administration functions 
under the Revenue Administration,  strengthening audi t capacity and making increased use of 
standard risk-based audit te chniques, which would all enha nce transparency and provide 
significant support for anti-corru ption efforts. Overall, meas ures to increase fiscal 
transparency have continued.  
Over the last few years, Turkey has successfully implemented a strong stabilisation 
programme. Now it is entering a new stage in it s development strategy aimed at raising the 
growth potential by means of higher public inve stment, job creation, structural reforms and 
better education. This entails a difficult balanc ing act between the desire for higher growth 
and the need to maintain price stability a nd reduce the current account deficit. While the 
public debt level is no longer a major concern fo r fiscal sustainability and the current policy 
mix is broadly adequate, macroeconomic stabil ity remains vulnerable to shocks, given the 
wide external imbalances. Interplay of market forces 
The independence of regulatory and surveill ance agencies has been largely preserved, 
although some imperfections persist. However, fo r the first time in several years significant 
progress was made, in particular in the area of  price liberalisation. Elect ricity and gas prices 
were raised in January and June  2008 respectively to reflect the ac tual costs better. Since July 
2008, electricity prices are subj ect to automatic indexation. Pr ice subsidies are being phased 
out with a view to privatising some pub lic electricity companies by the end of 2008. 
Administrated prices make up less than 10% of the total weight of the consumer price index 
(CPI) basket. 
EN 33   EN Despite its stated intention to allow State-owne d firms to set their own prices, the government 
continued to set prices of goods produced by them. The prices of some key commodities 
produced by the State are periodi cally raised. In general, the government sets annual prices 
for a range of crops. The municipalities continue  to place ceilings on the retail price of bread 
and the Ministry of Health c ontrols medicine prices. Perm ission for price increases has 
traditionally depended more on political than on economic criteria. Public institutions and 
local authorities have large ar rears with the State-owned ener gy company. Price liberalisation 
is fairly advanced and further progress has been made recently. However, the government continues to  control the prices of some key commodities. 
Although privatisation continued, with a number of major operations, the private sector's 
share of GDP remained virtually constant  at almost 89% in mid-2008. The pace of 
privatisation slowed down only slightly fr om the peak years of 2005-2006. Between July 
2007 and mid-2008, privatisation proceeds totalled  about EUR 5 billion. Major privatisations 
included the sales of the petrochemicals co mpany Petkim (EUR 1.4 billion), the State 
railways port facility in Izmir (EUR 0.8 bill ion) and of the State tobacco company TEKEL 
(EUR 1.2 billion) and the initial public offering of  15% of the shares in Türk Telekom (EUR 
1.3 billion). In conclusion, privatis ation has advanced significantly. 
Market entry and exit 
Turkey has made efforts to improve the business climate and reduce impediments to market 
entry and exit. Appreciation for this has been  voiced by international experts. The business 
registration process was further streamlined in  2007. Legal changes were enacted to make it 
easier to obtain business and ope rating licences, including in the mining sector. About 55,000 
new companies were established in 2007, an in crease of 5% compared  with 2006. During the 
same period, roughly 10,000 firms were liquidated. Sectoral restrictions  on foreign ownership 
continued in the areas of maritime transport,  civil aviation, groundhandling, road transport, 
radio and TV broadcasting, energy, accountancy and education. Entry to the banking and 
capital markets remained restricted to merger s and acquisitions as no new licences have been 
issued. Overall, some progress can be reported in business entry and exit. 
Legal system 
A reasonably well functioning legal system, including in the area of  property rights, has been 
in place for several years. However, no major progress has been made over the last year. 
Registering a property takes six procedures and six days in Turkey. Enforcing commercial 
contracts remains a lengthy process, which needs 36 procedures and takes 420 days on 
average. The specialisation of commercial cour t judges appears insufficient, leading to 
lengthy court proceedings. The expert witness system continues to function as a parallel 
judiciary system, without improving the ov erall quality. Use of out-of-court dispute-
settlement mechanisms remains low. The le gal environment continues to pose practical 
challenges and creates an obstacle to a better business environment. 
Financial sector development 
The financial sector grew steadily in 2007 and 2008 and attracted sizeable foreign 
investments. The total assets of  the financial sector grew by 18%  in 2007 and at a similar pace 
in early 2008. Almost 90% of these assets be long to banks. The ratio  between the banking 
sector's balance sheet and GDP increased to almost 68% at the end of 2007 compared with 
66% a year earlier. The ratio of deposits and loans to GDP increased by 3% and 15% 
EN 34   EN respectively in 2007, which demonstrates the c ontinuing financial deepening and increasing 
intermediation, channelling more  savings into productive inve stment. The efficiency of 
financial intermediation improved slightly, as th e interest rate spread  narrowed by about 0.2% 
in the previous year. The banking sector attrac ted strong interest from foreign investors. 
Consequently, foreign shareholders' share of th e sector's assets grew to 26% by the first 
quarter of 2008 from 22% in ea rly 2007. Including shares listed at  the stock exchange, almost 
45% of the Turkish banking sector is owned by foreigners.  
The Central Bank made significant efforts to monitor developments in the financial sector 
more closely. Liquidity requirements were tig htened and a new survey was launched to 
monitor better both private-sector debt and the exposure of the corporate sector to exchange 
rate volatility. The delay in adoption of the new Turkish Commercial Code is hampering the 
Central Bank's risk assessment capacity, since fina ncial statements have not been aligned with 
international financial reporting standards. Mo re broadly, adoption of  the new Commercial 
Code is a priority, as it w ould significantly improve the business environment. Banking 
profitability ratios improved markedly, by a bout one third in the year to December 2007. 
Capital adequacy ratios decrea sed significantly, albeit from ve ry high levels, from 21.8% in 
2006 to 17.3% by March 2008. Concentrati on in the banking sector is at the same level as last 
year, as the five largest credit institutions' shar e of the banking system remained at 60% at the 
end of 2007. In April 2008, the Banking Regulat ion and Supervision Agency (BRSA) 
increased the liquidity requirements for banks in order to mitigate the increased risk stemming 
from the corporate sector's growing foreign exchange borrowing. The ne t liabilities of the 
non-bank corporate sector in foreign denomin ations increased by 60% in the year to 
December 2007 to about EUR 45 billion (12% of GDP). The share of foreign exchange-denominated corporate loans as a percentage of the banking sector's total loans fell from almost two thirds at the end of 2006 to just  56% in early 2008. In spite of several bouts of 
instability during 2007-2008 the financial sect or has shown remarkable resilience. 
3.2. The capacity to cope wi th competitive pressure and market forces within the 
Union 
Existence of a functioning market economy Macroeconomic stability has been broadly pr eserved during the repo rting period. Financial 
market turbulence and domestic political de velopments added some  uncertainty to the 
business environment, but at the same ti me underlined the economy's improved shock 
resilience so far. The authorities have improved the investment climate by reducing 
administrative barriers to firms' entry an d operation, by reducing an d simplifying the tax 
system while improving the effectiveness of th e tax administration and corporate governance 
and by privatising State-owned enterprises.  
Human and physical capital  
In 2007-2008, the authorit ies continued to implement the educational reform programme, 
which is part of the National Development Plan (2007-2013). This programme has two key 
pillars for education: modernisation and refo rm. On the one hand, it aims to increase the 
responsiveness of educa tion to demand and, on the other, to  enhance the educational system. 
The challenges are significant. The top studen ts in Turkey perform well. However, the gap 
with the vast majority of Turkish students remains significant. Participation in higher 
education remains low by international standa rds. Around 40% of 20- to 24-year-olds had 
completed secondary education, but about ten percent of school-age children are still not 
EN 35   EN enrolled in primary schools. Reforms and in creased spending on educ ation are having some 
positive impact on educational attainment. In 2 007, enrolment rates improve d at all levels of 
education, in particular for female st udents, but significant problems persist. 
Little progress has been made  on correcting the mismatch between supply and demand forces 
on labour markets, which largely stem from the s ectoral shift away from  agriculture combined 
with often inadequate education. Coverage of the population eligible for unemployment 
benefit is limited by rigid eligibility conditi ons. In May 2008 the government adopted a new 
employment package, which provides incen tives to employ young workers, women and 
people with disabilities. The package aims to reduce non-financial burden s and social security 
contributions, which had acted as a disincentiv e to formal employment. In particular, the 
package reduces employment costs for five years for newly employed people in the above-mentioned categories. However, it does not affect other barriers which complicate job 
creation, for example the very high severance payments. The Turkish Employment Agency 
continued its efforts to improve  its institutional capacity and the services provided to job-
seekers. Turkey declared 2008 the year for comb ating undeclared work. Ov erall, the situation 
on the labour market remains ch allenging, but a set of broadly adequate reforms have been 
tabled. 
Both domestic and foreign investments remain robust. Private gross fixed capital formation 
grew by around 5% in 2007 and in the first half of 2008. Private capital formation totalled 
around 17% of nominal GDP. FDI inflows decreased to 3% of  GDP in 2007 and 2% of GDP 
in the first half of 2008. Around 80% of these FD I inflows were equity investment and around 
20% real estate purchases. As  a result, the FDI stock stood at EUR 53.7 billion (about 15% of 
GDP), of which about one quarter was due to 2007 inflows. Most of the equity investments in 
2007 were in financial services (60%) and manufacturing (20%). Investment growth 
weakened, albeit from very high levels. 
For many years infrastructure investment has been hampered by the need to consolidate 
public finances and the failure to cut lower-pr iority spending. Inadequa te infrastructure is 
increasingly affecting economic activity. Ther efore, the government adopted a spending 
programme, which aims at releasing about TRY 17 billion (EUR 8.7 billion) for investment in 
infrastructure in the South-eastern Anatolia  region between 2008 and 2012. In addition, extra 
power-generating capacity is planned in orde r to keep pace with the rapidly growing 
electricity consumption (7% on average in each of the past five years). The new government's 
initiatives aim at boosting investment in infras tructure. Also, the EBRD shareholders have 
recently decided that the Bank should start opera ting in Turkey, a decision that was supported 
by the Commission and the EU shareholders. The EBRD's support will contribute to Turkey's 
further development and reform programme. The EBRD can support the development of a 
more open and entrepreneurial economy by prom oting growth of small businesses, supporting 
the Turkish government's privatisation progra mme, bringing private s ector financing and 
know-how to the provisi on of public services. 
Sectoral and enterprise structure 
The share of agriculture in employment fell by about 1 percentage point to 26.5% in 2007. 
Most jobs were created in the services sector. The share of services in the total labour force 
rose to 48%. Employment in industry and construction accounted for roughly 20% and 6% 
respectively. The relative size of agriculture in GDP fell from 8.3% in 2006 to 7.7% in 2007. 
Industry's (including construc tion) contribution to GDP rema ined stable at roughly 31%, 
EN 36   EN while services generate about  60% of national income. Th e sectoral shift away from 
agriculture towards se rvices has continued. 
SMEs account for 99% of all enterprises in Tu rkey and 77% of total employment. However, 
SME ratios for capital investment (38% of the total), value added (26.5%), exports (10%) and 
bank credit (5%) point to low labour productiv ity, insufficient access to finance and barriers 
to entering foreign markets. Informality is wi despread throughout all corporate sectors, but 
particularly amongst SMEs. Small enterprises con tinue to suffer from insufficient managerial 
capacity and a too small knowledge base to cope with the increasing competition on the 
markets. To sum up, SMEs continue to have insufficient access to finance and know-how and 
too often operate in  the grey economy. 
Restructuring was supported by pr ivatisation in some areas, such as telecommunications. 
Progress has been made on restru cturing and preparing for privatisation in the energy sector, 
where the main outstanding prob lems are related to cross-s ubsidies and large distribution 
losses. In the private sector, st rong productivity gains indicate that the restructuring process 
has been largely successful. Ov erall, the process of structur al transformation of the economy 
has advanced relatively well, mainly in the form of privatisation. 
State influence on competitiveness 
Transparency in the corporate sector has improved and accounting standards have been 
upgraded, although the new Commer cial Code has not yet been adopted. The absence of 
transparent monitoring of Stat e aid and of supporting policies  to reduce dist ortion has an 
adverse effect on competition and competitiv eness in the economy. Public procurement 
policies continue to be undermined by exceptions  to the regulatory framework. In addition, a 
number of derogations have been introduced by  sectoral laws, which has further limited the 
scope of the law. Overall,  State intervention continues to influence competition and 
competitiveness considerably, although the State's role as an active player on the markets is being further reduced. 
Economic integration with the EU 
Turkey's trade openness has increased margina lly. Exports and imports of goods and services 
totalled 60% of GDP in 2007. The share of exports to the EU increased slightly from 56.0% in 
2006 to 56.4% in 2007. Imports from the EU as a share of total imports declined, from 42.6% to 40.4%, mainly due to the rising import bill  for energy, which Turkey imported almost 
exclusively from non-EU countries . Investors from EU Member States continued to invest 
heavily in Turkey, though at a slower pace. About  two thirds of all FD I inflows recorded in 
2007 originated from EU Member States, down from 82% in 2006. In the first quarter of 
2008, the share of FDI flows from the EU fell further to 53%. In 2007,  GDP per capita in 
Turkey stood at 43.3% of the EU-27 average. The EU remains Turkey's largest trading and 
investment partner. 
4. A
BILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP  
This section examines Turkey’s ability to assume  the obligations of membership – that is, the 
acquis  as expressed in the Treaties, the secondary legislation, and the policies of the Union. It 
also analyses Turkey’s administrative capacity to implement the acquis . The analysis is 
structured in accordance with the list of 33 acquis  chapters . In each sector, Commission's 
EN 37   EN assessment covers progress achieved during the reporting period, and summarises the 
country's overall level of preparations.  
4.1. Chapter 1: Free movement of goods 
Some progress can be reported with alignment on the general principles  applicable to free 
movement of goods. The communiqué on standardisat ion in foreign trade,  applicable in 2008, 
further reduced the list of ite ms subject to conformity asse ssment upon import to 100 from 
about 150 in 2007. For the first time, all 20 comm uniqués regarding standardisation in foreign 
trade were published together at the beginn ing of 2008. This provided a consolidated 
overview of the standardisation and licensing requirements for imports into Turkey, which 
was helpful to traders as import checks and lice nsing are carried out by five different public 
authorities. Mandatory standards on gas applia nces, pressure equipment, batteries and 
chemicals used in batteries were abolished. In pr inciple, products in free circulation in the EU 
and bearing the “e”, “E” or “CE” marking are exempted from conformity assessment procedures. 
However, technical barriers to trade still exis t, in particular in th e area of old approach 
directives such as on legal metrology, pharmaceuticals, chemicals and foodstuffs. There are limitations to the free circulation of goods in the non-harmonised areas, as Turkey has not 
introduced the mutual recognition principle. Lice nces are still necessary for goods considered 
old, renovated or faulty and second-hand motor vehicles. 
As regards horizontal measures , further progress can be reported on standardisation . 
Adoption of European standards by the Turkish Standards Institute (TSE) gained pace. So far the TSE has adopted a total of 11 048 st andards of the European Committee for 
Standardisation (CEN), 3 725 standards of the European Committee for Electro-technical 
Standardisation (CENELEC) and 336 standa rds of the European Telecommunication 
Standards Institute (ETSI). The overall rate of harmonisation with EN standards rose to 97.4% 
from more than 90% last year. The restruct uring of the TSE continued and it has been 
reinforced with a separate standards prepara tion centre, 89 operationa l committees and a clear 
separation of its various tasks. However, a re vised law reflecting the new structure of the 
TSE, in accordance with the requirements fo r full membership of the CEN and CENELEC, 
has yet to be adopted. 
As regards conformity assessment , further progress was made in  the area of notified bodies. 
There are six Turkish notified bodies, operatin g in the areas of lifts, appliances burning 
gaseous fuels, construction products (cement) , pressure vessels a nd recreational craft. 
Further progress can be reported regarding accreditation.  Following the signature of four 
European Accreditation Coopera tion (EA) multilatera l agreements (MLA) last year, the 
outcome of EA assessment of the Turkish Accr editation Agency (TURKAK) in the fields of 
certification of products and persons has been positive. TURKAK is already a member of the 
International Accreditation Forum (IAF) and has a mutual recognition agreement with 
International Laboratory Accreditation Cooperation (ILAC). The number of TURKAK 
accreditations rose to 246, an increase of 13% since la st year. TURKAK has become the 
monitoring authority for good labor atory practice, following signa ture of a protocol between 
the designating ministries and TURKAK. The revised law aiming at further harmonising 
TURKAK’s structure with the European accred itation system has not yet been adopted.  
EN 38   EN Limited progress has been made in the area of metrology . An amending regulation on the type 
approval of measures and measuring instrume nts was adopted and published in the Turkish 
Official Gazette on 6 November 2007. Measuring in struments remain a problematic area, with 
excessive requirements on service stations that n eed to be established prior to import. Turkey 
is now able to affix its own TR sign for initi al verification of measuring instruments in 
accordance with the rele vant EU directive. 
Limited progress on market surveillance  can be reported. Some public authorities, including 
the telecommunications authority, the Ministry of Health and the Mini stry of Industry and 
Trade, published revised regulations on the method and principles of thei r market surveillance 
systems. In the cases of the telecommunications  authority and the Ministry of Health, the 
amendments are of minor importance and furthe r clarify earlier texts. The new regulation 
from the Ministry of Industry and Trade repl aced the 2003 text and contains specifications on 
the qualifications and training of inspectors. It also provides for a single inspection report 
template and includes sections on the principl es of market surveillance, measures to be 
imposed, powers and obligations and coordina tion. The Under-secretariat of Foreign Trade 
increased the administrative fi nes for violation of the Fram ework Law regarding technical 
legislation on products, which lays the founda tion for market surveillance, by 7% in 2008. 
The fines have almost tripled since the la w was published in 2002. Ho wever, there are no 
reliable data on the sanctions and fines impos ed by the ministries concerned. The skills of 
relevant personnel in the Minist ry of Industry and Trade, the Ministry of Health and the 
Ministry of Public Works and Settlement  have been considerably  enhanced. The Ministry of 
Industry and Trade and the Mini stry of Health increased considerably their market 
surveillance activities in 2007 as compared  with 2006. However, the operational budgets 
allocated for market surveillance remain too small. Generally, considering the size of the 
country, more extensive surveillance activities are required, taking into account visibility 
considerations and risk assessment princi ples. Continuous training remains to be 
institutionalised in order to maintain the benefits of the recently acquired knowledge. A 
common method for data gather ing has still not been achi eved. Coordination between 
surveillance agencies remains problematic, in cluding automated exchanges of information. 
The consumer movement needs support if market surveillance is to become really effective. 
Alignment of horizontal measures is advanced . However, the effective implementation of 
market surveillance, the adoption of final legislative changes on  standardisation and 
accreditation, and the alignment in the area of  legal metrology have all been delayed. 
Alignment of product legisl ation adopted under the old approach  is advanced. Further 
progress was made on motor vehicles by amendi ng existing and introduc ing new legislation. 
The Ministry of Trade and Indus try has published a transposing regulation regard ing the type 
approval of agricultural or forestry tractors, their trailers and othe r interchangeable towed 
machinery. The Ministry of Health published amending legislation on the pricing of pharmaceuticals and on the pre-packaging and labelling of pharmaceuticals for human use. 
The latter launched a pharmaceuticals tracking sy stem to fight against counterfeit products. 
The problem regarding regulatory data protecti on and the authorisation system for generics 
for which a marketing authorisation was applied for before 1 January 2005 has still not been 
solved. The double import licensi ng obligation for alcoholic be verages has ended, after the 
import permission procedure of the Tobacco a nd Alcoholic Beverages Regulatory Authority 
was converted into a notification requirement. The control certificate and obligatory sampling 
requirement by the Ministry of Agricu lture is still a cause for concern. 
EN 39   EN Limited progress has been made on the new and global approach  product legislation, as 
alignment in this area was already advanced. Full alignment on four more directives was verified during the reporting period, following the 20 directives verified last year. The 
Ministry of Industry and Trade transposed the re vised electromagnetic compatibility directive. 
The new regulations will enter into force in  December 2009. The Ministry of Industry and 
Trade also transposed the directive on efficien cy requirements for new hot-water boilers fired 
with liquid or gaseous fuels. Harmonised sta ndards on recreational craft were published in 
October 2007. Amendments were made to the legislation on toys a nd childcare articles 
containing certain phthalates an d intended to be placed in the mouth by children. The new 
provisions transpose Directive 2005/84/EC. 
Regarding procedural measures , no progress can be reported. No  provisions to align with 
Regulation 339/93 have been adopted. However, the Under-secretariat of Foreign Trade is 
implementing the directives on radio and te lecommunication terminal equipment, toys, 
personal protective equipment, construction pro ducts, batteries and medi cal devices, based on 
standardisation in foreign trade communiqués. Pr oducts that have to bear the CE marking and 
entering Turkey from third countries are subject to checks by the TSE upon import. There has been no progress on cultural goods and firearms. 
There has been no progress in the non-harmonised area . The mutual recognition principle, a 
key element for this chapter, has not yet been  introduced into the Turkish trade regulations. 
“Free movement of goods” is one of the eight chapters covered by the conclusions on Turkey 
adopted by the Council (General Affairs and External Relations) on 11 December 2006 and 
endorsed by the European Council on 14/15 Decemb er 2006. As long as restrictions remain in 
place on the free movement of goods  carried by vessels and aircra ft registered in Cyprus or 
where the last port of call was Cyprus, Turkey will not be in a position fully to implement the acquis  relating to this chapter. 
Conclusion 
Some progress can be reported in this chap ter. Alignment of product legislation and 
horizontal measures, except on market surv eillance and legal metrology, is advanced. 
Effective market surveillance  activities are needed, taki ng into account visibility 
considerations and risk assessment principles , including coordination between surveillance 
agencies. Some key issues for this chapter, such as identifying and abolishing remaining import licences, restrictions on the import of used  motor vehicles, introduction of the mutual 
recognition principle into Turkish legislatio n and transitional issues connected with 
application of  regulatory data protection for pharmaceuti cal products are yet to be solved. 
4.2. Chapter 2: Freedom of movement for workers 
With regard to access to the labour market , legislation on work permits for foreigners that 
eased procedures and exempted certain profes sionals from obtaining work permits, including 
people working on national and international pr ojects, was vetoed and is still before 
Parliament. 
Efforts to strengthen the capacity of the Turk ish Employment Agency (ISKUR) continued. 
These concerned, in particular, IT infrastructure  and training to allow job-matching services 
in an electronic environment. Further efforts ar e needed to prepare for participation in the 
EURES (European employment services) network. 
EN 40   EN With regard to co-ordination of social security systems , efforts to build the administrative 
capacity of the Social Security Institution co ntinued. Appointment of medium- and high-level 
managers at central and provinc ial level also contributed to consolidation of  the (Social 
Security) Institution. The efforts to build “one-s top-shop” social security centres in districts 
are continuing. 
There have been no developments as regard s preparations for the introduction of the 
European Health Insurance Card. 
Conclusion 
Overall, limited progress has been made. Alignm ent is at an early stage. The administrative 
capacity needs to be strengthened further. 
4.3. Chapter 3: Right of establishment and freedom to provide services 
Limited progress can be reported on right of es tablishment and freedom to provide services. 
As regards freedom of establishment , Turkey still has not provi ded a detailed alignment 
strategy on this chapter, as required under the Accession Partnership. Gender, nationality and 
residence requirements, but also disproportiona te language and other requirements, such as 
the one-office rule for pharmacists, con tinue to be incompatible with the acquis . 
No new developments can be reported as regards freedom to provide cross-border  services . 
Registration, licence or authorisation requirem ents continue to be incompatible with the 
acquis  in this specific area. Firms already established in a Member State are still subject to 
specific registration and authorisation requirements. The same applies to service providers, who have to fulfil particular requirements in order to obtain the necessa ry work and residence 
permits. 
Work to identify obstacles to exercising the ri ght of establishment and freedom to provide 
services has not yet started. No steps have been taken to establish the structure needed for that 
purpose. Alignment in the fields of establis hment and services is at an early stage. 
No progress can be repo rted in the field of postal services . The legal monopoly (reserved 
area) regardless of weight limits is still intact . No independent regulator y authority exists in 
the sense of the acquis . The accounting system still lacks transparency for want of an 
appropriate accounting method for reserved and non-reserved serv ices and of separation of 
accounts. 
Some progress can be reported in the area of mutual recognition of professional 
qualifications . A regulation on harmonisation of th e minimum training requirements for 
regulated professions (medicine, nursery, mi dwifery, dentistry, ve terinary medicine, 
pharmacy and architecture) has been adopted and published in the Official Gazette, with the 
aim of aligning with Directive 2005/36. The Voca tional Qualifications Authority (VQA) has 
taken further steps towards becoming operational,  including recruitment of staff and adoption 
of several regulations on staff and working me thods. This should allow the authority shortly 
to develop standards on the professions which w ill fall under its remit. However, the principle 
of reciprocal recognition is still applied to a number of regulated  professions whereas 
automatic recognition is the ge neral rule under th e acquis. Various requirements based on 
nationality and language criteria persist. Discrimination based on gender also persists in the 
area of midwifery. Despite a cros s-reference to the midwife prof ession in the recently adopted 
EN 41   EN Law on nurses, male students are still not entit led to attend midwife schools. No procedure 
has been set up to allow distin ctive recognition of profession al and academic qualifications, 
whereas the current administrative structures allow recognition of foreign qualifications at academic level only. Turkey still needs to design ate a contact point as part of implementation 
of Directive 2005/36 on the recognition of professional qualifications. 
“Right of establishment and freedom to provide services” is one of the eight chapters covered 
by the conclusions on Turkey adopted by th e Council (General Affairs and External 
Relations) on 11 December 2006 and endorsed by the European Council on 14/15 December 2006. As long as restrictions remain in place on the free movement of goods carried by 
vessels and aircraft registered in  Cyprus or where the last port of call was Cyprus, Turkey will 
not be in a position to fully implement the acquis  relating to this chapter. 
Conclusion 
Alignment in the area of services and establis hment is still at an early stage. The legal 
groundwork in the field of postal services still needs to be launched. Alignment with 
Community law on the mutual recognition of prof essional qualifications is progressing slowly 
but at a steady pace. 
4.4. Chapter 4: Free movement of capital 
Some progress has been made on capital movements and payments . An out-of–court 
dispute settlement mechanism fo r customer complaints (the “Arbitration Panel for Customer 
Complaints”) has been established under the sectoral association. Th is collegiate body now 
needs to demonstrate independent decision- making. Some progress can be reported on 
transactions in the area of secu rities, instruments other than securities and foreign currencies.  
The Capital Markets Board abo lished the maximum limit on investments by pension funds in 
foreign securities. The Board also removed the minimum requirement for private pension 
funds to invest in Turkish government debt  instruments by amendi ng the Regulation on the 
principles regarding the establishment and activities of pension funds. The Council of 
Ministers amended the Decree on pr otection of the value of Turkish lira and abolished several 
restrictions. Following this amendment, resident s in Turkey are now entitled to buy and sell 
foreign currency from and to institutions which are authorised to do so in other countries. The amendment also entitles Turkish residents to pu rchase capital market instruments other than 
securities (e.g. derivatives) from abroad. Export revenue no longer has to  be converted into 
Turkish lira. The corresponding de cree entitles the Ministry in charge of the Treasury to 
entrust other institutions with execution of foreign currency transactions in Turkey and with 
extension of foreign currency denominated loans abroad. However, residual exchange 
controls remain on certain significant outward capital movements (i.e. foreign consumer and 
real estate credits to Turkish residents) wh ich are considered by Tu rkey to have possible 
macroeconomic implications. 
The Turkish legislation in the field of real estate acquisition by foreigners is not fully 
consistent with Article 56 of the Treaty establishing the European Community. Acquisition of real estate by foreign physical and legal persons (est ablished in other countries) has been 
regulated by the Land Registry Law. Foreign cap ital companies (established in Turkey) were 
subject to different arrangements for real estate acquisition whic h was regulated by the 
Foreign Direct Investment Law. In January 2008 the Constitutional Court overruled some provisions of the Land Registry  Law on real estate acquisiti on by foreign physical and legal 
persons. In April 2006 the same  court cancelled some provisi ons of the Foreign Direct 
EN 42   EN Investment Law on real estate acquisition by foreign capital companies. To fill the legal gap, 
in July 2008 the Turkish Grand National Assembly enacted a Law amending the Land Registry Law. The new law takes into account the views expressed by the court in both the 
above-mentioned decisions and regulates the a rrangements on real estate acquisition by 
foreign physical and legal persons and foreign ca pital companies. Under the new law, foreign 
physical persons can acquire real estate for residence or business up to certain area limits, 
while foreign capital companies 
established according the Foreign Direct Investment Law 
may acquire real estate in Turkey to conduct bus iness in accordance with the activities listed 
in their articles of association. Foreign capital  companies are legally considered as Turkish 
companies, regardless of the citizenship of th eir shareholders. Authorities also issued an 
implementing regulation requiring foreign capita l companies to get the approval of the 
military chief of staff and the provincial governor when purchasing immovable property. 
Restrictions on foreign direct investment origina ting from the EU persist in a large number of 
sectors, such as maritime transport, civil aviation, ground handling, road transport, radio and 
TV broadcasting, energy, accountancy and educa tion. A number of the restrictions depend on 
participation by Turkey in the relevant EU s ectoral policies (in particular, in the area of 
transport). Little tangible progress has been made with free movement of capital in these 
various sectors to date.  
Turkey needs further to align its payment systems  legislation with the acquis, as outlined 
under the Accession Partnership. 
Some progress has been made in the fight against money laundering . A number of 
implementing regulations have come into forc e, which supplement the Law on the prevention 
of laundering proceeds of crime. Those im plementing regulations relate to reporting 
suspicious transactions with regard to financing of terrorism, customer due diligence, extension of obliged parties to lawyers and accountants, simplified cu stomer identification 
measures in the necessary cases and the wo rking principles and procedures of the 
Coordination Board for Combati ng Financial Crime. Turkey ma de a number of legislative 
amendments in order to prohibit those criminalis ed as a result of laundering of proceeds of 
crime and financing of terrorism from becoming founders, partners or managers in exchange 
offices, investment funds, capital markets br okerage houses, precious metals brokerage 
houses and real estate investment partnerships. 
Turkey signed Memoranda of Understanding w ith five countries on information exchange 
(Indonesia, Sweden, Portugal, Mongolia and Afgha nistan). A special unit has been established 
in the Financial Crimes Investigation Board (MASAK) to fight financing of terrorism. A 
general communiqué regarding the reporting of susp icious transactions an d terrorist financing 
has been adopted. A regulation on measures to prevent launde ring of proceeds of crime and 
terrorist financing has also been adopted, in cluding measures on customer due diligence. The 
number of reports of suspic ious transactions to MASAK increased from 1 140 in 2006 to 
2 946 in 2007, mostly originating from the banking sector. Similarly, the number of reports of 
suspicious transactions with regard to financ ing terrorism increased from 8 in 2006 to 144 in 
2007. In 2007, 43 dossiers were referred by MAS AK to the public pros ecutors office for 
prosecution as compared with 39 in 2006. 22 of t hose resulted in the opening of cases before 
courts in 2007 as compared with 27 in 2006. However, convictions, confiscations, seizures 
and freezing of assets have remained quite rare up until now. 
The lack of effective enforcement capability and implementation mechanisms remains a cause 
of concern. MASAK provided trai ning for bank staff, judges and prosecutors, finance and tax 
EN 43   EN inspectors, obliged parties and other rele vant enforcement bodies. However, MASAK’s 
resources are still insufficient a nd the skill levels of  the judiciary and law enforcement bodies 
are not considered adequate. Turkey has no t yet ratified the 2005 Council of Europe 
Convention on laundering, search, seizure and co nfiscation of the proceeds from crime and on 
the financing of terrorism. Deficiencies iden tified in the report on the third review by the 
Financial Action Task Force (FATF) will be discussed in the FATF plenary meeting in 
February 2009. They still need  to be properly addressed. 
Overall, Turkey has made further progress as regards alignment with the acquis  on the fight 
against money laundering a nd financing of terrorism. 
Conclusion 
There has been some, albeit uneven, progre ss on this chapter. The maximum limit on 
investments by private pension funds in foreign securities has been re moved. Restrictions on 
the use of export proceeds and on foreign cu rrency transactions have been abolished. 
Restrictions on free movement of capital pers ist in various sectors of the economy. The 
Parliament enacted an amending law regulating the acquisition of real  estate by foreign 
physical and legal persons and by foreign capital  companies. Turkey made further progress 
with alignment with the acquis  on the fight against mone y laundering. New implementing 
regulations and communiqués have been adopted and the number of suspicious transactions 
reported has increased considerably. Turkey ne eds to continue alignment in this area. 
4.5. Chapter 5: Public procurement 
There has been no progress on the general principles . The 15% price advantage for domestic 
bidders is still enshrined in the legislation. Ho wever, less use was made of it than during the 
previous year (1.5% of the overall contract  value in 2007 compared  with 8% in 2006). A 
number of additional derogati ons from the Public Procurem ent Law have been adopted, 
notably in the laws with regard  to associations, on Istanbul as the 2010 capital of culture and 
on witness protection. The amen dment of the electricity market law brought in another 
derogation to the public procurement law. Such derogations reduce competitiveness and 
efficiency in public tender.  
Little progress has been made on the award of public contracts . The fairly high participation 
rate in tendering procedures indi cates that information on public tenders is widely available, 
including on the internet. However, the Turkish Public Procurement legislation remains different from the acquis  in various respects. The legisl ative amendment in 2007 introduced 
the concept of framework agreements to be applie d only in the health sect or. Utilities continue 
to be subject to the classical public procur ement procedures. There is no coherent legal 
framework for the award of concessions and pub lic private partnershi ps. The 2008 thresholds 
and financial limits for procurement remain above EC levels. 
Both the Public Procurement Agency and the State Planning Organisation have significant 
administrative capacity. However, staff awaren ess of the State Planning Organisation as 
regards the acquis needs to be strengthened. The speci alisation of functions and staff 
competencies in the Public Procurem ent Agency needs to be enhanced. 
As regards the institutional set up, Turkey has designated the Mini stry of Finance as 
coordinator of public procurement policy, including concessions and PPPs, which is one 
priority of the Accession Partnership. This decision has had a positive impact, as it has 
allowed better coordination of le gislative preparations in 2008.  
EN 44   EN No progress can be reported on alignment with the Remedies Directives . The number of 
complaints lodged by dissatisfie d tenderers has grown over th e years, from about 900 in 2003 
to over 4 000 in 2007, though representing only 3% of all contract awards. The review 
procedure is lengthy and results in  creation of back log of cases.  
Conclusion 
Some limited progress can be reported in this chapter. Turkey has started to address its 
priorities in the area of public procuremen t and has the capacities to address them. The 
designation of the Ministry of Finance as overall po licy coordinator on pub lic procurement is 
a positive development. The Minist ry will have to ensure consis tent policy development in the 
area of public procurement and steer its impl ementation. This needs to be backed up by a 
comprehensive strategy on the reforms necessary in terms of legislative alignment and institutional capacity-building in orde r for Turkey to comply with the acquis . Derogations 
from the general provisions that have the eff ect of reducing competition and efficiency in 
public tenders need to be avoided.  
4.6. Chapter 6: Company law 
No substantial progress can be reported on company law . The Turkish Commercial Code 
(TCC) and the law on the entry into force an d implementation of the TCC were not adopted 
yet. Adoption of these two laws would mark an  important step forward in this chapter, 
although some of the provisions of the TCC are not fully aligned with the acquis . Companies 
cannot register online in the registries operate d by Chambers of Commerce. Establishment of 
an electronic database and on-line access to basic company information depend on adoption 
of the TCC. Adoption of the TCC will trigger am endment of various other laws, including the 
Capital Markets Law (CML) concerning domesti c mergers and divisions of public limited 
liability companies, the exercise of certain righ ts of shareholders in publicly held companies 
and takeover bids.  
Little progress can be reported in the area of corporate accounting. The Turkish Accounting 
Standards Board (TASB) adopted and published several interpretations and revisions of a 
number of international accounting standards (I AS). The adopted standards apply solely to 
listed companies. The Capital Markets Board of Turkey (CMB) imposes an obligation on 
listed companies to publish their yearly and quarterly financial statements in compliance with the IAS and the international fina ncial reporting standard s (IFRS) in the format applicable in 
the EU. However, only a few companies in Turkey are listed. The majority are non-listed. Further recruitment took place in order to enha nce the administrative ca pacity of the TASB. 
Specific training was organised for newcomers. Th e process to enhance the professional skills 
of the TASB continued. 
No progress can be reported on auditing . The regulatory framework for the Auditing 
Standards Board is still under preparation.  
Conclusion 
No substantial progress can be reported in th e period under consideratio n. Overall, alignment 
remains moderate. The new TCC, desi gned to improve alignment with the acquis  and trigger 
the process of alignment of other laws in this area, has not been adopted.  
EN 45   EN 4.7. Chapter 7: Intell ectual property law 
The overall legislative framework for intellectua l and industrial property rights is largely 
aligned with the acquis , but administrative capacity remains insufficient to ensure effective 
enforcement, as required by the Customs Un ion Decision. Turkey remains one of the 
countries where IPR protection and enforcement are most problematic. Effective enforcement 
is a priority under the Accession Partnership Agreement and for the negotiations on this 
chapter. 
Some progress has been made in the area of copyright and neighbouring rights . Turkey has 
considerably improved coordinati on and cooperation between various  stakeholders in the area 
of copyright and related rights issues. A coor dination committee was se t up in 2007 within an 
EU-funded twinning project. It was convened in  January 2008 to draft an action plan to 
strengthen copyright protection in Turkey . Another twinning proj ect to strengthen 
enforcement capacity started in  2008 and will be conducted th roughout the year with the 
Turkish national police as the main target gr oup. Many training sessions and seminars have 
been organised to raise awareness of IPR en forcement issues. The number of collecting 
societies increased from 22 to 24. Four collec ting societies in the mu sic sector agreed on a 
common approach to setting tariffs, licensing and other issues. They also signed an agreement 
on the licensing of musical works used in hotels.  However, conflicting views persist regarding 
collective rights management between users a nd rights-holders. Piracy of books and other 
media, such as CDs and DVDs, remains widesp read. Turkey’s enforcement capacity is still 
lagging behind. The laws for ratification of the WIPO Copyright and Phonograms Treaties 
were published in the Official Gazette. 
Some progress can be reported concer ning the legislative framework for industrial property 
rights . A revision of the regulation implementing th e European Patent Agreement in Turkey 
has entered into force. The Turkish Patent Inst itute (TPI) has further im proved its internal and 
external IT structure. Improvements can also be reported in online services (including an e-
application system), search portals and public relations. Fifteen new staff members have been 
recruited. Several members of staff have attend ed training courses to improve their legal 
knowledge and various awareness-raising activ ities have been organised. However, 
inconsistencies persist between the trademarks department and the appeals board. Most of the 
appealed decisions are reversed by the appeal s board and the courts. Measures should be 
taken to harmonise implementation on the basis of absolute and relative grounds, especially 
for earlier use , the level of similarity and the signs  which may be used as trade marks, 
including three-dimensional trade marks . Appeal and opposition pro cedures are very lengthy. 
Infringements of well-known designs, trademar ks and trade dresses are still a cause for 
concern. TPI practices and courts ’ understanding of the same i ssues diverge. Proper reasons 
should be given for the decisions of the TPI. The regulatory framework,  including a code of 
ethics for patent and trademark agents to  prevent misconduct and take implementation 
forward, is not yet in place. So far no construc tive dialogue has been established between the 
TPI and its customers and the various pr ofessional groups dealing with IPR. 
Particular attention should also be paid to bad faith and similar trademarks and industrial 
design issues. 
As regards enforcement , a high-level Intellectual and Industrial Property Coordination 
Board, co-chaired by the Ministry of Industry and Trade and the Ministry of Culture, has been 
established. The purpose of the Bo ard is to foster cooperation be tween relevant institutions in 
order to improve the level of IPR protecti on. The Board will meet every six months. The 
EN 46   EN Board will be able to invite ot her public institutions and privat e-sector representatives to its 
meetings. An action plan has been drawn up. The criminal provisions of the Turkish Copyright Law have been amended to harmonise  them with the new Turkish Criminal Code 
and Turkish Criminal Procedure Code. The new provisions have reduced legal predictability 
and enforceability with regard to banderol application and the ex-officio  powers of the police 
to seize pirate goods. Consequently, enforcement against piracy has almost come to a halt in 
most Turkish cities, with the exception of Ista nbul, Ankara and Izmir.  During the drafting of 
these special provisions, the op inions of the IPR enforcers (i.e. judges and prosecutors 
specialising in IPR and collecting societies) we re not sufficiently taken on board. Therefore, 
stakeholders (including the judiciary) need  to acquire a better understanding of the 
amendments to the criminal provisions in  order to ensure effective enforcement. 
Following a recent Constitutional Court decision, Tu rkey’s trademark protection is at a crucial 
point. The court pointed out that trademarks  infringements could not be punished under the 
current legislation because crimes and punish ments are not defined appropriately in the 
relevant Turkish legislation. The court invited the government to remedy this situation and to 
address the current legal vacuum within six m onths, ending in January 2009. The relevant law 
prepared by the government has not been adopted. As long as the legal vacuum persists, all similar pending trademarks infringements will be affected. However, since other industrial 
property rights, like designs, patents, utility models and geographical indications, are also 
regulated in the same way as trademarks, the court’s decision will affect all infringements of industrial property rights. The Turk ish authorities need to tackle this situation as a matter of 
urgency and to eliminate the risk that industr ial property infringements cannot be punished.  
Nine new specialised IPR courts (three civil and four criminal in Istanbul, one civil in Ankara 
and one civil in Izmir) were recently establis hed and brought into operation. The locations of 
the courts were selected on the basis of the leve l of commercial activitie s. The appeal stage of 
the IPR court procedure is very lengthy. Most of the files on criminal acts have been pending 
before the Supreme Court for a long time. Ri ghts-owners are experiencing difficulties in 
obtaining preliminary injunctions  or search and seizure warra nts which would offer a proper 
enforcement solution to most cases. Training se minars and workshops have been held for 
stakeholders such as customs officers, nationa l and municipal police forces, lawyers and the 
related staff of the enforcement bodies. Thre e public-awareness seminars were organised. 
Customs officers seized goods in 160 cases on thei r own initiative in 20 07 compared with 45 
in 2006. Turkey remains one of the main source s of counterfeited and pirated products seized 
at EU borders.  
Conclusion 
Overall alignment with the acquis  is relatively advanced. C oordination and cooperation 
between the IPR-related public bodies and their awareness have improved significantly. 
However, serious deficiencies remain in the ar ea of industrial property rights, in particular 
with implementation and enforcement. Turkey is still considering its re sponse to the European 
Commission's suggestion to establish a di alogue on Intellectual property Issues.  
4.8. Chapter 8: Competition policy 
In the field of anti-trust, including mergers, there has been  further progress on legislative 
alignment.  
EN 47   EN The Competition Law was amended to provide further clarity and legal certainty in the 
provisions regulating fines imposed for competition infringements. The competition authority adopted a block exemption communiqué covering the insurance sector, in line with the 
acquis . The authority issued another block ex emption communiqué on technology transfer 
agreements. There are a few divergences be tween this communiqué and the relevant 
Commission rules, in the form of hardcore re strictions due to the Turkish legislation on 
intellectual property rights. The authority publ ished two guidelines on market definition and 
subcontracting agreements between non-compe ting undertakings. The rules on horizontal 
cooperation agreements, de minimis  and sector-specific block exemptions for 
telecommunications and postal services still ne ed to be transposed. The Banking Law exempts 
mergers and acquisitions leading to a market share below 20% in  the banking sector from the 
competition authority’s control. This exemption limits enforcement of the merger control rules in the banking sector. The authority’s effo rts to promote competition might be limited in 
the upcoming privatisation of public  banks due to this exemption.  
The competition authority enjoys a sufficien t level of administrative and operational 
independence. The authority’s emphasis on traini ng for its staff is a determining factor for 
effective enforcement of the competition rules. All public authorities, including the Ministry 
of Industry and Trade to which the competition authority is linked administratively, need to respect the administrative and operati onal independence of  the authority. 
As regards the enforcement record, in 2007, 238  merger and acquisiti on cases were handled 
and 232 cases were concluded (up from 199 and 186 in 2006). The authority opened 131 
cases on anti-competitive behaviour and finalised 148 cases (up from 108 in 2006). The Board opened 34 negative clearance a nd individual exemption cases and concluded 39 in 2007 (36 
and 33 in 2006). The fines imposed by the authority decreased by 50%, from TRY 27,002,139 
in 2006 to TRY 13,641,633 in 2007. The authority has al so been active during the first half of 
2008. It took decisions on 65 cases of anti-competitive behaviour and on 109  merger 
notifications. The administrative  capacity of the Counc il of State (high administrative court) 
for handling appealed competition cases still needs to be improved. However, the establishment of a special chamber in the Counc il of State in 2007 is expected to speed up the 
review of competition decisions. 
There has been no progress on alignment of the rules conc erning public undertakings and 
undertakings having exclus ive and special rights. 
In the field of state aid, no progress has been made. Turkey  has not adopted the state aid 
legislation nor set up an operationally independent stat e aid monitoring authority. 
Furthermore, Turkey has not prepared the stat e aid inventory and has not reported on state 
schemes, as required by the transparency commitments. There are no rules ensuring transparency of financial relations between  public authorities a nd public undertakings. 
Some progress has been achieved as regards st ate aid in the steel sector. Following the 
transmission of new information in 2008, th e Commission has an improved understanding of 
the state aid granted from 2001 until now. Furthe rmore, Turkey has reviewed the national 
restructuring programme concerni ng both the state aid aspects and the market analysis and 
forecast for the Turkish steel industry. Howeve r, information is still needed on several 
capacity developments and some state aids of th e last years as well as on a clear position of 
the Turkish authorities c oncerning future state aid to the steel sector. 
EN 48   EN Conclusion 
In the field of anti-trust, including mergers, a high level of alignment has been achieved. The 
administrative capacity and ope rational independence of the competition authority are 
satisfactory. The authority enforces the comp etition rules effectively. There has been no 
alignment in the field of state aid. Turkey need s to implement the EU state aid discipline in 
the steel sector, in line with the long-stand ing commitment given in  the ECSC Free Trade 
Agreement. Alignment in this chapter is not complete. 
4.9. Chapter 9: Financial services 
Good, but uneven, progress can be reported on banks and financial conglomerates . With a 
view to strengthening the liquidity position in the banking system, the Banking Regulatory 
and Supervisory Agency (BRSA) introduced additional liquidity requirements. However, Turkey has postponed implementation of the BASEL II Accord. The Agency also advised 
private banks to build up a solid capital stock in response to the rece nt financial turmoil. 
Moreover, the prudential and supervisory st andards have been tightened up. The BRSA 
imposed marked-to-market valuation for the deri vative instruments reco rded on bank balance 
sheets. The BRSA clarified the coordination rule s for consolidated supervision of financial 
institutions which are being supervised by se parate regulatory authorities. The Savings 
Deposits and Insurance Fund (SDI F) introduced five deposit premium categories for banks, 
based on their detailed risk profiles. In turn, the BRSA introduced additional reporting requirements for the representative offices of  foreign banks. The Agency also placed an 
obligation on foreign banks’ branch  and representative offices to apply for authorisation in the 
event of any change in the ownership of the parent undertaking in the home State. The BRSA 
organised several training sessions for its sta ff and gave a dozen staff members an opportunity 
to study abroad. The BRSA has also establishe d further memoranda of understanding with 
third countries, taking the number of MoUs up to  16. Supervisory capacity has been enhanced 
by introducing new reporting requirements and an early warning system. In the area of 
banking and financial conglomerates, Tu rkey has further aligned with the acquis . Further 
efforts are needed to continue alignment with the new capital requirements for credit institutions and investment firms and with th e other related directiv es (on deposit guarantee 
schemes, winding up and reorganisation, financ ial conglomerates and bank accounts), as 
outlined in the Accession Partnership.  
There has been significant progress in the area of insurance and supplementary pensions . 
The Treasury introduced the concept of “spo nsoring undertaking” in  a newly published 
regulation on occupational pe nsion schemes. The same regul ation also introduced limits on 
the fees and expenses that insurance compan ies are allowed to be charged, whereas the 
vesting period for group insurance policies was re duced to five years. The Treasury published 
a regulation on supplementary pension compan ies covering fit and proper criteria for 
ownership, licensing applications, mergers and acquis itions, rules on advertising and public 
disclosure. As far as solvency is concerned, the paid-in capital of an insurance company’s 
subsidiaries and affiliates has been included in the definition of the owners’ equity. As regards 
passenger transport, Turkey has increased the minimum level of coverage under the 
compulsory insurance scheme. However, coverage  levels for personal injuries are still well 
below EU standards. The Treasury adopted  a new communiqué re quiring insurance and 
supplementary pension companies to publish thei r financial statements both in newspapers 
and on their own websites. Tu rkey has introduced a new t ype of insurance for loan 
repayments by bank customers. A new regulati on on insurance mediati on has entered into 
force. It has improved consumer protecti on and set new standards on registration and 
EN 49   EN minimum capital, while introducing professiona l indemnity insurance for intermediaries. 
However, indemnity coverage levels are mark edly below the EU standards. Several other 
insurance regulations have been  published, covering training,  internal control and risk 
management systems, and rules on establishmen t for brokers. However, provision of cross-
border services is impeded, as the regulations place an oblig ation on foreign brokers to 
operate via branch offices established in Turkey. A regulation on the activities of committees of insurance experts has also been adopted. Finally, a regulation implementing the rules on 
the professional qualifications, accounting and bookkeeping responsibilitie s and activities of 
insurance experts has been publis hed. Alignment in the area of  insurance and supplementary 
pensions is partial. Establishing an independe nt regulatory and superv isory authority is a 
priority. Further alignment is needed, in pa rticular on calculation of solvency margins, 
supervision of insurance groups and the mini mum amounts of cover in motor insurance. 
Turkey already largely fulfils the acquis  requirements. No further progress can be reported on 
financial market infrastructure . 
Some progress can be reported on securities markets and investment services . The Capital 
Markets Board of Turkey (CMB) imposes an ob ligation on listed companies to publish their 
yearly and quarterly financial statements in  compliance with the international accounting 
standards (IAS) and the intern ational financial re porting standards (IF RS) in the format 
applicable in the EU. The CMB successfully completed a twinning project which contributed 
to further improving the capital market legisl ation and the administrative capacity of the 
regulatory authority. Alignment in the area of s ecurities markets and investment services is 
moderately advanced. Further progress is need ed, in particular on markets in financial 
instruments, investor compensation sche mes, prospectuses and market abuse. 
“Financial services” is one of the eight chapters covere d by the conclusions on Turkey 
adopted by the Council (General Affairs and External Relations) on 11 December 2006 and 
endorsed by the European Council on 14/15 Decemb er 2006. As long as restrictions remain in 
place on the free movement of goods  carried by vessels and aircra ft registered in Cyprus or 
where the last port of call was Cyprus, Turkey will not be in a position fully to implement the acquis relating to this chapter. 
Conclusion 
There has been good progress in the area of fi nancial services. Progr ess has been made on 
tightening up prudential and s upervisory standards, both in  banking and in the non-bank 
financial sector. Authorities have taken measur es to strengthen the liquidity position and the 
capital adequacy of the banking system. A risk -based deposit insurance premium system has 
been introduced. As regards insurance and supplementary pensions, Turkey has made 
significant progress by adopting regulations on o ccupational pension schemes, publication of 
financial statements and insurance mediati on. The CMB has introduced IAS and IFRS 
standards for listed companies. There was furt her alignment as regards banks and financial 
conglomerates, while alignment in securities mark ets and investment services is moderately 
advanced. Turkey largely meets the acquis  requirements in the area of financial market 
infrastructure. Alignment in the area of insurance and supplementary pensions is incomplete; in particular, an independent  supervisory authority in th e insurance and supplementary 
pensions sector needs to be set up. 
EN 50   EN 4.10. Chapter 10: Information society and media 
Some progress can be reported in the field of electronic communications and information 
technologies . As of June 2008, the total number of fi xed subscribers is around 18 million with 
a penetration rate of roughly 25%. The total nu mber of mobile subscribers reached to 63.6 
million with a penetration rate of 90%. The number of Internet subscribers reached to approximately 5.4 million, 5.3 million of which are broadband (ADSL) subscribers. 
Turkey continued its alignment by introducing new regulations on access and interconnection 
based on the 2002 EU framework, on operators with significant market power (SMP) on the 
reference interconnection offe r (RIO) and the reference Unbundling Offer and wholesale 
broadband access conditions from the incumbent internet operator. Furthermore, mobile 
termination rates have conti nued to gradually decrease.  
There has been some progress on number por tability, which may become possible from 10 
November 2008 in the mobile market after a central database became operational in the 
Telecommunications Authority. Some initial pr ogress can also be reported for local loop 
unbundling following the revision on Turk Teleko m’s reference unbundling offer last year. .  
However, the Electronic Communications Law wh ich would provide the basis for alignment 
with the EU framework did not enter into fo rce after its adoption by  the Parliament. The 
Turkish President vetoed four articles on the administrative and financial conditions for the 
regulatory authority and the draft is back in Parliament for discussion. Competition in the fixed and broadband markets remains marginal. More than 95% of the broadband internet 
access services are provided by the incumbent’s internet operator. Limited progress can be 
reported towards equitable and transparent co nditions for fixed wholesale broadband access. 
No progress can be reported with regard to accounting separation and cost accounting 
imposed on the fixed incumbent. High taxa tion on communication serv ices unrelated to 
administrative costs for regulating the se ctor remains a problem. The scope and 
implementation of universal service obligations  are still incompatible with the relevant 
acquis . Liberalisation of local telephony is stil l pending and undermines competition in the 
fixed and broadband markets. The regulatory body is well staffed and is self-financed. 
However, it lacks independence - notably in the authorisation process - and the decision 
making process of the Telecommunicati ons Authority is not transparent. 
Implementing regulations on provisi on of internet servi ces at public places and on principles 
and procedures concerning the regulation of th e broadcasts on internet  have been adopted 
during the reporting period. Implementation of thes e regulations have the potential to violate 
freedom of expression. 
In the area of audiovisual policy some progress can be reporte d, the Turkish Grand National 
Assembly amended the Turkish Radio and Television Corporation (TRT) Law allowing broadcasts in languages other than Turkish ( See Political criteria).  RTÜK promoted self-
regulation by broadcasters and enhanced its ad ministrative capacity to fulfil its monitoring 
duties. Since August 2008, RTÜK decisi ons are accessible to the public.  
However, Turkey’s level of alignment with the EC acquis  on audiovisual policy remains 
limited to provisions concerning advertising and the protecti on of minors. The Law on the 
establishment of radio and television broadc asts still poses problems in terms of non-
discrimination on the grounds of nationality, de finitions, jurisdiction, freedom of reception 
and retransmission, major events, promotion of European and independent works and 
EN 51   EN restrictions on the share of foreign capital and television  enterprises. As regards 
administration of the broadcasting sector, RTÜK has not reallocated fre quencies or reviewed 
temporary licences. RTÜK established a regular di alogue with the broadcasters and enhanced 
the transparency of its decisions. However, furt her measures are needed in order to strengthen 
the functionality of the regulator. 
Conclusion 
Some progress can be reported in  the field of electronic comm unications, in particular as 
regards competitive safeguard measures imposed on dominant operators, notably in the mobile and broadband markets. However, alig nment with the EU framework remains limited. 
The adoption of a new primary electronic communi cations law well aligned with EU rules is 
crucial. As regards the acquis on audiovisual policy, Turkey’s le vel of alignment remains is 
limited.  
4.11. Chapter 11: Agriculture 
Progress on legislative alignment with the common agricultural policy (CAP) has been 
limited. No progress can be reported concerning the announced restructuring of the Ministry 
of Agriculture and Rural Affairs (MARA).  
As regards horizontal issues,  Turkey has made limited progress. The government's 
announcement of the intention to  scrap decoupled area payments and replace them by coupled 
payments remains a cause for concern. This would lead to Turkey’s agricultural policy drifting away from the reformed CAP and from the principles of competitiveness and market orientation. 
Turkey has advanced in preparing a strategy to develop the system of land identification and a 
farmer's register, as well as a strategy to develop agricultural statistics in line with EU requirements. Efforts to set up a pilot Fa rm Accountancy Data Network (FADN) have 
continued.  
Turkey continues to ban imports of beef and of live bovine animals originating in the EU. 
These barriers are not in  line with bilateral obl igations and their removal is a key component 
of the accession negotiations on this chapter. 
Concerning the common market organisations , some progress on acquis alignment could be 
noted with the adoption of two regulations on purchases and sales of cereals and rice and 
paddy rice. Progress has also been made on a lignment of Turkey’s legislation with EU 
marketing standards for fruit and vegetables. The conformity checking  operations, performed 
by the Turkish authorities prior to import into th e Community for all fresh fruit and vegetables 
are recognised by the EU/Community.  
As regards rural development, substantial progress has been made. The Turkish rural 
development programme for 2007-2013, prepared under component V of the Instrument for 
Pre-Accession Assistance (IPARD) and designed to support policy development in the field 
of agriculture and rural development, as well as the preparation for the implementation and 
management of the Common Agricultural Policy, was approved by the Commission in 
February 2008. This marks a major step to wards implementation of IPARD in Turkey. 
Concerning administrative structures, the head of the IPARD Agency ha s been appointed and 
a concise action plan for the accreditation process has been submitted to the Commission. According to the plan conferral of manageme nt powers by the Commission is scheduled for 
EN 52   EN June 2009. The legislative framework for operati on of the managing aut hority is in place and 
personnel, both at headquarters and at provi ncial level, are being appointed and trained. 
No progress was observed on quality policy  and organic farming . As regards organic 
farming , Turkey has continued its efforts to be included in the equivalency list of third 
counties for imports of organic products accord ing to Article 11 of Council Regulation (EEC) 
2092/91. Following the transmission of additional information regarding Turkish organic 
farming production rules and control system in the end of the year 2007, the Commission 
could close several points. The main areas of concern remain approval of inputs allowed in 
organic farming and supervision system 
“Agriculture” is one of the eight chapters c overed by the conclusions on Turkey adopted by 
the Council (General Affairs and External Relations) on 11 December 2006 and endorsed by 
the European Council on 14/15 December 2006. As long as restrictions remain in place on the 
free movement of goods carried by vessels and aircra ft registered in Cyprus or where the last 
port of call was Cyprus, Turkey will not be in a position fully to implement the acquis  relating 
to this chapter. 
Conclusion 
Alignment with the acquis  remains limited. Turkey has made substantial progress on building 
the capacity necessary to implement IPARD. Ho wever, further efforts must be made to 
complete establishment of the necessary administ rative and control structures so that they will 
be able to operate in a fully decentralis ed management system. Progress as regards 
administrative structures related to the CA P was limited to the FADN system and fruit and 
vegetables. Current support and strategic policy planning in Turkey seem to be developing 
away from the principles of the reformed CA P by strengthening support instruments linked to 
production. Technical barriers to trade in bovine products in breach of bilateral commitments 
remain. Overall, preparations are still at an early stage in this chapter. 
4.12. Chapter 12: Food safety, veterinary and phytosanitary policy 
Transposition and implementation of EU food safety  policy remain limited. The Framework 
Law on food, veterinary, feed, hygiene and official  controls, which needs to provide for clear 
assignment of responsibilities, in  particular for control bodie s, has not yet been adopted. 
With regard to general food safety policy, the na tional rapid alert system for food and feed has 
been improved. Local units have been directly linked to the Ministry of Agriculture and Rural 
Affairs to ensure effective follow-up of notifications. Monthly reports on the follow-up to RAFFS alerts are being sent to the Commis sion. However, the number of notifications 
received is still very high. Fu rther efforts to follow up alerts  and implement the necessary 
corrective measures are still needed. 
Regarding veterinary policy , Turkey has made limited progress on both transposition and 
implementation  of the acquis . 
The first veterinary border inspection post (BIP) at  Sabiha Gorken airport in Istanbul is not 
yet fully operational. The BIP receives a low nu mber of consignments because most still 
arrive at Ataturk airport in Is tanbul. Construction of three la nd and two seaport BIPs is under 
way. The system for identifica tion and registration of bovines and their movements has been 
improved as regards registration of holdings (including animal markets), control of 
movements of animals and training of users of the database. Turkey has made further efforts 
EN 53   EN to bring the system into line with the acquis . However, supplementary efforts are necessary as 
regards registration of movement s in the bovine database. Initial work on identification and 
registration of ovine and caprine animal s is ongoing, with the aim of setting up an 
identification system covering sh eep and goats in line with EU requirements. For the time 
being, only some voluntary identific ation and registration activitie s have been introduced for 
small ruminants in some provinces. No progres s can be reported as regards non-commercial 
movements of pets. 
Turkey has continued its efforts to combat an imal diseases. Efforts have focused on avian 
influenza (AI) and foot-and-mouth disease (FMD), as in previous years. AI outbreaks were 
low in number in the reporting period and su ccessfully contained with the cooperation of 
public health authorities. Intensive awarenes s-raising campaigns were implemented. The 
regulation concerning protection ag ainst AI has entered into force. Stricter measures on 
animal movements between Thrace and Anatolia have had a positive impact on the occurrence of FMD outbreaks in Thrace, where the number of outbreaks has considerably 
decreased. The last FMD outbreak in Thrace was in September 2007. Turkey has also started focusing on attaining brucellosis- and tube rculosis-free status in Thrace, although no 
significant progress has been observed on th e ground. No progress can be reported with 
transmissible spongiform encephalopathy (TSE ). Turkey has continued its voluntary 
participation in the EU animal  disease notification system (ADNS). Relevant information on 
animal diseases was provided to the EU and to other international organisations. 
Turkey has improved its procedures for impl ementing and following up the national residue 
monitoring plan and controls on veterinary medicinal products.  However, additional progress 
is essential, mainly on the labor atory side and on inclusion of a ll substances on which controls 
are required by the EU legislation. 
Turkey’s current system for financing veterinary inspections and controls is not in line with 
EU practice. No progress has been observed regarding import  requirements for live animals 
and animal products. The regime of individual li cences for import of each consignment of live 
animals and animal products has not been modified. The  de facto  beef ban is still in place 
(See Chapter 11). Turkey has made no progress on animal welfare and zootechnical issues. 
No progress can be reported as regards placing on the market of food and feed . 
Transposition of the hygiene package, which is  a key component of the accession negotiations 
on this chapter, has not yet been completed. Unclear division of tasks between different 
departments and institutions is still leading to problems with official controls. Some 
improvements were observed in the administrative structures as a result of intensive training 
programmes. Work has started on accreditation of  inspection services, but no substantial 
progress has been observed in this field. The legislative basis has been put in place for 
establishment of the national f ood reference laboratory in Anka ra. Risk-based annual control 
programmes have been established for several pr oducts. The data network system, which will 
allow more efficient implementation of in spection and control pr ogrammes, has been 
improved. Preliminary preparations for classifi cation of agri-food estab lishments as regards 
their compliance with EU structural requirement s, which is a key component of the accession 
negotiations on this chapter, have started. Ho wever, no action has been  taken to bring agri-
food establishments into complia nce with the EU hygiene requirements. No progress has been 
observed on animal  by-products. 
EN 54   EN Alignment and implementation of the legislat ion on labelling, presen tation and advertising, 
food additives and purity criteria, extraction solvents, quick frozen foodstuffs, food for 
particular nutritional uses and irradiated food has advanced.  
Transposition in the areas of  flavourings, food supplemen ts, novel food and genetically 
modified organisms (GMOs) has yet to be co mpleted. Alignment and implementation of the 
legislation on food contact mate rials has advanced; however, fu rther adaptations are required 
to bring the system fully into line with the EU system. 
Aflatoxin contamination remains a major problem. A communiqué on the methods of 
sampling, sample preparation and analysis for th e official control of lead, cadmium, mercury, 
inorganic tin, 3-monochloropropane- 1,2-diol and benzopyrene in foodstuffs  and the 
communiqué on the maximum limits on contaminants  have entered into force. Alignment is 
advanced in the case of mineral waters. No progress has been observed as regards specific 
rules for feed. 
Progress on phytosanitary policy  remains limited. Transposition of the legislation on plant 
protection products is advanced. Implementing re gulations on seeds and propagating material 
have entered into force. The law on plant hea lth and quarantine has not yet been adopted. No 
developments were reported on inte rnational phytosanitary agreements. 
Conclusion 
Progress in the area of food sa fety, veterinary and phytosanitary policy ha s been limited and 
needs to be consolidated. Trans position and implementation of the acquis  in this chapter 
requires considerable efforts. Strengthening admini strative capacity at central and local levels 
is vital for proper implementation. 
4.13. Chapter 13: Fisheries 
No significant progress has been ma de on alignment with the fisheries acquis . The revised 
law on fisheries has not yet been adopted. Th e central administration structures remain 
unsatisfactory. The spread of powers across different ministries and even different 
departments within the Ministry of Agricu lture and Rural Affairs (MARA) persisted. 
Some progress has been made as regards resource and fleet management . There has been 
improvement in the fisheries information syst em however it is not yet fully operational. 
Turkey’s satellite-based system for monitoring (VMS) the 86 blue-fin tuna fishing vessels is 
in place. This monitoring system is currently used by 196 vessels, . Two additional fishery port offices have been established and been  brought into operation.  No progress can be 
reported as regards stock assessment. 
Limited progress has been achieved on inspection and control . It is now compulsory to keep 
fishing records in logbooks for fishing vesse ls longer than 12 metres, which will allow 
registration and reporting of catches. Turkey ha s started work on introducing sales notes in 10 
wholesale markets on a pilot basis. 
No progress can be reported concerning structural action, market policy  and state aid . 
As regards international agreements, Turkey signed a fisheries agreement with Yemen and a 
fisheries cooperation pr otocol with Georgia . 
EN 55   EN “Fisheries” is one of the eight chapters cove red by the conclusions on Turkey adopted by the 
Council (General Affairs and External Re lations) on 11 December 2006 and endorsed by the 
European Council on 14/15 December 2006. As long as restrictions remain in place on the 
free movement of goods carried by vessels and aircra ft registered in Cyprus or where the last 
port of call was Cyprus, Turkey will not be in a position fully to implement the acquis  relating 
to this chapter. 
Conclusion 
Limited progress has been made on resource and fleet management and on inspection and 
control. However, Turkey has made no progress on legislative alignment in this chapter. The 
administrative structures necessary to implemen t the Common Fisheries Policy have not been 
established. 
4.14. Chapter 14: Transport policy 
Preparations in the area of road transport  are advanced and some further progress has been 
made. Licensing of road transport operators and certification of professional competence are close to completion. Turkey has issued a decree setting out the principles of a fleet renewal 
scheme and for phasing out old vehicles.  
Institutional capacity has been further stre ngthened. The Directorate-General for Highways 
has been transferred from the Ministry of P ublic Works and Settlement to the Ministry of 
Transport. This has improved coordination be tween transport authorities. Moreover the 
Directorate-General for Land Transport (DGLT) has established a new unit for implementation of the Regulation on danger ous goods. However, DGLT has not reached the 
necessary monitoring and control standa rds and a precondition for the Regulation 
implementation has not been fulfilled as Turkey has not yet become a party to the European 
agreement on the intern ational carriage of dangerous goods  by road (ADR). Financial and 
professional competence requirements are less stringent for domestic operators. Continued 
efforts are required in order to meet EU techni cal requirements, also in the field of road 
transport, in particular for the introduction of digital tachographs - where necessary 
preparatory work to meet international obligatio ns and its implementatio n has not yet started - 
and for speed limitation devices' requirements fo r light buses and utility vehicles which are 
not in line with the acquis. .  
There has been some progress in preparations  for a new railways law, which are at an 
advanced stage, but there is no progress with it s adoption process. Attention must be paid so 
that any new legislation achieves effective alignment with the acquis  in the sector of rail 
transport .  
There is no inland waterways transport  covered by the acquis  in Turkey. 
Limited progress can be reported in the area of air transport . Processes related to SHD-T-35 
licences were aligned with the European Aviation Safety Agency (EASA) Regulations, Part 66 and Part 147. Preparation of regulations on slot allocation, groundhandling services, 
passenger rights and maintenance systems is advancing. The EASA accredited the 
Directorate-General for Civil Aviation (DGCA) in the field of aircraft maintenance. However, 
its implementation capacity in these technical areas is lagging behind . Preparations for a 
single European sky are at an early stage.  
EN 56   EN Air traffic management is suffering from a lack of regional cooperation. The lack of 
communications between air traffic control centres  in Turkey and the Republic of Cyprus is 
seriously compromising air safety in th e Nicosia flight information region.  
As regards maritime transport , alignment in the area of safety is well advanced. Secondary 
legislation on roll-on/roll-off passenger ship s and high-speed craft has been published. The 
regulation on seafarers has been amended on the 7th of July 2008 in a ccordance with the 
provisions of the I/8 and Code A-I/ 8 section of the STCW-95 Convention.  Preparations for 
improvement of the institutional capacity to  prevent pollution from ships, along with 
emergency response capacity, have not yet been launched. 
The rules on cabotage and ship regi stration are not in line with the acquis . Turkey has not yet 
become a signatory to SOLAS-78, SOLAS-88 a nd Mar-Pol Annexes III and IV. Turkey is on 
the grey list of the Paris memorandum of unders tanding. The detention rate of Turkish vessels 
in 20078  improved to 6,12 %, compared with an EU average of 3,08 %. 
No particular development in the area of combined transport  and satellite navigation  can be 
reported. 
“Transport policy” is one of the eight chapters  covered by the conclusions on Turkey adopted 
by the Council (General Affairs and External  Relations) on 11 December 2006 and endorsed 
by the European Council on 14/15 December 2006. As long as restrictions remain in place on the free movement of goods carried  by vessels and aircra ft registered in C yprus or where the 
last port of call was Cyprus, Turkey will not be in a position fully to implement the acquis  
relating to this chapter.  
No progress has been made on state aid . There is no establis hed institution or legal 
framework in Turkey to regulate State aid. 
Conclusion 
Turkey has made limited progress on transport. In  the area of road transport, alignment is 
advanced. However, the implementation capacity  is lagging behind and continued efforts are 
required to ensure due enforcement of road safet y. Little progress can be reported in the rail 
sector. Progress in the maritime sector is uneven. The institutional capacity for prevention of pollution and emergency response is insuffici ent. There has been limited progress on air 
transport. The lack of communications between air traffic control centres in Turkey and the 
Republic of Cyprus is seriously compromising air safety. In both the air and maritime sectors, 
no progress has been made on becoming a party to international conventions. 
4.15. Chapter 15: Energy 
Regarding  security of supply, limited  progress has been made. A legislative package with the 
aim of strengthening security of supply and sp eeding up investment in energy infrastructure 
was adopted. Under the new law, the State ma y, when necessary, engage in electricity 
generation in addition to the private sector . No developments were reported regarding 
approximation of the methods of calculating oil stocks with the EU method. The natural gas 
pipeline between Turkey and Greece is now in operation.  
Some progress can be reported on the internal energy market . The eligible consumers limit 
was lowered to 1.2 GWh which is equivalent to market opening of approximately 41%. A 
cost-based pricing mechanism came into force by July 2008. This mechanism enables State 
EN 57   EN economic enterprises (SEEs) operating in the fi eld of energy to reflect changes in their 
production/input costs in their sales prices. The m echanism is expected to contribute to better 
and sustainable pricing on energy markets and to help to improve the financial position of the 
SEEs concerned. However, cross-subsidies persis t in the electricity sector and non-cost items 
like TRT share remain part of electricity bills.  The privatisation proces s of four electricity 
distribution regions has been completed. The privatisation high counc il and Energy Market 
Regulatory Authority have  not yet approved the processes. The percen tage of their annual 
electricity generation that auto-producers are allo wed to sell on the electricity market has been 
increased to 50% from 30%. By the end of  2007, 48.3% of electricity was generated by 
SEEs. Electricity theft and loss was reduced to 15%, but remains almost twice the EU average. 
There has been very limited progress as regard s the natural gas market. By the end of May 
2008, the distribution tender process was complete d for 55 regions. A total of 40 cities have 
started to use natural gas. The Ankara natura l gas distribution company has been privatised. 
An amendment to the natural gas market law allows the state pipeline operator BOTAS to 
import LNG from spot markets. Also, the natu ral gas licensing regulation was amended in a 
way to facilitate LNG imports. No developments have been obs erved in transfer of BOTAS’s 
contracts to the private sector. BOTAS still im ports 86.6% of the consumption in Turkey. The 
Natural Gas Market Law requires BOTAS to transf er purchase or sale contracts to the private 
sector until its aggregate annual imports fall  to 20% of annual national consumption by 2009. 
Competition remains limited on both the electricity  and the natural gas markets. To improve 
operation of the markets and establish competitio n, the regulatory authority needs to exercise 
its powers in a more assertive manner. 
No progress can be reported concerning state aid . 
In the case of energy efficiency,  some progress can be reported. Following adoption of the 
Framework Law last year, an implementing regul ation covering the tran sport sector has now 
been adopted. A prime ministerial circular ha s declared 2008 the year of energy efficiency 
and the government has drawn up an action pl an on “energy efficiency movement”. The 
administrative capacity of the Directorate-Gene ral for Electrical Power Resources Survey and 
Development needs to be enhanc ed in order to make it more effective in this field. No 
national targets have been set for energy efficiency and renewable energy . The amendments 
to the Renewable Energy Law introduced a dditional incentives. The Energy Market 
Regulatory Authority issued the criteria to be  applicable to renewa ble energy generation 
facilities for their connection to the grid. Following adoption of the Framework Law on 
geothermal energy, the implementing regulation on principles and procedures for exploration, 
operation and licensing of geotherm al resources, natural mineral waters and geothermal-based 
gases was adopted. 
As regards nuclear energy and radiation protection , a Framework Law on establishment 
and operation of nuclear power pl ants and energy sales has been  adopted. This marks a major 
change in Turkey’s energy policy. The Tu rkish Electricity Trade Company (TETAS) 
launched the tender for construction and operation  of a nuclear power pl ant in Mersin Akkuyu 
and announced the call for proposals. For the tender  of Turkey's first pow er plant only one bid 
was submitted and the evaluation process has started by end of September. The implementing regulation on competition and contracting principl es and procedures within the scope of the 
Framework Law was also adopted. Turkey needs to fully implement the requirements of the 
Convention on nuclear safety, in  particular those related to  siting and to regulator's 
EN 58   EN independence, and that the exis ting legislative framework in th e field of nuclear safety and 
radiation protection is completed, implemented  and monitored. Management of institutional 
radioactive waste needs to be brought into line with international recommendations, basic 
safety standards and best EU practice. Turkey has not acceded to the Joint Convention on the safety of spent fuel management and radioactive waste management. 
Conclusion 
There has been some, but uneven, progress in th e area of energy. Severa l years after adoption 
of the Framework Laws on the electricity a nd natural gas markets, competition remains 
limited and transparent and cost-based pricing has yet to be achieved. National targets for 
energy efficiency and renewable energy have yet to be set.  
4.16. Chapter 16: Taxation 
There has been little progress on indirect taxation . Turkey’s value-added tax legislation is 
partially aligned with the acquis . Further alignment of the st ructure, exemptions, special 
schemes and application of reduced rates is needed.  
As regards excise  duties, the minimum levels on tob acco products have been increased. 
However, discrepancies between the Turkish legislation and the acquis  on the structure of 
excise duty on tobacco and tobacco produc ts remain unchanged. Turkey applies ad valorem  
rates and has no element of specific excise dut ies. The Tobacco Fund remains discriminatory. 
It sets a special duty on imported tobacco an d cigarettes only, which is not applied to 
domestic products. Turkey has not introduced any duty-suspension arrangement for domestic 
movements and fiscal warehouses. 
Alcoholic beverages are taxed on the basis of an ad valorem  duty, supplemented by a specific 
duty if the former is lower than the minimum amount. The specific duty levels are differentiated on the basis of the type of product, instead of alcohol content. The levels set are 
higher for imported products than for comparab le domestic products. This discriminatory 
effect is not in line with the acquis , the Customs Union or WTO rules. The need to abolish 
discriminatory taxation practices is the key to further progress in the accession negotiations on 
this chapter. 
There has been some progress on direct taxation . Turkey amended the Personal Income Tax 
Law to comply with the revised Corporate Ta x Law. This amendment and adoption of the 
implementing legislation for domains such as tr ansfer pricing are positive developments for 
addressing harmful tax practices and for respecti ng the principles of the code of conduct for 
business taxation. Turkey will need to avoid introducing any measures contradicting the 
principles of the Code of Conduct for business taxation.  
Some progress can be re ported in the field of administrative cooperation and mutual 
assistance . The semi-autonomous revenue administration and recently established 
Directorate-General for Revenue Policy cont inued improving their ad ministrative capacity. 
The revenue administration published its second tri-annual strategic pl an with performance 
indicators. 
Turkey has made some  progress as regards operational capacity and computerisation . All 
provincial tax offices have been computerised . The large taxpayer unit is fully operational. 
Taxpayers file 99% of their ta x returns electronically. Improveme nts in taxpayer services to 
encourage voluntary compliance are continuing, with the esta blishment of the taxpayer 
EN 59   EN services unit, taxpayer call cen tre and taxpayer services cent re. The revenue administration 
has developed an electronic tax database and risk-analysis system. The banderol tracking 
system on tobacco and alcoholi c products is fully operational.  Turkey’s tax revenue has 
increased, but measures for reducing the informal economy still need to be reinforced. 
Conclusion 
There has been little progres s towards improving Turkey’s legislative alignment in this 
chapter. However, discriminatory taxation of alcoholic and tob acco products persists. 
Modernisation of the Tax Administration has c ontinued, leading to improved service to the 
taxpayer and increase in revenue. 
4.17. Chapter 17: Economic and monetary policy 
There has been little progress in the area of monetary policy . The Capital Markets Board 
abolished the requirement whereby private pens ion funds must invest a minimum percentage 
of the premiums they collect in Turkish government  debt instruments. In the area of monetary 
policy, Turkey is not yet su fficiently aligned with the acquis . The government and the Central 
Bank of Turkey set the inflation target jointl y. The Central Bank sets limits for credit card 
interest rates. The Central Bank started the proc ess for the re-introduction of the Turkish Lira 
(TRL) leading to the replacement of  the New Turkish Lira as of 1st January 2009. The Central 
Bank’s statute has to be revised in order to ensure full independence of the Bank. The 
Banking Law allows for the disbursement of advance payments to the Savings Deposits 
Insurance Fund from the Central Bank. This provi sion is not in line with the prohibition of 
monetary financing of the public sector. As fo r the prohibition of privileged access by the 
public sector to financial markets, there ar e several provisions requiring the purchase of 
public securities. 
Some progress has been made in the area of economic policy . The government adopted an 
action plan for 2008 – 2012. The authorities comp leted some key legislative steps, in 
particular by adopting the social security law, the law on incentives for research and 
development, and an employment package to  improve labour market conditions. Turkey 
submitted a Pre-Accession Economic Programme (PEP) to the Commission. The authorities 
published a Medium-Term Fiscal Framework (MTFF) for 2008 – 2012, which sets medium-
term public debt and budget deficit targets afte r the expiry of IMF stand-by arrangement in 
May.  
Formulation and implementation of economic polic y remained fragmented, despite efforts to 
improve co-ordination activities.  
Conclusion 
Some progress can be reported in the area of  economic and monetary policy. Economic policy 
formulation and implementation remained fragme nted. Little progress has been made in the 
field of monetary policy. Several shortcomings  still exist, in particular regarding full 
independence of the central bank, the prohibition of monetary fi nancing of the public sector 
and the prohibition of privileged access of the public sector to financial markets. 
4.18. Chapter 18: Statistics 
Some progress has been made in statistical infrastructure . The Official Statistics 
Programme for 2007-2011 was updated. The programme  defines standards, data compilation 
EN 60   EN methodologies and publication schedules for all official statistics providers. The Turkish 
statistical institute (Turkstat) made some progress in strengthening its coordinating role. 
Cooperation with main data providers should be  further improved. Main data providers should 
improve their administrative capacity, including language skills. 
Some progress has been made in classifications and registers . Turkish translations of major 
EU statistical classifications are available for use by all official sta tistics providers. Progress 
in setting up the business register and farm register systems remained very limited. There is an urgent need to further improve the admini strative registers held by the Ministry of 
Agriculture. Further efforts are needed to fina lise the establishment of a business register 
system. 
Significant progress ha s been made in sector statistics . In the area of demographic and social 
statistics , Turkey completed for the first time an a ddress-based population registration system 
for the 2007 populat ion census. In macro-economic statistics , which is a key area for the 
accession negotiations in this chapter, Turkey  completed a major revision of its national 
accounts, which largely aligned them with th e European System of Accounts, ESA 95. In 
agriculture statistics , another key element for the chapte r on statistics, limited progress was 
made. Pilot surveys on vineyards, pesticide us e and fruit were conducted. Preparations are 
underway to improve statistics on crop, lives tock and meat production, as well as milk 
production and dairy statistics. Efforts need to be steppe d up in both these areas. In social 
protection statistics , the survey on income and living conditions has been completed. As for 
labour statistics , progress has been made in structur e of earnings and labour costs. In 
education statistics , the adult education survey has been  completed. Progress can be noted on 
structural business statistics  and short-term statistics . As regards tourism statistics , field 
studies for the household domestic tourism survey have been completed. As regards environmental statistics , progress has been made in statisti cs on municipal water, wastewater, 
and environmental expenditure.  
Conclusion 
There has been good progress in the area of sta tistics. The administrative capacity improved. 
Turkey revised its national accounts and finalis ed the 2007 population census through the new 
address-based population registratio n system. Further progress is in  particular needed in the 
key areas of agricultural and macroeconomic st atistics as well as in the field of business 
registers. Cooperation with other data providers and the coordinati ng role of Turkstat have to 
be further strengthened.  
4.19. Chapter 19: Social policy and employment 
There is no progress to report in the area of labour law . Shortcomings in the transposition of 
a number of directives remain; these include the limited scope of appl ication of the labour 
law. Administrative capacity of the Ministry of  Labour and Social Secu rity and its affiliated 
institutions is not yet sufficiently devel oped. Child labour, including children working on the 
streets, remains a problem. Shortcomings in the legislation with regard  to child labour still 
persist, as outlined in the Turkey 2007 Progress Re port. Turkey needs to continue its efforts to 
combat child labour ( See also the section on Economic and Social Rights ). In the area of 
labour law, Turkey is not yet sufficiently prepared.  
There has been some progress in the area of health and safety at work,  where Turkey has 
attained a good degree of alignment with the acquis . The Labour Law was revised to prohibit 
EN 61   EN workers without the relevant vo cational training qualif ications from being employed in heavy 
and risky work. The implementing regulation on h ealth and safety measures on risks related to 
chemical agents was amended and came into force in March 2008. The Labour Inspection Board started harmonising its inspection prac tices and further improved its capacity. 
However, major shortcomings remain. In partic ular, legislation to transpose the Framework 
Directive has not yet been adopted. Existing le gislation does not cover all workers in the 
private sector and excludes workers in the public sector. Statistics reveal that there has been a 
significant increase in fatal occupational accidents  and diseases in particular in the Tuzla 
shipyards. Further efforts to implement th e legislation are needed including through 
awareness-raising, training and strengthen ing the capacity of the inspection bodies. 
Preparations in this field have started. 
As regards social dialogue , there has been limited progress.  Tripartite social dialogue 
meetings were more frequent in the reportin g period; however, the Economic and Social 
Council does not meet regularly as required by the law. There has also been some progress 
regarding bipartite social dial ogue in certain sectors; however , establishing autonomous and 
bipartite social dialogue structur es at all levels is still outstanding, and the number of workers 
covered by collective agreemen ts is still low. Full trade union rights have not yet been 
established in Turkey. The draft legislation aime d at bringing the currently applicable Trade 
Union and Collective Bargaining, Strike and Lockout Laws into line with ILO and EU 
standards is still pending( see also the section on Economic and Social Rights ). In the area of 
social dialogue Turkey is not yet sufficiently prepared. 
There has been progress in the area of employment policy . An Employment Package was 
adopted in May 2008 aiming to address unempl oyment challenges, with a specific focus on 
the promotion of job opportunities for women, young people and people with disabilities. For 
instance, the amendments stipulate, among other things, that the employe rs' share of social 
security premiums for newly hired wome n employees are to be covered by the 
Unemployment Insurance Fund for a five-year peri od, starting with 100% in the first year and 
ending with 20% in the fifth. Unemployed pers ons registered with the Turkish Employment 
Agency (I ŞKUR) will benefit from job matching, gui dance and vocational training, to be 
funded by the Unemployment Insurance Fund. I ŞKUR continued its efforts to improve its 
institutional capacity and the serv ices provided to job seekers. Turkey also declared 2008 as 
the year for combating undeclared work. 
However, problems remain. In 2007, the unemployment rate remained stable at 9.9 %, but the 
overall employment rate – at  43.1% – again decreased slight ly compared to 2006. The labour 
market is characterised by low labour fo rce participation ( 47.8% in 2007) and low 
employment rates, in partic ular for women (22.2% in 20 07), and high levels of youth 
unemployment (19.6% in 2007). The la rge size of the informal economy  (a little under half of 
those in employment are not registered with any social security institution) and the marked 
rural/urban divide in the labour market remain  the main challenges. No further progress was 
made in finalising the Joint Assessment Pa per on Employment Policy Priorities (JAP): no 
agreement has yet been reached on how to address the employment issues affecting vulnerable groups. In the area of employment, Turkey is not yet sufficiently prepared. 
Good progress can be reported on  the preparations for the European Social Fund
 (ESF) 
through the implementation of the component  on Human Resources Development of the 
Instrument for Pre-Accession Assistance (IPA ). In December 2007, th e Commission adopted 
the Human Resources Development Operational Pr ogramme. Its aim is to support activities in 
the areas of employment, education and training, and social inclusion. The Ministry of Labour 
EN 62   EN and Social Security has established the internal  structures necessary for the management of 
the Operational Programme, staff have been as signed and staff training  has been provided. 
The Turkish authorities have accredited the ma nagement and control system for implementing 
IPA on a decentralised basis and have requested  the conferral of management powers. To 
mobilise stakeholders, awareness raising events were organised. However, administrative structures and legislation are not yet sufficien tly adapted in order to build up adequate 
institutional capacity for the future mana gement, implementation, monitoring, audit and 
control of ESF-type measures. Prep arations in this area are starting. 
There has been limited pr ogress in the field of social inclusion . The Social Insurance and 
General Health Insurance Law entered into fo rce in October 2008. It pr ovides general health 
insurance coverage for everyone under 18 years of age. This includes foreign nationals who 
have resided in Turkey for more than a year and who do not have soci al insurance in their 
home countries. The health premiums of those who cannot afford to pay are to be covered by 
the State. As part of the Employment Package, social security premiums for the disabled will 
be covered by the State to promote the employme nt of people with disabilities. However, a 
high incidence of poverty persis ts in rural areas as well as  among employed people (working 
poor) and children. No further progress was made  in finalising the JI M (Joint Inclusion 
Memorandum): no agreement has yet been reach ed on how to address issues of social 
inclusion of vulnerable groups. Sound mechanis ms are still outstanding for monitoring 
poverty and social inclusion, as we ll as the implementation of soci al inclusion policies, so as 
to measure progress. Preparations in  this area are at an early stage. 
In the field of social protection , some progress has been achieve d. The most significant pillar 
of the social security reform, the Social Insu rance and General Health Insurance Law, entered 
into force in October 2008. Its aim is to regul ate, among others, the pension parameters and 
the general health insurance system with a view to ensu ring adequate and sustainable 
pensions. The Social Security Institution ha s been strengthening its capacity to deliver 
decentralised one-stop services for disadvantaged people. However, there has been no 
development as regards new legislation on social assistance and services. Preparations in this 
area have started. 
As regards anti-discrimination and equal opportunities , limited progress was achieved. 
Women's employment rates and access to educ ation are the lowest among the EU Member 
States and the OECD countries. Important general principles and definitions, such as the definition of direct and indi rect discrimination, are lacking in national law. The acquis  
concerning discrimination on grounds of racial or ethnic origin, religion or belief, disability, 
age and sexual orientation has not yet been transposed. An effec tive and independent 
"Equality Body" still needs to  be established to promote non-discrimination and equal 
treatment ( see also Section on Econ omic and Social Rights ). Preparations in the field of anti-
discrimination are at an early stage. 
Conclusion  
Overall, Turkey has made some progress in the field of social policy and employment through 
the adoption of the Employment Package an d the Law on Social Insurance and General 
Health Insurance. However, ensuring full tr ade union rights and comb ating undeclared work 
require particular attention. Furt her efforts are also needed in order to combat child labour as 
well as to update and finalise the JAP and JI M documents. Gender equality in economic and 
social life as well as policies to support social inclusion should be improved. In view of ESF 
preparations, there is a need to step up the pr eparations for effective implementation of the 
EN 63   EN Human Resources Development component of IPA. In general, there is a need to increase 
administrative capacity for the effective implementation of the acquis . 
4.20. Chapter 20: Enterprise and industrial policy 
Turkey made further progress with regard to enterprise  and industrial policy principles . 
The revised SME Strategy and SME Action Pl an covering the period 2007-2009, which were 
published in November 2007, are la rgely in line with EU polic y principles, including the 
Lisbon strategy. The Ministry of Industry an d Trade published invest ment programmes for 
small industrial estates and orga nised industrial zones. Both pr ogrammes included, as criteria 
for the selection of projects, the ability to facilitate or contribute to the policies and priorities set for EU accession. The Coordination Council for the Improvement of Investment Environment (YOIKK) adopted a new action plan which consists of a long list of actions 
drawn up by 12 technical committees. Turkey has ma de preparations for the establishment of 
a revised industrial strategy; however, no industrial strategy document has yet been issued. 
Turkey does not have sufficient mechanisms for the monitoring and evaluation of existing 
policy strategies and action plans. 
There was further progress in improving the bu siness environment. Improvements include 
better systems for paying taxes and trading acro ss borders; a cut in corporate income tax; 
introduction of electronic customs procedures; legislative amendments regarding the setting-
up of business and working li cences; a new Law on Resear ch and Development which 
includes tax reductions on R&D and incentive schemes. 
Some progress was made with respect to enterprise and industrial policy instruments . A 
new decision was issued on financial suppor t extended by the Small and Medium-sized 
Industry Development Organisa tion (KOSGEB) by increasing the upper limit for loans, 
extending the maturity date and allowing all do mestic and foreign banks to take part in 
KOSGEB’s lending schemes, based on protocols to be signed with this  institution. Turkey 
officially joined the Competitiveness and Innovation Programme CIP in 2008. The decision 
by the Turkish authorities on ratifying the Me morandum of Understanding is still pending. 
This is preventing the signing of project cont racts and the start of operations. No further 
progress has been made with regard to comp leting alignment with EC Directive 2000/35 on 
combating late payment in commercial transactions. 
Some progress has been made in sector policies . Turkey has reviewed the national 
restructuring programme concerni ng both the state aid aspects and the market analysis and 
forecast of the Turkish steel industry The Mini stry of Industry and Trade published a strategy 
for textile, clothing and leather sectors, which aims at improving the competitiveness of these sectors and managing their transformation process.  Turkey continued its privatisation efforts 
in the reporting period. The tota l volume of privatisation reve nue achieved between July 2007 
and May 2008 was € 4.93 billion,  which corresponds to 1% of GDP in 2007, as compared to 
1.5% in 2006. 
Conclusion 
Turkey has made some further progress in this chapter. This relates to the adoption of a new 
SME Strategy and Action Plan, improvements in  the business environment and continuing 
high foreign direct investment inflows in 2007. There is not a sufficient monitoring and 
evaluation mechanism in place to  assess progress on various policy action plans and strategy 
EN 64   EN documents. Turkey has not adopted a revised comprehensive industrial strategy. Turkey has 
achieved a reasonable alignment with the acquis  in this chapter. 
4.21. Chapter 21: Trans-European networks 
Turkey is advancing in the area of transport networks  and made further progress during the 
reporting period. The Transport Infrastructure N eeds Assessment (TINA) has been finalised 
and will provide an agreed basis for the futu re definition and development of the TEN-T in 
Turkey. Projects preparation is ongoing. However, there is a need for a more reliable system 
of classified transport data. 
In the area of energy networks , the European Community is supporting preparations for 
projects aimed to strengthen a competitive electr icity and gas market in the EU, as well as to 
improve its security of supply. The Nabucco natural gas pipeline project from the Caspian and 
Central Asian region to Europe via Turkey is among the highest priority projects of the EU. 
The Turkish authorities have repeatedly confir med their commitment to the realisation of the 
project. Relevant planning and design are being pr epared and are expected to be finalised in 
early 2010. The partner countries in the pr oject are working on an inter-governmental 
agreement with the aim of bringing the pipelin e into operation as early as possible. The 
Turkey-Greece pipeline became operational, w ith a transport capacity of 750 million cubic 
metres annually. Technical preparations to bring the Turkey-Greec e-Italy Interconnector 
natural gas pipeline into  operation are continuing. 
As regards electricity networks, links are in  place with Bulgaria, Syria, Iraq, Iran and 
Azerbaijan, Iran and Georgia. Further interc onnections with the European Power Network 
UCTE (Union for the Co-ordination of Transmissi on of Electricity) ar e encouraged. Turkey 
gives priority to a number of projects which c ontribute to the completion of priority axes No.4 
(Greece-Balkan Countries UCTE system) and N o.9 (Mediterranean Electricity Ring) of the 
"EU Projects of European Interest". In June 2008, the construction of the Babaeski (Turkey) – 
Filippi (Greece) line has been completed and will allow electricity transfer between both 
countries.  
No progress can be reported in the area of telecommunication networks. Preparations in this 
area are at an early stage. 
Conclusion 
Turkey made some progress in the area of tr ans-European networks. Preparations for the 
Nabucco natural gas pipeline have started. 
4.22. Chapter 22: Regional policy and coor dination of structural instruments 
As regards the  legislative framework  Turkey made progress, with the law on Development 
Agencies (DA) coming into force in Novemb er 2007. This followed the publication of the 
decision and justification by the Constitutiona l Court on a lawsuit for the suspension of 
implementation and the cancellatio n of certain articles of th e said Law. While annulling 
provisions of the DA law on staff appointment  and tax exemption, the Constitutional Court 
decision does allow the full operation of two existing Development Agencies (in Izmir and Adana) and the establishment of new ones. The Constitutional Court ruling and its justification will be implemented by the Council of Stat e. Regarding IPA, the Competent 
Accrediting Officer and the A udit Authority were designated  in November 2007, and the IPA 
EN 65   EN Framework Agreement with Turkey was signe d in July 2008 and remains to be ratified. 
Preparations in this ar ea are advancing slowly. 
As regards the  institutional framework , some limited progress was made. The State 
Planning Organisation started to play a coordinating role in re gional policy in the context of 
the new instrument for pre-accession (IPA), th e pre-cursor of the Structural and Cohesion 
Funds. Operating Structures-OS (future managing authorities) have b een designated for the 
three operational programmes (OP)  of component III – Regional Development of IPA and for 
the Human Resources Development operationa l programme under component IV. During a 
transition period until 2010, the Central Financin g and Contracts Unit (CFCU) will be used as 
the implementing agency for the tendering, contracting, payment, accounting and financial reporting aspects under components III and IV. A Cooperation Agreement was prepared in 
2007 in order to set out the divi sion of tasks between the OS and the CFCU. So far, no formal 
mechanism, such as an inter-ministerial committee for regional development, has been established for the coordination function. Prepar ations for decentralised management of IPA 
funds under the regional development and human resources development components have been significantly delayed. One year after the adoption of th e programmes by the Turkish 
authorities their implementation has not started. Turkey has not yet initiated preparations for 
implementation systems for the future Structur al and Cohesion Funds. Preparations in this 
area are slowly advancing. 
There has been limited progress on administrative capacity . The training and technical 
assistance provided and on-goi ng through EU assistance fo r the preparation of the 
implementation of operational programmes under IP A is essentially confined to the central 
level, where some capacity has been built up in the ministries that were designated as 
operating structures. Administrative capacity at regional level continues to be weak; reasons 
for this include the suspension of the DA law a nd the failure to establish regional structures. 
Involvement of local/regional ad ministrations and stakeholders in programme implementation 
remains very limited. Preparations in  this area are slowly advancing. 
As regards  programming , good progress was made. The St ate Planning Organisation has 
prepared the Strategic Cohere nce Framework (SCF) which sets  out Turkey’s strategy for 
implementing components III and IV of IPA ov er the period 2007-2013, in response to the 
Commission’s multi-annual indicative programme  (MIPD). The SCF has been submitted to 
the Commission and four operational programmes (OPs) to implement the strategy - which concern environment, transport and regional competitiveness for component III and human resources development for component IV - we re prepared by the respective ministries 
(environment, transport and i ndustry and trade for component III and labour for component 
IV). OPs were submitted to and approved by the Commission in November and December 2007. Necessary preparatory work on the project pi peline, in particular for the OP on regional 
competitiveness, remains limited. Preparati ons in this area are slowly advancing. 
Progress was made in the monitoring and evaluation  of the operational programmes. 
Operating structures have set up sectoral monitoring committees (SMC) to monitor the 
implementation of OPs. The first two SMC mee tings for each OP were held in November 
2007 and June 2008. The membership and rules of procedure of the SMCs have been agreed 
with the Commission. The first meeting of the (all components) joint IPA committee was held 
in July 2008. Each Operating Structure ha s set up "programme coordination and 
implementation centres" to carry out the actu al implementation of each programme. These 
"centres" will also be responsible  for evaluating the programmes. Preparations in this area are 
slowly advancing. 
EN 66   EN Some progress can be re ported in the area of financial management and control (see 
chapter 32 – Financial control ), with the establishment of relevant systems and procedures 
under IPA components III and IV.  Turkey has not started preparations for financial 
management and control systems for the future Structural and Cohesion Funds. . Preparations 
in this area are slowly advancing. 
Conclusion 
Progress can be reported in adapting the legal framework, in setting up implementation 
structures for implementing IPA components III and IV, and in adopting four operational 
programmes. Further improvement is needed as  regards administrative capacity at central 
level in order for designated mi nistries to be able to take over all functions of the operating 
structures efficiently. At regional level, structur es and administrative capacity need to be built 
up. Ownership and accountability need improvement, including examination of the distribution of responsibilities be tween ministries at both centr al and regional levels and 
stronger involvement of local/regional administ rations and stakeholders. Overall, Turkey's 
alignment with the acquis in this  chapter is not very advanced. 
4.23. Chapter 23: Judiciary and fundamental rights 
There has been some progress on the judiciary. 
As regards the independence  of the judiciary, the selection pr ocedure laid down in the Law on 
judges and prosecutors was amended in Decem ber 2007. These amendments transferred into 
law the provisions of the relevant June 2007 re gulation of the Ministry of Justice. They 
include specific selection criteria and a tran sparent scoring system and are, therefore, 
considered an improvement. However, critic ism has been voiced by bar associations and 
academics that the new selection criteria are open to subjective in terpretation. Two opposition 
parties applied to the Constitutional Court for annulment of certain provisions of the new 
legislation. 
As a result of the November 2007 examinations , the Justice Academy recruited 387 candidate 
judges and prosecutors. Another 397 were recr uited following the March 2008 examinations. 
Three more examinations were planned in 20 08. However, in response  to an appeal by 
YARSAV
27 in March 2008, the Council of State susp ended the recruitment of a number of 
candidate judges and prosecutors . The Council of State decided that the assessment protocol 
signed between the Ministry of Justice and the Student Selection and Placement Centre 
outlining the procedure for the examination does not  comply with the legislation in force. The 
Council of State is due to issue its final decision on the case. 
There has been no progress on the composition of the High Council of Judges and 
Prosecutors28 or on the reporting lines  of judicial inspectors29. 
                                                 
27 YARSAV is an association of judges and prosecutors. 
28 The composition of the High Council is not representative of the judiciary as a whole; only senior 
members of the judiciary from th e Court of Cassation and the Council of State are members of this 
Council. 
29 The judicial inspectors, who are responsible for evaluating the performance of judges and prosecutors, 
are attached to the ministry rather than to the High Council. 
EN 67   EN Concerns remain about the impartiality of the judiciary . On occasions, senior members of the 
judiciary or high courts made pub lic comments which sparked a debate in the country that the 
judiciary was going beyond its remit and taking positions on political issues. 
In relation to the professionalism and competence of the judiciary, the Mi nistry of Justice and 
the Judicial Academy continued to provide trai ning for judges, prosecutors and prison staff. 
This covered issues such as the fight against organised crime, women's rights and, in general, 
the fundamental rights guarant eed by the ECHR and the case la w of the ECtHR. However, the 
Justice Academy still has not developed into a strong and independent training provider for 
the entire magistracy, including at  regional level. Repr esentatives of civil society have pointed 
out the need to provide training not only on subs tantive legal issues but  also on issues of 
procedural justice. 
As regards the efficiency of the judiciary, judges and lawyer s have reported positive results 
from the national judicial ne twork project (UYAP) on court pr oceedings. Software has been 
developed for use by the provincia l probation units in their daily work. UYAP has been made 
available to the national security police so th at it can conduct research on persons for whom 
an arrest warrant has been issued. Lawyers are also reportedly using the system increasingly 
following integration of their porta l into the network in March 2007. 
In 2007 a total of 846 judges and prosecutors were  appointed. The total number of judges and 
prosecutors on 1 May 2008 was 6 914 (6 785 on  1 May 2007) and 3 917 (3 744 on 1 May 
2007) respectively. On the same date (1 Ma y 2008) the total number of vacant posts for 
judges and prosecutors was 4 166. The funds av ailable to the judici ary in 2007 totalled € 
865 million. This covers salaries and social security payments for all members of the 
judiciary, plus services a nd real estate acquisition. 
However, there have been no developments on establishment of the regional courts of appeal. 
This is a matter of concern. U nder the law, these should have  been operational by June 2007. 
In addition, provisions introduced under the Crimin al Procedure Code, such as return of the 
indictment, mediation and cross-examination, ha ve not been used sufficiently in practice. 
There have been some developments in the area of judicial reform . In spring 2008, the 
Ministry of Justice pu t a draft strategy on its website. Th is comprehensive document covers 
issues related to the independence, impartiality, efficiency and effectiveness of the judiciary, 
enhancement of its professionalism, the management system and measures to enhance confidence in the judiciary, to facilitate acces s to justice and to improve the penitentiary 
system. A meeting took place in Antalya, from 20 to 25 May, with judges and prosecutors to discuss all aspects of the draft strategy. Further and wider consu ltations with all stakeholders, 
including civil society, and efforts to bu ild the necessary confidence are needed for 
sustainable development and impl ementation of judicial reform. 
Limited progress can be reported on anti-corruption . Turkey has implemented one third of 
the recommendations made in GRECO's 2005 join t first and second ro und evaluation report. 
The Ministerial Committee for enhancing tr ansparency and impr oving good governance is 
continuing to monitor anti-corruption measures. Corruption incidents, involving in particular 
real estate agencies, local government and univers ities, were frequently reported by the media. 
As a result, law enforcement agencies have conducted a series of high-profile corruption 
investigations in various agencies. 
EN 68   EN As regards Members of Parliament and political parties, there is no legislation in place on 
election campaign financing. There has been no development on limiting the broad scope of 
parliamentary immunity. The European Court of Human Rights noted in a ruling that no 
objective criteria had been set to define the conditions under which i mmunity could be lifted. 
Financial relations between political parties and the media raise questions. The system of 
auditing political parties is not considered adequate.  
Ethical principles for Members of  Parliament and other groups of  public officials, such as 
academics, the military or the judiciary, are lackin g. Certain groups of public officials, such as 
academics, under-secretaries and governors, c ontinue to benefit from a system of 
administrative authorisation for corruption prosecution. 
Several of GRECO's most importa nt recommendations have not be en addressed, such as the 
recommendation to entrust a body involving civil so ciety with the responsibility of overseeing 
implementation of national anti-corruption st rategies and of proposing new strategies. 
No progress has been made regarding new le gislation on the Court of Auditors, nor on 
strengthening parliamentary ove rsight over public  expenditure. 
Concerning transparency in public  administration, increasing use has been made of the right 
of access to information. According to official  statistics, a total of 939 920 requests for 
information have been submitted by citizens. Public agencies responded positively to 93% of 
them. Both citizens' requests for information and the number of those requests public agencies responded to positively have increas ed since last year. However, in the assessment of the real 
impact of the relevant legislation account shou ld be taken of the fact that the system is 
relatively new and that the board of access to information does not check the reliability of 
these statistics. Another 554 cases  in which requests for inform ation were denied have been 
referred to the judiciary.  
Turkey has been criticised by the OECD for its record on implementation of the OECD anti-
bribery convention concerning the liability of legal persons, its inadequate awareness-raising 
activities and its  dismissal of investigation of fore ign bribery cases al legedly involving 
Turkish companies. 
Stronger coordination between the relevant government institutions is of key importance.  
As regards fundamental rights , there has been some legislative progress ( See also under 
political criteria ). 
There have been no developments on the institutions monitoring and promoting human rights, 
such as the Human Rights Presidency, which l ack independence and resources. The Law on 
the establishment of the ombudsman is still befo re the Constitutional Court following the veto 
by the President of the Republic in November  2006. The Constitutional Court ordered a stay 
of execution of the Law, but has yet to give its verdict. Finally, Turkey has given no firm 
commitment on participation in the Fundamental Rights Agency.  
As regards prohibition of torture and inhuman or  degrading treatment or punishment, the 
downward trend in allegations of torture and ill-treatment  in the anti-terror departments of 
police stations continued. The legal safeguard s introduced by the govern ment's zero tolerance 
policy on torture are having a positive effect . However, the number of appeals to NGOs 
concerning cases of torture and ill-treatment, in pa rticular outside official places of detention, 
has increased. . Pending ratifica tion of the Optional Protocol to the UN Convention against 
EN 69   EN torture, there is no independent national m echanism in place for monitoring places of 
detention. Furthermore, more effort s are needed to fight impunity. 
With regard to respect for private and family life and, in particular, the right to protection of 
personal data , Turkey needs to align its legi slation with the data protection acquis, in 
particular Directive 95/46/EC, and, in that context, to set up a fu lly independent data 
protection supervisory authority. Turkey also needs to ratify both the CoE Convention for the 
protection of individuals with re gard to automatic processing of personal data (CETS No 108) 
and the additional protocol to it on supervisory authorities and trans-bo rder data flow (CETS 
No 181). 
Progress has been made on freedom of thought, conscience and religion, in particular in the 
form of adoption of the Law on foundations. Impl ementation of this law and resolution of the 
outstanding property-related issues regarding non-Muslim minorities, together with intensification of the efforts to address the concerns of the Alevis, remain a challenge. Despite the progress made, a legal framework in line with  the ECHR has yet to be established, which 
would enable all religious comm unities to function without undue constraints. This needs to 
be accompanied by stronger efforts to implement the June 2007 circular from the Ministry of the Interior in order to create an environment conduc ive to full respect of this right in practice. 
Regarding  freedom of expression, including fr eedom and pluralism of the media , there has 
been some progress on strengthening the safegua rds for freedom of expression in Turkey. In 
April, Parliament adopted amendments to Arti cle 301 of the Criminal Code that, among other 
things, introduce a requirement for permission from the Ministry of Justice to launch a 
criminal investigation. However, the legal rest rictions on freedom of expression remain a 
cause for concern. Efforts need to be enhanced and consolidated with a view to ensuring full 
respect of freedom of expression,  in law and in practice, in lin e with the ECHR and the case 
law of the ECtHR.  
As regards freedom of assembly and asso ciation, including the right to form political parties 
and the right to establish trade unions, the legal framework for freedom of assembly is 
broadly in line with European  standards. However, banned demonstrations have sometimes 
resulted in use of excessive force against dem onstrators. The legal framework for freedom of 
association improved with the adoption of the amendments to the Law on foundations in 
February 2008. However, the obligations imposed by the Law on associations to notify the authorities before receiving financial support from  abroad and to provide detailed documents 
on such support continue to place a burden on associations. The Turkish Chief Public 
Prosecutor applied to the Constitutional Court to  close the ruling AKP and to ban members of 
the party (including President Gül and Prime Minister Erdo ğan) from membership of political 
parties for five years. The Constitutional Court dismissed the application for closure of the 
party on 30 July, as the necessary qualified majority for imposing a ban was not reached. However, the Court decided to impose a fina ncial sanction on the party on the grounds that 
some of its activities were considered in contravention of secularism. In the light of this case, the legal provisions on political parties need to be amended a nd brought into line with the 
case law of the ECtHR and best practice in EU  Member States, as outlined by the Council of 
Europe's Venice Commission. 
As regards treatment of socially vulnerable and di sabled persons and the principle of non-
discrimination , the State will pay social security pr emiums to promote employment of people 
with disabilities. As regards mental healt h, progress has been made on implementation of 
electro-convulsive ther apy in hospitals in line with human  and patients' rights. However, 
EN 70   EN people with disabilities do not be nefit from adequate public services. Lack of data and 
research are preventing informed policy- making. Community-based services are not 
sufficiently developed. Insufficient general medi cal care and treatment remains a problem in 
mental health hospitals and rehabilitation centres. 
Anti-discrimination is enshrined in the consti tution and upheld in several laws. However, 
there is no specific protection on grounds of sexu al orientation in Turkish law and provisions 
of the Turkish Criminal Code on "public exhibitionism" and "offences against public 
morality" are sometimes used to discriminate ag ainst the lesbian, gay, bisexual, transvestite 
and transgender (LGBTT) community. In May 2 008, an Istanbul court decided to close down 
an LGBTT organisation, as its statute was consid ered against general morality. An appeal has 
been lodged before the Council of State in th is case. Transsexuals and transvestites are 
occasionally subjected to physical assaults , including by the police. Homophobia has also 
resulted in cases of physical and sexual violence. These allega tions are not systematically 
followed up by prompt and effective investigation ( See also Chapter 19 – Social policy and 
employment ). 
With regard to the right to education , net primary school enrolment increased from 90% in 
the 2006/2007 school year to 97%  in 2007/2008. The gender gap in primary education was 
halved from 4.6% to 2.3% over the same pe riod. The Ministry of National Education has 
established an e-school databa se containing information on school attendance. This enables 
the ministry to identify children out of school and to try to ensure that they are enrolled or to 
provide catch-up education. In May 2008, the Education Board approved the catch-up 
education programme, which is designed to gi ve a second chance to ch ildren between 10 and 
14 years of age who either never enrolled or who dropped out. This is targeted mainly on 
working and Roma children. In addition, mob ile schools are trying to reach out to children 
working in agriculture. However, children out  of school remain a problem: the e-school 
database has revealed that approximately 450 000 children between 6 and 14 years of age are 
out of school. 
On right to property , adoption of the Law on foundations has been a welcome step forward. 
However, it does not address all the problems faced by the non-Muslim religious communities. Implementation of the law in lin e with the ECHR and the case law of the 
ECtHR will be crucial. The outst anding issues also need to be addressed. Finally, the quality 
of the dialogue between the authorities and th e communities concerned will be instrumental in 
creating an environment conduc ive to achieving progress. 
With regard to gender equality and women's rights , some progress has been made, in 
particular on combating honour killings and do mestic violence. Although the overall legal 
framework guaranteeing gender equality is in place,  further big efforts need to be made if the 
gap between men and women in economic pa rticipation and opportunity, educational 
attainment, access to healthcare, survival a nd political empowerment is to be closed. 
As regards the rights of the child , there has been progress on access to social services and the 
juvenile justice system. However, efforts need to continue in all areas related to children's 
rights. 
With regard to liberty and security and the right to a fair trial , reports indicate that in urban 
areas most detainees have access to a lawyer immediately after detention. In rural areas, 
however, in particular in the south-east of  the country, there have been cases where 
defendants have not had access to a lawyer on te rms equivalent to thos e in urban areas. In 
EN 71   EN courts, professional interpretation in language s other than Turkish remains an issue of 
concern. 
As regards minority rights and cultural rights , Turkey has made limited progress on ensuring 
respect for and protection of mi norities in accordance with European standards. Turkey has 
also made limited progress in the area of cu ltural rights. Significant further efforts are 
required, in particular on use of languages other than Turkish in broadcasting, in political life 
and when accessing public services. 
There have been no developments as regards EU citizens' rights.  
Conclusion 
As regards the judiciary , there has been some progress, in particular on establishment of a 
judicial reform strategy. However, concerns remain about the independence and impartiality 
of the judiciary. The reform strategy is expected to address these issues. 
Limited progress can be reported on anti-corruption . The government has continued to 
implement its initiatives. However, there is no legislation in pla ce that would guarantee 
transparency of election campaign financing. Th ere has been no progress on the immunity of 
Members of Parliament. Codes of ethics and/or  conduct for Members of Parliament and other 
groups of public officials are lacking and an an ti-corruption strategy an d action plan need to 
be developed and to receive the political support necessary for implementation. 
As regards fundamental rights , there has been some legislativ e progress, but vigorous further 
efforts need to be made to ensure full resp ect of the fundamental rights guaranteed by the 
ECHR and the case law of the ECtHR. 
4.24. Chapter 24: Justice, freedom and security 
Some progress can be reported on migration . The asylum and migration task force formed a 
high-level working group bringing  together agencies responsibl e for border tasks connected 
with irregular migration. It aims for clos er inter-agency cooperation by conducting common 
risk analyses. 
A total of 64 290 illegal migr ants were apprehended in 20 07 and 33,143 in the first seven 
months of 2008. Capacity to accommodate illegal  migrants has been increased from 1 512 to 
1 793.  
Turkey proposed a readmission agreement to Af ghanistan. A first roun d of negotiations on a 
readmission agreement with Pakistan was he ld. However, Turkey has not pursued the 
negotiations on a readmission agreement with  the European Community since December 
2006. 
Limited progress can be reported  on management of irregular migrants in Turkey. However, 
the detention and deportation procedures need to  be improved to ensure that the authorities 
systematically give written reasons for such decisions in a language the persons concerned 
can understand. It should be possible to submit detention and removal d ecisions to a senior 
administrative, and possibly also  judicial, review. The duration of detention should be limited 
by law or – at least in cases of prol onged detention – regularly reviewed. 
EN 72   EN The material conditions of detention of appreh ended irregular migrants during detention need 
to be improved. Facilities could be improved to ensure that detainees ar e segregated not only 
by gender but also by age and criminal record. Fa mily members should have the possibility to 
stay together. 
Access for detained irregular migrants to free legal aid, to asylum procedures, to interpretation 
services, to psychological and medical assi stance and to educational and recreational 
activities, along with the po ssibility of accommodating unaccompanied minors in reception 
facilities outside detention centres, needs to be further developed, including by closer 
cooperation between the national and international organisations  specialising in delivering 
these services and the authoritie s managing detention facilities. 
No specific training or training cu rricula exist for staff working in  the migration area. There is 
no compatible data system on migration. 
Arbitrary cases of refoulement, alt hough not numerous, remain a high concern. 
In the area of asylum, limited progress has been made.  Turkey continues to impose its 
geographical limitation on the 1951 Convention rela ting to the status of  refugees and the 
related 1967 Protocol. The Minist ry of Interior continued to work with the UNHCR to train 
officials in preparation fo r decentralisation of decisi on-making. The department for 
foreigners, borders and asylum in the Turkish National Police has started to prepare to take 
over the country of origin information system . Extensive work is underway to improve 
administrative capacity and streamline asylum pro cedures. The Ministry of Interior has also 
initiated the internal administrative procedures to set up an asylum ma nagement unit, as the 
first step towards a dedicated authority able to  manage both reception and integration issues.  
In 2007, 5 846 requests for asylum were made , a 65% increase comp ared to 2006 (3 541 
applications). In the first ei ght months of 2008 another 2 364 a pplications were registered. 
The total number of applications being proc essed (investigation phase) increased to 15562 
(6 622 Iraqis, 5 449 Iranians, 1 260 Somalis , 1 279 Afghans among others). So far, 
44 applicants have been granted refugee status. The Turkish government spent the equivalent 
of USD 550 000 in 2007 (compared with USD 135 000 in 2006) to cover the basic needs of 
all asylum seekers – recognised refugees and “temporary asylum seekers” or “guests”.  
Given the increase in the number of asylum a pplications to Turkey, the revision of the 
Asylum Law and the establishment of the ne w asylum unit are important. Pending these two 
structural reforms, fair, equa l and consistent access for ever yone to asylum procedures, to 
legal aid and, in particular, to UNHCR staff, especially at Turkey’s international airports and 
detention centers, is crucial. Another important  task is to reduce the waiting time for asylum 
procedures and to eliminate di sparities between cities’ mechan ism for referral to the social 
solidarity foundation.  
Training for Turkish officials on refugee status determination pr ocedures needs to continue. 
Measures need to be taken to ensure that trained staff remains within the asylum and migration system. Mobilisation of and coopera tion with NGOs and local authorities are the 
keys to integration of asylum s eekers. Another important point is to facilitate the self-reliance 
of refugees by reducing the fees for th e six-month temporary residence permit. 
No progress can be reported on visa policy . Sticker- and stamp-type visas are still issued at 
borders, with different authorities responsible for the issuing procedur es, and airport transit 
visas have not been introduced. Following the training received by 200 staff in 2007, there has 
EN 73   EN been a slight increase in th e detection rate for forged documents. In 2007, 493 documents 
were identified as false and falsified, comp ared with 469 in 2006. No development can be 
reported on alignment with EU visa lists. There are several countries on the EU's negative list 
whose citizens can enter into Turkey without a visa. Citizens of 16 Member States are under a 
visa obligation when travelling to Turkey. 
There has been limited progr ess on alignment with the acquis  concerning external borders 
and Schengen . The number of border crossing point s has been increased from 116 to 120. 
Modernisation of six border crossing points was completed in 2008; work is in progress on 
five more. A "Common Manual of  Checks at the EU external borders" was published in 1500 
copies and distributed for the use of the or ganisations performing border duties (General 
Staff, National Police, Customs Undersecreta ry, Gendarmerie and the Coast Guard). The 
manual will serve the purpose of being used as a practical tool to integrate EU requirements 
while carrying out their tasks. However, border staff shows very limited awareness of the 
Turkish national strategy on inte grated border management or of  the action plan to implement 
it. Efforts need to be stepped up and systemised with a view to implementing the national action plan on integrated border management. Th e inter-agency group put in place to discuss 
implementation of the action plan has met only occasionally. In the absence of the new border 
law enforcement authority, it is crucial furthe r to enhance cooperation between all agencies 
working at borders by developing joint risk  analyses, exchanges of information and 
cooperation on investigation and training. To provide specialised training, a new department 
on border security studies has been establishe d within the police academy. Further emphasis 
needs to be placed on the training and profe ssionalism of the border police, especially on 
development of language skills.  
The data on EU citizens’ entry documents raise concerns, as they are not in line with the EU 
acquis . Closer cross-border coope ration with neighbouring countri es is a key component of 
well-functioning border management.  
As regards judicial cooperation in civil matters,  a new Law on international private and 
procedural law has been adopted. A Law im plementing the 1980 Hague Convention on child 
abduction was also adopted.  
No progress can be reported on judicial cooperation in criminal matters.  Cooperation is 
ensured by means of internationa l and bilateral agreements and, in the absence there, on the 
basis of reciprocity and international custom ary law. Key pending issues are related to 
effective implementation of rele vant Council of Europe conven tions, especially on mutual 
legal assistance and on extradition. Turkey has no t signed key international conventions, such 
as the Second Additional Protocol to the C ouncil of Europe Convention on mutual legal 
assistance or the Convention on cybercrime. Turk ey needs to take the ne cessary steps to sign 
a cooperation agreemen t with Eurojust.  
In the area of police cooperation,  limited progress has been achieved.  A code of ethics for 
law enforcement agents in line with interna tional standards has been adopted. Turkey has 
signed a number of bilateral agreements on po lice cooperation. The lack of legislation on 
protection of personal data a nd the absence of an independe nt supervisory authority is 
obstructing the conclusion of an operational coop eration agreement with Europol (a strategic 
cooperation agreement has been in force since 2004). This also creates difficulties when it 
comes to cooperating at international level.  Closer cooperation and communication between 
law enforcement agencies, and also with the judiciary, is of key importance.  
EN 74   EN Some  progress has been observed in the fight against organised crime . A new Law on 
witness protection was adopted, with adequate provisions to guarantee the confidentiality of 
their identity and their security. This is expe cted to improve the chan ces of convictions in 
organised crime cases. The Regulation on the prin ciples and procedures  governing controlled 
delivery was extended to include  the coast guar d and the customs admi nistration, in addition 
to the gendarmerie and the police. Following ad option of a Law on cybercrime, an internet 
department was established under the telecomm unications authority to take charge of 
monitoring, supervision and coordination and some implementing legislation was adopted. 
Expertise in forensics is good. However, esta blishment of a national fingerprint and DNA 
database and adoption of harmonised crime scen e investigation practices remain key issues. 
One important point is that the strategy against or ganised crime, in line with EU best practice, 
needs to be followed up by a specific action plan and imp lemented accordingly. Special 
investigative techniques need to be de veloped and relevant training provided.  
Progress has continued on combating trafficking in human beings . The task force on 
combating human trafficking was systemised an d expanded to include local administrations. 
Collection of statistics was st andardised. Some 308 traffickers were arrested in 2007. As of 
September 2008, 212 traffickers were arrested. The free emergency he lpline and the two 
centres for victims of trafficking continue to operate. Further efforts were made to promote 
the 157 helpline. By September 2008, 98 victim s had been identified, 61 of whom were 
returned voluntarily to their countries of origin and six of whom remain in the centres, 
pending procedures for their return. The Witness Pr otection Law entered into force. It protects 
the identity of victims of human trafficking w ho agree to testify agains t the perpetrators and 
opens the way to include them in a witness protection programme. There are now court precedents on the application of a recent ame ndment of the Penal Code stipulating tougher 
penalties for human trafficking. Inter-agency co operation could be improved with the aid of 
common operations and training ac tivities. It is of key impor tance that Turkey signs the 
Council of Europe Convention on action against trafficking in human beings. Solutions 
allowing sustained funding are necessary for the free emergency helpline and for the centres. 
(For the  fight against money laundering  see Chapter 4).  
As regards the fight against terrorism , the Supreme Council on C ounter-terrorism remains 
the leading authority. Following adoption of  the Law on the prevention of laundering 
proceeds of crime, implementing legislation wa s adopted requiring the report of suspicious 
transactions connected with fi nancing of terrorism to the Financial Crimes Investigation 
Board (MASAK). A special unit to fight financ ing of terrorism has been established under 
MASAK. MASAK received 144 reports of suspici ous transactions conne cted with financing 
of terrorism in 2007, compared with 8 in 2006. Tu rkey has ratified neither the International 
Convention for the suppression of acts of nuc lear terrorism nor th e Council of Europe 
Convention on the prevention of terrorism. Comp liance with nine special Financial Action 
Task Force recommendations on fi nancing of terrorism needs to  be pursued, particularly on 
freezing and confiscation of terrorist assets. 
Some progress has been made in the fight against drugs . Following adoption of a national 
strategy in line with the EU drug strate gy and the EU drug action plan for 2005-2012, an 
action plan (2007-2009) was brought into for ce. The national Reitox focal point is the 
coordinator of the action plan and chairs the coordination board  meetings on a quarterly basis 
to monitor implementation. The agreement con cerning the participati on of Turkey in the 
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) has been signed. It is 
of key importance that Turkey takes the steps necessary to ratify the agreement so that it can 
EN 75   EN be implemented without delay. A parliamentary commission was established to examine the 
problems related to drug addiction and suppl y reduction. Successful operations resulting in 
sizeable seizures were mounted by the Turkis h law enforcement bodies. Joint action on 
controlled deliveries was carried out. However, the mandate of the national Reitox focal point 
is limited, its human resources capacity is weak  and it still lacks an autonomous budget. A 
more balanced approach to drugs supply and demand reducti on needs to be backed up by 
strengthening cooperation betw een institutions, developing a network of treatment and 
rehabilitation facilities and enhancing the data collection system in Turkey. The question of drugs remains serious as the count ry is a major transiting country. 
There has been some progress on customs cooperation . The administrative and operational 
capacity of the Under-secret ariat of Customs was improve d by increasing its scanning 
systems. The relevant implementing regula tion was amended to authorise the customs 
administration to implement controlled delivery in addition to the police, gendarmerie and 
coast guard. However, it is important to make  more efforts on inter-agency cooperation and 
implementation of risk management within the Under-secretariat of Customs. The lack of 
legislation on the protection of personal data an d the absence of an independent supervisory 
authority remain a difficulty in cooperat ion at regional and international levels.  
Conclusion 
Overall, some progress can be reported, partic ularly to prevent drugs  and human trafficking. 
Alignment with the acquis  in this chapter is underway, bu t sustained efforts are required in 
areas such as visa policy and judicial co-ope ration in criminal matters. The same applies to 
the fight against organised crime, which rema ins a serious concern. The capacity to manage 
asylum and migration needs to be improved. Effo rts need to be stepped up to implement the 
national action plan on integrated border ma nagement. The negotiations for an EC-Turkey 
readmission agreement need to be re-launched. 
4.25. Chapter 25: Science and research 
Good progress can be reported in  the area of science and research policy . A new law to 
encourage research and technol ogical development activitie s was adopted in March 2008. 
(See Chapter 20 – Enterprise and industrial policy ). A national human resources strategy and 
an accompanying action plan to increase the number of researchers and improve their 
distribution by professions a nd sectors were developed. A number of new programmes 
continued to support research, technology an d innovation, with increased budgets and 
efficiency. Turkey’s active cooperation with the Joint Research Centre continued, in 
accordance with the memorandum of understanding signed in July 2007.  
Turkey continued to be associated with the 7th Framework Programme  for research and 
technological development (FP7). Its participa tion in the first calls organised under FP7 in 
2007 was greater than under FP6. A good number of projects were submitted and evaluated in 
the different thematic areas funded under FP7. Ho wever, in terms of success rate, there is 
room for improvement. Turkey’s requested to  be associated with the Seventh Euratom 
Research Framework Programme (2007-2013).  
As regards Turkey’s integration into the European Research Area , Turkey took several steps 
to improve the mobility of researchers, in cluding by taking full part in EURAXESS (the 
European mobility portal), and to increase investment in research and international 
EN 76   EN cooperation. As a result, Turkey is further inte grated into the European Research Area. This 
facilitates research cooperation at European level. 
Conclusion 
Good progress has been achieved in the area of science and research. Overall, Turkey is well 
prepared in this chapter and is  on track for integration into the European Research Area.  
4.26. Chapter 26: Education and culture 
As regards education, training and youth, there has been good progress over the reporting 
period. The new Lifelong Learning and Youth in Action programmes attracted a growing 
number of applications and the National Agen cy responsible for these programmes continued 
to ensure sound and efficient management. Ei ghty out of the eighty-one provinces were 
covered by the Lifelong Lear ning programme in 2007 further to measures adopted by the 
Turkish authorities and the National Agency  to encourage the programme's nation-wide 
coverage. However, implementation of these pr ogrammes in 2008 has been hindered by a lack 
of funds because Turkey did not pa y its total contri bution in time. 
Turkey is at an advanced stage of implement ation of the Bologna process reforms in higher 
education. It needs to continue its efforts to wards implementation of a national qualifications 
framework improving recognition of prior learning and widening access to higher education. 
Regarding the Education and Training 2010 Work  Programme, Turkey continued to improve 
its performance on early school le avers, on completion of uppe r secondary edu cation, and on 
maths, science and technology graduates but not on participation of adu lts in lifelong learning. 
A vocational qualifications authority was se t up. Its task is to establish a national 
qualifications system, including licensing, a ccreditation, assessmen t and certification 
procedures, and to link this national system  to the European qualifications framework. 
Turkey continued to participate in the Culture  Programme (2007–2013). The Law on Istanbul 
as the 2010 cultural capital of Europe was adopted. Turkey  has signed, but not yet ratified, the 
UNESCO Convention on the protection and pr omotion of the dive rsity of cultural 
expressions. 
Conclusion  
There has been good progress in th e areas of education, traini ng, youth and culture. However, 
Turkey needs to provide its total financial c ontribution to Community programmes in time in 
order to ensure their smooth implementation. 
4.27. Chapter 27: Environment 
In the field of horizontal legislation , some progress can be reported. The Environmental 
Impact Assessment (EIA) directive has been  transposed to a large degree. However 
procedures for consulting the public and trans-boundary consu ltations are not fully aligned. 
Turkey has not yet signed the Kyoto Protocol  and Turkey is not a party to the Espoo and 
Aarhus Conventions. The Emissions Trading Di rective has not been transposed. A greenhouse 
gas emission trading scheme has not yet been established. Transposition of the Strategic 
Environmental Assessment (SEA) Directive is at  an early stage. There has been no progress 
on transposition of the acquis  on environmental liability, p ublic participation and public 
access to environmental information. Nor ha s Turkey yet started negotiations on the 
EN 77   EN memorandum of understanding with on its partic ipation in the Commun ity civil protection 
financial instrument. 
In the case of air quality , Turkey has made good progress in alignment with the air quality 
framework legislation and daughter directives. Progress has also been made on the sulphur 
content of liquid fuels in domestic heating sy stems. The administrative capacity for regional 
air quality has been improved by establishing a cl ean air centre in Marmara. No progress has 
been made on legislation related to the acquis  on emissions of volatile organic compounds, on 
the sulphur content of certain liquid fuels or on national emission ceilings. 
Some progress can be report ed on alignment with the waste management  acquis . 
Implementing legislation on polychlorinated bi phenyls (PCB & PCT) and on the control of 
waste oils has been adopted. Furthermore, restri ction of use of certain hazardous substances in 
electrical and electronic equipm ent and on restoration and mana gement of extractive industry 
sites has been adopted. Alignment in this ar ea is well advanced. However, Turkey does not 
have a national waste manageme nt plan. Progress on end-of-life vehicles and waste electrical 
and electronic equipment has been very lim ited. No progress has been made regarding the 
directives on landfill.  
There has been little progress in the area of water quality . An amendment was made to the 
legislation on prevention of water pollution. Ho wever, the overall level of alignment remains 
low. The institutional framework for water management is not organised on a river basin basis. Trans-boundary consultations on wa ter issues are at an early stage.  
Limited progress can be reported on nature protection . Turkey has aligned with the acquis  
regarding establishment and ma nagement of zoos. However, the level of harmonisation and 
implementation remains very low. The continuing  loss of habitats is a cause for concern. The 
list of potential Natura 2000 sites has not ye t been compiled. A framework law on nature 
protection and implementing legi slation on birds and habitats have not yet been adopted. A 
national biodiversity strategy and action plan ha ve been prepared, but not yet adopted by the 
government. 
No progress can be reported regarding industrial pollution control and risk management . 
Turkey has aligned with some provisions of the Seveso II Directive and with the Large Combustion Plants and Waste Incineration Dir ectives. However, overall transposition and 
implementation remain very low.  Introduction of an integrated permit system is at an early 
stage. 
There has been limited progress in the field of chemicals . The legislation on dangerous 
chemicals has been amended. Overall, the level of transposition remains low. The capacity for 
effective implementation is insufficient. 
No progress can be reported on genetically modified organisms .  
Progress has been made in the field of noise . Following adoption of the implementing 
legislation Turkey is appro aching full alignment with the acquis  in this area. However, 
preparation of noise maps and actio n plans is at an early stage. 
Some further progress has been made in the area of administrative capacity . A substantial 
number of staff was recrui ted and trained by the Mini stry of Environment and 
Forestry(MoEF). A new department for impl ementation of the environment programmes 
under IPA has been established in  the Ministry. The Directorat e-General for State Hydraulic 
EN 78   EN Works is now affiliated to the MoEF. However, no progress has been made on establishment 
of a national environment agency. Responsibilitie s, such as inspection activities and nature 
protection, are not clearly defi ned. Administrative capacity n eeds further strengthening, 
including coordination between the relevant authorities at all levels. Mainstreaming of 
environmental protection into other policy area s and ensuring that new investments comply 
with the environmental acquis  are at an early stage. Some of the existing legislation, such as 
the Mining Law, which includes gold mining, a nd the tourism legislation, are causing major 
damage to natural areas. 
Conclusion 
Turkey has made progress in the area of ai r quality and good progress on strengthening the 
administrative capacity at central level. Some progress can be reported on waste, water and 
nature protection. However, the overall level of  alignment remains low. Turkey has made no 
progress in the areas of industrial polluti on and risk management and GMOs. Limited 
progress can be reported on chem icals. Delays in establishment of the EIA are hampering 
further improvements in implementation and enforcement.  
4.28. Chapter 28: Consumer and health protection 
Turkey has made some progress in the field of consumer protection . As regards enforcement 
of market surveillance legislat ion, the skills of relevant personnel have been enhanced 
considerably. In addition, the amount of the fi nes has increased further. However, reliable 
data on the fines imposed are lacking. Considering the size of  the country, the operational 
budget for market surveillance is small. Turk ey is not applying a unified method for data 
gathering. The consumer movement is wea k, cooperation and partnership between the 
existing NGOs are limited and NGOs suffer from l ack of funds. Their re lationship with State 
bodies is weak. Preparations in this field are underway. 
Progress has been made on product-safety related issues . Awareness of consumer product 
safety amongst the relevant authorities has in creased and coordination between the relevant 
market surveillance authorities has improved, although it still remains weak. Preparations in 
this area are on track. 
In the area of non-safety related issues , Turkey is preparing to establish an internet consumer 
portal. However, the number of  legally qualified staff in the Ministry of Industry and Trade 
continues to lag behind. Ther e is very limited follow-up of  decisions of the advisory 
Consumer Council. Consistent interpretation a nd comprehension of consumer legislation by 
the courts and arbitration committees is not always ensured. Preparations in this field are on track. 
In the case of public health,  Turkey has made some progress. With regard to tobacco , an 
important amendment of the Law on Prevention of damages of tobacco products was adopted 
in January. It aims to transpose the tobacco  advertising directive and, beyond this, it bans 
internet sales of tobacco, and smoking scenes in  films on screen. The law also extended the 
smoking ban to all indoor public areas and cer tain open-air areas as from July 2009. 
Administrative capacity ha s been improved, by introduc ing a clearer division of 
responsibilities between the Ministry of H ealth and the Tobacco and Alcohol Market 
Regulatory Authority. Tobacco control units have  been established at provincial level to 
improve enforcement of the smoking ban. However, legal alignment with tobacco product 
EN 79   EN regulation acquis , especially as regards high tar yields and oral tobacco still remain to be 
done. Preparations in this  field are well on track. 
In the field of communicable diseases , Turkey has made good progr ess. A strategic plan 
(2008-2012) has set clear milestones for completion of alignment, enforcement and the necessary changes to the instit utional framework. The Ministry of Health has strengthened the 
institutional capacity for investigation and management of possible epidemics. A needs 
analysis was carried out to identify the resour ces required for epidemiological surveillance. 
This is a key element next to the early warning and response system (EWRS) for the accession negotiations on this chapter. Throughout  the country over 7 000 medical staff have 
been trained. However, notwith standing the increasing numbers of reported HIV cases, HIV 
prevention policies are not seen as a priority by the Government. Access to information on 
HIV/AIDS is very limited. Preparations  in this area are well on track. 
As regards blood and blood components, Turkey ha s made progress. A strategic review of the 
blood transfusion system is underway. These ar e key elements for the accession negotiations 
on this chapter. Concerning tissue and ce lls, legal alignment remains outstanding. 
Administrative capacity is not sufficiently deve loped but the establishment of a National Cell 
Coordination Center in July 2008 is a right step to overcome this  shortcoming. Preparations in 
these fields have started. 
No progress can be reported on mental health . Community-based services are not sufficiently 
developed as an alternative to institutionalisa tion, and resources continue to be limited in 
relation to the needs. A problem of insufficient general medical care and treatment persists in mental health hospitals and rehabilitation ce ntres for people with mental disabilities. 
Preparations in this area  are at an early stage. 
Some progress can be reported in the area of so cio-economic determinants of health. In 2008, 
half of the population will be pr ovided with family medicine and primary level healthcare 
services. Progress can be reported in the area of cancer control programmes. However, the 
implementation of the Council recommendati on on cancer screening that recommends 
population-based, organised screen ing for breast, cervi cal, and colorectal cancer has not been 
achieved yet. Preparations in these fields have started. 
Conclusion 
Overall, further progress has been made on co nsumer and health protection. A satisfactory 
level of legal alignment has been reached. Howe ver, in the area of consumer protection, more 
efforts remains necessary, in part icular in the field of non-safety  related issues and to ensure 
due enforcement of consumer protection in general. Preparations for completing legal 
alignment in the areas of blood and blood co mponents, tissues and cells are underway.  
4.29. Chapter 29: Customs union 
Turkey has made further progress with customs legislation . The Under-secretariat of 
Customs adopted a communiqué on the rules a nd procedures for implementation of binding 
tariff information (BTI). The co mmuniqué designated the regional customs directorates in six 
cities, which have customs laboratories, to issue BTIs upon request by traders. Implementing 
legislation on temporary importation of road  vehicles has been published but the ongoing 
practice is not fully in line with the acquis.  There has been no prog ress on the duty relief 
legislation, which is partly not in line with Turkey’s Customs Union obligations. Abolition of 
EN 80   EN duty relief for goods covered by the Customs Union and sold in duty-free shops to travellers 
entering Turkey is a key component of the accession negotiations on this chapter.  
Legislation on free-trade zones remains not in line with the acquis , as the zones are 
considered as areas outside the Turkish customs territory.  
Good progress has been made by the Under-sec retariat of Customs to strengthen its 
administrative and operational capacity . Five vehicle- and cont ainer- scanning systems 
were deployed at Gurbulak customs office and th e ports of Istanbul Ambarli, Izmir, Alsancak, 
Mersin and Samsun. The Under-secretariat of Customs signed a protocol with the Energy 
Market Regulatory Authority with a view to exchanging information on activities to combat 
smuggling of fuel products. The Under-secretariat  of Customs adopted its risk management 
strategy. However, an integrated IT-based risk management system has not yet been 
implemented in all customs offices. An overa ll IT strategy of the Under-secretariat of 
Customs has not been adopted. Activities on IT interconnectivity with th e EU systems in the 
fields of transit (NCTS) and tariffs (T ARIC, quota and surveillance) are underway. 
The rate of import and export declarations that were pro cessed electronically into the 
electronic data interchange system (EDIS) incr eased. At present, Turkish customs procedures 
are integrated into the system  and virtually all declarations  are processed electronically.  
Further efforts were made to improve training. Intensive in-service training was provided on 
origin matters, outward processing and sni ffer dogs. Enforcement of intellectual property 
rights (IPR) by the Under-secretariat of Custom s is a cause for concern and needs to be 
improved substantially. The le vel of coordination between th e Under-secretariat and other 
relevant IPR public authorities, including the Turkish national police, is low. The 
modernisation efforts need to be increased. 
“Customs Union” is one of th e eight chapters covered by the conclusions on Turkey adopted 
by the Council (General Affairs and External  Relations) on 11 December 2006 and endorsed 
by the European Council on 14/15 December 2006. As long as restrictions remain in place on 
the free movement of goods carried  by vessels and aircra ft registered in C yprus or where the 
last port of call was Cyprus, Turkey will not be in a position fully to implement the acquis 
relating to this chapter. 
Conclusion 
Overall, some progress has been  made in this chapter both as regards legislative alignment 
and administrative capacity. Turkey's customs le gislation is highly aligned with the EU 
acquis , thanks to the Customs Union. Turkey need s to make further e fforts to align its 
legislation and practices on duty- free shops, free-trade zones, customs duty relief, transit, 
fight against counterfeit goods and post-clearan ce. Additional efforts are needed to fight 
against counterfeit goods. 
4.30. Chapter 30: External relations 
Turkey has made limited progress regarding the common commercial policy . 
The level of alignment with the EC common commercial policy is high. Some longstanding 
infringements of the Customs Union remain unres olved and are continuing to distort bilateral 
trade relations. There has been no further progr ess on alignment of the Turkish general system 
EN 81   EN of preferences (GSP). The non-harmonised areas of  the Turkish general system of preferences 
(GSP) remain unchanged, particularly its geographical and product coverage. 
Extensive use of safeguard measures has a nega tive effect on EU commercial policy, as they 
affect EU exporters. In 2008, Turkey impos ed two more safeguard measures on the 
importation of spectacles and handbags. In add ition, it initiated two safeguard proceedings on 
electrical appliances and cotton yarns, the la tter being the fourteenth proceeding opened by 
Turkey since 2004.  
The level of coordination between Turkey and the EU within the World Trade Organisation , 
in particular as regards the Doha Devel opment Agenda and the OECD, has improved. 
However, there is room for furt her improvements in this area.  
No progress can be reported on medium- and long-term export credits  to companies. There 
has been some progress on dual-use goods . Turkey amended rules for export-licensing of 
nuclear and nuclear dual-use goods and inter alia  introduced catch-all controls through their 
Article 6. 
Concerning bilateral agreements with third countries , Turkey granted unilateral 
preferential treatment to Kosovo. The Free Tr ade Agreement with Albania was ratified by 
Parliament and has entered into force. Turkey has maintained a satisfactory level of alignment with the EC’s bilateral agreements. 
In the field of development policy and humanitarian aid , some progress has been made. 
Turkey granted some 602 million USD of official development aid in 2007. Turkey’s level of alignment remains satisfactory in this field. 
“External Relations” is one of the eight chap ters covered by the conclusions on Turkey 
adopted by the Council (General Affairs and External Relations) on 11 December 2006 and 
endorsed by the European Council on 14/15 Decemb er 2006. As long as restrictions remain in 
place on the free movement of goods  carried by vessels and aircra ft registered in Cyprus or 
where the last port of call was Cyprus, Turkey will not be in a position fully to implement the 
acquis relating to this chapter. 
Conclusion 
Turkey has achieved a high level of  alignment in this area, but it is not complete, in particular 
in the WTO and OECD fora. The dispropor tionate use of safeguard measures and 
longstanding trade irri tants has an impact on proper f unctioning of the Customs Union. 
4.31. Chapter 31: Foreign, security and defence policy 
The regular political dialogue  between the EU and Turkey has continued to cover 
international issues of common interest, incl uding Iraq, Iran, the South Caucasus and the 
Middle East peace process. ( Concerning neighbourly relations  with other enlargement 
countries and member states , see Politica l criteria).  
Turkey continued to support efforts to achieve stability, security and na tional reconciliation in 
Iraq. Turkey has been active in the "Iraq nei ghbour process" and hosted the November 2007 
ministerial meeting in Istanbul. Cross-border terrorist activities of the PKK, listed on the EU 
list of terrorist organisations, pose a security ch allenge to Turkey. In this context, Turkey 
started air strikes in December 2007, and in  February 2008 undertook a nine-day ground 
EN 82   EN operation in Northern Iraq. In pa rallel, Turkey intensified diplomatic exchanges with Iraqi 
authorities and, for the first time, engaged in  official contacts with  the Kurdish regional 
government. A Turkish delegation met in October with the President and the Prime Minister 
of the Kurdish Regional Government. In March the President of Iraq paid an official visit to 
Turkey. In July Turkey and Iraq signed an ag reement on the establishment of a High Council 
for Strategic Relations. 
As regards Iran, Turkey supports the EU position on Iran’s nuclear programme  and 
encouraged Iran to engage in a diplomatic solution of the cris is in line with  the June 2008 
offer of the E3+3. Turkey has engaged in ne gotiations with Iran on a comprehensive energy 
agreement. In August, the two countries signe d a co-operation agreement to fight against 
terrorism, drug trafficking and organized crime. The President of Iran paid a working visit to 
Istanbul in August. 
As for relations with the Southern Caucasus , Turkey maintains close relations with 
Azerbaijan and Georgia. Jointly with the Pr esidents of Georgia an d Azerbaijan, Turkey 
inaugurated the construction of the Baku-Alkha lkalaki-Kars railway in November 2007. As 
concerns relations with Armenia, while Turkey kept its land border with  this country closed, 
Turkey's President paid the first ever visit of the kind to Erevan, raising hopes for a new start in bilateral relations. Official discussions al so took place between the Armenian and Turkish 
Foreign Ministers. Turkey maintained its offer to  establish a joint commission of historians. In 
reaction to the August Russo-Geo rgian conflict, Turkey has underlined the importance of 
Georgian territorial integrity and sovereignty. At the same time, Turkey kept communication channels with Russia open. Following the conflict, Turkey played a conciliatory role and proposed to set up a "Caucasus Co-operation and St ability Platform" in wh ich all countries of 
the region would be represented. Furthermore, Tu rkey has started efforts to facilitate the 
solution of the conflict in Nagorno-Karabakh. A first ever trilateral meeting took place between the Foreign Ministers of Turkey, Azerbaijan and Armenia in September. 
Turkey has been playing an active and constructiv e role in the Middle East. In line with the 
EU position, Turkey continued to support the Middle East peace process , including the 
Annapolis process. Turkey expressed support for Palestinian unity and reconciliation. In 
November 2007, the Presidents of Israel and of  the Palestinian Authority made speeches 
before the Turkish Parliament. Turk ey brokered indirect talks between Syria  and Israel  with a 
view to preparing a peace agreement between the two countries. In May and in June 2008 two 
rounds of indirect talks took pl ace in Istanbul. Turkey made efforts to contribute to the 
national reconciliation process in Lebanon , and welcomed the Doha Agreement under the 
auspices of the Arab League.  
Turkey welcomed the Commission's 2007 Co mmunication on the Black Sea Synergy and 
wishes to see a more active ro le of the EU in Black Sea regional cooperation. The Turkish 
Foreign Minister participated  in the 14 February 2008 Meeti ng in Kyiv of the Foreign 
Ministers of the countries of the EU and of  the wider Black Sea Area. In November 2007, 
Turkey handed over the rotating chairmanship  of the BSEC organisation to Ukraine.  
Turkey continued with efforts to bring together Afghanistan  and Pakistan . The Turkish 
Foreign Ministry continued efforts to devel op the April 2007 "Ankara  Declaration", which 
provides both countries with a trila teral platform to discuss thei r problems. On the occasion of 
the International Conference in support to Af ghanistan in June 2008 Turkey pledged to double 
its contribution for reconstruction. Furthermor e, Turkey remains engaged with 800 troops it 
contributes to ISAF, and contributes to civil and military capacity building. Turkey has 
EN 83   EN intensified its relations with the Gulf States , particularly Qatar . A decision has been taken to 
open 10 new embassies in Africa.  
Turkey’s broad alignment with common foreign and security policy  (CFSP) statements, 
declarations, and demarches continued. In 200 8, Turkey aligned itself with 109 out of 124 
CFSP declarations. Turkey did not follow the EU  position expressed in statements concerning 
Iran (one case on freedom of e xpression), Russia, Pakistan, Sr i Lanka, China, Sudan, Belarus 
and Mauritania.  
No particular developments can be reported as regards restrictive measures . 
As regards non-proliferation  of weapons of mass destruction, Turkey is part y to all the 
existing international arrangements. In De cember 2007, parliament adopted secondary 
legislation to implement the UN Chemical Weapons Convention. 
Turkey has not aligned with the EU position on membership of certain suppliers' groups, such 
as the Wassenaar Arrangement on Export Cont rols for Conventional Arms and Dual-Use 
Goods and Technologies. (For dual-use goods, see chapter 30 – External relations).  
With regard to cooperation with inte rnational organisations , Turkey made no progress 
towards signing the Statute of the Internationa l Criminal Court. Turkey will be holding a non-
permanent seat in the UN Secu rity Council during the term 2009-2010. 
There have been no particular developments with regard to  security measures .  
Within the framework of the European security and defence policy  (ESDP), Turkey 
continues to contribute to the EU-led m ilitary mission EUFOR/ALTHEA in Bosnia and 
Herzegovina. Turkey is also supporting th e EU-led police missions EUPM in Bosnia-
Herzegovina. Turkey is one of five non-EU c ountries contributing to  the EULEX mission in 
Kosovo. Turkey wishes to enhance cooperation on ESDP, while stressin g its discontent with 
its status within ESDP, with the stalemate over the conclusion of a bilateral security 
agreement with the EU, as well as over the ad ministrative arrangements with the European 
Defence Agency.  
However, concerning EU-NATO relations beyo nd the “Berlin Plus” arrangements, Turkey 
continues to object to EU-NAT O co-operation which would invol ve all EU Member States. 
This created problems for EU-NATO co-operati on in the context of civilian ESDP missions, 
in particular in Kosovo and Afghanistan. 
Conclusion 
Turkey’s alignment with the EU’s common fore ign and security policy continued. Turkey has 
enhanced its positive role  of regional stabilisatio n, in particular as regards the Caucasus and 
the Middle East. Turkey supports the EU efforts to  ensure stability in Iraq and has maintained 
close diplomatic relations with this countr y, including contacts with  the Kurdish regional 
government.  
Turkey is contributing substantially to ESDP  and seeking greater involvement in ESDP 
activities. However, Turkey objects to EU- NATO co-operation which would involve all EU 
Member States. Turkey has not aligned wi th the EU position on membership of the 
Wassenaar Arrangement. 
EN 84   EN 4.32. Chapter 32: Financial control 
Progress has been made in the area of Public Internal Financial Control (PIFC). The 
Internal Audit Coordination Boar d of the Ministry of Finance has approved the Turkish public 
internal audit strategy for 2008-2010 in Nove mber 2007. In July 2008, the Ministry of 
Finance has adopted amendments to the Pub lic Financial Management and Control Law 
(PFMCL) relating to accounting and drafted amendments to fu rther align public internal 
control with best practices. A number of pi eces of secondary legislation and tertiary 
regulations were approved  in the course of 2008, inter alia  the internal control standards and 
the internal audit manual. Over 500 internal a uditors have been trained and certified in 
accordance with the Public Financial Manageme nt and Control (PFMC) Law, while nearly 
500 financial officers have been employed in budget spending centres. A first annual report 
on the status of PIFC (for 2007) was presented to the Court of Accounts. 
As a result of full enactment of the PFMC La w, the 2002 PIFC policy paper and the related 
action plan should be updated. The PIFC strategy will have to focus on separation of the roles 
and responsibilities of internal  audit and inspection boards, including descri ption of the 
comprehensive control environmen t in the public sector to clarify the delineation of control, 
audit and inspection functions, th e need to harmonise internal audit of the national budget and 
of EU financial assistance, the precise definition of ex-ante  financial control, establishment of 
an operational central harmonisa tion unit (CHU) for internal audit and of the decentralised 
internal audit units and a CHU for FMC relatio ns with the strategy development units. The 
issue of the location of the CHU has to be de cided as soon as possibl e to ensure that the 
modern public internal audit profession can  develop under optim um and non-political 
conditions. 
The internal audit function has become operational in some govern ment institutions following 
the appointment of internal auditors and the p ublication of public internal audit standards. 
Establishment of the strategy development units and their recruitment pr ocess are continuing. 
The internal audit coordination board issued key documents on internal audit. A permanent 
central harmonisation un it for internal audit should be established. 
Preparations are fairly advanced in this area. Some progress can be reported on external audit . The decision of the General Assembly of 
the Turkish Court of Accounts in July 2008 ha s taken important step by providing the Court 
of Accounts with the mandate to audit all bu t confidential expenditures of the Defence 
Industry Support Fund. The revise d Law on the Turkish Court of Accounts has not yet been 
enacted, despite appearing on the government’s pr iority list. This delay in adoption of the 
revised law is having a serious impact, especially  on the external audit of local 
administrations. 
Preparations are moderately advanced in this area. There has been some progress on protection of the EU’s financial interests . In August the 
Prime Ministerial Inspection Board (PMIB) wa s confirmed as the Anti-Fraud Cooperation 
Structure (AFCOS) contact point and as such c ontinues to cooperate with OLAF. Its required 
operational independence for all legislative, administrative and operational aspects of 
protection of the Communities’ financial interests has yet to be developed but is envisaged by 
the end of 2008. 
EN 85   EN There have been some developments with regard to the protec tion of the European 
Communities' financial interest s (PIF Convention). The new Turkish penal code satisfies  
many of the requirements of the PIF C onvention. However monitoring by the Turkish 
authorities of the actua l application of the Convention is required . 
Preparations are moderately advanced in this area. Little progress can be reported on protection of the euro against counterfeiting . The 2007 
amendment to the Law on the Turkish lira envi sages removal of “new” from “new Turkish 
lira” with effect from 1 January 2009. As part of the reminting exercise, Turkey is expected to 
redesign Turkish coins to eliminate any similar ities with euro coins. The Turkish authorities 
have the expertise required for analysis and cla ssification of counterfeit  notes and coins. The 
administrative capacity of the four enforcem ent bodies is sufficient. The counterfeit 
monitoring system is in opera tion under the auspices  of the Turkish Central Bank. There are 
institutions serving de facto  as the national analysis centre, national coin analysis centre and 
national central office. These structures need  to be officially appointed to ensure 
institutionalisation and sustai nable cooperation with the EU  institutions. The Turkish 
legislation does not envisage any sanctions ag ainst credit institutions which fail to withdraw 
counterfeits from circulation and against me dals and tokens similar to euro coins. 
Preparations are moderately advanced in this area. 
Conclusion 
Moderate progress can be reported in the area of  financial control. Legislation implementing 
the PFMC Law is in place, but a number of amendmen ts relating to internal control need to be 
approved. Internal auditors have started to ta ke up office. Institutionalisation of the newly 
established administrative structur es is continuing. Further effort s are needed to ensure full 
implementation of the PFMC Law. For this pu rpose, Turkey will need to update its 2002 
PIFC policy paper and adopt the revised law of the Turkish Court of Accounts. 
Permanent structures are needed for coopera tion with the European Anti-Fraud Office on 
protection of the EU’s financia l interests and for contacts with the Commission departments 
responsible for protec tion of the euro ag ainst counterfeiting. 
Overall, Turkey’s level of alignment with the acquis  in this chapter is moderately advanced. 
4.33. Chapter 33: Financial and budgetary provisions 
There remain no significant divergences with the EU system concerning the basic principles 
and institutions in the unde rlying policy areas linked to  the application of the  EU own 
resources system . Efforts to align with the relevant acquis  chapters (customs, taxation, 
statistics and financial control)  have continued. In 2008, Turkstat  submitted to Eurostat GDP 
estimates compiled in accordance with the European system  of accounts (ESA95)  However, 
further progress is needed towards full implem entation of the ESA95 standards to ensure 
appropriate measurement of the resour ce based on gross national income. 
Although the own resources acquis  does not require transposition, it is important to establish 
coordination structures and implementing rules to ensure the correct calculation, collection, 
payment and control of own resources and repor ting to the EU for implementation of the own 
resources rules. Stronger administrative capacity  is also needed in the relevant policy areas, in 
particular agriculture, customs, taxation, statistics and financial control. This includes setting 
EN 86   EN up effective instruments to combat customs duty and VAT fraud so that the financial interests 
of the EU can be protected. 
Conclusion 
The acquis  in this area is directly applicab le upon membership and does not require 
transposition. Sound coor dination structures and implemen ting rules will need to be 
established in due course. Preparations in the area of financial and budge tary provisions are at 
an early stage. 
 
EN 87   EN STATISTICAL ANNEX  
STATISTICAL DATA (as of 29 September 2008)            
Turkey            
            
Basic data Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Population (thousand) 1) 64 642 65 787 66 889 67 896 68 838 69 770 70 692 71 610 72 520 69 689b 
Total area of the country (km²) 2) 783 562 783 562 783 562 783 562 783 562 783 562 783 562 783 562 783 562 783 562 
            
National accounts Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Gross domestic product (GDP) (million national currency)  70 203 104 596 166 658 240 224 350 476 454 781 559 033 648 932 758 391 856 3 87 
GDP (million euro)  242 787 233 424 289 446 219 816 243 570 269 322 314 304 387 655 419 013 480 281 
GDP (euro per capita)  3 756 3 548 4 327 3 238 3 538 3 860 4 446 5 413 5 778 6 892b 
GDP (in Purchasing Power Standards (PPS)  per capita)  7200.0e 7 000.0 7 600.0 7 000.0 7 000.0 7 000.0 8 100.0 8 800.0 9 700.0e 10 300.0 be 
SI: GDP (in PPS per capita, EU-25=100)  42.7e 39.2 40.0 35.6 34.4 34.1 37.5 39.2 41.3e 41.8e 
SI: Growth rate of GDP (national currency, at constant prices, % change on previous year)  : -3.4 6.8 -5.7 6.2 5.3 9.4 8.4 6.9 4.5 
SI: Employment growth (national accounts, % change on previous year)  : : : : : : : : : : 
Labour productivity growth: GDP growth per person employ ed (% change on previous year)  : : : : : : : : : : 
SI: Unit labour cost growth (national accounts, % change on previous year)  : : : : : : : : : : 
SI: Labour productivity (GDP in PPS per person employed, EU-25=100)  53.2e 49.0 53.3e 49.1e 49.1e 49.8e 54.0e 56.2e 59.9e 61.3e  
Gross value added by main sectors (%)                      
Agriculture  12.9 10.7 10.8 9.4 11.4 11.1 10.7 10.6 9.4 8.7 
Industry  27.7 25.4 24.6 23.8 23.2 23.5 23.0 23.0 22.9 22.2 
Construction  6.0 5.6 5.4 4.7 4.6 4.5 5.0 5.0 5.4 5.6 
Services  53.4 58.3 59.2 62.1 60.8 60.8 61.3 61.3 62.4 63.5 
Final consumption expenditure, as a share of GDP (%)  76.7 80.7 82.2 80.8 80.8 83.5 83.2 83.5 82.9 83.5 
Households and NPISH, as a share of GDP (%)  66.5 68.5 70.5 68.4 68.0 71.2 71.3 71.7 70.5 70.8 
General government, as a share of GDP (%)  10.3 12.2 11.7 12.4 12.7 12.2 11.9 11.8 12.3 12.6 
Gross fixed capital formation, as a share of GDP (%)  22.9 18.9 20.4 15.9 16.7 17.0 20.3 21.0 22.3 21.6 
Changes in inventories, as a share of GDP (%)  -0.7 0.2 0.4 -0.9 0.9 0.6 -1.0 -1.0 -0.2 0.1 
Exports of goods and services, relative to GDP (%)  21.3 19.4 20.1 27.4 25.2 23.0 23.6 21.9 22.7 22.0 
Imports of goods and services, relative to GDP (%)  20.2 19.3 23.1 23.3 23.6 24.0 26.2 25.4 27.6 27.1 
            
Industry Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Industrial production volume index (2000=100)  : : 100.0 91.3 99.9 108.7 119.3 128.7 136.3 143.6 
            
Inflation rate Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
SI: Consumer price index (CPI), (tot al, % change on previous year)  84.6 64.9 54.9 54.4 45.0 25.3 10.6 8.2 9.6 8.8 
            
Balance of payments Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Balance of payments: current account total (million euro)  1 784 -868 -10 741 4 198 -662 -6 643 -11 601 -17 794 -25 401 -27 547 
Balance of payments current account: trade balance (million euro)  -12 522 -9 168 -23 882 -3 755 -6 758 -11 925 -18 278 -26 516 -32 607 -34 079 
Balance of payments current account: exports of goods (million euro)  27 421 27 239 33 375 38 777 43 062 46 317 55 097 62 989 7 4 555 84 135 
 
EN 88   EN Balance of payments current account: imports of goods (million euro)  39 942 36 406 57 256 42 532 49 819 58 242 73 375 89 505 10 7 162 118 214 
Balance of payments current account: net services (million euro)  12 058 7 039 12 316 10 201 8 339 9 292 10 288 12 276 11 015 10  112 
Balance of payments current account: net income (million euro)  -2 663 -3 319 -4 333 -5 583 -4 816 -4 912 -4 509 -4 722 -5 329 -5 212 
Balance of payments current account: net current transfe rs (million euro)  4 910 4 580 5 158 3 335 2 573 902 898 1 169 1 520 1 632 
of which government transfers (million euro)  133 330 221 224 526 257 252 485 495 590 
Foreign Direct Investment (FDI) in the reporting economy (million euro)  838 735 1 063 3 743 1 198 1 548 2 239 8 063 15 920 16 202 
            
Public finance Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
General government deficit/surplus, rela tive to GDP (%)  : : -10.9 -24.5 -10.2 -9.0 -4.5 -0.6 -0.1 -1.2 
SI: General government debt, relative to GDP (%)  : : 42.9 77.6 73.7 67.3 59.2 52.3 46.1 38.8 
            
Financial indicators Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Gross foreign debt of the whole economy, relative to GDP (%)  35.6 41.7 44.7 57.7 56.2 47.3 41.2 35.0 39.0 37.5 
Gross foreign debt of the whole economy, relative to total exports (%)  200.8e 259.4e 255.1e 240.9e 243.2e 217.5e 183.8e 168.0e 174.9e : 
Money supply: M1 (banknotes, coins, overnight deposits, million euro) 3) 7 000 8 635 12 205 8 965 9 291 13 188 15 762 38 978b 3 8 616 44 644 
Money supply: M2 (M1 plus deposits with maturity up to two years, million euro) 4) 31 206 41 324 51 591 37 253 36 325 47 398 59 415 150 152b 160 193 201 366 
Money supply: M3 (M2 plus marketable instruments, m illion euro) 5) 32 878 42 950 54 207 38 973 38 041 50 488 63 411 164 302b 171 832 215 308 
Total credit by monetary financial institutions to resi dents (consolidated) (million euro)  30 790 30 856 44 492 26 977 20 035 2 9 025 43 328 83 772 100 358 140 157 
Interest rates: day-to-day money rate, per annum (%)  78.8 79.8 56.0 95.5 49.6 36.1 22.0 15.1 15.8 17.3 
Lending interest rate (one year), per annum (%) 6) 79.5 86.1 51.2 78.8 53.7 42.8 29.1 23.8 19.0 20.1 
Deposit interest rate (one year), per annum (%) 7) 93.3 85.5 38.2 62.2 53.9 40.3 23.6 19.9 21.5 22.3 
euro exchange rates: average of period - 1 euro = … national  currency  0.293 0.447 0.575 1.102 1.440 1.695 1.777 1.677 1.809 1. 789e 
Effective exchange rate index (2000=100)  193.0e 121.4e 100.0e 46.8e 40.1e 40.4e 39.3e 43.6e 39.1e 44.5e 
Value of reserve assets (includi ng gold) (million euro)  17 751 24 253 25 331 22 660 26 949 28 134 27 654 44 277 48 116 52 058 
            
External trade Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Trade balance: all goods, all partners (million euro)  : -13 387 -29 263 -11 194 -16 341 -18 620 -27 637 -34 560 : : 
Value of exports: all goods, all partners (million euro)  : 24 964 30 182 35 062 38 137 41 516 50 891 58 849 : : 
Value of imports: all goods, all partners (million euro)  : 38 351 59 444 46 256 54 478 60 136 78 528 93 410 : : 
Terms of trade (export price index / import price index, % change to previous year) 8) : -1.4 -8.5 -2.3 -0.6 -0.2 2.0 -2.6 -3.3  7.8 
Share of exports to EU-27 countries in value of total exports (%)  : 58.0 56.4 56.0 56.6 58.3 57.9 56.4 : : 
Share of imports from EU-27 countries in value of total imports (%)  : 55.4 52.4 47.9 49.8 50.6 49.3 45.2 : : 
   #ARG! 514.8 -73.4 -75.4 -72.7 -1431.9 -231.3 25.5 -335.1 
Demography Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Natural growth rate: natural change (births minus deaths) (p er 1000 inhabitants)  16.0 15.4 14.1 13.7 13.5 13.2 12.9 12.6 12.4 : 
Net migration rate: immigrants minus emigrant s (per 1000 inhabitants)  : : : : : : : : : : 
Infant mortality rate: deaths of children under one year of age per 1000 live births  36.5 33.9 28.9 27.8 26.7 25.6 24.6 23.6 2 2.6 21.7 
Life expectancy at birth: male (years)  66.7 67.1 68.1 68.2 68.4 68.6 68.8 68.9 69.1 69.3 
Life expectancy at birth: female (years)  71.3 71.8 72.8 73.0 73.2 73.4 73.6 73.8 74.0 74.2 
 
EN 89   EN             
Labour market Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Economic activity rate (15-64): share of  population aged 15-64 that is economically active (%)  55.3 55.2 52.4 52.3 52.3 51.1 5 1.5 51.3 51.1 51.0 
SI: Employment rate (15-64): share of population aged 15-64 that  is in employment (%)  51.4 50.8 48.9 47.8 46.7 45.5 46.1 45.9 45.9 45.8 
Share of male population aged 15-64 that is in employment (%)  74.3 72.7 71.7 69.3 66.9 65.9 67.9 68.2 68.0 67.9 
Share of female population aged 15-64 that is in employment (%)  28.5 28.9 26.2 26.3 26.6 25.2 24.3 23.7 23.8 23.8 
SI: Employment rate of older workers (55-64): share of population aged 55-64 that is in 
employment (%)  41.1 39.3 36.4 35.9 35.3 32.7 33.1 30.8 30.1 29.4 
Employment by main sectors (%)                      
Agriculture  41.5 40.2 36.0 37.6 34.9 33.9 34.0 29.5 27.3 26.4 
Industry  17.1 17.2 17.7 17.5 18.5 18.2 18.3 19.4 19.7 19.8 
Construction  6.1 6.2 6.3 5.2 4.5 4.6 4.7 5.3 5.7 5.8 
Services  35.3 36.5 40.0 39.7 42.1 43.4 43.0 45.8 47.3 48.0 
SI: Unemployment rate: share of labour force that is unemployed (%)  6.9 7.7 6.5 8.4 10.3 10.5 10.3 10.3 9.9 9.9 
Share of male labour force that is unemployed (%)  6.9 7.7 6.6 8.7 10.7 10.7 10.5 10.3 9.7 9.8 
Share of female labour force that is unemployed (%)  6.8 7.6 6.3 7.5 9.4 10.1 9.7 10.3 10.3 10.3 
Unemployment rate of persons < 25 years: shar e of labour force aged <25 that is unemployed 
(%)  14.2 15.0 13.1 16.2 19.2 20.5 19.7 19.3 18.7 19.6 
SI: Long-term unemployment rate: share of l abour force that is long-term unemployed (%)  2.7 2.1 1.3 1.7 2.9 2.5 4.0 4.1 3.5 3. 0 
            
Social cohesion Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Average nominal monthly wages and salaries (nati onal currency)  : : : : 372.1 492.0 529.4 595.4 : : 
Index of real wages and salaries (index of nom inal wages and salaries divided by the CPI) 
(2000=100)  : : : : : : : : : : 
SI: Early school-leavers: share of popul ation aged 18-24 having not completed upper 
secondary education and not currently in education or training (%)  : : 58.8 57.3 54.8 53.0 54.6 51.3 50.0 47.8 
            
Standard of living Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Number of passenger cars per 1000 population 9) 59.4 61.9 66.1 66.8 66.8 67.4 76.4b 80.6 84.7 91.7 
Number of subscriptions to cellular mobile telephone se rvices per 1000 population  54.3 116.8 225.2 269.5 338.8 399.7 491.0 609 .0 726.2 878.0 
            
Infrastructure Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Density of railway network (lines in operation, per 1000 km²)  11.0 11.1 11.1 11.1 11.0 11.1 11.1 11.1 11.1 11.1 
Length of motorways (thousand km)  1.7 1.7 1.8 1.9 1.9 1.9 1.9 1.8 2.0 2.0 
            
Innovation and research Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
SI: Spending on human resources (public expenditure on education) relative to GDP (%)  3.3 3.1 3.5 3.7 3.6 3.7 4.1 : : : 
SI: Gross domestic expenditure on research & development, relative to GDP (%)  0.5 0.6 0.6 0.7 0.7 0.6 0.7 0.8 0.8 : 
SI: Percentage of households who have Internet access at home (%)  : : : : : : 7.0 8.0 : 18.9 
            
Environment Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
SI: Total greenhouse gases emissions, CO2 equivalent (tons, 1990=100)  151.0 151.0 165.0 154.0 159.0 168.0 174.0 184.0 195.0 : 
SI: Energy intensity of the economy (kg of oil equivalent per 1000 euro GDP 2004)  273.6 278.2 283.8 277.6 275.9 275.7 260.2 24 9.7 273.3 277.7 
SI: Share of renewable energy in electricity consum ption (%)  37.3 29.5 24.3 19.1 25.6 25.2 30.9 24.7 25.5 18.9 
SI: Road freight transport as a share of total in land freight transport (modal split of freight 
transport) (%)  94.8 94.8 94.3 95.3 95.5 94.6 94.4 94.4e 94.3 : 
 
EN 90   EN SI: Structural Indicator 
e: estimate 
f: forecast 
p: provisional b: break in serie 
1. Source: Eurostat. Break in serie in 2006. 
2. Including lakes. 
3. Before December 2005, M1 included currency in  circulation and demand desposits (TRY). From December 2005 onwards, M1 includes c urrency in circulation and demand deposits (TRY, FX). 
4. Before December 2005, M2 included M1 and time deposits (TRY). Fr om December 2005 onwards, M2 includes M1 and time deposits (TRY , FX). 
5. Before December 2005, M3 included M2 and o fficial deposits (time/demand). From Dece mber 2005 onwards, M3 includes M2, fund rece ived from repo transactions and money market funds (B type liquid funds). 
6. Averages of monthly data for lending to  enterprises of more than one year. 
7. Averages of monthly data, up to one year or longer. 
8. Calculated on the basis of ISIC Rev.3, base year 2003 
9. From 2004 onwards, data source is the Gene ral Directorate of Public Security. 
10. Excluding the number of buffaloes.             
Energy Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Primary production of all energy products (thousand TOE)  29 108 27 526 26 715 25 065 24 627 23 857 24 193 23 612 26 580 25 957 p 
Primary production of crude oil (thousand TOE)  3 219 2 937 2 746 2 508 2 414 2 349 2 245 2 259 2 284 1 975p 
Primary production of hard coal and lignite (thousand TO E)  13 943 13 282 13 293 12 876 11 826 11 010 10 599 10 484 13 087 13 7 09p 
Primary production of natural gas (thousand TOE)  465 602 526 257 311 461 566 738 839 774p 
Net imports of all energy products (thousand TOE)  43 410 43 347 50 873 46 070 51 002 56 655 58 574 61 986 73 256 79 834p 
Gross inland energy consumption (thousand TOE)  72 312 71 042 77 374 71 370 75 341 79 278 81 859 85 159 99 642 105 792p 
Electricity generation (thousand GWh)  111.0 116.4 124.9 122.7 129.4 140.6 150.7 162.0 176.3 191.1p 
            
Agriculture Note 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 
Agricultural production volume index of goods  and services (produc er prices, previous 
year=100)  110.6 94.7 104.2 93.3 108.5 98.0 101.6 106.9 : : 
Total utilised agricultural area (thousand hectare)  39 344 39 180 38 757 40 967 41 196 40 645 41 210 41 223 40 496 39 503p 
Livestock: cattle (thousand heads, end of period) 10) 11 031 11 054 10 761 10 548 9 803 9 788 10 069 10 526 10 871 11 037 
Livestock: pigs (thousand heads, end of period)  5 3 3 3 4 7 4 2 1 2 
Livestock: sheep and goats (thousand heads, end of period)  37 492 38 030 35 693 33 994 31 954 32 203 31 811 31 822 32 260 31 7 49 
Production and utilisation of milk on the farm (total  whole milk, thousand tonnes)  : : : : : : : : : : 
Crop production: cereals (including ri ce) (thousand tonnes, harvested production)  33 060 28 749 32 108 29 426 30 686 30 658 33  957 36 231 34 365 29 645 
Crop production: sugar beet (thousand tonnes, harvested pr oduction)  22 283 17 102 18 821 12 633 16 523 12 623 13 517 15 181 14  452 12 415 
Crop production: vegetables (thousand tonnes, harvested production)  21 151 22 083 22 357 21 930 23 698 24 018 23 215 24 320 24  017 25 670