Commission staff working document - Turkey 2009 progress report accompanying the Communication from the Commission to the European Parliament and the Council - Enlargement Strategy and Main Challenges 2009-2010 {COM(2009) 533 final}
Date: 2009-10-14
Institutions: European Commission
Subjects: Türkiye, accession to the European Union, enlargement of the Union, pre-accession strategy, report

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.10.2009 
SEC(2009) 1334 

COMMISSION STAFF WORKING DOCUMENT 

TURKEY 2009 PROGRESS REPORT 

accompanying the 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Enlargement Strategy and Main Challenges 2009-2010 

{COM(2009) 533 final} 

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TABLE OF CONTENTS 

1. 

1.1. 

1.2. 

1.3. 

2. 

2.1. 

2.2. 

2.3. 

3. 

3.1. 

3.2. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

4.6. 

4.7. 

4.8. 

4.9. 

Introduction .................................................................................................................. 4 

Preface.......................................................................................................................... 4 

Context ......................................................................................................................... 4 

Relations between the EU and Turkey......................................................................... 5 

Political criteria ............................................................................................................ 6 

Democracy and the rule of law .................................................................................... 6 

Human rights and the protection of minorities .......................................................... 13 

Regional issues and international obligations ............................................................ 31 

Economic criteria ....................................................................................................... 33 

The existence of a functioning market economy ....................................................... 33 

The capacity to cope with competitive pressure and market forces within the Union
.................................................................................................................................... 37 

Ability to assume the obligations of membership...................................................... 39 

Chapter 1: Free movement of goods .......................................................................... 40 

Chapter 2: Freedom of movement for workers .......................................................... 42 

Chapter 3: Right of establishment and freedom to provide services ......................... 42 

Chapter 4: Free movement of capital ......................................................................... 43 

Chapter 5: Public procurement................................................................................... 45 

Chapter 6: Company law............................................................................................ 46 

Chapter 7: Intellectual property law........................................................................... 47 

Chapter 8: Competition Policy................................................................................... 49 

Chapter 9: Financial Services..................................................................................... 49 

4.10.  Chapter 10: Information society and media ............................................................... 51 

4.11.  Chapter 11: Agriculture.............................................................................................. 53 

4.12.  Chapter 12: Food safety, veterinary and phytosanitary policy .................................. 54 

4.13.  Chapter 13: Fisheries.................................................................................................. 56 

4.14.  Chapter 14: Transport policy ..................................................................................... 57 

4.15.  Chapter 15: Energy .................................................................................................... 59 

4.16.  Chapter 16: Taxation.................................................................................................. 60 

4.17.  Chapter 17: Economic and Monetary Union ............................................................. 61 

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4.18.  Chapter 18: Statistics.................................................................................................. 62 

4.19.  Chapter 19: Social Policy and Employment .............................................................. 63 

4.20.  Chapter 20: Enterprise and Industrial Policy ............................................................. 65 

4.21.  Chapter 21: Trans European Networks ...................................................................... 66 

4.22.  Chapter 22: Regional Policy and Coordination of Structural Instruments ................ 67 

4.23.  Chapter 23: Judiciary and fundamental rights ........................................................... 69 

4.24.  Chapter 24: Justice, Freedom and Security................................................................ 73 

4.25.  Chapter 25: Science and Research ............................................................................. 78 

4.26.  Chapter 26: Education and Culture ............................................................................ 79 

4.27.  Chapter 27: Environment ........................................................................................... 80 

4.28.  Chapter 28: Consumer and Health Protection............................................................ 82 

4.29.  Chapter 29: Customs Union ....................................................................................... 84 

4.30.  Chapter 30: External Relations .................................................................................. 85 

4.31.  Chapter 31: Foreign, security and defence policy...................................................... 86 

4.32.  Chapter 32: Financial Control.................................................................................... 88 

4.33.  Chapter 33: Financial and Budgetary Provisions....................................................... 89 

STATISTICAL ANNEX.......................................................................................................... 90 

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COMMISSION STAFF WORKING DOCUMENT 

Turkey 2009 Progress Report 

1. 

INTRODUCTION 

1.1. 

Preface 

Following  the  conclusions  of  the  Luxembourg  European  Council  in  December  1997,  the 
Commission has reported regularly to the Council and the Parliament. 

This report on progress made by Turkey in preparing 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 terms of the political criteria for membership; 

–  analyses the situation in Turkey on the basis 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, and the policies of the Union. 

The  period  covered  by  this  report  is  from  early  October  2008  to  mid-September  2009. 
Progress  is  measured  on  the  basis  of  decisions  taken,  legislation  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 
treatment across all reports and permits an objective assessment. 

The  report  is  based  on  information  gathered  and  analysed  by  the  Commission.  In  addition, 
many  sources  have  been  used,  including  contributions  from  the  government  of  Turkey,  the 
EU Member States, European Parliament reports1, and information from various international 
and non-governmental organisations. 

The Commission draws detailed conclusions regarding 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 
2 

The rapporteur for Turkey is Mrs. Oomen-Ruijten. 
Enlargement Strategy and Main Challenges 2009-2010 (COM(2009)533 of 14.10.2009). 

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1.3. 

Relations between the EU and Turkey  

Accession  negotiations with  Turkey  continued.  During  the  preparatory  analytical  phase  the 
level  of  preparedness  to  start  negotiations  on  individual  chapters  has  been  assessed  on  the 
basis of screening reports. Of a total of 33 screening reports, 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 eleven chapters (Science and Research Enterprise 
and industry, Statistics, Financial Control, Trans-European Networks, Consumer and health 
protection,  Intellectual  property  law,  Company  law,  Information  society  and  media,  free 
movement  of  capital  and  taxation)  one  of  which  (Science  and  Research)  was  provisionally 
closed. 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 March 2009 at ministerial level and in February and July 2009 
at political director level. These meetings focused on the main challenges faced by Turkey in 
terms  of  the  Copenhagen  political  criteria  and  reviewed  progress  being  made  towards 
fulfilment of Accession Partnership priorities. 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  also  regularly  discussed.  A  number  of  high-level  visits  from  Turkey  to  the 
European institutions took place during the reporting period. 

The EC-Turkey customs union contributed to a further increase in bilateral EU-Turkey trade, 
which  exceeded  €100  billion  in  2008,  thereby  making  Turkey  the  EU's  seventh  biggest 
trading partner. Almost half of Turkey's total trade is with the EU. The EU asked Turkey to 
remove  all  remaining  restrictions  on  the  free  movement  of  goods,  including  restrictions  on 
means  of  transport  regarding  Cyprus.  A  number  of  Turkey’s  commitments  on  removing 
technical barriers to trade such as import licences, restrictions on import of goods from third 
countries in free circulation in the EU, State aid, enforcement of intellectual property rights 
and the use of safeguard measures remain unfulfilled. No progress can be reported concerning 
Turkey's  longstanding  ban  on  imports  of  live  bovine  animals,  beef  meat  and  other  animal 
products. 

The  EU  provides  guidance  to  the  authorities  on  reform  priorities  through  the  Accession 
Partnership, adopted in February 2008. Progress on these reform priorities is encouraged and 
monitored  through  the  bodies  set  up  under  the  Association  Agreement.  The  Association 
Committee  met  in  March  2009,  the  Association  Council  in  May  2009.  Eight  sectoral  sub-
committees have been held since November 2008. 

Turkey  recently  accepted  to  resume  formal  negotiations  on  an  EC-Turkey  readmission 
agreement. 

As regards financial assistance, some €567 million have been earmarked for Turkey from the 
Instrument for Pre-accession Assistance (IPA) in 2009. The Multi-Annual Indicative Planning 
Document  2009-2011,  which  provides  the  strategic  multi-annual  framework  for  all 
programmes  at  national  level  (covering  all  five  IPA  components),  was  adopted  by  the 

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. 

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Commission on 29 July 2009. Support continues to focus on institutions directly concerned by 
political  reforms  in  the  judiciary  and  the  law  enforcement  services,  on  the  adoption  and 
implementation  of  the  acquis  communautaire  in  priority  areas,  on  economic  and  social 
development,  and  on  rural  development.  In  addition,  Turkey  is  benefiting  from  a  series  of 
regional and horizontal programmes under IPA. 

in  particular 

EU financial support has been provided to civil society development under the Civil Society 
Facility, 
to  enhance  civil  society  organisations´  administrative  and 
communication  skills,  social  dialogue  and  inclusion,  culture,  gender,  children  and  regional 
issues.  Under  the  Civil  society  dialogue  Turkey's  participation  in  EU  programmes  has  been 
co-financed  and  projects  in  areas  such  as  media,  youth,  academic  institutions,  local 
authorities, cultural organisations/centres and civil society organisations have been supported. 

In the context of the IPA crisis response package, Turkey benefits from €52.5 million of IPA 
national funds via a special Turkey window for multi-beneficiary programmes. The window 
supports energy efficiency investments, renewables and the EU harmonisation activities of the 
SMEs.  The  country  also  benefits  from  multi-beneficiary  funds  to  strengthen  banking  sector 
supervision. 

Assistance  under  IPA  is  implemented  through  decentralised  management,  meaning  that 
assistance is managed by the Turkish authorities as a result of an accreditation process carried 
out  by  the  Commission.  Between  October  2008  and  July  2009,  Turkey  has  obtained 
management responsibility for IPA components I-IV and relevant Financing Agreements for 
the implementation of programmes have been signed. The legal basis for IPA implementation 
was  completed  in  December  2008  with  the  notification  of  the  ratification  of  the  IPA 
Framework  Agreement.  Turkey  needs  to  complete  preparations  for  the  transfer  of 
management  responsibility  under  the  rural  development  component  (V),  vigorously  address 
system  weaknesses  including  regarding  monitoring  and  further  improve  the  quality  and 
efficiency of the project and programme cycles. 

2. 

POLITICAL CRITERIA 

This  section  examines  progress  made  by  Turkey  towards  meeting  the  Copenhagen  political 
criteria, which require stability of institutions guaranteeing democracy, the rule of law, human 
rights  and  respect  for  and  protection  of  minorities.  It  also  monitors  the  respect  for 
international  obligations,  regional  cooperation,  and  good  neighbourly  relations  with 
enlargement countries and Member States. 

2.1. 

Democracy and the rule of law 

Investigations  into  the  alleged  criminal  network  Ergenekon  continued.  Charges  include 
attempting  to  overthrow  the  government  and  to  instigate  armed  riots.  Ammunition  and 
weapons  were  discovered  in  the  course  of  the  investigation.  A  first  trial,  which  started  in 
October 2008, is ongoing. A second indictment, covering 56 suspects including three retired 
generals and a former commander of the gendarmerie, was submitted to court in March 2009. 
A  third  indictment  covering  52  suspects  was  presented  to  the  Court  in  July.  The  cases 
concerning these two indictments are discussed in one single trial, which started in July 2009 
and  is  ongoing.  This  is  the  first  case  in  Turkey  to  probe  into  a  coup  attempt  and  the  most 
extensive  investigation  ever  on  an  alleged  criminal  network  aiming  at  destabilising  the 
democratic  institutions.  Furthermore,  for  the  first  time  a  former  Chief  of  Staff  testified 

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voluntarily as a witness. Concerns have been raised about effective judicial guarantees for all 
the suspects (see the section on the judicial system). 

The case for closure of the Democratic Society Party (DTP), which was opened in November 
2007  by  the  Chief  Public  Prosecutor  of  the  Court  of  Cassation,  is  still  pending  before  the 
Constitutional  Court.  The  party  is  accused  of  engaging  in  activities  against  the  unity  and 
integrity  of  the  country.  The  DTP  is  represented  in  parliament  with  20  members  from  the 
South-Eastern  region  of  the  country.  On  14  March  2009  the  Venice  Commission  of  the 
Council of Europe published its opinion on the Turkish legislation governing the closure of 
political  parties.  It  concluded  that  Articles  68  and  69  of  the  Constitution  and  the  relevant 
provisions of the Law on Political Parties form a system which, as a whole, is incompatible 
with Article 11 of the European Convention on Human Rights (right to freedom of assembly 
and association)4. The Turkish authorities have not yet amended the legislation accordingly. 

Overall,  the  investigation  of  the  alleged  criminal  network  Ergenekon  has  led  to  serious 
criminal  charges,  involving  military  officers.  This  case  is  an  opportunity  for  Turkey  to 
strengthen confidence in the proper functioning of its democratic institutions and the rule of 
law.  It  is  important  that  proceedings  in  this  context  fully  respect  the  due  process  of  law,  in 
particular the  rights of the  defendants. Turkey still needs to bring its legislation on political 
parties in line with European standards. 

Constitution  

The  political  and  societal  debate  on  constitutional  reform  continued.  There  is  a  growing 
awareness  in  the  country  that  Turkey’s  Constitution,  drafted  in  the  aftermath  of  the  1980 
military coup, needs to be amended in order to allow further democratisation in a number of 
areas and give stronger guarantees of fundamental freedoms in line with EU standards. These 
include, for example, rules on political parties, institution of an Ombudsman, use of languages 
other than Turkish and enhancement of trade union rights.  

However, no consensus  could  be reached between political parties on constitutional  reform. 
There  was  no  follow-up  to  the  draft  constitutional  reforms  prepared  in  2008  by  a  group  of 
academics.  Despite  numerous  announcements,  the  government  did  not  put  forward  any 
proposal  for  amending  the  Constitution,  nor  did  it  propose  any  methodological  approach, 
based on consultation, to that end.  

Parliament  

In  March  2009  parliament  established  a  consultative  Committee  on  Equal  Opportunities  for 
Men and Women (see the section on women’s rights). 

However, work on improving parliament’s rules of procedure has yet to be completed. A draft 
proposal was finalised in February by the Consensus Committee on Rules of Procedure. 

4 

The Venice Commission found that the situation in Turkey differs from common European practice in 
the following respects: (a) there is a long list of substantive criteria applicable to the constitutionality of 
political parties, which go beyond the criteria recognised as legitimate by the European Court of Human 
Rights and the Venice Commission; (b) there is a procedure for initiating decisions on prohibition or 
dissolution  of  parties  which  makes  this  more  arbitrary  and  less  subject  to  democratic  control  than  in 
other European countries and (c) there is a tradition of applying the rules on party closure to an extent 
that has no parallel in any other European country and which demonstrates that this is not regarded as 
an extraordinary measure, but as a structural and operative part of the Constitution. 

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President 

Against  the  background  of  a  confrontational  political  climate  between  the  main  political 
parties,  the  President  made  efforts  to  promote  dialogue  between  political  parties  and  civil 
society as well as sound operation of the State bodies. He repeatedly recalled the importance 
of  Turkey's  accession  process  and  called  for  an  acceleration  of  EU-related  reforms.  The 
President continued to play an active role in foreign policy and travelled extensively abroad. 
His  trip  to  Iraq,  the  first  of  a  Turkish  President  for  33  years,  contributed  to  a  positive 
atmosphere as regards the Kurdish issue (see the section on the East and South East). 

Government  

The  government,  reshuffled  following  the  March  municipal  elections,  expressed  its 
commitment  to  the  EU  accession  process  and  to  political  reforms.  In  December  2008  it 
adopted  the  national  programme  for  the  adoption  of  the acquis  (NPAA),  as  required  by  the 
Accession Partnership. 

In  January  2009,  for  the  first  time  since  the  beginning  of  accession  negotiations,  the 
government appointed a full-time EU Chief Negotiator, with the status of State Minister. He 
streamlined  preparations  and  improved  inter-ministerial  coordination  as  regards  accession 
negotiations.  Furthermore,  he  convened  meetings  with  stakeholders,  including  civil  society, 
thus promoting participation in, and a better understanding of the negotiation process. 

The European Union Secretariat-General (EUSG), Turkey’s main coordination body for EU 
affairs, was placed under the EU Chief Negotiator. The latter prepared a law, adopted in June, 
granting  the  EUSG  wider  and  clearer  responsibilities.  The  staff  has  increased  substantially, 
and a new Secretary General has been appointed. The new structure is expected to enable the 
EUSG to function more effectively. 

The Reform Monitoring Group – made up of the Ministers of Foreign Affairs, State Minister 
and EU Negotiator, Justice and the Interior –met more regularly, i.e. every two months, after 
the Cabinet reshuffle. The Group provided strong support to the process of reforms. 

However,  these  efforts  need  to  translate  into  more  concrete  progress.  Despite  the 
government's  strong  popular  mandate  and  large  majority  in  parliament,  overall  limited 
concrete progress was made on political reforms. 

As regards local government, elections of municipal, special provincial administration (SPA) 
and village and neighbourhood councils were held throughout Turkey on 29 March 2009. The 
elections were free and fair, with a voter turn-out of over 85%, underscoring the electorate’s 
trust in the electoral process. 

However,  in  the  run-up  to  the  elections,  the  Supreme  Electoral  Board  took  a  number  of 
controversial decisions on the documents required in order to be eligible to vote, on voting for 
the  persons  with  disabilities  and  on  the  ban  on  headscarves  for  ballot-box  observers.  The 
number of women elected mayors was very low5 (see the section on women’s rights). 

No  progress  has  been  made  on  devolution  of  powers  to  local  governments,  especially  on 
establishing  operational  city  councils,  which  are  seen  as  a  platform  to  enhance  public 

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Most of them were supported by the DTP. 

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participation in local government, and improving democratic governance mechanisms, again 
to enhance public participation. 

Transparency systems, particularly internal and external audits of local governments, are vital 
for  enhanced  accountability.  Some  municipalities  are  reluctant  to  grant  citizens  access  to 
municipal decisions, in particular concerning development plans. In this context, in December 
2008 the Board on Access to Information filed a complaint with the public prosecutor about 
rejections of requests for information by the Ankara metropolitan municipality. 

Overall, free and fair municipal elections took place throughout the country. As regards EU-
related reforms, the decision to appoint a full-time Chief Negotiator and the adoption of the 
national programme were positive developments. However, little progress can be reported on 
effective implementation of political and constitutional reforms. The lack of dialogue and of a 
spirit of compromise between political parties is having a negative impact in this respect. As 
regards local government, most issues, including devolution of powers and strengthening of 
local governance mechanisms, have yet to be addressed. 

Public administration  

As  regards  reform  of  public  administration,  in  July  2009  the  Council  of  Ministers  issued  a 
regulation  establishing  the  principles  and  procedures  for  the  administration  to  deliver  better 
public services to citizens. They focus on enhancing e-services and information, establishing 
services standards and taking measures for the disabled. 170 regulations have been simplified 
and 421 administrative documents were eliminated. 

However,  a  number  of  key  challenges  remain,  such  as  reducing  red  tape,  developing 
regulatory  impact  assessments  (RIA),  establishing  administrative  procedures,  enhancing 
transparency and improving policy-making and coordination systems. 

Implementation of the Public Financial Management and Control (PFMC) Law remains cause 
for concern. Establishment of an effective and operational internal audit system, in the form 
of  autonomous  units  within  all  State  institutions,  remained  incomplete.  In  this  context, 
strategy  development  units,  which  are  pillars  of  financial  management  and  policy-making, 
need to be strengthened. 

Little progress has been made concerning the civil service system. A civil service reform is 
necessary in order to modernise human resources management and further develop a coherent 
personnel policy framework, based on transparency, accountability, political and merit-based 
career  perspectives.  The  reform  of  the  civil  service  should  also  include  legal  guarantees  to 
avoid politicisation of the appointment and promotion system where appropriate. 

In  December  2008  the  Constitutional  Court  annulled  the  Law  aimed  at  establishing  an 
Ombudsman, who would act as a link between the State administrations and citizens (see the 
section on promotion of human rights).  

Overall, little progress has been made on public administration reform. Considerable further 
efforts are needed, in particular on the modernisation of civil service. Reducing red tape and 
promoting  administrative  simplification,  as  well  as  further  developing  a  professional, 
independent, accountable, transparent and merit-based civil service remain priorities. 

Civilian oversight of security forces 

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In  June  2009  Parliament  passed  legislation  providing  for  civilian  courts  to  try  military 
personnel in peacetime for crimes subject to Heavy Penal Court jurisdiction under article 250 
of the Code of Criminal Procedure, including in the event of attempted coups d’état, crimes 
affecting  national  security  and  organised  crime.  Furthermore,  the  new  legislation  lifted  the 
remaining powers of military courts to try civilians in peacetime, thus aligning Turkey with 
EU  practices.  The  main  opposition  party  CHP  appealed  to  the  Constitutional  Court  for 
annulment of the new legislation. The case is pending. 

The government amended the Regulation on the Organisation and Duties of the Gendarmerie 
in  March  2009.  The  new  regulation  clarifies  the  powers  of  the  police  and  gendarmerie  in 
urban and rural areas. It is now being implemented, under the responsibility of Governors. 

However, there have been allegations of senior members of the armed forces being involved 
in  anti-government  activities.  A  total  of  19  retired  military  officers  –  including  five  former 
generals – and five serving officers have been accused of crimes including an attempted coup 
d’état in the Ergenekon case (see above). An investigation into extra-judicial executions in the 
South-East  in  the  1990’s  led  to  the  arrest  of  a  Gendarmerie  serving  colonel,  along  with  six 
other people.  

The judicial practice on the jurisdiction of military courts needs to comply with EU practice. 
A trial against two non-commissioned officers and an informant of the terrorist group PKK on 
the  Şemdinli  case6  has  been  pending  since  the  Court  of  Cassation  quashed  a  first-instance 
civil court conviction to a total of 39 years’ imprisonment and transferred the case under the 
jurisdiction  of  the  military  court.  The  accused  remain  free  –  pending  trial  –  further  to  the 
decision of the Van military court (see section on the judicial system). 

The  armed  forces  have  continued  to  exercise  undue  political  influence  via  formal  and 
informal mechanisms. Senior members of the armed forces have expressed on a large number 
of  occasions  their  views  on  domestic  and  foreign  policy  issues  going  beyond  their  remit, 
including  on  Cyprus,  ethnicity,  the  South-East,  secularism,  political  parties  and  other  non-
military matters. On a number of occasions, the General Staff reacted publicly to politicians 
and  media  reports.  During  a  press  briefing  in  April,  the  Chief  of  General  Staff  made 
comments  on  the  Ergenekon  case  and  on  the  indictment,  thus  putting  the  judiciary  under 
pressure.  Some  senior  members  of  the  armed  forces  lent  support  to  military  personnel 
standing trial. 

No change has been made to the Turkish Armed Forces Internal Service Law or to the Law on 
the National Security Council. These define the roles and duties of the Turkish military and 
grant  the  military  wide  room  for  manoeuvre  by  providing  a  broad  definition  of  national 
security.  The  1997  EMASYA  secret  protocol  on  security,  public  order  and  assistance  units 
remains in force7. 

No progress has been made on strengthening legislative oversight of the military budget and 
expenditure.  Likewise,  the  Defence  Industry  Support  Fund  (SSDF),  from  which  most 
procurement  projects  are  financed,  is  still  an  extra-budgetary  fund  excluded  from 
parliamentary scrutiny. Parliament has no mandate to develop security and defence policies. 

6 

7 

The defendants are accused of the November 2005 bombing that killed one person and injured others in 
the town of Şemdinli in Southeast Turkey.  
The  protocol  allows  military  operations  to  be  carried  out  for  internal  security  reasons  under  certain 
conditions without a request from the civilian authorities. 

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As regards auditing, under the Constitution the Court of Auditors can carry out external ex-
post  audits  of  military  expenditure.  However,  these  audits  are  based  on  accounting  records 
and take the form of desk reviews. Auditors are not allowed to conduct on-the-spot checks. 
Moreover, the court remains unable to audit movable assets belonging to the military, pending 
adoption of the draft Law on the Court of Auditors. Last year, the Court of Auditors decided 
that it has a mandate to audit the SSDF. However, implementation has not yet started. 

Concerning internal auditing, the 2003 Public Financial Management and Control Law, which 
provides for internal audits of security institutions, has not been implemented yet. 

Overall,  some  progress  has  been  made,  in  particular  on  limiting  the  jurisdiction  of  military 
courts. However, senior members of the armed forces have made statements on issues going 
beyond  their  remit,  and  full  parliamentary  oversight  of  defence  expenditure  needs  to  be 
ensured.  The  alleged  involvement  of  military  personnel  in  anti-government  activities, 
disclosed by the investigation on Ergenekon, raises serious concerns. 

Judicial system 

The government approved the judicial reform strategy in August 2009. This is a positive step, 
both  in  terms  of  the  consultative  process8  followed  before  its  approval  but  also  because  its 
content  broadly  provides  the  right  direction  for  reforms.  The  strategy  is  comprehensive  and 
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  access  to  justice  and  to  improve  the 
penitentiary system. An action plan to implement the strategy has also been approved. 

Some progress was made in hiring judicial staff. On 1 May 2009 there were a total of 7,081 
judges (6,914 on 1 May 2008) and 4,040 prosecutors (3,917 on 1 May 2008). 

However, the overall number of vacancies for judges and prosecutors remains significant, i.e. 
3,875 on 1 May 2009 (4,166 on 1 May 2008). 

Concerns  remain  about  the  independence,  impartiality  and  efficiency  of  the  judiciary.  As 
regards independence, there has been no progress on the composition of the High Council of 
Judges  and  Prosecutors9  or  on  the  reporting  lines  of  judicial  inspectors10.  Under  a  2007 
regulation, judicial inspectors can request a court order authorising interception of telephone 
calls by members of the judiciary. The Şemdinli case is pending (see the section on civilian 
oversight of security forces). The dismissal of the civilian prosecutor previously in charge of 
the  case,  together  with  the  handling  of  the  case  to  date,  raised  questions  about  the 
independence of the High Council11. 

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9 

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11 

The  Ministry  of  Justice  presented  a  draft  strategy  in  spring 2008,  further  to  which  consultations  with 
stakeholders,  including  civil  society,  took  place.  Judges  and  prosecutors,  including  the  High  Courts, 
discussed the draft strategy on a number of occasions. 
The  composition  of  the  High  Council  is  not  representative  of  the  judiciary  as  a  whole;  only  senior 
members of the Court of Cassation and of the Council of State are members of this Council. 
The judicial inspectors, who are responsible for evaluating the performance of judges and prosecutors, 
are attached to the ministry, not to the High Council. 
The  civilian  prosecutor  in  this  case  published  the  indictment  in  2006.  It  included  accusations  against 
high-ranking military commanders. The General Staff criticised the indictment and urged those bearing 
constitutional  responsibility  to  take  action.  The  High  Council  of  Judges  and  Prosecutors  took  the 
dismissal decision in April 2006.  

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Senior  members  of  the  judiciary,  of  the  military  and  of  an  association  of  judges  and 
prosecutors have made statements which are likely to put the impartiality of the judiciary at 
risk in important cases. With respect to the efficiency of the judiciary, the regional courts of 
appeal  have  not  been  established  yet.  By  law,  they  should  have  been  in  operation  by  June 
2007. A final decision on their number and seats and on the timely provision of the material 
and human resources necessary for their operations has yet to be taken. 

High-profile cases raised concerns about the quality of the investigations. Furthermore, there 
is a need to improve the working relationship between the police and the gendarmerie on the 
one hand and the judiciary on the other. Reports by civil society organisations and statements 
by witnesses, in particular regarding the alleged criminal network Ergenekon, the murder of 
three Protestants in Malatya and the murder of Turkish-Armenian journalist Hrant Dink cases, 
highlighted these concerns in specific cases. As regards the latter case in particular, a report 
from  the  Prime  Ministry  Inspection  Board  questioned  the  security  forces’  role  prior  to  the 
murder.  According  to  the  report,  the  security  forces  appeared  to  refrain  from  taking  action 
after having received credible information about death threats against Mr Dink. The trials in 
Istanbul, Samsun and Trabzon on this murder are  continuing,  but have not  been merged, as 
has been requested by the lawyers representing the family of Mr Dink.  

There  have  been  reports  of  violations  of  procedural  rights  of  the  accused  in  the  judicial 
proceedings regarding the alleged criminal network Ergenekon. There have also been a large 
number of leaks of information collected in the context of this case, against which court cases 
have been opened (see the section on freedom of expression). 

Members of the judiciary reportedly do not limit pre-trial detention to circumstances where it 
is  strictly  necessary  in  the  public  interest.  This  adds  to  the  overcrowding  of  prisons,  where 
more than half of the inmates await trial. Judges appear to be hesitant to implement probation 
as an alternative to imprisonment while there are problems with effectively monitoring people 
released  on  probation.  There  are  concerns  as  regards  juvenile  justice  (see  the  section  on 
children’s rights). 

Overall,  some  progress  has  been  made  in  the  area  of  the  judiciary.  The  adoption  by  the 
government  of  the  judicial  reform  strategy  following  a  process  of  consultation  with  all 
stakeholders  is  a  positive  step.  The  measures  taken  to  increase  staff  and  funding  are  also 
positive. However, these efforts need to be continued, and concerns remain with regard to the 
independence, impartiality and effectiveness of the judiciary, such as the composition of the 
High  Council  of  Judges  and  Prosecutors  and  the  establishment  of  the  regional  courts  of 
appeal. 

Anti-corruption policy  

Limited progress has been made in fighting corruption. In June, Parliament adopted a law to 
amend the Penal Code and the Code of Misdemeanours. This is to take account of GRECO 
recommendations, align with international conventions and to implement the requirements of 
the OECD Bribery Convention and the recommendations of the Financial Action Task Force 
(FATF) concerning the prevention of money-laundering. The law strengthens the legislative 
framework  as  regards  the  liability  of  legal  persons,  prevention  of  money-laundering  and 
foreign bribery. 

The  government,  under  the  coordination  of  the  Prime  Ministry  Inspection  Board  with  the 
participation  of  other  State  institutions  carried  out  a  broad  consultation  with  stakeholders, 
including NGOs, with a view to preparing a national anti-corruption strategy. 

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The  ministerial  commission  established  to  enhance  good  governance  and  transparency  has 
hardly taken any political initiative in anti-corruption issues. 

In  the  context  of  a  fraud  case  against  the  charity  association  Deniz  Feneri  in  Germany  last 
year,  the  Turkish  prosecution  continued  the  investigation  in  Turkey.  Assets  of  the  main 
suspects have been frozen in Turkey. However, no indictment has been submitted to the court. 

For  the  first  time,  the  Ethics  Board  for  Civil  Servants  published  four  decisions,  in  2009, 
concerning non-compliance with ethics rules by public officials, including an elected mayor 
and managers of public companies. 

However,  no  progress  has  been  made  on  extending  the  ethics  rules  to  academics,  military 
personnel and the judiciary. 

There  has  been  no  progress  on  limiting  the  immunity  of  Members  of  Parliament  as  regards 
corruption-related cases. The opposition supports measures in this respect. Parliament needs 
to establish a permanent ethics commission to deal with complaints and allegations. There is 
no  code  of  conduct  for  Members  of  Parliament.  Moreover,  objective  criteria  should  be 
established to define the conditions under which immunity could be lifted. The lack of control 
and verification of asset declarations remains a weak point in protecting the integrity system 
in parliament and government.  

No progress has been made on adoption of legislation on the financing of political parties and 
election  campaigns,  which  would  increase  transparency.  There  is  no  state  body  with  the 
authority to audit election campaign financing. 

There has been no progress towards adoption of the new legislation on the Court of Auditors, 
which envisages the re-structuring and strengthening of the court. 

Overall,  the  legislative  framework  designed  to  prevent  corruption  has  been  improved. 
However,  corruption  remains  prevalent  in  many  areas.  Turkey  needs  to  finalise  an  anti-
corruption strategy and to develop a track record of investigations, indictments, prosecutions 
and convictions. 

2.2. 

Human rights and the protection of minorities 

Observance of international human rights law 

As for ratification of human rights instruments, Parliament ratified the UN Convention on 
the Rights of Persons with Disabilities, which entered into force on 18 December 2008. The 
Optional Protocol to this Convention was signed in September 2009.  

Following a government decision in September 2009, the ratification of the Optional Protocol 
to  the  UN  Convention  against  Torture  (OPCAT)  is  now  pending  before  Parliament.  This 
Protocol  requires  parties  to  designate  or  establish  an  independent  national  preventive 
mechanism for monitoring places of detention.  

Turkey  has  not  ratified  three  additional  Protocols  to  the  European  Convention  on  Human 
Rights (ECHR)12.  

12 

Protocols 4, 7 and 12.  

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During  the  reporting  period,  the  European  Court  of  Human  Rights  (ECtHR)  delivered  a 
total of 381 judgments finding that Turkey had violated the ECHR. The court concluded that 
there had been a violation of the right to a fair trial and/or the right to liberty and security in 
about one third of these cases. Most of the events on which the judgments are based date back 
to  the  1990s  or  before  the  new  Turkish  Criminal  Code  (TCC)  or  Criminal  Procedure  Code 
were enacted. The majority of the new applications to the ECtHR refer to the right to a fair 
trial and protection of property rights. A further 11% refer to freedom of expression and 5% to 
the prohibition of torture. Overall, there were more applications to the ECtHR against Turkey.  

Turkey  continued  to  make  progress  on  the  execution  of  ECtHR  judgments.  All  pecuniary 
compensation was paid on time, totalling €5.2 million in 2008.  

However,  implementation  of  ECtHR  judgments  requiring  legislative  measures  is  delayed, 
sometimes  for  several  years.  The  non-implementation  of  the  Hulki  Güneş,  Göçmen  and 
Söylemez judgements results in the deprivation of liberty of the defendants for several years 
without  due  process  of  law.  A  legislative  amendment  is  required  to  remedy  this  situation. 
Furthermore,  Turkey  has  not  adopted  legal  measures  to  prevent  repetitive  prosecution  and 
conviction  of  conscientious  objectors.  Other  cases  awaiting  legislative  measures  by  Turkey 
concern  control  of  the  activities  of  security  forces,  effective  remedies  against  abuse  and 
restrictions on freedom of expression.  

In the Cyprus v. Turkey case, the issue of missing persons and the restrictions 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 laid down by the ECtHR and has continued to receive 
requests for compensation. In its decision of 28 July 2009 the Court took note of the friendly 
settlement  of  the  case  Alexandrou  v.  Turkey  brokered  by  the  Turkish  Cypriot  Immovable 
Property  Commission  and  expressed  satisfaction  that  the  settlement  is  based  on  respect  for 
human  rights  as  defined  in  the  Convention  or  its  Protocols.  However,  the  ECtHR  has  not 
assessed whether the available remedy is effective for all relevant issues. Turkey has not yet 
fully implemented the ECtHR judgments on the Loizidou and Xenides-Arestis cases. 

Several State bodies share the task of promotion and enforcement of human rights. These 
include  the  Human  Rights  Presidency  under  the  Prime  Minister’s  office  and  the  Human 
Rights  Boards  (931  in  all).  These  bodies  have  the  tasks  of  visiting  places  of  detention 
(including  State-sponsored  social  services)  and  of  reviewing  allegations  of  human  rights 
violations.  Overall,  the  number  of  applications  to  these  bodies  has  increased  substantially. 
Human  rights  training  for  public  officials,  judges,  public  prosecutors  and  police  officers 
continued. In-service and on-the-job training for the gendarmerie includes training on human 
rights  and  was  supplemented  by  specialist  training  on  techniques  to  review  allegations  of 
human rights violations.  

At  parliament  level,  the  Human  Rights  Investigation  Committee  established  four  sub-
committees on: torture, ill treatment and prisons; freedom of thought, expression, religion and 
conscience;  economic  and  social  rights  (including  children’s  rights);  and  harmonisation  of 
legislation with the EU acquis. The committee also issued several reports on specific human 
rights cases.  

However,  some  human  rights  defenders  have  continued  to  face  criminal  proceedings  in 
relation to their work. Lack of resources, independence and public awareness are hampering 
the  smooth  operation  of  human  rights  institutions.  Discussions  on  the  creation  of  a  new 

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National Human Rights Institution to address these shortcomings have not been finalised. The 
government signalled its commitment to this process. The Ombudsman Law adopted in 2006 
was annulled by the Constitutional Court on the grounds that the Constitution does not allow 
such an institution to be affiliated to parliament. Establishment of the Ombudsman therefore 
requires  an  amendment  to  the  Turkish  Constitution.  However,  the  necessary  consensus  was 
not secured in parliament.  

Overall, there was some progress on observance of international human rights law. However, 
implementation  of  some  ECtHR  judgments  requiring  legislative  amendments  has  been 
outstanding  for  several  years.  Further  efforts  are  needed  to  strengthening  the  institutional 
framework  on  human  rights,  in  particular  as  regards  the  establishment  of  an  independent 
human rights institution and of an Ombudsman. The ratification of the OPCAT is overdue.  

Civil and political rights 

The government pursued its efforts to ensure compliance with the legal safeguards to prevent 
torture and ill-treatment. Training for health personnel, judges and prosecutors on effective 
investigation  and  documentation  of  torture  and  ill-treatment  cases  was  stepped  up  in  2008, 
with  a  view  to  implementation  of  the  Istanbul  Protocol13  in  Turkey.  Efforts  to  equip  police 
and gendarmerie statement-taking rooms with audio- and video-recording systems continued. 

Preparations  for  an  independent  national  mechanism  to  investigate  citizens’  complaints  that 
will  cover  the  police,  gendarmerie  and  coastguard  services  were  completed  in  June.  A 
decision  by  the  Minister  of  the  Interior  is  now  awaited  before  finalisation  of  the  draft  law 
establishing this body and subsequent submission to parliament.  

The  Council  of  Europe’s  Committee  for  the  Prevention  of  Torture  (CPT)14  carried  out  a 
comprehensive  mission  to  Turkey  in  June  2009.  This  visit  was  important  to  review  the 
government’s zero tolerance policy, as human rights NGOs had received more allegations of 
torture and ill-treatment in recent years. The CPT paid particular attention to the treatment of 
persons  detained  by  law  enforcement  agencies  (the  police  and  gendarmerie)  and  to  the 
conditions  under  which  illegal  immigrants  are  held  in  detention  centres  for  foreigners.  The 
CPT  also  examined  in  detail  various  issues  related  to  prisons,  including  the  activities  and 
healthcare  services  offered  to  prisoners.  Prompt  authorisation  to  publish  the  report  on  this 
2009  visit  would  contribute  to  highlighting  the  government’s  commitment  to  the  zero 
tolerance policy on torture and ill-treatment15.  

Ratification of OPCAT has been pending since 2005 (see Observance of international human 
rights law).  

13 

14 

15 

Istanbul  Protocol:  Manual  on  the  effective  Investigation  and  Documentation  of  Torture  and  Other 
Cruel,  Inhuman  or  Degrading  Treatment  of  Punishment,  submitted  to  the  United  National  Human 
Rights Commissioner for Human Rights, 9 August 1999. 
The role of the CPT is to examine the treatment of persons deprived of their liberty in the 47 Member 
States  of  the  Council  of  Europe.  After  each  visit,  the  CPT  sends  a  confidential  report  containing  its 
conclusions  and  recommendations  to  the  State  concerned.  The  State  can  then  decide  whether  to 
authorise publication of the CPT report. 
All  CPT  reports  on  Turkey  have  been  published  so  far.  However,  publication  of  some  of  them  was 
delayed in the past. 

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Counter-cases are frequently initiated by law enforcement bodies against persons who allege 
torture or ill-treatment. Such legal proceedings might result in deterring complaints. There is 
evidence that such cases are treated expeditiously by Turkish courts.  

No  forensic  medical  doctors  are  recognised  by  courts,  apart  from  the  Forensic  Medicine 
Council,  which  is  under  the  Ministry  of  Justice.  This  de  facto  monopoly  prevents 
development  of  effective  and  independent  forensic  services  in  the  country.  Furthermore, 
lawyers should be allowed to attend forensic examinations in case the doctor requests a law 
enforcement officer to be present during the examination for security reasons.  

As  concerns  the  fight  against  impunity  for  human  rights  violations,  sixty  officials  held 
responsible for the death in custody of Engin Çeber in 2008 were indicted. The trial on this 
case started in January 2009 and is still in progress.  

However,  there  is  a  need  to  step  up  efforts  to  reduce  impunity  for  human  rights  violations. 
The  report  on  torture  and  ill-treatment  by  the  parliamentary  Human  Rights  Investigation 
Committee, adopted in January, notes that none of the 35 lawsuits filed against 431 members 
of  the  Istanbul  police  for  ill-treatment  or  torture  resulted  in  a  conviction16.  The  committee 
concluded that this leads to suspicions about the effectiveness of proceedings initiated against 
law enforcement agents. According to the same report, only 2% of police officers are subject 
to disciplinary sanctions as a result of an administrative investigation of allegations of torture 
or ill-treatment. The committee concluded that such investigations should not be carried out 
by fellow police officers.  

The  four  police  officers  standing  trial  for  ‘killing  outside  legitimate  self-defence’ 
Ahmet Kaymaz and his 12 year-old son Uğur in November 2004 were acquitted by the Court 
of Cassation in June. The Kaymaz family appealed to the ECtHR.  

Overall,  while  the  Turkish  legal  framework  includes  a  comprehensive  set  of  safeguards 
against torture and ill-treatment, efforts to implement it and fully apply the government's zero-
tolerance policy have been limited. Allegations of torture and ill-treatment, and impunity for 
perpetrators are still a cause for great concern, and need to become a priority area for remedial 
action by the Turkish authorities. In order to assess accurately progress in this area it would be 
helpful  that  the  Turkish  authorities  authorise  promptly  the  publication  of  the  Council  of 
Europe’s Committee for the Prevention of Torture (CPT) report. 

Access to justice was relatively easier in urban areas, where detainees have had access to a 
lawyer  immediately  after  detention.  However,  there  have  been  problems  in  rural  areas,  in 
particular  in  the  South-East,  where  defendants  have  not  had  access  to  a  lawyer  on  terms 
equivalent  to  those  in  urban  areas.  Similarly,  children  from  15  to  18  years  of  age  detained 
under the anti-terror law for participating in demonstrations have not always had access to a 
lawyer immediately after detention. Overall, effective legal assistance is limited and a number 
of  criminal  defendants  remain  unrepresented.  Defendants'  awareness  on  the  availability  of 
free legal assistance needs to be raised.  

Turkey  has  been  pursuing  an  ambitious  prison  reform  programme  for  a  number  of  years, 
which has brought improvements to prison conditions and infrastructure. Further progress was 
made  on  implementation  of  this  programme,  by  constructing  new  prisons  and  closing  a 

16 

By January 2009, 64 persons had been acquitted, 290 cases resulted in no prosecution and proceedings 
were continuing against 76 police officers. 

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number  of  small  outdated  prisons.  There  are  four  centres  which  provide  pre-service  and  in-
service training for prison staff. A fifth is under construction and will be completed by the end 
of the year. Recruitment of 6,000 additional staff for prisons started in July, with the aim of 
completing the process by the end of the year17. 

However,  implementation  of  the  prison  reform  programme  is  uneven.  For  example,  it  is 
difficult  to  implement  in  small  prisons,  which  have  inadequate  resources.  The  current 
understaffing of prisons adds to these difficulties, as it prevents for example the organisation 
of  communal  activities  or  rehabilitation  programmes  for  prisoners.  This  is  the  case  in  high-
security F-type prisons, which still lack communal activities for inmates.  

The  rapid  increase  in  the  number  of  inmates,  which  has  doubled  in  a  few  years,  led  to  a 
growing overcrowding problem18. Furthermore, the high proportion of prisoners on pre-trial 
detention has still to be addressed19 (see the section on the judicial system). 

The national framework for prison monitoring falls short of the requirements of OPCAT (see 
the section on torture and ill-treatment). There are concerns as regards imprisoned juveniles 
(see the section on children's rights). 

A  new  procedure  has  been  established  in  order  to  ease  restrictions  on  the  use  of  languages 
other than Turkish on the phone. Visiting arrangements provided by law are more restrictive 
than required on any reasonable security grounds.  

There have been cases where serious illnesses that require continuous treatment have not been 
considered grounds for release. Healthcare/psychiatric resources are inadequate. The ratio of 
one doctor to 250 prisoners, which is necessary to allow proper medical care in prisons, is not 
achieved in Turkey. There have been reported cases of ill-treatment by  prison staff  (see the 
section on impunity). 

Overall,  some  progress  was  made  on  improving  training  and  infrastructure,  and  recruiting 
additional  prison  staff.  However,  the  problem  of  overcrowding  and  the  high  proportion  of 
prisoners in pre-trial detention remain to be addressed.  

As  regards  freedom  of  expression,  article  301  of  the  Turkish  Criminal  Code  (TCC)  is  no 
longer used systematically to restrict freedom of expression. Revision of this article led to a 
significant decline in prosecutions compared with previous years20.  

The  Constitutional  Court  annulled  the  provisions  of  the  Anti-Terror  Law  making  media 
owners  liable  for  publishing  terrorist  propaganda  or  praise  of  terrorism,  further  to  the  case 
brought by the former President in 2006. 

17 
18 

19 
20 

On 10 July 2009, the total number of vacancies was 8,121 out of a total staff of 27,021.  
On  10  July  2009,  the  total  prison  population  was  112,066  compared  with  a  total  prison  capacity  of 
90,558.  
On 10 July 2009, 53% of inmates were in pre-trial detention. 
The  amendments  to  article  301  entered  into  force  on  8  May  2008.  These  amendments  introduced 
amongst  other  a  permission  requirement  by  the  Minister  of  Justice  in  order  to  launch  a  criminal 
investigation on the basis of article 301. Further to the entry into force of the revised article the Minister 
reviewed 914 pending cases (either at the prosecution or trial phase) and authorised in total 77 criminal 
investigations  to  continue  (i.e.  8%  of  the  cases  referred  to  him).  Furthermore,  the  Minister  of  Justice 
reviewed 210 investigations initiated  after  the  entry into force of  the  amendments  to  article  301 on 8 
May 2008, out of which he granted permission to eight criminal investigations to continue (i.e. 3% of 
the cases referred to him).  

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A  petition  signed  by  200  Turkish  intellectuals  to  denounce  ‘the  denial  of  the  Great 
Catastrophe that the Ottoman Armenians were subjected to in 1915 […]’ and to apologise to 
the Armenians was launched on the internet. About 30,000 signatures were collected for this 
campaign,  which  sparked  a  wide  debate,  including  in  mainstream  media21.  Furthermore, 
intense  debates  took  place  in  the  media  on  other  topics  perceived  as  sensitive  by  Turkish 
public opinion, such as the Kurdish issue, minority rights in general, the role of the military 
and Atatürk’s legacy.  

However,  the  Turkish  legal  framework  still  fails  to  provide  sufficient  guarantees  for 
exercising freedom of expression and, as a result, is often interpreted in a restrictive way by 
public  prosecutors  and  judges.  There  are  still  some  prosecutions  and  convictions  based  on 
Article 301. Furthermore, a number of other provisions of the Turkish Criminal Code are used 
to restrict freedom of expression, particularly as regards offences against dignity (Articles 125 
to  131  of  the  TCC),  public  order  (Articles  214,  216,  217,  218,  220),  state  security  (Article 
305), the constitutional order (Articles 312 and 314) and obscenity (Article 226). In addition, 
prosecutions  and  convictions  continue  on  the  basis  of  Article  318  of  the  TCC  (on 
discouraging people from military service), the Law on Crimes against Atatürk, and the Law 
on  Accepting  and  Applying  the  Turkish  Alphabet22.  This  legal  uncertainty  puts  journalists, 
writers,  publishers,  politicians,  academics  and  others  at  risk  of  investigation,  prosecution, 
conviction and imprisonment and could therefore result in self-censorship.  

The amendments to the Anti-Terror Law, which were adopted in June 2006 in response to the 
escalation  of  terrorism,  resulted  in  the  suspension  of  several  periodicals.  The  Constitutional 
Court rejected the case, introduced by the former President in 2006, against the provisions of 
the Anti-Terror Law allowing Prosecutors to ban publications for a period of fifteen days to 
one month. 

There are two tax-related procedures opened against the leading national media group Doğan 
Media  Holding.  The  high  fines  imposed  by  the  revenue  authority  potentially  undermine  the 
economic viability of the Group and therefore affect freedom of the press in practice. There is 
a  need  to  uphold  the  principles  of  proportionality  and  of  fairness  in  these  tax-related 
procedures.  

Several civil procedures have been filed by politicians for violations of their personal rights 
by  publishers,  journalists,  writers  or  other  politicians.  The  General  Staff  initiated  cases  on 
disclosure  of  prohibited  information  with  regard  to  the  incidents  which  took  place  in  the 
South-East.  Journalists  face  frequent  prosecutions  for  breaches  of  the  confidentiality  of 
investigations  or  attempts  to  influence  a  fair  trial  (respectively  Articles  285  and  288  of  the 
TCC).  Certain  media  outlets  requesting  journalist  accreditations  were  discriminated  against. 
Senior political leaders called for a boycott of newspapers and television channels owned by 
the Doğan Media Holding.  

Frequent  website  bans  continue  to  be  a  cause  for  concern.  Judicial  and  administrative 
decisions  block  the  entire  website  instead  of  filtering  out  unwanted  content.  YouTube  has 

21 

22 

A  non-prosecution  decision  was  issued  in  January  2009  against  those  who  launched  the  campaign. 
However,  this  decision  was  overruled  by  the  Sincan  1st  Heavy  Penal  Court  on  2  March  2009.  The 
appeal brought by the Ministry of Justice against this decision with the Court of Cassation is currently 
ongoing.  
Under this law, only letters which are in the Turkish alphabet may be used. 

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been  banned  since  May  2008.  Court  cases  are  pending  against  Facebook,  Google  Sites  and 
other sites.  

Overall, there is an increasingly open and free debate in Turkish society, including on issues 
traditionally  perceived  as  sensitive.  Article  301  of  the  Turkish  Criminal  Code  is  no  longer 
used  systematically  to  restrict  freedom  of  expression.  However,  there  are  prosecutions  and 
convictions based on a number of other articles of the criminal Code. Turkish law does not 
sufficiently guarantee freedom of expression in line with the ECHR and the ECtHR case law. 
Political pressures on the media and legal uncertainties affect freedom of the press in practice.  

Further efforts were made with a view to implementing the legal framework on freedom of 
assembly. A circular issued by the Ministry of the Interior in November 2008 (see the section 
on torture and ill-treatment) stressed the need for correct implementation of apprehension and 
detention procedures, in particular to prevent disproportionate use of force by security forces. 
Police officers on duty during demonstrations carry visible numbers on their helmets in order 
to  facilitate  identification  in  the  event  of  police  brutality.  This  measure  is  now  applicable 
nationwide. 

However, improving the difficult working conditions in the Turkish national police, including 
with the aid of training, would be needed in order to address the issue of use of force during 
demonstrations. Furthermore, certain provision in the Law on the Duties and Legal Powers of 
the  Police,  adopted  in  2007,  raise  concerns  about  protection  of  the  right  to  life.  Difficulties 
with implementation of this law are still being reported. There have been cases of ill-treatment 
during routine identity checks. Judicial and administrative investigations against members of 
the security forces who are involved in excessive use of force are not carried out effectively 
(see the section on impunity).  

Newroz  (the  Kurdish  New  Year)  and  1  May  demonstrations,  which  were  marred  by  police 
violence in previous years, took place peacefully in most places during the reporting period 
However,  demonstrations  in  the  South-East  of  the  country  continued  to  be  marked  by 
violence. Investigation and video-taping of NGOs’ activities by security forces are still being 
reported, especially in the East and South-East of the country. 

As  regards  freedom  of  association,  the  number  of  associations  and  their  membership 
continued to increase. The first elections to the Foundations Council were held in December 
2008. The new Foundations Council decided that the level of assets required for establishing 
new  foundations  should  be  lowered  considerably,  thus  further  relaxing  the  conditions  for 
establishing a foundation.  

The Council of State annulled a circular restricting university professors’ right of association. 
The  circular  issued  in  November  2008  by  the  Higher  Board  of  Education  prevented  faculty 
members  from  taking  up  duties  in  professional  organisations,  foundations  or  associations 
without endorsement by their university.  

The Court of Cassation ruled against the closure of the lesbian, gay, bisexual, transgender and 
transvestite (LGBTT) Lambda Istanbul Solidarity Association in April. 

However,  the  court’s  ruling  made  the  legality  of  the  association  conditional  on  not 
"encouraging  lesbian,  gay,  bisexual,  transvestite  and  transsexual  behaviour  with  the  aim  of 
spreading  such  sexual  orientations";  this  is  not  compatible  with  the  EU's  rejection  of 
homophobia and its anti-discrimination standards. Furthermore, a closure case was launched 
against  the  Özgür-Der  Association  for  Freedom  of  Thought  and  Right  to  Education.  It  is 

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based on a press statement issued by the association in November 2008 in which it expressed 
its opposition to the national security classes offered by military officers in schools. A judicial 
investigation  is  in  progress  against  the  Istanbul-branch  of  the  Human  Rights  Association. 
Both these closure cases were initiated by a complaint by the Istanbul Governorate.  

Some legal provisions place an undue burden on the operations of associations. There are high 
fines or severe punishments for failing to comply with the Law on Associations23. The legal 
obligation to notify authorities before receiving financial support from abroad places a burden 
on associations. Negative portrayal in certain media and at times disproportionate inspections 
of  NGOs  receiving  funds  from  abroad,  including  EC  funds,  remain  a  further  cause  for 
concern.  

Problems with registration of associations and foundations, in particular local representations 
of  international  NGOs,  are  still  being  reported.  At  least  two  other  cases  regarding  major 
foreign  NGOs  (International  Crisis  Group  and  the  Raoul  Wallenberg  Institute)  have  been 
pending for more than a year.  

Trade  unions  continue  to  face  obstacles  in  exercising  their  right  to  organise  public 
demonstrations.  Police  intervention  has  not  always  been  limited  to  cases  where  a  genuine 
threat of public order was apparent.  

There is no progress to report on amendment of the legal provision on the closure of political 
parties (see also the section on democracy and the rule of law).  

Overall,  the  legal  framework  on  associations  is  broadly  in  line  with  European  standards. 
However,  considerable  progress  needs  to  be  made  as  regards  its  implementation,  as 
associations still face disproportionate scrutiny of their activities, which in some cases has led 
to judicial proceedings.  

There is a growing awareness in public institutions and in the public at large about the crucial 
role played by civil society organisations, including in the accession process  

However,  some  difficulties  encountered  with  the  consultation  procedures  reflect  the  lack  of 
trust  between  State  institutions  and  civil  society  organisations.  The  legal  framework  for 
collection of donations and tax exemptions for NGOs needs to be strengthened, in line with 
EU good practice, to improve NGOs’ financial sustainability.  

Concerning  freedom  of  religion,  freedom  of  worship  continues  to  be  generally  respected. 
Implementation  of  the  Law  on  Foundations  adopted  in  February  2008  proceeded  smoothly 
over  the  reporting  period  (see  the  sections  on  the  right  to  property  and  freedom  of 
association). There has been some progress on obtaining work permits for foreign clergy who 
wish  to  work  in  Turkey.  In  particular,  the  Ecumenical  Patriarchate’s  applications  for  work 
permits  were  answered  positively  in  December  2008.  The  Turkish  authorities,  including 
representatives  of  the  Ministries  of  Foreign  Affairs  and  of  the  Interior,  visited  non-Muslim 
religious  communities  in  spring  2009  to  discuss  their  problems  while  in  summer 
representatives of these communities met with the Prime Minister. 

23 

In the event of failure to keep the necessary records of an association, the executives of the association 
are liable to imprisonment of between three months and one year. 

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In  December  2008  the  Minister  of  Culture  participated  in  the  opening  of  the  first  Alevi 
Institute and apologised to the Alevis for past sufferings caused by the State. In January 2009 
the Prime Minister attended an Alevi fast-breaking ceremony for the second consecutive year. 
The government held workshops aimed at discussing openly problems and expectations of the 
Alevis;  this  effort  was  received  positively  by  the  Alevi  community.  The  public  service 
broadcaster  screened  a  number  of  programmes  on  the  Alevi  Muharram24  celebrations.  In 
another  symbolic  gesture,  the  Ministry  of  Culture  started  discussions  to  establish  in  the 
Madimak  Hotel  in  Sivas  a  cultural  centre  in  memory  of  the  victims  of  the  1993  events25. 
Three municipal councils recognised Cem houses as places of worship and granted them the 
same financial advantages as mosques. Administrative courts in Antalya, Ankara and Istanbul 
ruled  that  Alevi  students  should  be  exempted  from  attending  the  mandatory  religion  and 
ethics  course.  A  similar  ruling  by  the  Izmir  administrative  court  was  confirmed  by  the 
Council of State. 

However,  under  Article  24  of  the  Turkish  Constitution  and  Article  12  of  the  national 
education  basic  law,  religious  culture  and  ethics  classes  remain  compulsory  in  primary  and 
secondary education. In October 2007 the ECtHR found that these classes did not just give a 
general overview of religions but provided specific instruction in the guiding principles of the 
Muslim faith, including its cultural rights. The court requested Turkey to bring its education 
system  and  domestic  legislation  into  line  with  Article  2  of  Protocol  1  to  the  ECHR. 
Implementation of this judgment is still pending before the Council of Europe Committee of 
Ministers. 

Non-Muslim communities – as organised structures of religious groups – still face problems 
due  to  lack  of  legal  personality.  Restrictions  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,  although  its  re-opening  was  widely  debated  over  the 
reporting  period.  The  Armenian  Patriarchate’s  proposal  to  open  a  university  department  for 
the Armenian language and clergy has been pending for a number of years. The Syriacs can 
provide only informal training, outside any officially established schools. Despite the progress 
made  on  obtaining  work  permits  for  foreign  clergy  who  wish  to  work  in  Turkey,  overall 
procedures remain cumbersome. 

The  Ecumenical  Patriarch  is  not  free  to  use  the  ecclesiastical  title  ‘Ecumenical’  on  all 
occasions.  In  June  2007  the  Court  of  Cassation  ruled  that  persons  who  participate  and  are 
elected  in  religious  elections  held  in  the  Patriarchate  should  be  Turkish  citizens  and  be 
employed  in  Turkey  at  the  time  of  the  elections.  However,  Turkish  and  foreign  nationals 
should be treated equally as regards their ability to exercise their right to freedom of religion 
by participating in the life of organised religious communities in accordance with the ECHR 
and the case law of the ECtHR. 

Personal documents, such as ID cards, still include information on religion, leaving potential 
for discriminatory practices. 

24 
25 

Muharram is the first month of the Islamic calendar.  
On 2 July 1993 a mob besieged the Madimak Hotel in Sivas that was hosting a Pir Sultan Abdal culture 
festival. The hotel was set on fire, resulting in the death of 37 people – mostly Alevi writers, poets and 
artists participating in the festival. 

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religious  communities 

Regarding  places  of  worship,  non-Muslim 
frequent 
discrimination  and  administrative  uncertainty:  applications  to  authorities  for  allocation  of 
places  of  worship  are  refused  and  existing  Protestant  churches  and  Jehovah’s  witnesses’ 
prayer halls face court cases. Two cases regarding Alevi places of worship (Cem houses) are 
pending before the courts, one of them before the Council of State. Despite the recognition by 
three municipal councils of three Cem houses as places of worship, the overall policy of not 
recognising such houses as places of worship has not changed. 

report 

Members  of  minority  religious  groups  have  claimed  that  their  worship  activities  are 
monitored and recorded by security forces. The Federation of the Alevi Bektashi Associations 
filed  a  petition  against  three  newspapers  for  publishing  derogatory  and  discriminatory 
material against Alevis. Attacks and threats against non-Muslim clergy and places of worship 
have  been  reported  in  a  number  of  provinces.  A  Turkish  Bible  Society  bookshop  in  the 
southern  city  of  Adana  was  vandalised  for  the  second  time  in  February.  Missionaries  are 
widely perceived as a threat to the integrity of the country and to the Muslim religion. A court 
case against two missionaries in Silivri continued; it was also expanded after the Ministry of 
Justice allowed judicial proceedings under Article 301 of the Criminal Code. The court case 
concerning the killing of three Protestants in Malatya in April 2007 is still in progress. 

Judicial  proceedings  against  conscientious  objectors  on  religious  grounds  have  continued. 
Public  statements  on  the  right  to  conscientious  objection  have  led  to  convictions.  Cases 
against  Jehovah’s  witnesses  regarding  conscientious  objection  are  pending  before  the 
ECtHR26 (see the section on observance of international human rights law). 

Overall,  implementation  of  the  law  on  foundations  has  been  smooth  (see  the  section  on 
property rights). The Government has undertaken a dialogue with the Alevi and non-Muslim 
religious  communities.  However,  their  specific  problems  have  yet  to  be  addressed.  Attacks 
against minority religions still occur. A legal framework in line with the ECHR has yet to be 
established, so that all non-Muslim religious communities and Alevi community can function 
without undue constraints, including as regards training of clergy. Further efforts are needed 
to create an environment conducive to full respect of freedom of religion in practice. 

Economic and social rights 

As regards women’s rights, a consultative parliamentary Committee on Equal Opportunities 
for  Men  and  Women  was  established  by  law  in  March  2009.  It  monitors  developments  on 
gender equality, gives opinions on draft laws and proposes steps to align Turkish legislation 
and  practice  with  international  agreements.  It  also  examines  complaints  about  violations  of 
equality between women and men and gender-based discrimination. 

A legislative amendment granted public servants employed under labour contracts the right to 
paid maternity leave of 16 weeks, the same as for public servants, plus the possibility to return 
to  the  same  post,  if  they  apply  for  it,  at  the  end  of  their  maternity  leave.  The  preliminary 
results of the 2008 Turkey Demographic and Health Survey show an improvement in mother 
and child health indicators over the last five years27, even though regional disparities persist. 

26 
27 

Applications 43965/04, 5260/07 and 14017/08. 
There has been  a  13%  increase  in pre-natal  care provided by health personnel, giving  93%  coverage. 
The rate of deliveries assisted by health personnel has increased by 8%, to 90% overall coverage. 

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Awareness-raising  activities  and  gender  sensitivity  training  programmes  for  public  service 
and  health  personnel  have  continued.  In  April  2009  a  protocol  was  signed  between  the 
Directorate-General for  Women’s Status and the Ministry  of  Justice  with  a  view  to  training 
prosecutors and judges on violence against women. Women’s NGOs launched campaigns to 
increase  female  participation  in  local  elections,  such  as  the  ‘50/50  equality’  campaign 
simultaneously with the European Women’s Lobby’s ‘50/50 no modern European democracy 
without gender equality’ campaign. 

However, gender equality remains a major challenge in Turkey and a gender equality body as 
required  by  the  acquis  has  yet  to  be  established  (see  chapter  19  –  Social  policy  and 
employment). 

Political representation of women, at both national and regional levels, is very low. The local 
elections  held  on  29  March  2009  did  not  change  this:  there  are  only  two  female  mayors  at 
provincial capital level and seventeen at district town level. Overall, despite the pre-electoral 
rhetoric, political parties did not place a sufficient number of female candidates in electable 
positions.  Finally,  the  Law  on  Political  Parties  and  the  statutes  of  the  parties  contain  no 
provisions that could lead in practice to adequate political representation of Turkish women. 

Women’s  participation  in  the  labour  market  is  still  very  low28.  Women  entering  the  labour 
market  are  likely  to  be  employed  in  the  informal  sector;  this  makes  their  situation  fragile. 
Overall, women earn less than men for work of equal value. 

Women’s  access  to  education  is  the  lowest  among  the  EU  Member  States  and  OECD 
countries.  The  good  results  on  reducing  the  gender  gap  in  primary  education  need  to  be 
sustained and improved, in particular by ensuring that girls continue to attend school and by 
identifying and addressing school drop-outs (see the section on children’s rights). 

Domestic violence, honour killings and early and forced marriages are still serious problems. 
The report on national research on domestic violence against women29 illustrated the gravity 
of the problem: 39% of the women said that they had been victims of physical violence and 
15%  victims  of  sexual  abuse.  One  out  of  every  four  women  had  been  injured  as  a  result  of 
physical  or  sexual  violence.  Furthermore,  the poll  found  that  48.5%  of  the  victims  had  told 
no-one about the abuse, while only 4% had sought help from the police and a mere 1% refuge 
in  State-run  shelters.  Most  Turkish  women  are  still  not  fully  aware  of  their  rights  and 
significant further efforts are needed in this regard. 

In  June  2009  the  European  Court  of  Human  Rights  published  its  chamber  judgment  in  the 
Opuz  v.  Turkey  case30.  It  held  unanimously  that  there  had  been  a  violation  of  (a)  Article  2 
(right to life) of the ECHR; (b) Article 3 (prohibition of torture and of inhuman and degrading 
treatment);  and  (c)  Article  14  (prohibition  of  discrimination),  read  in  conjunction  with 
Articles  2  and  3,  on  account  of  the  fact  that  the  violence  suffered  by  the  applicant  and  her 

28 

29 

30 

A  marginal  increase  was  observed  in  women’s  participation  in  the  labour  market  at  the  end  of 
2008/beginning  of  2009  compared  with  the  same  period  the  year  before.  However,  this  marginal 
increase  needs  to  be  put  in  the  context  of  the  global  economic  and  financial  crisis  and  the  ensuing 
reduction of overall employment. 
This government-sponsored research was conducted as part of an EU-funded project in the summer of 
2008  on  a  sample  of  12,795  women.  A  summary  of  the  report  is  published  on  the  website  of  the 
Directorate-General on the Status of Women. 
Application  No  33401/02  concerning  the  Turkish  authorities’  failure  to  protect  the  applicant  and  her 
mother from domestic violence. 

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mother had been gender-based, which amounted to a form of discrimination against women, 
especially bearing in mind that, in cases of domestic violence in Turkey, the general passivity 
of the judicial system and impunity enjoyed by aggressors mainly affected women. 

Women’s organisations report that family courts take a long time to issue restraining orders to 
protect women facing the threat of violence under the Law on Protection of the Family. This 
undermines the effectiveness of the law and leads to further victimisation of women. 

There are only 54 shelters for female victims of domestic violence. This is much lower than 
provided for by the law31 or required by the actual needs, both in terms of number of shelters 
and  overall  bed  capacity.  The  availability  and  accessibility  of  intermediate  protection  and 
prevention services needs to be strengthened to meet the demand. 

After an initial improvement in cooperation between public institutions, brought about by the 
Prime  Ministerial  circular  on  combating  honour  killings  and  domestic  violence  against 
women,  concerns  arose  about  this  issue  over  the  reporting  period.  The  local  coordination 
boards32 envisaged in the circular from the Ministry of the Interior have not been established 
as  provided  under  the  law.  There  is  reportedly  lack  of  awareness  among  law  enforcement 
forces and public administrations of the Ministry of the Interior’s circular on violence against 
women and children. 

There is a lack of an effective dialogue of the civil society organisations with the government 
on gender-related issues.  

Overall, the legal framework guaranteeing women’s rights and gender equality is broadly in 
place. However, further significant efforts are needed to turn the legal framework into reality 
and to narrow the gap  between  men  and women in economic participation and opportunity, 
political empowerment and access to education. Domestic violence, honour killings and early 
and forced marriages remain serious problems in some areas of the country. There is a need 
for  further  training  and  awareness-raising  on  women’s  rights  and  gender  equality,  for  both 
men and women. 

With respect to children’s rights, the gender gap in primary education was halved from 2.3% 
in  2007/2008  to  approximately  1%  in  2008/2009.  The  number  of  children  in  pre-school 
education increased by 14% from 2007 to 2008, taking the overall pre-school education rate 
up to 33%. The number of teachers in pre-school education also increased by 14% from 2007 
to 2008. The e-school system enables the Ministry of National Education to identify and reach 
children who are out of school at any given time. 

According  to  preliminary  results  from  the  2008  Turkey  Demographic  and  Health  Survey, 
infant,  child  and  under-five  mortality  rates  have  decreased.  The  infant  mortality  rate  was 
measured as 1.7% in 2003–2008, a 47% decrease compared with 1998–2003. 

Under  the  2005  Law  on  Child  Protection,  child  courts  need  to  be  established  in  all  81 
provinces  of  the  country.  The  number  of  such  courts  increased  this  year  to  73  from  40  last 

31 

32 

The  2005  Law  on  Municipalities  provides  for  establishment  of  shelters  for  women  in  municipalities 
with a population of 50,000 or more. 
Under the circular, these boards should be established at local level and include representatives of the 
Governorate, police, gendarmerie, municipality, local religious office, universities and NGOs. They are 
expected to contribute to avoiding crimes in the name of honour and custom. 

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year.  These  are  located  in  33  out  of  the  81  provinces  in  the  country.  Child  Heavy  criminal 
courts for handling more serious charges exist only in 7 provinces. 

However, the poverty rate of children under 15 years of age increased by 0.9% to 26.1% in 
2007. In rural areas the rate is as high as 42%. 

Regional  disparities  in  primary  school  enrolment  persist:  there  is  a  difference  of  more  than 
10%  between  some  western  and  eastern  parts  of  the  country.  As  regards  continuation  to 
secondary school, the net enrolment rate drops from 96.5 % at primary school33 to 58.5% at 
secondary school. 

No  progress  can  be  reported  on  combating  child  labour,  as  the  capacity  of  the  national 
institutions responsible remains weak. There is no effective inspection system. An integrated 
approach with well established structures and adequate resources to eradicate child labour has 
yet to be adopted. 

As regards juvenile justice, under the 2005 Law on Child Protection all Turkish citizens up to 
18 years of age are considered children and enjoy children’s rights. However, amendments to 
the 2006 Anti-Terror Law, in particular regarding Articles 220 and 314 of the Criminal Code, 
provide  that  children  between  fifteen  and  eighteen  years  of  age  can  be  tried  as  adults.  In 
practice,  the  number  of  cases  lodged  against  children  in  this  age  group  on  the  basis  of  the 
amended Articles 220 and 314 of the Criminal Code has increased considerably. For instance, 
minors  participating  in  demonstrations,  particularly  in  the  South-East,  face  charges  of 
‘membership of a terrorist organisation’ and, hence, disproportionate, long prison sentences. 
Judgments  are  often  based  on  statements  by  police  officers  and  are  not  backed  by  firm 
evidence. Children have been allegedly ill-treated after their arrest and before being taken to 
the  prosecutor  and  have  been  prevented  from  seeing  their  lawyer  during  that  time.  The 
absence of child prosecutors at the child courts and the conditions of imprisonment have also 
been  criticised.  Finally,  the  psychological  assessments  of  children  cannot  be  properly 
prepared due to the shortage of competent staff. 

There  are  concerns  about  imprisoned  juveniles,  the  majority  of  whom  are  in  pre-trial 
detention in adult prisons34, due to limited capacities of Juvenile Reformatories. The physical 
conditions  and  the  quality  of  the  services  provided  in  juvenile  detention  centres  need  to  be 
improved. More effective use of the probation system should reduce the number of children in 
prison. 

Overall, efforts need to be further stepped up in all areas related to children’s rights, including 
administrative capacity, health, education, the juvenile justice system and child labour. Cases 
of juveniles tried as adults and facing disproportionate sentences raise serious concerns. 

As regards socially vulnerable persons and/or persons with disabilities, Turkey ratified the 
UN  Convention  on  the  Rights  of  Persons  with  Disabilities  in  December.  Several  publicly 
funded projects have been initiated to address the problems of persons with disabilities. 

However,  mental  health  is  an  area  of  concern.  The  CPT  stressed  the  need  for  legislative 
reforms  to  safeguard  the  rights  of  mentally  ill  patients,  in  particular  to  ensure  that  they  are 

33 

34 

This  rate  was  approximately  97%  last  year.  The  difference  is  mainly  due  to  a  change  of  statistical 
methods used by the Ministry of National Education to collect data. 
On 10 July 2009, there were 2,678 juveniles in prison, of whom 282 had been convicted. 

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given  the  opportunity  to  consent  to  or  refuse  treatment,  either  personally  or  via  a  guardian. 
Courts and mental health institutions are not adequately applying the provisions in the Civil 
Code  on  involuntary  placement  in  mental  health  institutions.  Further  efforts  are  needed  as 
regards treatment programmes, physical infrastructure and training. There is no independent 
body in Turkey to carry out inspections of mental health institutions. 

There are no comprehensive data on persons  with  a disability and on conditions  of  care  for 
mentally ill persons. Community-based services, as an alternative to institutionalised services, 
are  not  sufficiently  developed.  People  with  physical  disabilities  have  problems  in  gaining 
access  to  services,  mainly  due  to  physical  barriers  and  lack  of  awareness.  Disabled  persons 
were not provided with adequate facilities during the local elections and the Supreme Board 
of Elections  (YSK) took two decisions  which  had negative repercussions on the exercise of 
voting rights by the disabled.  

As  regards  labour  rights  and  trade  unions,  the  reinstatement  of  1  May  as  ‘Labour  and 
Solidarity Day’ and a public holiday and the decision to allow trade unions to demonstrate (in 
small numbers) on Taksim Square in Istanbul were two symbolic steps, as trade union rights 
had been curtailed in Turkey after the 1980 military coup.  

However,  the  efforts  to  reform  trade  union  legislation  did  not  bear  fruit.  The  current  legal 
framework – including the constitutional provisions on trade union rights – is not in line with 
EU standards and ILO Conventions, in particular as regards the right to organise, the right to 
strike and the right to bargain collectively, for either the private or public sectors (see chapter 
19  –  Social  policy  and  employment).  There  have  been  reports  of  restrictions  on  exercise  of 
existing trade union rights (see the section on Freedom of association) and of dismissals due 
to  trade  union  membership.  Social  dialogue  in  Turkey  is  weak.  Overall,  the  percentage  of 
workers benefiting from collective labour agreements is low.  

Members  of  the  Confederation  of  Public  Employees  Trade  Unions  (KESK),  which  is  an 
affiliate of the European Trade Unions Confederation, were arrested in the context of an anti-
terror operation (see the section on Situation in the East and South-East).  

The  principle  of  anti-discrimination  is  enshrined  in  the  Constitution  and  upheld  in  several 
laws.  The  Government  raised  public  awareness  on  anti-discrimination  and  decided  that  the 
first lecture of the school year should c this issue.  

However, the legal framework is not adequately aligned with the EU acquis (see chapter 19 – 
Social  policy  and  employment).  There  have  been  several  cases  of  discrimination  at  the 
workplace,  where  LGBT  employees  have  been  fired  because  of  their  sexual  orientation. 
Provisions  of  the  Turkish  Criminal  Code  on  ‘public  exhibitionism’  and  ‘offences  against 
public  morality’  are  sometimes  used  to  discriminate  against  LGBT  people.  The  Law  on 
Misdemeanours is often used to impose fines against transgender persons.  

Homophobia  has  resulted  in  cases  of  physical  and  sexual  violence.  The  killing  of  several 
transsexuals and transvestites is a worrying development. Courts have applied the principle of 
‘unjust provocation’ in favour of perpetrators of crimes against transsexuals and transvestites.  

The  Turkish  armed  forces  have  a  health  regulation  which  defines  homosexuality  as  a 
‘psychosexual’  illness  and  identifies  homosexuals  as  unfit  for  military  service.  Conscripts 
who declare their  homosexuality  have  to provide photographic  proof.  A  small  number have 
had to undergo humiliating medical examinations.  

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With  respect  to  property  rights,  implementation  of  the  Law  on  Foundations  continued 
smoothly throughout the reporting period. The deadline for submission of applications for the 
restitution of properties registered under figurative or fictitious names, or in the name of the 
Treasury  or  of  the  Directorate-General  for  Foundations  to  non-Muslim  foundations  was 
27 August 2009. Overall, 1,393 applications were submitted that are currently being evaluated 
by the Regional Directorates for Foundations. Under the Law on Foundations, a non-Muslim 
community foundation acquired two immovable properties through donation. Representatives 
of  the  Turkish  authorities  met  members  of  non-Muslim  community  foundations  and  visited 
Mor Gabriel monastery to discuss property-related matters.  

However,  neither  the  Law  on  Foundations  nor  other  legal  provisions  address  the  issues  of 
(a) properties seized and sold to third parties or (b) properties of foundations merged before 
the new legislation was adopted. 

Syriacs  continue  to  face  difficulties  in  relation  to  property.  A  number  of  court  cases  are  in 
progress concerning both private individuals and religious institutions. In particular, the Mor 
Gabriel  Syriac  Orthodox  monastery  has  faced  problems  with  land  ownership.  A  number  of 
court cases continued throughout the reporting period related to: new administrative borders 
between  the  monastery  and  neighbouring  villages  following  cadastre  work;  Treasury  claims 
that land used by the monastery belongs to the State; and claims by the Forestry Department 
that public forest areas are enclosed within the monastery’s external walls. The local judicial 
authorities brought a criminal case against the monastery for ‘occupying’ this forest area. The 
monastery claims that the land belongs to it and that it has in its possession administrative and 
tax documents substantiating its claims. All cases are on-going. 

In  March  2009  the  ECtHR  ruled  that  Turkey  had  violated  the  property  rights  of  a  Greek 
Orthodox church on the island of Bozcaada (Tenedos). It held unanimously that the refusal by 
the Turkish courts to register the immovable property of the applicant foundation in the land 
registry in its name was in violation of Article 1 of Protocol No 1 to the ECHR. In the same 
vein, the ECtHR found Turkey in violation of Article 1 of Protocol No 1 (property rights) in 
two Armenian Foundation cases. Turkey has executed the latter judgement of the ECtHR.  

Problems encountered by Greek nationals in inheriting 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 respect to that issue, the ECtHR held that there had been a 
violation  of  Article  1  of  Protocol  1  (peaceful  enjoyment  of  possessions)  to  the  ECHR  and 
ordered either the return of the property or the financial compensation of the applicants. 

Overall, the Law on Foundations has been implemented smoothly over the reporting period. 
However,  it  does  not  address  the  issues  of  properties  seized  and  sold  to  third  parties  or  of 
properties  of  foundations  merged  before  the  new  legislation  was  adopted.  Turkey  needs  to 
ensure full respect of the property rights of all non-Muslim religious communities. 

Minority rights, cultural rights and protection of minorities 

A  debate  on  minority-related  issues  has  developed  in  the  country.  Several  reports  by 
academics and NGOs have been published, in particular on education and discrimination in 
education. Work is under way to remove discriminatory language from textbooks. 

However, Turkey’s approach to minority rights remains restrictive. While Turkey is a party to 
the  UN  International  Covenant  on  Civil  and  Political  Rights,  its  reservations  regarding  the 
rights of minorities and its reservation concerning the UN Covenant on Economic, Social and 

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Cultural Rights regarding the right to education are causes for concern. 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.  

There  is  a  need  for  a  dialogue  between  Turkey  and  the  OSCE  High  Commissioner  on 
National Minorities including on the participation of minorities in public life and broadcasting 
in  minority  languages.  This  would  facilitate  Turkey's  further  alignment  with  international 
standards and best practice in EU Member States. 

The  Greek  minority  continues  to  encounter  problems  with  education  and  property  rights, 
including  on  the  islands  of  Gökçeada  (Imvros)  and  Bozcaada  (Tenedos).  Management  of 
minority schools, including the dual presidency35, remains an issue, pending an implementing 
regulation. 

The distribution in schools of the documentary ‘Sarı Gelin –Blonde Bride: the Truth behind 
the  Armenian  Issue’  was  suspended  by  the  Ministry  of  National  Education  following 
complaints  by  the  Armenian  community  about  what  it  considered  discriminatory  education 
offered to school children. However, the documentary was not withdrawn from schools and 
the decision whether to disseminate and show it was left to individual education authorities.  

Following  the  Israeli  military  intervention  in  Gaza  in  December  2008  there  have  been 
instances of hate speech against the Jewish community. After the latter expressed its concerns 
and complained about the inadequacy of the current legal provisions regarding hate speech, 
both the President and the Prime Minister publicly condemned anti-Semitism.  

Overall,  full  respect  for  and  protection  of  language,  culture  and  fundamental  rights,  in 
accordance  with  European  standards  have  yet  to  be  fully  achieved.  Turkey  made  limited 
efforts to enhance tolerance or promote inclusiveness vis-à-vis minorities. 

As  regards  cultural  rights,  in  January  2009  TRT  –  the  public  service  broadcaster  –  started 
operating channel TRT-6, broadcasting in Kurdish 24 hours a day. In September the Higher 
Education  Board’s  (YÖK)  endorsed  the  application  from  a  Turkish  University  (Artuklu 
University in Mardin) to establish a “Living Languages Institute” which would provide post 
graduate  education  in  Kurdish  and  other  languages  spoken  in  the  country.  The  public  radio 
network started to broadcast in Armenian in March 2009.  

At the inauguration ceremony of TRT-6, the Prime Minister spoke a few words in Kurdish. 
During the local election campaign, politicians and political parties used Kurdish in political 
activities. Although the use of any language other than Turkish in political life is illegal under 
the Law on Elections and Political Parties, in most such cases no legal action was launched. 
Most  court  cases  brought  against  Kurdish  politicians  for  using  the  Kurdish  language,  for 
example  for  sending  invitations  or  holiday  greetings  or  for  municipal  activities,  ended  in 
acquittals, although the prosecutors have lodged appeals in most of the cases. Governorships 
in several cities in the Southeast have started offering public services in Kurdish. 

However,  criminal  convictions  against  DTP  members  for  using  the  Kurdish  language  in 
political life are pending. In July 2009, the Deputy Chief Prosecutor of the Court of Cassation, 
who is in charge of political parties, applied for the removal of the parliamentary immunity of 

35 

(The  deputy  head  of  these  schools  is  a  Muslim  representing  the  Ministry  of  Education  and  has  more 
powers than the head) 

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several  DTP  members.  The  charges  include  using  the  Kurdish  language  in  Parliament. 
Following his dismissal in 2007 for providing municipal services in Kurdish, the same mayor 
was  elected  in  Sur  (Central  Diyarbakir).  However,  a  criminal  case  is  pending  against  him 
based on the same charges.  

Restrictions  laid  down  in  the  Law  on  the  Radio  and  Television  Supreme  Council  (RTÜK) 
apply  to  private  local  and  regional  TV  and  radio  programmes.  Educational  programmes 
teaching  the  Kurdish  language  are  not  allowed.  Political  debates  or  general  entertainment 
programmes in Kurdish are virtually impossible on private television channels. Several court 
cases  and  investigations  against  GÜN  TV  –  the  only  private  TV  channel  currently 
broadcasting in Kurdish – are in progress, in connection with the wording of Kurdish songs, 
the coverage of the municipal election campaign and other programmes. 

Children whose mother tongue is not Turkish cannot learn their mother tongue in the Turkish 
State  school  system.  As  regards  university  education,  the  ECtHR  ruled  against  Turkey 
regarding the application lodged by 18 university students, who were suspended from Afyon 
Kocatepe  University  for  demanding  elective  courses  in  Kurdish.  The  court  ruled  that  the 
students’ right to education had been violated. 

No  measures  have  been  taken  to  facilitate  access  to  public  services  for  non-speakers  of 
Turkish.  While  interpretation  is  possible  under  the  current  legislation,  it  is  not  consistently 
applied  in  practice.  Using  the  Kurdish  language  in  prisons  may  be  problematic,  with  the 
situation varying between prison administrations (see also sections on prisons).  

As  regards  Roma,  no  steps  have  been  taken  to  amend  the  Law  on  the  Movement  and 
Residence of Aliens, which authorises the Ministry of the Interior to expel stateless and non-
Turkish  gypsies  and  aliens  that  are  not  bound  to  the  Turkish  culture,  thus  promoting 
discrimination against Roma. Turkey has yet to establish a strategy to address the problems 
facing  the  Roma  population  and  provide  it  with  adequate  legal  protection.  Turkey  is  not 
participating  in  the  2005-2015  international  initiative  "The  Decade  of  Roma  Inclusion", 
despite calls on the government to do so by the Roma community.  

Roma  face  social  exclusion  and  marginalisation  in  access  to  education,  discrimination  in 
health  services,  exclusion  from  job  opportunities,  difficulties  in  gaining  access  to  personal 
documentation and exclusion from participation in public affairs and public life. As regards 
housing,  the  Roma  population  continued  to  face  demolition  of  Roma  districts  under  urban 
renewal  programmes  in  various  towns.  The  findings  of  the  inquiry  by  the  Prime  Ministry’s 
Human  Rights  Commission  into  the  demolitions  of  the  Roma  neighbourhood  in  Istanbul’s 
Sulukule  district,  which  started  in  spring  2008,  have  yet  to  be  published.  At  the  end  of  his 
visit  to  Turkey,  the  Council  of  Europe  Commissioner  for  Human  Rights  acknowledged  the 
efforts made by the Turkish authorities to upgrade the living standards in the historic area of 
Sulukule. However, he expressed concern at the process of relocation of the Roma, as some 
evictions had occurred without making alternative accommodation available for the families 
concerned, contrary to Council of Europe human rights standards. 

Overall, Turkey has made some progress on cultural rights, especially in the form of starting 
the Kurdish-language TV channel TRT 6. However, restrictions remain, particularly on use of 
languages  other  than  Turkish  in  private  TV  and  radio  broadcasting,  political  life,  education 
and  contacts  with  public  services.  The  legal  framework  on  the  use  of  languages  other  than 
Turkish  is  open  to  restrictive  interpretations  and  implementation  is  inconsistent.  There  has 

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been no progress in the situation of the Roma, who frequently face discriminatory treatment. 
Demolitions of Roma districts without provision of alternative housing continue. 

Situation in the East and South-East 

During the reporting period Turkey faced continuous terrorist violence resulting in loss of life, 
despite a relative reduction of violence from the end of 2008. In December 2008 the European 
Union  reaffirmed  its  support  to  Turkey  in  the  fight  against  terrorism,  which  must  be 
conducted with due regard for human rights, fundamental freedoms and international law.  

The visit of the President to Iraq and the Turkish rapprochement with the Kurdish Regional 
Government (KRG) contributed to creating a positive atmosphere around a possible solution 
to  the  Kurdish  issue.  A  vibrant  domestic  debate developed on  this subject, involving  public 
and  political  authorities,  including  the  opposition  and  civil  society.  In  summer,  the 
government launched a broad consultation with the view to solve the Kurdish issue through 
peaceful means and announced a comprehensive plan to this end, but did not reveal yet any 
detail on the substance. 

The government’s plan, announced in May 2008, to complete the South-East Anatolia project 
(GAP) and hence contribute to the socio-economic development of the region continued with 
the allocation of additional resources. According to official sources, the GAP’s share in total 
public  investments  increased  to  12%  in  2008  (7.2  in  2007).  Investments  on  irrigation,  road 
transport, health and education were given priority. The GAP Administration’s headquarters 
moved  from  Ankara  to  the  South-eastern  town  of  Şanliurfa.  A  monitoring,  evaluation  and 
reporting mechanism specific to the GAP was announced but not yet established. 

Contrary  to  previous  years,  the  Newroz  celebrations  in  March  2009  passed  by  peacefully 
overall.  Governorates  in  the  region  gave  permission  for  celebrations.  There  were  no  major 
confrontations between the police and demonstrators. 

In  June  parliament  adopted  a  Law  on  the  De-mining  of  the  Turkish-Syrian  Border  whereby 
anti-personnel and anti-tank mines will be cleared in the next five years under the supervision 
of the Ministry of Defence, and if necessary following public procurement procedures. Under 
certain conditions, the law also introduces the possibility for private companies to carry out 
de-mining  in  return  for  the  right  to  farm  the  land  for  up  to  44  years  after  de-mining  is 
completed.  The  opposition  party  CHP  argued  that  this  measure  is  contrary  to  Turkey’s 
national interests and referred the act to the Constitutional Court. In July, the Constitutional 
Court  accepted  the  case  and  decided  to  suspend  part  of  the  law  provisionally.  This  should 
however not affect de-mining operations. 

However,  the  use  made  of  the  anti-terror  legislation,  which  provides  a  wide  definition  of 
terrorism, has resulted in undue restrictions on the exercise of fundamental freedoms, such as 
freedom of expression and freedom of association, in the region. In several instances, the law 
has been used to punish non-violent opinions, in particular on the Kurdish issue. Since April 
2009  the  police  arrested  several  hundreds  DTP  members  and  executives  for  alleged 
membership  of  the  terrorist  structure  KCK.  A  similar  anti-terror  operation  was  carried  out 
against members of trade unions KESK and Eğitimsen for alleged membership of PKK ; 22 
of them remain in pre-trial detention. In February, a criminal court in Diyarbakir sentenced a 
DTP Member of Parliament to 18 months in prison for several speeches. Other DTP Members 
of  Parliament  are  charged  with  violating  the  Anti-terror  Law  and  received  a  summons  to 
appear before court.  

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Landmines  remain  a  security  concern  for  both  military  personnel  and  civilians.  There  were 
casualties  among  civilians  and  security  forces  caused  by  explosions  of  anti-personnel 
landmines. Under the Convention on the Prohibition of the Use, Stockpiling, Production and 
Transfer  of  Anti-Personnel  Mines  and  on  Their  Destruction  (the  ‘Ottawa  Convention’), 
Turkey has undertaken to destroy all anti-personnel mines in mined areas as soon as possible, 
but not later than 1 March 2014. 

No steps have been taken to abolish the system of village guards. There have been reports of 
human  rights  violations  by  village  guards  during  their  fight  against  terrorism.  There  were 
reports that new village guards were recruited during the local election campaign.  

Overall,  despite  continuing  terrorist  violence,  the  government  has  opened  a  wide-ranging 
public  debate  -covering  cultural,  political  and  economic  matters-  on  the  Kurdish  issue.  It  is 
crucial that this debate be followed by concrete measures. The Law on the de-mining of the 
Syrian  Border  is  another  positive  step.  However,  the  broad  interpretation  of  anti-terror 
legislation has resulted in undue restrictions on the exercise of fundamental rights. The village 
guard system still needs to be phased out. 

Refugees and internally displaced persons (IDPs) 

The  process  of  compensation  of  losses  due  to  terrorism  and  the  fight  against  terrorism 
continued to make progress. So far, about 50% of the total number of received applications 
(361 000) have been processed and completed. Of these, about two third have been accepted. 
Due to lack of resources and the heavy workload of the Damage Assessment Commissions, 
progress on assessment and payment of compensation has been slow. 

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.  The  return  of  IDPs  is  prevented  by  a  number  of  factors,  mainly  the  poor  security 
situation  and  existing  land  mines,  lack  of  basic  infrastructure  and  of  capital,  limited  job 
opportunities and the threat posed by the village guard system. 

The  government’s  efforts  to  establish  a  national  strategy  to  address  the  situation  of  IDPs, 
based on a pilot action plan for the Van district, have yet to be finalised. In this context, the 
insufficient institutional capacity of the department responsible for IDPs in the Ministry of the 
Interior  remains  a  challenge.  There  is  a  need  to  involve  civil  society  further  in  the 
development of IDP policies. 

Asylum-seekers face a range of limitations on their access to procedural rights in detention. 
Key  priorities  in  the  field  of  asylum  remain  fair,  equal  and  consistent  access  to  asylum 
procedures for everyone (including in airport transit areas), access to legal aid and to UNHCR 
staff,  reduction  of  the  waiting  time  for  asylum  procedures  and  access  to  judicial  review  of 
decisions. Lack of access to asylum procedures has led to instances of illegal deportation or 
refusal of entry. 

Overall,  compensation  of  internally  displaced  persons  (IDPs)  has  continued.  However,  the 
government lacks an overall national strategy to address the IDP issue and needs to step up 
efforts to address IDPs' needs. 

2.3. 

Regional issues and international obligations 

Cyprus 

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Turkey continued to express public support for fully fledged negotiations between the leaders 
of  the  Greek-Cypriot  and  Turkish-Cypriot  communities  under  the  good  offices  of  the  UN 
Secretary-General  aimed  at  a  fair,  comprehensive  and  viable  settlement  of  the  Cyprus 
problem  within  the  UN  framework,  in  accordance  with  the  relevant  UN  Security  Council 
resolutions  and  in  line  with  the  principles  on  which  the  Union  is  founded.  However,  as 
underlined by the Council conclusions of 8 December 2008, and in line with the negotiating 
framework,  Turkey  is  expected  to  support  actively  the  ongoing  negotiations  and  to  take 
practical  steps  to  contribute  to  creating  a  climate  favourable  to  a  fair,  comprehensive  and 
viable  settlement  of  the  Cyprus  problem  within  the  UN  framework,  in  accordance  with  the 
relevant UN SC resolutions and in line with the principles on which the Union is founded. 

The  EU  will  continue  to  follow  up  and  review  progress  made  on  issues  covered  by  the 
Declaration  of  21  September  2005,  in  accordance  with  the  Council  Conclusions  of  11 
December 2006. 

Since the Council's decision of December 2006, Turkey has made no progress towards fully 
implementing  the  Additional  Protocol  to  the  Association  Agreement  and  has  kept  its  ports 
closed to vessels from the Republic of Cyprus despite several calls by the EU36. As pointed 
out  by  the  December  2008  Council  conclusions  it  is  now  urgent  that  Turkey  fulfils  its 
obligation to ensure full, non-discriminatory implementation of the Additional Protocol.  

Turkey has made no progress on normalising bilateral relations with the Republic of Cyprus. 
It  continues  to  veto  Cyprus’s  membership  of  several  international  organisations  and 
arrangements  such  as  the  Wassenaar  Agreement  on  the  Code  of  Conduct  on  Arms  Exports 
and  on  Dual-Use  Goods.  Civilian  vessels  prospecting  for  oil  on  behalf  of  the  Republic  of 
Cyprus were hindered by the Turkish navy on several occasions during the reporting period. 

Peaceful settlement of border disputes 

Turkey and Greece have continued their efforts to improve their bilateral relations. The 41st 
round  of  exploratory  talks  was  held  in  December  2008  in  Istanbul.  Progress,  however,  has 
been limited. Exploratory talks have been continuing since 2002. 

The threat of casus belli in response to the possible extension of Greek territorial waters made 
in  the  resolution  adopted  by  the  Turkish  Grand  National  Assembly  in  1995  still  remains. 
According  to  the  Council  conclusions  of  December  2008,  ‘Turkey  needs  to  commit 
unequivocally  to  good  neighbourly  relations  and  to  the  peaceful  settlement  of  disputes  in 
accordance with the United Nations Charter, having recourse, if necessary, to the International 
Court of Justice. In this context, the Union urges the avoidance of any kind of threat, source 
of  friction  or  action  which  could  damage  good  neighbourly  relations  and  the  peaceful 
settlement of disputes.’ 

A considerable number of formal complaints were made by Greece about continued violations 
of its airspace by Turkey, including flights over Greek islands. 

Regional cooperation 

36 

Declaration of 21 September 2005 by the EC, Council Conclusions of December 2006, 2007 and 2008. 

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Turkey  remains  actively  involved  in  regional  initiatives,  including  the  South-East  European 
Cooperation Process (SEECP) and the Regional Cooperation Council (RCC). Since June 2009 
Turkey has been holding the one-year rotating SEECP Chairmanship. 

Bilateral  relations  with  other  enlargement  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. 

ECONOMIC CRITERIA 

In examining the economic developments in Turkey, the Commission’s approach was guided 
by the conclusions of the European Council in Copenhagen in June 1993, which stated that 
membership  of  the  Union  requires  the  existence  of  a  functioning  market  economy  and  the 
capacity to cope with competitive pressure and market forces within the Union. 

3.1. 

The existence of a functioning market economy 

Economic policy essentials 

The  government  submitted  both  the  Pre-accession  Economic  Programme  (PEP,  2009-2011) 
and  the  Medium-Term  Plan  (MTP,  2010-2012)  after  a  delay  of  several  months,  thus 
maintaining the fiscal path uncertain. The government’s MTP, which was announced in mid-
September 2009, has taken into consideration both the current global crisis conditions and the 
improvements  that  are  yet  to  come.  The  effectiveness  of  the  various  stimulus  packages 
introduced in late 2008 and the first half of 2009 could benefit from a stronger fiscal anchor, a 
more credible framework and better communication and coordination. This will be even more 
important  when  growth  resumes,  and  Turkey  needs  to  present  a  credible  and  timely  exit 
strategy from the current fiscal stimulus. Overall, under challenging circumstances consensus 
on economic policy essentials has been preserved; however, confidence in the government’s 
economic policy stance could benefit from better planning, coordination and communication. 

Macroeconomic stability 

The negative effects of the global crisis on Turkey have gradually become evident. However, 
almost  all  economic  indicators  as  of  mid-2009  show  that  the  economic  contraction  is 
bottoming out after it peaked in the first quarter of 2009. In 2008, the Turkish economy grew 
by 0.9% year-on-year, down from 4.7% in 2007. The contraction was particularly sharp in the 
last quarter of 2008 and in the first quarter of 2009, as GDP shrank by respectively 6.5% and 
14.3% year-on-year. The pace of decline slowed sharply in the second quarter of 2009, to 7% 
year-on-year, and consequently the economy contracted by 10.6% in the year to the first half 
of  2009.  The  crisis  affected  adversely  almost  all  sectors  of  the  economy.  The  industry  was 
particularly hit by a large fall in domestic and mainly in external demand, including for cars 
and electrical appliances. The downward trend in industrial production began to slow down as 
of March 2009. Consumer and business confidence, as well as capacity utilisation in industry 
started to show some positive signals since the end of the first quarter. On the demand side, 
private consumption and particularly private investment were affected severely by the crisis. 
In 2008, private consumption rose by a meagre 0.3% year-on-year, while private investment 
fell  by  4%  year-on-year.  In  the  first  half  of  2009,  the  slowdown  in  investment  accelerated 

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sharply, and private investment fell by as much as 32.5%. Public consumption was supported 
by the fiscal stimulus packages and rose from 1.9% in 2008 to 2.7% in the first half of 2009. 
Private consumption started to respond to the fiscal expansion as it recovered strongly in the 
second quarter of 2009 and declined by 1.2% year-on-year compared with a 10.2% fall in the 
first  quarter.  Exports  fell  by  10.6%  in  the  first  half  of  2009  following  a  2.3%  rise  in  2008. 
Imports fell further, from -3.8% in 2008 to -25.9% year-on-year in the first half of this year. 
Stocks showed a sharp depletion and fell by 5% in the year to the first half of 2009. Overall, 
following  the  outbreak  of  the  global  economic  crisis  the  Turkish  economy  has  contracted 
sharply, in particular in the first semester of 2009, as a result of a combined and severe drop 
in domestic and mainly in external demand. 

The  current  account  went  through  a  major  adjustment  as  a  result  of  a  sharp  drop  in  energy 
prices and very weak imports, due to lower domestic demand. Once considered as the main 
risk to the economy, given the implicit high financing needs, the current account deficit has 
become less of a concern. In the year to July 2009 the current account deficit stood at about 
1.5% of GDP, and shows an improvement of some €18 billion from the level of €23 billion in 
the year to July 2008. However, a continuation of the recent increase in oil prices in US dollar 
terms  may  put  pressure  on  the  current  account  in  the  coming  months.  In  spite  of  the  fall  in 
global  liquidity,  Turkey  continued  to  have  sufficient  access  to  international  capital  markets, 
and  was  able  to  comfortably  service  its  external  obligations.  During  the  reporting  period, 
portfolio  inflows  virtually  dried  up  and  FDI  was  almost  halved  although  they  remained 
sizeable  at  roughly  1%  of  GDP.  Despite  the  decline  in  economic  activity  rollover  ratios  of 
private sector external debt remained satisfactory and outperformed all market expectations in 
the  year  to  September  2009.  Furthermore,  net  errors  and  omissions,  which  is  the  balancing 
item  of  the  balance  of  payments  that  is  traditionally  used  for  unaccounted  flows  in  foreign 
currency, reached a cumulative €10 billion and covered a large part of the external financing 
needs. These errors and omissions apparently mainly reflect capital repatriation by residents, 
which  was  facilitated  by  a  law  adopted  by  the  Turkish  government  at  the  end  of  2008. 
Turkey’s external debt declined by about 5% in nominal terms from the last quarter of 2008 
until the first quarter of 2009 and currently amounts to about 40% of GDP. Private external 
debt  represents  two  thirds  of  the  total  debt  and  is  also  on  a  declining  trend.  International 
reserves fell by about 5% to €50 billion, and still cover about 5 months of imports. Overall, 
external imbalances were reduced significantly, and access to external finance remained open 
for both the public and private sectors. 

Due to the economic slowdown, the unemployment rate rose sharply from about 9.5% in mid-
2008 to 13% by mid-2009. Unemployment was much higher among the young (about 24% of 
the  age  group  15-24).  Long-term  unemployed  accounted  for  more  than  half  of  job-seekers. 
The employment rate went down by about 1 percentage point to about 42.5% by June 2009. 
Female employment also started to rise in 2008, but remains particularly low at less than 24% 
of total working-age population in June 2009. The agricultural sector is characterised by many 
unpaid family workers. This leads to a statistically lower rate of unemployment, but suggests 
large  pockets  of  underemployment  in  this  sector  and  in  the  economy  at  large.  The  working 
age  population  is  growing  by  about  600,000  people  every  year,  which  implies  significant 
challenges to the labour market absorption capacity, in particular in the current crisis context. 
In  spite  of  recent  initiatives,  job  creation  remains  difficult  partly  due  to  labour  market 
rigidities and the skills mismatch between labour demand and supply. Overall, labour market 
conditions became increasingly challenging and the unemployment rate increased sharply in 
tandem with the sharp contraction in economic activity. 

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Annual inflation fell to 5.3% in August 2009 from 11.8% a year earlier, broadly in line with 
the  inflation  targets,  and  partly  due  to  lower  energy  prices  and  shrinking  domestic  demand. 
Excluding unprocessed food and energy, underlying core inflation fell to 2% by August 2009. 
In  addition,  the  foreign  exchange  pass-through  has  so  far  been  minimal  even  though  the 
Turkish lira depreciated considerably – by about 15% vis-à-vis the euro – in the first quarter 
of 2009. The Central Bank of Turkey (CBT) maintained the formal inflation targeting regime, 
which  was  adopted  in  January  2006,  and  appears  to  better  anchor  inflationary  expectations 
than  in  previous  years,  largely  helped  by  the  domestic  environment.  The  CBT  acted  in  a 
timely  and  appropriate  way  by  easing  the  policy  rate  by  a  cumulative  950  base  points  to 
7.25%  (in  the  period  November  2009-September  2009)  -  which  brought  interest  rates  to 
unprecedented  low  levels  -  and  by  adding  liquidity  in  the  financial  system.  Credit  to  the 
private  sector  remained  almost  flat  at  around  28%  of  GDP,  and  is  therefore  not  seen  as  a 
significant threat to price stability. Overall, price stability improved significantly, despite the 
considerable depreciation of the Turkish lira, mainly because pressures stemming from energy 
inputs and previously buoyant economic activity eased drastically. 

The fiscal stance was loosened significantly, and the budget deficit amounted to 2.2% of GDP 
in 2008 (ESA95, April 2009 fiscal notification), thereby missing the 2008 fiscal target by over 
1  percentage  point.  In  the  first  eight  months  of  2009,  revenues  in  the  central  budget  were 
almost  flat  year-on-year,  and  spending  was  up  21%  year-on-year,  as  the  government 
introduced  various  fiscal  stimulus  packages.  Part  of  the  stimulus  measures  was  outright 
current spending (i.e. around the date of local elections) in the form of increased transfers to 
households and local administrations, while others such as the tax relief and the investment 
schemes  were  better  targeted  at  combating  the  crisis  effects.  Essentially,  the  tax  relief 
consisted of lower or zero taxes for vehicles, white goods, furniture and IT equipment for a 
period  of  three  months  ending  in  June  (which  was  subsequently  extended  until  the  end  of 
September 2009). The cash deficit reached about 3% of the projected GDP in the period from 
January to August 2009, compared to a small surplus in the same period of 2008. Public debt 
(ESA95  definition)  which  had  dramatically  decreased  in  previous  years  as  a  result  of  the 
drastic fiscal consolidation pursued since the 2001 crisis remained broadly stable at 39.5% of 
GDP in the year to December 2008, but went up by almost 10% in nominal terms in the first 
half  of  2009.  The  budget  of  2009,  as  announced  in  the  September  2009  medium-term 
programme,  foresees  a  widening  of  the  cash  deficit  to  6.6%  of  GDP.  Moreover,  the 
government increased the Treasury’s borrowing limit by almost five times. Overall, although 
the anti-crisis measures may have cushioned the economic downturn, they could put benefits 
from  previous  years  of  fiscal  consolidation  and  overall  medium-term  fiscal  sustainability  at 
risk.  

Some  key  elements  to  enhance  the  accountability,  efficiency  and  transparency  of  the 
budgeting process are still lacking. In particular, the earlier announced unification of all tax 
administration functions under the Revenue Administration has not been implemented. This 
unification  would  strengthen  audit  capacity  and  would  facilitate  increased  use  of  standard 
risk-based audit techniques thereby enhancing transparency and providing significant support 
towards  reducing  informality.  In  addition,  an  off-budget  fund  has  been  created  to  finance 
losses in the agriculture sector. Overall, measures to increase fiscal transparency were put on 
hold and even reversed.  

Over  the  past  several  years,  Turkey  had  successfully  implemented  a  strong  stabilisation 
programme  and  the  resilience  of  the  Turkish  economy  benefited  from  in-depth  structural 
reforms  in  many  key  areas,  including  banking,  enterprise  restructuring  and  privatisation, 
education and energy. Although the ongoing financial crisis has severely hit the Turkish real 

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economy,  the  earlier  regulatory  and  supervisory  reforms  are  paying  off  and  a  full-fledged 
financial crisis has been avoided so far. However, the lack of more solid and credible fiscal 
anchors,  in  combination  with  the  spending  increases  introduced  since  early  2009  to  address 
the  consequences  of  the  crisis  have  increased  uncertainty  and  may  adversely  affect  the 
economic recovery. Fiscal consolidation has been reversed due to the ongoing crisis and the 
fiscal  stimulus  measures.  Overall,  although  the  current  policy  mix  has  proven  broadly 
effective  in  the  past  months,  macroeconomic  stability  remains  vulnerable  in  the  absence  of 
stronger fiscal anchors. 

Interplay of market forces 

The  private  sector’s  share  of  GDP  remained  virtually  constant  at  almost  89%  in  mid-2009. 
The  Privatisation  Administration  completed  the  tender  process  for  the  privatisation  of  four 
regional electricity distribution networks, whereas one of them was suspended by the Council 
of  State  and  another  one  failed  due  to  the  inability  of  contractors  to  secure  financing.  No 
progress  can  be  reported  in  the  privatisation  of  state-owned  banks.  The  total  volume  of 
privatisation revenue reached €4.92 billion in 2008 (about 1.5% of GDP). In the first half of 
2009, the privatisation revenue fell by about 42% and amounted to €1.6 billion. Overall, some 
progress  has  been  made  in  improving  the  interplay  of  market  forces.  Privatisation  has 
advanced, albeit at a slower pace due to the worsening external environment. 

Market entry and exit 

In 2008, the number of newly established firms decreased by 6%. During the same period, the 
number  of  firms  which  were  closed  down  increased  by  40%.  Market  entry  in  banking  and 
capital markets remained restricted to mergers and acquisitions as new licenses have not been 
issued.  Sectoral  restrictions  on  foreign  ownership  continued  to  exist  in  various  areas, 
including  maritime  transport,  civil  aviation,  ground  handling,  road  transport,  radio  and  TV 
broadcasting, energy, accountancy and education. In the field of business environment, there 
was some improvement with regard to procedures to start up new business. A regulation was 
also  published  in  order  to  accelerate  customs  procedures  in  some  areas.  However,  licensing 
procedures, market exit, and the efficiency of bankruptcy proceedings are still cumbersome. 
Licensing procedures are relatively lengthy. For example 25 different procedures are needed 
in  order  to  build  a  warehouse  including  getting  licences  and  permits,  completing  necessary 
notifications  and  inspections  and  obtaining  utility  connections.  Market  exit  is  difficult  as 
closing  a  business  takes  3.3  years  on  average.  The  efficiency  of  bankruptcy  proceedings  is 
low: claimants recover only 20.2% of their claims from insolvent firms. Overall, market entry 
has  benefited  from  the  adoption  of  new  legislation,  while  there  are  still  obstacles  in  market 
exit. Restrictions on foreign ownership persist in some sectors. 

Legal system 

A reasonably well functioning legal system, including in the area of property rights, has been 
in  place  for  several  years.  However,  real  estate  acquisition  by  foreigners  is  still  subject  to 
some  restrictions.  No  major  progress  has  been  made  over  the  last  year.  However,  a  draft 
Judicial Reform Strategy Action Plan has been disclosed by the government in mid-2009 and 
sets clear priorities about the scope and targets of the ongoing reform. Registering a property 
requires six procedures and takes six days in Turkey. Enforcing commercial contracts remains 
a  lengthy  process,  which  needs  35  procedures  and  takes  420  days  on  average.  The 
specialisation  of  commercial  court  judges  appears  insufficient,  leading  to  lengthy  court 
proceedings. The expert witness system continues to function as a parallel judiciary system, 

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without  improving  overall  quality.  Use  of  out-of-court  dispute-settlement  mechanisms 
remains low. Overall the legal environment, and in particular court procedures, pose practical 
challenges and create obstacles to a better business environment. 

Financial sector development 

The banking sector has shown remarkable resilience to the global financial crisis, largely due 
to major improvements in the regulatory and supervisory framework made in previous years. 
The financial sector's risk ratios remained robust. The sector benefited from the central bank’s 
liquidity  measures  and  some  easing  of  regulations  governing  loan  classification  and 
provisioning  requirements.  The  capital  adequacy  ratio  stood  at  a  solid  18%  by  mid-2009, 
substantially higher than the EU legal requirement of 12%. Non-performing loans increased 
marginally  to  about  4.9%  by  mid-2009  from  3.0%  a  year  earlier,  and  stress  tests  by  the 
regulator show that the sector is sound and adapts well to the new challenges, in part through 
a wide-scale purchasing of debt instruments offered by the Treasury. The banking sector, by 
far the largest part of the financial sector, increased its share from 70% to 77%. The relative 
size  of  the  insurance  sector  decreased  slightly  to  2.6%,  about  the  same  size  as  that  of  the 
mutual funds. Domestic private banks had a 34.5% share in total assets, whereas the share of 
foreign  banks  reached  37.4%  taking  into  account  foreigners’  investments  in  the  stock 
exchange,  which  corresponds  to  17.5%  of  banking  sector  assets.  Financial  intermediation 
improved in 2008, in particular in the banking sector, but weakened substantially in the first 
half  of  2009.  Since  the  Istanbul  Stock  Exchange  fell  considerably  during  2008,  total  stock 
market capitalisation decreased from €195.3 billion (39.6% of GDP) to € 84.6 billion (19.1% 
of GDP). Concentration in the banking sector remained broadly stable, as the share of top-five 
and  top-ten  banks  in  the  banking  sector  were  60%  and  83%,  respectively.  Overall,  under 
difficult crisis circumstances, the financial sector has shown remarkable resilience thanks to 
earlier reforms. 

3.2. 

The  capacity  to  cope  with  competitive  pressure  and  market  forces  within  the 
Union 

Existence of a functioning market economy 

Macroeconomic stability has been tested and has been broadly preserved during the reporting 
period, in spite of the harsh economic recession. Financial markets stress and the absence of 
fiscal  anchors  added  some  uncertainty  to  the  business  environment  but  at  the  same  time 
underlined  the  economy’s  improved  shock  resilience.  The  investment  climate  has  been 
adversely affected by the global economic and financial crisis, in particular in the absence of a 
consistent and coherent medium-term policy framework. Overall, the unfolding of the crisis 
did  not  jeopardise  the  functioning  of  market  mechanisms  and  Turkey  continues  to  be  a 
functioning market economy. 

Human and physical capital  

The  quality  of  education  remains  an  important  problem  in  Turkey,  although  the  results  are 
improving.  The  net  enrolment  rate  in  compulsory  education  (8  years)  increased  by  almost 
10% to over 97%. The net enrolment rate in secondary education also increased, from 56% to 
58%. The net enrolment rate in universities increased from 19% to 20% but remains low by 
international  standards.  Little  progress  has  been  made  in  correcting  the  mismatch  between 
supply  and  demand  of  skills  on  the  labour  markets,  which  largely  stem  from  inadequate 
education and training.  

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Total investment slightly increased as a share of GDP from 21.5% in 2007 to 22.1% in 2008, 
but  has  declined  significantly  in  the  reporting  period  as  private  investment  collapsed  due  to 
the crisis. On the other hand, as a result of the fiscal stimulus package, public investment has 
increased by around  25% in annual terms in the  first  quarter of 2009. FDI inflows held out 
relatively well in the first four months of 2009 helped by privatisation of the electricity grid 
and declined by about 40% compared to a year earlier. At the same time, their composition 
improved as more than two thirds went into utilities and manufacturing. The domestic savings 
rate  increased  from  15.6%  of  GDP  in  2007  to  16.4%  in  2008,  in  particular  because  of  the 
positive  impact  of  the  change  in  stocks  (1.8%  of  GDP).  For  many  years  infrastructure 
investment has  been  hampered  by  the  need to consolidate public finances  and the failure to 
cut  lower-priority  spending.  Inadequate  infrastructure  is  increasingly  affecting  economic 
activity.  However,  in  2007  and  2008  some,  albeit  modest,  progress  can  be  reported  for 
infrastructure,  in  particular  in  the  area  of  roads  and  oil  pipelines.  Most  importantly,  the 
Nabucco intergovernmental agreement was signed in July. Nabucco is a natural gas pipeline 
project which will bring natural gas from the Caspian region and the Middle East to Turkey 
and Europe, and is of strategic importance for the energy security of both Turkey and the EU. 
A high-speed rail line between Ankara and Eskisehir became operational during the reporting 
period.  Implementation of  the National Development Plan  (2007-2013), and in particular of 
the  South-eastern  Anatolia  Project,  suffered  from  falling  investor  interest  due  to  the  current 
exceptional crisis circumstances. Overall, some progress was made in upgrading the country’s 
human and physical capital, although the economic crisis represents a new challenge to this 
process. The signature of the Nabucco natural gas intergovernmental agreement represents an 
important economic and strategic development. 

Sectoral and enterprise structure 

The independence of regulatory and surveillance agencies has been largely preserved. Market 
liberalisation has not been advanced in agriculture, whereas some progress has been made in 
energy. The sectoral shift from agriculture to the services and industry sectors appears to have 
been temporarily reversed due to the slowdown in economic activity. The share of agriculture 
in  overall  employment  increased  from  24.0%  to  24.6%  between  December  2007  and 
December  2008.  The  share  of  services  also  increased  from  49.5%  to  50.2%.  On  the  other 
hand, both the industry (from 21.0% to 19.7%) and construction (from 5.5% to 5.4%) sectors 
experienced a decline in their relative shares of total employment.  

The quality and publication frequency of data on small and medium-sized enterprises (SME) 
remained poor. Various new initiatives have been launched to improve the access of SME to 
finance.  However,  the  share  of  SME  in  total  banking  sector  loans  decreased  from  27.7%  in 
December  2007  to  22.8%  in  February  2009.  Informality  remains  widespread  throughout  all 
corporate sectors, particularly amongst SME. Turkey adopted a comprehensive action plan to 
combat the informal economy. The authorities approved new legislation in May 2009, which 
allows  the  SME  support  organisation  KOSGEB  to  provide  assistance  not  only  to 
manufacturing SME but also to enterprises that are active in trade and services, while a new 
guarantee fund for SME was part of the stimulus packages and aimed at alleviating the impact 
of  the  current  crisis  on  SME  finances.  Overall,  in  spite  of  various  new  initiatives  by  the 
Turkish  government,  the  economic  crisis  is  complicating  the  access  of  SME  to  finance  and 
slowing down the sectoral transformation of the Turkish economy. 

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State influence on competitiveness 

There has been no tangible progress in the field of state aid. As transparency in the decision 
making  process  remains  low,  it  is  difficult  to  assess  the  rationale  and  consistency  of  the 
individual  decisions  taken.  In  addition,  the  size of  state  aid  and  its  importance  in  some  key 
sectors  increased  substantially  following  the  introduction  of  the  various  fiscal  stimulus 
packages. Transparency in the corporate sector has improved and accounting standards have 
been upgraded, although the adoption of the Commercial Code has again been postponed. The 
absence of transparent monitoring of state aid and of supporting policies to reduce distortion 
continued  to  have  an  adverse  effect  on  competition  and  competitiveness  in  the  economy. 
Public  procurement  policies  continued  to  be  undermined  by  exceptions  to  the  regulatory 
framework.  Overall,  state  intervention  continued  to  lack  transparency,  which  may  have 
negatively affected competition and competitiveness. 

Economic integration with the EU 

The openness of the Turkish economy, as measured by the total value of exports of goods and 
services as a percentage of GDP, amounted to about 48% of GDP in 2008, almost unchanged 
from 2007. Exports to the EU rose by only 5% in 2008, whereas exports to other countries, 
mainly  Turkey’s  neighbours  in  the  east  and  the  south,  rose  by  49%.  Only  48%  of  Turkey’s 
exports went to the EU, compared to 56% a year earlier. Imports from the European Union 
rose  by  only  9%  in  2008  whereas  imports  from  other  countries  rose  by  25%.  EU  share  in 
Turkey’s  trade  varies  slightly  from  year  to  year,  depending  on  numerous  factors,  including 
commodity  price  trends  and  exchange  rate  movements.  Nevertheless,  the  decline  in  the  EU 
share in 2008 is probably related to the relatively more drastic impact of the global crisis on 
demand  in  EU  markets.  As  a  result,  Turkey  became  less  dependent  on  European  Union 
markets and diversified parts of its trade towards other neighbouring countries. FDI inflows to 
Turkey  originating  from  EU  member  states  remained  very  significant,  and  proportionally 
grew from 75% of the total in 2008 to 88% in the first five months of 2009, thus illustrating 
the  strong  economic  interdependence  between  the  EU  and  Turkey.  Overall,  trade  and 
economic integration with the EU remained high. Turkey showed remarkable flexibility and 
diversified its trade towards new markets, thereby partly alleviating the impact of the crisis.  

Based on the scant information on real wage developments, it appears that unit labour costs 
have  increased  broadly  at  a  similar  pace  as  labour  productivity.  Indicators  of  export  price 
competitiveness have improved significantly as the Turkish lira weakened considerably vis-à-
vis the euro and the US dollar. In the year to September 2009, the exchange rate of the lira 
depreciated by 15% against a basket of 50% US dollar and 50% euro in nominal terms. In real 
effective  terms,  corrected  for  both,  producer  and  consumer  price  developments,  the  lira 
weakened by 13%. Overall, Turkey made significant gains to price and cost competitiveness 
vis-à-vis its main trading partners. 

4. 

ABILITY 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 
assessment  covers  progress  achieved  during  the  reporting  period,  and  summarises  the 
country's overall level of preparations. 

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4.1. 

Chapter 1: Free movement of goods 

Limited progress can be reported towards alignment on general principles. The legislation on 
standardisation in foreign trade, adopted in 2009, further reduced the list of items subject to 
conformity  assessment  upon  import.  However,  the  new  legislation  introduced  without  any 
prior notification restrictions on goods from third countries in free circulation in the EU and 
created barriers to trade. Such goods are subject to conformity assessment procedures based 
on  documentation,  and  if  necessary  on  physical  checks  at  the  customs,  thus  delaying  and 
sometimes inhibiting access to the Turkish market. 

Technical barriers to trade persist, both in the old approach area, such as on pharmaceuticals, 
chemicals,  foodstuffs  and  textiles,  and  in  the  non-harmonised  area,  since  Turkey  has  yet  to 
introduce the mutual recognition principle into its legal order. Licences remain necessary for 
goods considered old, renovated or faulty and for second-hand motor vehicles. Licences are 
sometimes refused without justification. This creates a de-facto ban of imports of these goods 
which violates the EU-Turkey Customs Union.  

In  the  case  of  horizontal  measures,  some  progress  can  be  reported.  On  standardisation, 
adoption  of  European  standards  by  the  Turkish  Standards  Institute  (TSE)  has  continued.  So 
far  the  TSE  has  adopted  a  total  of  15,406  standards  of  the  European  Committee  for 
Standardisation  (CEN)  and  the  European  Committee  for  Electrotechnical  Standardisation 
(CENELEC).  It  has  also  adopted  350  standards  of  the  European  Telecommunication 
Standards Institute (ETSI). The overall rate of harmonisation with European standards rose to 
98.79% from 97.4% last year. The TSE is running 86 operational committees. However, the 
revised  law  reflecting  the  new  structure  of  the  TSE  meeting  the  requirements  for  full 
membership of CEN/CENELEC has not yet been adopted. 

As regards conformity assessment, further progress was made on notified bodies. Turkey now 
has  twelve  notified  bodies,  compared  with  six  in  2008,  covering  lifts,  appliances  burning 
gaseous  fuels,  construction  products  (cement),  pressure  vessels,  recreational  craft,  toys, 
personal protective equipment and machinery. 

Some  progress  can  be  reported  on  accreditation.  TURKAK  (the  Turkish  Accreditation 
Agency) is a member of European Accreditation Cooperation (EA) and a signatory of seven 
EA  multilateral  agreements.  It  is  also  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  397,  a  significant 
increase  of  61%  since  last  year.  TURKAK  is  the  authority  for  monitoring  good  laboratory 
practice.  The  revised  law  aiming  at  further  harmonising  TURKAK’s  structure  with  the 
European accreditation system has not yet been adopted. 

Some  progress  can  be  reported  in  the  area  of  legal  metrology.  For  instruments  outside  the 
scope of the measuring instruments regulation, legislation on the type-approval of measures 
and measuring instruments was issued. The body for implementing the instruments regulation 
is not yet in place. 

Limited progress can be reported on market surveillance. A common method for accurate and 
consistent  data  gathering  is  not  yet  in  place.  Considering  the  size  of  the  country,  higher 
operational  budgets  and  more  extensive  surveillance  activities  are  required,  taking  into 
account risk analysis. The visibility of surveillance actions remains low. Continuous training 
is needed, including on the legal aspects of surveillance actions and on the testing of a number 
of  product  categories.  Coordination  between  the  central  and  local  offices  of  individual 

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surveillance  agencies  often  remains  problematic.  Coordination  between  agencies  is  also 
insufficient, notably as regards databases. 

Overall, alignment of horizontal measures is advanced. However, further efforts are needed to 
ensure  effective  market  surveillance  and  additional  alignment  on  standardisation  and 
accreditation. 

Further  progress  was  made  with  regard  to  the  old  approach  acquis.  Further  alignment  was 
achieved  in  the  areas  of  motor  vehicles  and  emissions  from  motor  vehicles,  licensing  and 
pricing  of  pharmaceuticals,  pre-packaging  and  labelling  of  pharmaceuticals  for  human  use, 
packaging  waste,  dangerous  substances  and  the  inventory  of  chemicals  and  cosmetics. 
However,  Turkey  has  not  addressed  the  problem  of  regulatory  data  protection  and  the 
authorisation  system  for  generic  medicines  for  which  marketing  authorisation  was  applied 
before  1  January  2005.  Despite  maintaining  a  moratorium  on  so-called  pending  generics 
applications37, Turkey's rules, including the amended regulation on the licensing of medicinal 
products for human use, adopted in April 2009, have not provided legal certainty with regard 
to regulatory data exclusivity. Turkey is violating Customs Union obligations in this area. The 
control  certificate  and  obligatory  sampling  requirements  imposed  by  the  Ministry  of 
Agriculture  on  imported  alcoholic  beverages  remain  in  force.  Alignment  with  the  old 
approach acquis is advanced, but further efforts are needed to complete it. 

Limited progress has been made on the new approach product legislation, as alignment in 
this  area  was  already  advanced.  The  Ministry  of  Industry  and  Trade  adopted  measures 
transposing the revised Machinery Directive, which will enter into force in December 2009, 
and amended its electromagnetic compatibility regulation. The ministry issued a regulation on 
maintenance  and  operation  of  lifts.  The  Information  and  Communication  Technologies 
Authority  (ex-Telecommunications  Authority)  issued  an  amending  regulation  on  radio  and 
telecommunication terminal equipment and a communiqué regarding publication of technical 
characteristics for interfaces. Harmonised standards on the same subject were also published. 
The Ministry of Health updated technical specifications on toys containing magnets and the 
Ministry  of  Public  Works  and  Settlement  updated  technical  specifications  on  construction 
products. 

Regarding procedural measures, no progress can be reported.  

The Under-Secretariat of Foreign Trade has been applying Regulation 339/93/EC in practice, 
by means of communiqués, even though it has not yet been transposed into Turkey’s national 
legislation.  

There  has  been  no  progress  in  the  non-harmonised  area.  The  mutual  recognition  principle 
has yet to be introduced into the Turkish trade regulations. The Ministry of Public Works and 
Settlement  issued  a  regulation  in  June  2009  on  criteria  for  affixing  the  G  mark  applying  to 
construction  products  in  the  non-harmonised  area,  already  introduced  in  the  legislation 
adopted in December 2006. As of 1 July 2010, all construction products that are in the non-
harmonised area such as pipes, door coverings, sockets etc. will have to enter Turkey with the 
G  mark  affixed  next  to  any  probable  national  markings.  Products  coming  from  the  EU  are 
subject to the same requirement. Products originating from third countries, including those put 
into  free  circulation  in  the  EU  and  re-exported  to  Turkey,  would  need  to  go  through 

37 

Generic  applications  submitted  until  1  January  2005  and  referring  to  original  reference  products 
registered in the Customs Union during the period from 1 January 2001 to 1 January 2005. 

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conformity  assessment  checks  in  Turkey.  The  Turkish  G  mark  introduces  a  new  technical 
barrier to trade which is contrary to the Customs Union provisions. 

‘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 December 2006. As long as restrictions remain in 
place on the free movement of goods carried by vessels and aircraft registered in Cyprus or 
whose last port of call was in Cyprus, Turkey will not be in a position fully to implement the 
acquis relating to this chapter. 

Conclusion 

Limited progress can be reported in this chapter. Legislative alignment is quite advanced, but 
further  efforts  are  required  in  a  number  of  areas.  Moreover,  trade  has  been  increasingly 
hampered  by  technical  barriers  related  to  conformity  assessment  and  standardisation. 
Significant shortcomings exist in market surveillance, including in inter-agency cooperation. 
Turkey  needs  fully  to  implement  Decision  1/95  in  the  area  of  free  movement  of  goods,  in 
particular by abolishing the remaining import licences and the restrictions on imports of used 
motor  vehicles,  by  introducing  the  mutual  recognition  principle  into  its  national  legislation 
and by harmonising the data protection provisions for pharmaceutical products. 

4.2. 

Chapter 2: Freedom of movement for workers 

With regard to access to the labour market, the legislation on work permits for foreigners 
has been pending in parliament since 2007, after former President Sezer vetoed the law.  

Turkey  is  not  yet  ready  to  participate  in  the  EURES  (European  employment  services) 
network due to the weak IT infrastructure and electronic job-matching services of the Turkish 
Employment Agency (İŞKUR). 

Some  progress  has  been  made  with  coordination  of  social  security  systems.  The  social 
security  institution  continued  to  improve  its  knowledge  on  and  capacity  for  coordination  of 
social security systems, with the aid of EU-funded projects.  

There are no developments as regards the European health insurance card.  

Conclusion 

Little progress has been made in the area of freedom of movement for workers. Alignment is 
at an early stage. 

4.3. 

Chapter 3: Right of establishment and freedom to provide services 

Limited  progress  can  be  reported  on  the  right  of  establishment  and  freedom  to  provide 
services. 

No developments can be reported in connection with the right of establishment. The detailed 
alignment  strategy  required  by  the  Accession  Partnership  has  not  yet  been  prepared.  Firms 
already established in a Member State are still subject to registration, licence or authorisation 
requirements.  Other  requirements  incompatible  with  the  acquis  are  still  in  place,  such  as 
gender,  nationality,  residence  and  disproportionate  language  requirements  along  with  the 
‘one-office’ rule for pharmacists.  

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42 

   EN 

There have been no new developments as regards freedom to provide cross-border services. 
Registration,  licence  or  authorisation  requirements  incompatible  with  the  acquis  still  exist. 
Service-providers  already  established  in  a  Member  State  are  subject  to  such  requirements 
before they can obtain work and residence permits. No steps have been taken to align with the 
Services  Directive.  A  new  regulation  has  introduced  a  nationality  requirement  for 
environmental engineers combined with compulsory membership of the Union of Chambers 
of Engineers and Architects, which is not in line with the acquis. 

Obstacles  to  exercising  the  right  of  establishment  and  freedom  to  provide  services  have  not 
been identified and no structure for identifying such obstacles has been set up. Alignment in 
the areas of establishment and services is at an early stage. 

No  progress  can  be  reported  on  postal  services.  A  draft  Postal  Law,  prepared  in  2006  and 
amended recently, has not yet been adopted. The existing legal monopoly (reserved service, 
irrespective of weight limits) has not been phased out and no independent regulatory authority 
has been set up. 

In the absence of appropriate accounting methods for reserved and non-reserved services and 
of separation of accounts, the accounting system lacks transparency.  

No  progress  can  be  reported  on  mutual  recognition  of  professional  qualifications  and  its 
differentiation  from  the  recognition  of  academic  qualifications.  The  current  administrative 
structures allow the recognition of academic qualifications only. Reciprocal recognition still 
applies to a number of regulated professions. Nationality and language requirements persist. 
A new regulation subjects the provision of consultancy services by geophysical engineers to a 
nationality  requirement.  Similarly,  another  regulation  prevents  chemical  engineers  from 
providing services to public authorities and courts unless they are Turkish citizens. A contact 
point  for  implementation  of  Directive  2005/36/EC  on  the  recognition  of  professional 
qualifications has yet to be designated. 

No progress can be reported with implementation of the directives on lawyers, toxic products 
and commercial agents. 

‘The  right  of  establishment  and  freedom  to  provide  services’  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 aircraft registered in Cyprus or whose last port of call was in Cyprus, Turkey will 
not be in a position fully to implement the acquis relating to this chapter. 

Conclusion 

Overall, in the areas of services and establishment, alignment is at an early stage. No progress 
has  been  recorded  in  the  field  of  postal  services,  nor  on  mutual  recognition  of  professional 
qualifications. 

4.4. 

Chapter 4: Free movement of capital 

Some  progress  can  be  reported  in  capital  movements  and  payments.  The  Council  of 
Ministers  amended  the  communiqué  on  protection  of  the  Turkish  lira  and  abolished  the 
requirements  for  the  Central  Bank  to  identify  convertible  currencies  and  to  regulate 
transactions in such currencies. This amendment has made it possible for financial institutions 

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43 

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to  perform  foreign  exchange  transactions  and  to  open  deposit  accounts  in  all  currencies, 
which  was  not  the  case  before  for  some  Member  States’  currencies.  Further  relaxation 
followed  in  July  2008,  this  time  as  regards  the  rules  on  credit  related  to  commercial 
transactions.  In  January  2009  measures  were  taken  to  ease  the  domestic  asset-holding 
requirements applicable to the technical reserves of insurance companies. Turkey amended its 
legislation  on  foreign  currency  loans.  As  a  result,  companies  are  now  allowed  to  take  out 
foreign  exchange  loans  with  local  banks  without  any  restriction  on  maturity  or  amount. 
However, Turkey abolished the right of natural persons to conclude foreign-exchange-indexed 
loans.  

The  Turkish  legislation  in  the  field  of  real  estate  acquisition  by  foreigners  remains 
inconsistent  with  Article  56  of  the  Treaty  establishing  the  European  Community.  Turkey 
adopted  a  new  implementing  regulation  which  introduced  discriminatory  measures  and 
additional restrictions on acquisition of real estate by companies established in Turkey with 
foreign capital. There was no progress on real estate acquisition by foreign physical and legal 
persons  (established  in  other  countries).  Following  the  opening  of  this  chapter  in  the 
negotiations, Turkey has yet to present an action plan for gradual liberalisation of acquisition 
of  real  estate  by  foreigners  in  line  with  the  acquis  or  to  demonstrate  that  it  has  made 
significant  progress  towards  gradual  liberalisation,  two  key  components  for  the  accession 
negotiations on this chapter. 

There has been no progress towards removing restrictions affecting foreign direct investment 
originating  from  the  EU,  as  provided  for  in  the  Accession  Partnership.  Sectoral  investment 
restrictions  are  still  in  place,  such  as  on  radio  and  TV  broadcasting,  energy,  transport  and 
education.  Little  progress  can  be  reported  on  the  Accession  Partnership  priority  requiring 
Turkey  further  to  align  its  payment  systems  legislation  with  the  acquis.  The  Central  Bank 
adopted  an  implementing  regulation  which  requires  banks  to  use  IBAN  (international  bank 
account  numbers)  for  both  national  payments  in  Turkish  lira  and  cross-border  transfers  in 
euros to accounts in the European Economic Area.  

Progress in the fight against money-laundering remains uneven. During the reporting period 
Turkey  moved  ahead  with  aligning  its  legislation  with  the  acquis  and  with  the 
recommendations made by the Financial Action Task Force (FATF). The Turkish authorities 
prepared an action plan to tighten up enforcement of the Law on the Prevention of Laundering 
Proceeds  of  Crime  and  adopted  a  number  of  regulations  to  implement  this  law.  Turkey 
introduced  a  requirement  to  establish  compliance  programmes  for  banks,  capital  market 
brokerages,  postal  services, 
implementing 
regulations  have  been  introduced  covering  types  of  suspicious  transactions  and  customer 
identification.  The  Financial  Crimes  Investigation  Board  (MASAK)  issued  supplementary 
guidelines.  In  February  2009  Turkey  submitted  to  the  FATF  its  first  follow-up  report  after 
adoption  of  the  FATF’s  third-round  mutual  evaluation  report  (MER)  in  2007.  This  report 
describes  the  measures  taken  by  Turkey  to  address  the  deficiencies  identified  in  the  MER. 
Turkey  signed  memoranda  of  understanding  on  exchange  of  information  with  five  more 
countries  (Albania,  the  former  Yugoslav  Republic  of  Macedonia,  Georgia,  Romania  and 
Syria). 

insurers  and  pension  companies.  Further 

The November 2008 Law on the Recovery of Certain Assets to the National Economy applied 
until 30 September 2009. This law caught the attention of the FATF, because of concerns that 
it  might  undermine  existing  measures  to  counter  money-laundering  and  financing  of 
terrorism.  Turkey  needs  to  introduce  further  measures  to  prevent  money-laundering  and 
financing of terrorism as a result of transactions under this law.  

EN 

44 

   EN 

Turkey  made  some,  albeit  uneven,  progress  with  regard  to  its  administrative  capacity  to 
implement  and  enforce  properly  the  relevant  legislation  in  all  areas  related  to  anti-money-
laundering.  The  number  of  suspicious  transactions  reported  to  MASAK  has  increased 
considerably, from 2,946 in 2007 to 4,924 in 2008. Most of the reports stem from the banking 
sector, which remains the main source of money-laundering, although the non-banking sector 
is also important. As for the financing of terrorism, 228 suspicious transactions were reported 
in 2008, compared with 144 in 2007. Prosecutions were sought in 42 cases (43 in 2007), of 
which  34  were  brought  before  courts  (22  in  2007).  MASAK  issued  guidelines  for  banks, 
capital  market  brokerages,  insurers  and  pension  companies  on  compliance  with  their 
obligations. MASAK also published guidelines for non-profit organisations on prevention of 
terrorist financing. 

MASAK  continues  to  organise  training  for  examiners,  judges,  prosecutors  and  obliged 
parties. Further efforts are needed to improve the anti-money-laundering skills of the judiciary 
and  law  enforcement  bodies  and  the  mechanisms  to  combat  financing  of  terrorism.  Turkey 
has  signed,  but  not  yet  ratified,  the  Council  of  Europe  Convention  on  Laundering,  Search, 
Seizure  and  Confiscation  of  the  Proceeds  from  Crime  and  on  the  Financing  of  Terrorism 
(CETS 198). 

Conclusion 

Overall, there has been some progress on free movement of capital. Turkey submitted to the 
Commission action plans on capital movements and payments and on anti-money-laundering 
which  led  to  opening  of  this  chapter  of  the  negotiations.  Turkey  made  progress  on 
liberalisation  of  its  insurance  legislation.  However,  alignment  with  the  acquis  on  capital 
movements  and  payments  remains  limited.  There  are  still  obstacles  to  acquisition  of  real 
estate by foreigners and a new implementing regulation has placed additional discriminatory 
restrictions on foreign capital companies. Sectoral restrictions are still affecting foreign direct 
investment from the EU. Progress was uneven on measures to counter money-laundering and 
financing of terrorism, where Turkey’s administrative and enforcement capacity is not up to 
the required level yet. 

4.5. 

Chapter 5: Public procurement 

There has been no progress on the general principles of public procurement. The 15% price 
advantage  for  domestic  bidders  remains  in  the  legislation  and  was  strengthened  by  a  Prime 
Ministry circular issued in December 2008 which encouraged procuring entities to grant this 
advantage to tenderers offering Turkish goods and services. In 2008 the advantage clause was 
used in 10% of all tenders and 15% of tenders open to foreign bidders. Following the circular, 
this increased to 13.7% of all tenders in the first quarter of 2009 worth €1 billion, a substantial 
increase in financial terms. 

A  number  of  additional  derogations  from  the  Public  Procurement  Law  (PPL)  concerning 
goods  and  services  for  public  institutions  have  been  adopted  and  all  purchases  for  research 
and  development  projects  are  exempted  from  the  law.  The  Public  Procurement  Authority 
published a report indicating that procurement under such exclusions increased by 31.8% in 
2008. The value of procurements covered by exclusions more than doubled in the first quarter 
of  2009  and  state  undertakings’  monopolies  for  supplying  certain  goods  and  services  were 
confirmed. 

Limited  progress  has  been  made  on  the  award  of  public  contracts.  Information  on  public 
tenders is widely available, including on the internet, ensuring a high response. A legislative 

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45 

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amendment in 2008 introduced the concepts of electronic auction, dynamic purchasing system 
and  prior  notice  and  extended  the  scope  of  framework  agreements,  as  recommended  by  the 
EU  directives.  The  amendment  was  followed  by  implementing  regulations  in  March  2009. 
However,  Turkey’s  public  procurement  legislation  is  still  not  in  line  with  the  acquis  in 
various  respects.  Utilities  continue  to  be  subject  to  the  classical  public  procurement 
procedures without covering the private sector enjoying special or exclusive rights. There is 
no  coherent  legal  framework  for  the  award  of  concessions  and  public-private  partnerships, 
although comprehensive draft laws were presented and discussed more than two years ago on 
these areas. The 2009 thresholds and financial limits for procurement remain above EC levels. 
An alignment strategy on public procurement has not yet been submitted. 

Good progress can be reported regarding administrative capacity. The Public Procurement 
Authority and the State Planning Organisation have adequate administrative capacity. Some 
institutional  changes  are  currently  underway.  The  Public  Procurement  Authority  (PPA)  has 
been reorganised to separate its advisory and review functions, to increase its independence 
and to reduce the risk of conflicts of interest. The Ministry of Finance has been appointed to 
steer public procurement policy and ensure its coherence, despite being short-staffed. A legal 
provision now confirms this responsibility for formulation procurement policies and ensuring 
coordination among state institutions in drafting related laws, thus meeting a key requirement 
of the accession negotiations.  

As  regards  other  stakeholders  (contracting  entities  and  economic  operators),  market 
functionality and competitiveness are satisfactory in most sectors. 

Limited  progress  can  be  reported  on  alignment  with  the  Remedies  Directives.  The 
amendment  in  2008  marked  the  start  of  a  standstill  to  facilitate  operation  of  the  complaints 
mechanism.  However,  contrary  to  EC  case  law,  the  amendment  ruled  out  the  possibility  of 
appealing against tenders annulled by the procuring entity.  

Conclusion 

Some progress can be reported in this chapter, in particular with regards to the attribution of 
administrative responsibilities and alignment with the Remedies Directives. Some contracting 
authorities  indicate  good  procurement  practices.  However,  implementation  needs  to  be 
enhanced.  The  comprehensive  strategy  for  the  reforms  necessary  to  ensure  legislative 
alignment  and  institutional  capacity-building  is  still  outstanding.  Minor  improvements  have 
been  made  to  the  legislation.  The  increasing  number  of  derogations  from  the  general 
provisions  and  of  domestic  preferences  are  moving  Turkey  away  from  the  acquis,  thus 
reducing competition and efficiency in public tenders.  

4.6. 

Chapter 6: Company law 

Little progress can be reported on company law. The Turkish Commercial Code (TCC) and 
the  Law  on  the  Entry  into  Force  and  Implementation  of  the  TCC  have  been  pending  in 
parliament for almost three years. Without adoption of the TCC, electronic disclosure of and 
access  to  company  information  is  not  possible,  nor  is  electronic  company  registration 
operational. Adoption of other draft laws, including amendments to the Capital Markets Law 
concerning domestic mergers and divisions of public limited liability companies, the exercise 
of certain rights of shareholders in publicly held companies and takeover bids, is contingent 
on the entry into force of the TCC. 

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46 

   EN 

Little progress can be reported in the area of corporate accounting. The Turkish Accounting 
Standards  Board  (TASB)  published  several  interpretations  and  revisions  of  a  number  of 
international  accounting  standards  (IAS).  The  standards  adopted  apply  to  listed  companies. 
The Capital Markets Board of Turkey imposes an obligation on listed companies to publish 
their  yearly  and  quarterly  financial  statements  in  compliance  with  the  IAS  and  the 
international financial reporting standards in the format applicable in the EU. The obligation 
applies  only  to  listed  companies.  The  majority  of  companies  in  Turkey  are,  however,  non-
listed. 

The  Banking  Regulation  and  Supervision  Agency  adopted  an  updated  circular  on  the 
consolidated  financial  tables  for  banking  in  order  to  align  them  with  the  EU  acquis.  In 
accordance with the circular, the financial tables of all subsidiaries, whether financial or not, 
will be presented in the parent bank’s consolidated financial table.  

The  TASB  has  recruited  five  junior  accounting  standards  experts.  Nevertheless,  its 
administrative capacity remains weak.  

No progress can be reported on auditing. The regulatory framework is still being prepared. A 
public oversight body for statutory auditors and audit firms has yet to be established. 

Conclusion 

Overall, no substantial progress can be noted in the reporting period. The new TCC has not 
yet been adopted.  

4.7. 

Chapter 7: Intellectual property law 

Little  progress  has  been  made  in  the  area  of  copyright  and  neighbouring  rights.  The 
Directorate-General for Copyrights (DGCC) in the Ministry of Culture and Tourism (MoCT) 
conducted  an  inspection  of  the  collecting  societies.  Following  the  signing  of  a  cooperation 
protocol between four collecting societies in the music sector, licensing agreements have been 
signed  with  hotels  and  broadcasters.  Coordination  and  cooperation  between  the  IPR-related 
bodies  has  further  improved.  Piracy  of  books  and  other  media,  such  as  CDs  and  DVDs,  as 
well as copyright and related rights infringements of non-tangible goods remains widespread. 
Turkey’s enforcement capacity is still lagging behind.  

Some progress can be reported concerning the legislative framework for industrial property 
rights.  The  Turkish  Patent  Institute  (TPI)  published  several  amendments  to  the  regulations 
implementing  the  legislation  on  patents,  geographical  indications  and  industrial  designs  to 
follow up studies led by the Prime Ministry on administrative simplification and reduction of 
bureaucracy.  

Several  members  of  the  TPI  staff  have  received  specialised  training  on  language  and  legal 
issues. No constructive dialogue could be established between the TPI and IPR holders and 
their representatives.  Issues  linked  to bad faith and similar  trademarks  and industrial design 
remain unresolved. 

The Ministry of Health published an amending regulation on the licensing of pharmaceuticals 
for human use in April 2009. The regulation does not contribute to providing legal certainty 
on  the  issue  of  regulatory  data  exclusivity,  because  it  codifies  the  requirements  for 
combination  products  in  a  way  which  is  not  in  line  with  the  acquis  on  fixed  combinations. 
The  new  regulation  increases  the  number  of  documents  that  need  to  be  submitted  with  the 

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47 

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application  for  market  authorisation  and  makes  market  authorisation  more  cumbersome.  In 
general,  the  regulation  increases  the  margin  of  discretion  of  the  Ministry  of  Health  when  it 
comes to issuing the market authorisation and regulatory data exclusivity.  

As  regards  enforcement,  the  high-level  Intellectual  and  Industrial  Property  Coordination 
Board,  co-chaired  by  the  Ministry  of  Industry  and  Trade  and  the  Ministry  of  Culture,  met 
twice,  in  November  2008  and  February  2009.  Its  purpose  is  to  foster  cooperation  between 
relevant institutions in order to improve the level of IPR protection. However, the IPR-holders 
were  not  appropriately  represented  at  the  meetings.  The  Turkish  police  force,  the  body  in 
charge  of  IPR  enforcement,  conducted  successful  operations  to  fight  piracy  during  the 
reporting period. However, piracy and counterfeiting remain major challenges. The fact that 
enforcement bodies do not have the authority to conduct ex-officio investigations in the area 
of industrial property rights - currently proceedings are initiated solely upon complaint - is a 
serious  weakness.  Border  controls  are  weak,  in  particular  with  regard  to  ex-officio  seizures. 
The Turkish government needs to step up its efforts to address this issue in cooperation with 
the IPR society.  

In  July  2008  the  Turkish  Constitutional  Court  annulled  the  criminal  provisions  of  the 
trademarks  decree,  pointing  out  that  trademarks  infringements  could  not  be  punished  under 
the  existing  legislation.  The  reason  behind  this  court  decision  was  that  only  parliamentary 
laws  –  not  decrees  –  can  regulate  crimes  and  punishments.  To  fill  the  legal  vacuum,  the 
parliament adopted in January 2009 a new law proposed by the government.  

However,  due  to  the  time  which  it  took  to  adopt  the  new  law  and  the  ensuing  gap  in  the 
legislation,  around  3,357  accused  were  acquitted  in  2,861  counterfeiting  cases  before  the 
specialised  IPR  criminal  courts  in  Ankara,  Istanbul  and  Izmir  alone.  Such  legal  vacuum 
constitutes a breach of article 61 of the Agreement on Trade-Related Aspects of Intellectual 
Property  Rights  (TRIPs)  which  requires  WTO  members  to  adopt  criminal  enforcement 
provisions at least for cases of trademark violations. 

The  above-mentioned  gap  in  criminal  sanctions  for  IPR  crimes  also  affected  criminal 
enforcement  of  other  industrial  property  rights,  like  patents,  industrial  designs  and 
geographical  indications,  which  has  been  seriously  weakened  in  Turkey.  Sanctions  for 
infringements  of  the  above  IPR  were  applicable  only  until  31  December  2008.  As  a 
consequence,  since 1 January 2009, the courts have been granting  acquittals.  The  new  draft 
laws  regulating  criminal  sanctions  for  infringements  of  patents,  industrial  designs  and 
geographical indications were submitted to the parliament in April 2009 and are still pending 
there. 

So  far  Turkey  has  shown  no  willingness  to  move  towards  establishing  a  dialogue  on  IPR 
proposed  by  the  Commission  in  April  2008.  Establishment  of  an  IPR  dialogue  with  the 
Commission and successful engagement of Turkey in it is one of the benchmarks for closing 
this chapter of the accession negotiations. 

Conclusion 

Overall,  alignment  with  the  acquis  is  relatively  advanced.  Coordination  and  cooperation 
between  the  IPR-related  public  bodies  and  their  specialisation  have  improved.  However, 
enforcement  remains  insufficient.  Adoption  of  the  aligned  and  updated  laws  regulating 
intellectual  and  industrial  property  rights,  including  criminal  sanctions,  is  crucial.  Serious 
deficiencies  persist  in  industrial  property  rights,  in  particular  with  implementation  and 

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enforcement.  Turkey  needs  to  address  these  in  close  cooperation  with  the  IPR-holders. 
Engaging in an IPR dialogue, as suggested by the Commission, is crucial. 

4.8. 

Chapter 8: Competition Policy 

Turkey made further progress in the field of anti-trust. In the case of State aid little progress 
can be reported.  

In  February  2009  the  Competition  Authority  adopted  legislation  on  fines  for  cartels  and  on 
immunity from and reduction of fines in cartel cases where undertakings cooperate with the 
Competition Authority. A special unit was established within the authority to implement the 
leniency  regulation  and  respond  to  requests  for  information  from  those  wishing  to  benefit 
from it. Transposition of the acquis on horizontal cooperation agreements and the de minimis 
rules is still pending.  

The  Competition  Authority’s  satisfactory 
level  of  administrative  and  operational 
independence,  backed  by  its  strong  emphasis  on  staff  training,  contributes  to  its  high 
administrative  capacity.  The  authority  has  a  clear  track  record  on  implementation  of  the 
competition rules. 

Regarding the enforcement record of the Competition Authority, in 2008 fines were imposed 
in 3 cases involving anti-competitive agreements or abuse of a dominant position. The total 
amount  of  fines  imposed  by  the  authority  increased  by  57%  in  2008  compared  with  the 
previous year. The authority concluded 57 negative clearance and individual exemption cases 
(i.e. notified cases that were accepted) while 65 cases were opened. In the first half of 2009 
the authority has been active mainly in the sectors of chemicals and medicine, as well as in 
iron and steel and imposed fines in 2 cases. Establishment of a special chamber in the Council 
of  State  accelerated  reviews  of  competition  decisions.  The  number  of  appeals  introduced 
decreased by 13.5%. 

No  progress  can  be  reported  on  alignment  of  the  rules  concerning  public  undertakings  and 
undertakings holding exclusive and special rights. 

No  State  aid  legislation  was  adopted  nor  was  an  operationally  independent  authority 
established to monitor State aid. Progress was made as regards State aid to the steel industry 
when  Turkey  submitted  a  revised  "National  Restructuring  Plan"  for  the  steel  sector  in  June 
2009. 

Conclusion 

Overall, Turkey shows a high level of alignment in the field of anti-trust, including its merger 
control rules. Turkey continued to enforce the competition rules effectively. The Competition 
Authority has a satisfactory level of administrative and operational independence. No further 
legal alignment in the area of State aid can be reported and the long-awaited state aid law is 
still  pending.  There  is  still  a  need  to  implement  the  EU  discipline  on  State  aid  in  the  steel 
sector, as part of Turkey’s commitment under the ECSC Free Trade Agreement. Alignment in 
this chapter is not complete. 

4.9. 

Chapter 9: Financial Services 

Little  progress  can  be  reported  in  the  areas  of  banks  and  financial  conglomerates.  The 
Banking  Regulatory  and  Supervisory  Authority  (BRSA)  took  some  measures  to  counter  the 
negative  impact  of  the  global  financial  crisis  and  asked  banks  to  retain  profits  in  order  to 

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strengthen  their  capital  base.  The  BRSA  also  introduced  temporary  provisions  to  make  it 
easier for banks to restructure real-sector loans. Parliament adopted legislation requiring the 
Central  Bank  to  delete  the  credit  history  of  loan  customers  if  they  repay  their  debt  to  the 
banking  sector  after  a  default.  Turkey  introduced  a  target  capital  adequacy  ratio  (12%), 
liquidity regulations and changes in the accounting principles for securities. Operational risk 
was  added  to  the  calculation  of  capital  requirements  and  draft  credit  risk-management 
standards  were  prepared.  However,  implementation  of  the  Basel  II  Accord  has  not  moved 
forward. 

The  BRSA  signed  three  new  memoranda  of  understanding,  one  with  the  Luxembourg 
financial supervisory authority, one with the Central Bank of the United Arab Emirates and 
another with the Lebanese Banking Supervision Committee, bringing the total number signed 
to 19. The supervisory and enforcement capacity of the BRSA has been reinforced by means 
of a newly-developed information system-based tool and by improving the existing systems. 
With  a  view  to  coordination,  the  BRSA  clarified  the  rules  for  consolidated  supervision  of 
financial 
institutions  which  are  supervised  by  separate  regulatory  authorities.  The 
organisational  structure  of  the  BRSA  and  the  duties  of  individual  departments  have  been 
reviewed and four new departments have been established. 

Turkey’s legislation is partially aligned with the acquis on banks and financial conglomerates.  

Some progress has been made in the fields of insurance and occupational pensions. A new 
Cabinet decree allowed ships and yachts registered in Turkey to take out insurance cover not 
only  from  Turkish  but  also  from  foreign  insurance  companies  established  abroad.  The 
Treasury published an implementing regulation which clarified the minimum requirements for 
members of the insurance arbitration committee. Another implementing regulation laid down 
standards for provision of compulsory and optional insurance cover linked to retail loans. The 
Treasury adopted a new implementing regulation and started actuarial supervision of special 
pension schemes operated by foundations and associations. As for tariff liberalisation in the 
compulsory  third  party  motor  liability  insurance,  the  Treasury  increased  the  upper  limit  on 
approved tariffs from + 20% to +100%. Furthermore, the insurance arbitration committee has 
become  operational  and  37  insurance  companies  participated  in  the  new  arbitration 
mechanism  for  the  non-court  settlement  of  disputes  between  consumers  and  services 
providers. 

However,  prudential  and  supervisory  standards  in  both  banking  and  the  non-bank  financial 
sector were not strengthened. There has been no progress towards establishing an independent 
regulatory and supervisory authority in the insurance and occupational pension sector, falling 
short of another priority of the Accession Partnership. Turkey largely fulfils the requirements 
on financial market infrastructure, but alignment remains partial in the case of insurance.  

There  has  been  some  progress  on  securities  markets  and  investment  services.  The  Capital 
Markets Board (CMB) published a communiqué on listing requirements for debt instruments, 
which consolidated seven existing communiqués and introduced exchangeable bonds as a new 
type  of  instrument.  The  CMB  revised  its  communiqué  on  the  disclosure  of  material  events 
with  a  view  to  harmonising  the  legislative  framework  with  the  acquis.  The  communiqué 
enabled companies to postpone disclosure of material events. It also harmonised the rules for 
notification of acquisitions or disposals of major holdings in listed companies in accordance 
with  the  Transparency  Directive.  The  CMB  adopted  a  communiqué  to  regulate  new 
instruments (warrants and shares without voting rights) that could be issued in the future. It 
also  published  a  communiqué  allowing  establishment  of  listed  companies  for  infrastructure 
investment,  which  are  expected  to  help  to  finance  public  infrastructure  investment  projects. 

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Further  communiqués  have  been  issued  relating  to  the  internal  auditing  systems  of 
brokerages, to documentation and recording in intermediary activities and in intermediation in 
the  trading  of  derivative  instruments,  to  investment  trusts,  mutual  funds,  infrastructure  real-
estate  investment  trusts  and  venture-capital  investment  trusts,  to  utilisation  of  collateral 
deposited by brokerages and to the terms and conditions  governing book-entry recording of 
dematerialised capital market instruments. 

No  progress  has  been  made  as  regards  securities  markets  and  investment  services  (the 
Markets  in  Financial  Instruments  Directive  (MIFID),  investor  compensation  schemes, 
prospectuses,  market  abuse  and  undertakings  for  collective  investments  in  transferable 
securities (UCITS)). 

Turkey’s legislation is partially aligned with the acquis in the areas of securities markets and 
investment services.  

Conclusion 

Overall, some progress has been made in the area of financial services. Turkey’s legislation is 
partially aligned with the acquis in all three sub-areas of financial services. 

‘Financial  Services’  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 aircraft registered in Cyprus or 
whose last port of call was in Cyprus, Turkey will not be in a position fully to implement the 
acquis relating to this chapter. 

4.10.  Chapter 10: Information society and media 

Progress  can  be  reported  in  the  field  of  electronic  communications  and  information 
technologies. The penetration rate of mobile subscribers is 89%, as of August 2009. Further 
private investments were made in the fixed and mobile network infrastructure38. The number 
of broadband subscribers reached 6.2 million by the second quarter of 2009 but the share of 
alternative operators in the broadband and fixed telephony market remains low. 

The  Electronic  Communications  Law  n°  5809  was  adopted  in  November  2008.  This  is  a 
significant step towards aligning Turkey’s regulatory framework with the EU acquis, notably 
as regards the authorisation rules and the tasks of the regulator. Following the enactment of 
the  Law,  the  Telecommunications  Authority  adopted  By-Laws,  which  provide  for  further 
alignment with  the  electronic communications acquis. The amendments to  the  law have the 
potential to create the conditions for competition on the fixed telephony market.  

Progress  can  be  reported  as  regards  competitive  safeguards  in  the  mobile  market. 
Interconnection  charges  on  the  mobile  market  were  lowered  by  30%  during  the  reporting 
period.  Furthermore,  a  total  of  6.2  million  numbers  were  ported  by  August  2009,  after  the 
introduction  of  number  portability  in  November  2008.  Number  portability  for  the  fixed 
telephony  market  was  introduced  in  September  2009.  Three  mobile  operators  were  granted 
3G service licences and started to provide services as of July 2009. 

38 

€628  million  were  invested  in  the  fixed  network  infrastructure.  €  1.190  million  were  invested  in  the 
mobile network infrastructure.  

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Tax on internet services was reduced from 15% to 5%. 

However, the Electronic Communications Law is not in line with the acquis, in particular the 
provisions  on  universal  service  obligations,  and  as  regards  the  scope  of  authorisation  rules, 
which does not apply to existing concession agreements. Furthermore, the Significant Market 
Player regime (SMP) and market analysis procedures lack a firm legal basis in the Electronic 
Communications  Law.  A  detailed  review  of  primary  and  secondary  legislation  against  the 
requirements of the acquis would enable to identify remaining shortcomings in the legislation 
on electronic communications  

A  number  of  issues  remain  to  be  tackled  to  unlock  competition  on  the  fixed  telephony  and 
internet broadband markets. Licensing conditions for local telephony are now operational but 
problems  remain  as  regards  numbering  plans  and  interconnection  rates.  It  is  critical  to 
improve  interconnection  conditions  in  voice  and  broadband  markets  and  to  stimulate 
competition  in  these  strategic  markets.  Clarification  of  the  distribution  of  tasks  between  the 
Telecommunications  Authority  and  the  Competition  Authority  is  needed.  The  principles  of 
cost-accounting and accounting separation are not fully applied by dominant operators on the 
mobile market. High taxation on communication services unrelated to administrative costs for 
regulating the sector remains a problem. 

As regards information society services, Turkey’s legal framework is well aligned with the 
acquis on network security obligations and cybercrime. However, Turkey is not a party to the 
European  Convention  on  the  Legal  Protection  of  Services  based  on,  or  consisting  of, 
Conditional  Access.  Turkey’s  legislation  on  e-commerce  and  the  Electronic  Signature 
Directive is not in line with the acquis. Some websites are frequently blocked by court order, 
highlighting the need for stronger guarantees of respect of freedom of expression with regard 
to access to the internet (see the section on freedom of expression).  

As  regards  audiovisual  policy,  the  public  broadcaster  (Turkish  Radio  Television,  TRT) 
launched  a  24-hour  Kurdish  TV  channel  (TRT  6)  and  radio  station.  TRT  also  started 
broadcasting  for  half  an  hour  twice  a  day  in  Armenian  (see  the  section  on  cultural  rights 
under  Section  I  of  this  report).  The  effectiveness  of  the  Radio  and  Television  Supreme 
Council (RTÜK) was strengthened. All decisions taken by RTÜK are published on its website 
and  a  forum  for  consultation  with  broadcasters  has  been  established.  A  roadmap  on  digital 
switchover was adopted, in line with the objective set by the European Commission for the 
Member  States.  RTÜK  allowed  prospective  internet  protocol  television  operators  to  launch 
test transmissions. 

However,  there  has  been  no  development  in  alignment  with  the  acquis.  The  Law  on  the 
Establishment  of  Radio  and  Television  Enterprises  and  their  Broadcasts  is  still  posing 
problems in terms of definitions, jurisdiction, freedom of reception and retransmission, non-
discrimination on the grounds of nationality, promotion of European and independent works, 
major  events  and  restrictions  on  the  share  of  foreign  capital  and  television  enterprises.  As 
regards  administration  of  the  broadcasting  sector,  RTÜK  has  not  reallocated  frequencies, 
which is damaging the broadcasting industry. Moreover, more than a dozen TV channels were 
shut  down  for  allegedly  operating  without  licences,  although  their  application  had  been 
pending  for  several  years.  Time  and  content  limitations  continue  for  private  channels 
broadcasting  in  languages  other  than  Turkish  as  does  the  translation  requirement  (see  the 
sections  on  political  criteria  and  cultural  rights).  According  to  the  broadcasters  the 
restrictions make broadcasting in Kurdish technically difficult and commercially non-viable. 
As a result in 2009, only one TV and two radio stations broadcasted in Kurdish although in 
total six private broadcasters have licences. 

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Conclusion  

Overall, in the area of electronic communications, progress can be reported towards aligning 
Turkey’s  national  legislation  with  the  EU  framework.  However,  the  adoption  and 
implementation of secondary legislation are key to ensure an effective impact of the primary 
law  on  the  market.  The  competitive  situation,  notably  in  the  fixed  telephony  and 
internet/broadband  markets,  has  not  improved  and  this  highlights  the  need  for  effective 
implementation  of  regulatory  obligations.  This  is  primarily  the  tasks  for  an  independent 
regulatory authority. There has been little progress in the area of audiovisual policy. 

4.11.  Chapter 11: Agriculture 

Limited  progress  can  be  reported  on  legislative  alignment  with  the  common  agricultural 
policy  (CAP).  No  progress  can  be  reported  towards  the  announced  restructuring  of  the 
Ministry  of  Agriculture  and  Rural  Affairs,  although  an  outline  for  its  future  organisational 
structure exists.  

There has been limited progress with horizontal issues. Good progress can be reported only 
on implementation of the Farm Accountancy Data Network (FADN). The legal framework for 
the FADN has been consolidated by corresponding implementing legislation which, together 
with successful testing of a pilot FADN system in nine provinces, creates the right conditions 
for setting up a comprehensive FADN system. Progress in the area of agricultural statistics, in 
particular  in  the  preparation  of  the  strategy  paper,  remains  low.  No  recent  progress  can  be 
reported  towards  preparing  a  strategy  to  develop  a  land  identification  system  and  farmers’ 
register in line with the EU requirements.  

The growing importance of agricultural support instruments linked to production remained a 
cause  for  concern.  The  government’s  decision  to  scrap  the  direct  income  support  system 
marked a major shift in Turkish agricultural policy away from the reformed CAP. Deficiency 
payments  linked  to  specific  sectors  became  since  2009  the  main  instrument  of  financial 
support  to  Turkish  agriculture.  A  significant  change  in  policy  took  place  in  the  hazelnuts 
sector,  with  the  elimination  of  intervention  purchases  by  Turkish  Grain  Board  (TMO). 
Support  to  producers  is  replaced  by  coupled  payments,  marking  a  move  away  from  price 
support  measures.  Turkey  persists  with  banning  imports  of  beef,  live  bovine  animals  and 
derivate products originating in the EU. This is in breach of the bilateral obligations under the 
trade agreement for agricultural products. Removal of this and other technical barriers to trade 
remains a key component for the accession negotiations on this chapter.  

Concerning  the  common  market  organisation  progress  has  been  limited  to  the  adoption  of 
implementing  legislations  on  the  purchase  and  sales  of  cereals  and  on  the  purchase  of 
rice/paddy  rice.  By  this  measure  the  TMO  will  have  approximated  to  a  certain  extent  the 
national legislation to Commission regulations on the matter.  

As  regards rural  development,  Turkey  has  made  further  progress  with  IPARD  (Instrument 
for  Pre-Accession  Assistance  Rural  Development)  programming,  as  well  as  setting-up  of  a 
functioning  monitoring  and  evaluation  system  for  IPARD  and  related  legislation  has  been 
adopted. The IPARD Agency has been established. The implementing legislation specifying 
the  tasks  of  the  service  units and  human  resources  policies  of  the  IPARD  Agency  has  been 
adopted.  However,  too  limited  efforts  regarding  recruitment  and  training  of  personnel  have 
been observed so far. Further efforts are still needed to set up all the structures, necessary for 
implementing  IPARD  funds  on  the  basis  of  decentralised  management  without  ex-ante 
control, since the national accreditation of these structures has been delayed for more than one 

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year.  As  a  consequence,  this  prevents  the  Commission  from  starting  the  procedures  for 
conferral of management which can only be launched subsequent to national accreditation. No 
progress has been recorded on the preparation of a National Rural Development Plan, which 
should complement the EU's IPARD support to Turkey.  

No  progress  has  been  observed  on  quality  policy  and  only  limited  progress  took  place  on 
organic farming. As regards quality policy, Turkey has been working on revision of the Law 
on Geographical Indications. Current legislation in this area has some key differences with the 
relevant acquis and there is scope for further alignment. As regards organic farming, Turkey 
has submitted additional information to the Commission supporting its requests to be included 
in the equivalency list of the third countries for imports of organic products to the EU. 

‘Agriculture and rural development’ 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 aircraft registered in 
Cyprus  or  whose  last  port  of  call  was  in  Cyprus,  Turkey  will  not  be  in  a  position  fully  to 
implement the acquis relating to this chapter.  

Conclusion 

Overall, alignment with the acquis remains limited. Current agricultural support policies and 
strategic  policy-making  are  increasingly  dissociated  from  the  CAP,  while  the  slipping 
timetable  for  accreditation  of  the  IPARD  structures  reveals  difficulties  in  setting-up 
functioning administrative and organisational structures and procedures for the management 
of  rural  development  funds  in  line  with  EU  standards.  Technical  barriers  to  trade  in  bovine 
products,  in  breach  of  bilateral  commitments,  remain  an  urgent  issue.  Progress  in  the 
preparation  of  strategies  in  the  fields  of  agricultural  statistics  and  land/farmer's  registers 
remains slow. Overall, progress has been limited in this area. 

4.12.  Chapter 12: Food safety, veterinary and phytosanitary policy 

Turkey’s  progress  on  transposition  and  implementation  of  the  food  safety  acquis  remained 
limited. The Framework Law on food, veterinary, feed, hygiene and official controls, which is 
a key element for the accession negotiations on this chapter, has not yet been adopted. 

As  regards  veterinary  policy,  limited  progress  was  observed  on  transposition  and 
implementation of the acquis. However, legislative alignment on import control systems has 
yet to be completed. The border inspection post (BIP) at Sabiha Gokcen airport in Istanbul is 
not  fully  operational.  Problems  with  directing  consignments  from  Ataturk  airport  have  not 
been solved. Construction of three land BIPs and two at seaports has been completed, but they 
are still not in operation. 

Turkey continued its efforts to bring the system for identification of bovines and registration 
of their movements fully into line with the acquis. The system has been strengthened in terms 
of the registry of holdings, animal markets and slaughterhouses and of control of movements. 
Implementing legislation on identification and registration of ovine and caprine animals has 
been published and will apply with effect from January 2010. However, implementation in the 
field has not yet started. An adequate identification and registration system for bovine, ovine 
and  caprine  animals  is  a  key  element  in  the  accession  negotiations  on  this  chapter.  No 
progress can be reported on control of commercial movements of pets.  

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Turkey  continued  its  efforts  to  combat  animal  diseases.  The  main  focus  was  on  foot-and-
mouth  disease  (FMD).  As  a  result  of  intensive  vaccination  and  stricter  control  of  animal 
movements between Thrace and Anatolia, there have been no FMD outbreaks in Thrace and 
the  number  in  Anatolia  has  considerably  decreased.  There  were  no  outbreaks  of  avian 
influenza  in  the  reporting  period.  Nevertheless,  Turkey  continued  its  awareness  campaigns. 
The Regulation to combat new castle disease and the Regulation on compartmentalisation for 
declaring  disease-free  status  have  entered  into  force.  Turkey  continued  its  efforts  to  secure 
brucellosis-  and  tuberculosis-free  status  in  Thrace.  Regulations  to  combat  brucellosis  and 
bovine tuberculosis have entered into force. However, no progress has been observed on the 
ground. Legislation on animal health controls has not yet been completed. No progress can be 
reported as regards transmissible spongiform encephalopathy (TSE). Turkey continued timely 
notification of animal diseases in line with its international obligations. 

Turkey  introduced  improved  procedures  to  implement  and  follow  up  the  national  residue 
monitoring plan and to control veterinary medicinal products. Certain substances which have 
to  be  controlled  in  order  to  meet  the  requirements  of  the  acquis  have  been  added  to  the 
national  legislation.  Nevertheless,  some  important  aspects  are  still  missing,  in  particular  as 
regards laboratories and the inclusion of all substances. 

No  progress  has  been  observed  on  financing  veterinary  inspections  and  controls.  Import 
requirements for live animals and animal products are still not in line with EU practices. The 
de facto beef ban is still in place (see Chapter 11). Turkey has made no progress on animal 
welfare and zootechnical issues. 

Limited progress can be reported as regards the placing on the market of food and feed. The 
hygiene package, which is a key element of the accession negotiations on this chapter, has not 
yet been transposed. Hygiene guidelines have been prepared and have started to be applied in 
various  sectors.  A  communiqué  on  microbiological  criteria  entered  into  force.  However, 
further adjustments are needed to complete transposition in this field. The tasks of different 
departments  and  institutions  are  still  unclear  and  lead  to  problems  with  official  controls. 
Intensive  training  programmes  have  brought  improvements  in  the  administrative  capacity. 
The current inspection system has been evaluated with a view to accreditation of the services. 
However, no significant progress has been observed in the field. The Regulation establishing 
the  National  Food  Reference  Laboratory  has  entered  into  force.  Annual  inspection  and 
monitoring  programmes  have  been  implemented  and  their  scope  has  been  extended.  The 
classification  of  agri-food  establishments,  which  is  a  key  element  of  the  accession 
negotiations  on  this  chapter,  has  been  completed  by  Turkey.  Its  alignment  with  the  acquis 
remains  to  be  confirmed.  No  substantial  action  has  been  taken  to  bring  agri-food 
establishments  into  compliance  with  the  EU  hygiene  requirements.  No  progress  has  been 
observed on animal by-products. 

Further advances were made on alignment and implementation of the legislation on labelling, 
presentation  and  advertising,  food  additives  and  purity  criteria,  extraction  solvents,  quick-
frozen foodstuffs, food for particular nutritional uses, irradiated food and mineral waters. 

Transposition of the measures on flavourings, food supplements, novel food and genetically 
modified organisms (GMOs) has not been completed. Limited progress has been observed in 
the area of materials to come into contact with food. 

Concerning general food safety policy, Turkey’s national rapid alert system for food and feed 
has  been  improved  to  ensure  effective  follow-up  of  notifications.  However,  the  number  of 
notifications received, particularly on aflatoxin, remains significantly high. 

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No progress has been observed with regard to specific rules for feed and animal by-products. 

Progress on phytosanitary policy has remained limited. Alignment has progressed for plant 
protection  products.  A  Regulation  concerning  the  sale  of  plant  protection  products  on 
prescription,  a  Regulation  on  recording  and  monitoring  chemicals  to  be  used  for  plant 
production and a Regulation concerning the placing of plant protection products on the market 
have entered into force. A communiqué regulating registration, import, production and use of 
biological  agents  has  entered  into  force.  Preparatory  work  has  started  on  establishment  of  a 
pilot-scale plant passport system. 

Progress has been limited in the case of seed and propagating materials. Variety registration 
and seed certification software system has been established. No developments can be reported 
on implementation of international phytosanitary agreements. 

Conclusion 

Overall,  limited  progress  has  been  observed  in  the  area  of  food  safety,  veterinary  and 
phytosanitary policy. Efforts continued, but transposition and implementation of the acquis in 
this area is still at an early stage. Strengthening administrative structures remains pivotal for 
continuing alignment under this chapter. 

4.13.  Chapter 13: Fisheries 

No significant progress has been made with alignment with the fisheries acquis. The amended 
Law on Fisheries has still not been adopted. There has been no progress on reorganisation of 
the administrative structures necessary for consistent implementation of the common fisheries 
policy.  Responsibility  for  fisheries  is  still  spread  between  various  ministries  and  different 
departments within the Ministry of Agriculture and Rural Affairs (MARA). 

There  has  been  some  progress  on  resource  and  fleet  management.  Four  new  port  offices 
were established, bringing the total up to 34. The Fisheries Information System (FIS) has been 
improved,  but  is  not  yet  fully  functional;  further  progress  is  needed  with  regard  to  the 
collection of catch and landing data. A fleet register number has been assigned to each vessel. 
All vessels have been registered with the FIS and all procedures related to vessels have been 
carried out via this system. Registration of logbooks in the FIS has started. Quota applications 
related  to  baby  clam  have  been  monitored  by  the  FIS  on  a  pilot  scale.  Alignment  of  the 
legislation  regarding  the  tonnage  measurement  of  vessels  between  15m  and  24m  long  and 
vessels  smaller  than  15m  has  been  completed.  However,  a  four-year  transition  period  for 
vessels  between  15m  and  24m  has  been  granted  for  implementation.  No  progress  can  be 
reported on stock assessment and data collection is still patchy and incomplete with regard to 
the major fish stocks in the Black Sea. 

No  progress  has  been  made  on  structural  action,  inspection  and  control,  market  policy 
and state aid. 

As  regards  international  agreements,  Turkey  introduced  an  individual  quota  system  for 
blue-fin  tuna  in  order  to  distribute  the  total  quota  it  had  been  given  by  the  International 
Commission for the Conservation of Atlantic Tunas (ICCAT). Turkey has formally objected 
to the size of its quota, but it has nevertheless given a commitment to abide by it and other 
provisions  of  the  multi-annual  recovery  plan  for  Eastern  blue-fin  tuna.  Further  measures  to 
comply with ICCAT commitments are therefore needed. 

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‘Fisheries’ 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 aircraft registered in Cyprus or whose last port 
of call was in Cyprus, Turkey will not be in a position fully to implement the acquis relating 
to this chapter. 

Conclusion 

Overall, some progress has been made on resource and fleet management and implementation 
of international agreements. However, no progress has been made on legislative alignment in 
this  chapter.  Turkey  has  not  yet  established  the  administrative  structures  necessary  to 
implement the common fisheries policy. 

4.14.  Chapter 14: Transport policy 

Some progress has been made on road transport. Turkey has issued a second decree aiming 
at  a  more  effective  facilitation  of  the  fleet  renewal  scheme  and  phasing  out  old  vehicles. 
Turkey is close to becoming a party to the European Agreement on the International Carriage 
of  Dangerous  Goods  by  Road  (ADR).  The  Directorate-General  for  Land  Transport  (DGLT) 
has increased the capacity of the unit responsible for the implementing regulation. However, 
inspection capacity is still limited for the ADR. Turkey has completed the task of establishing 
inspection  facilities  for  roadworthiness  tests  on  motor  vehicles.  However,  DGLT  lacks  the 
necessary  monitoring  and  control  capacity  which  calls  for  comprehensive  technical  training 
for the staff. Licensing and certification of professional competence have been completed for 
international  road  transport  operators  and  are  close  to  completion  for  domestic  operators. 
Little progress was made towards meeting the EU technical requirements in the field of road 
transport, in particular for introduction of digital tachographs, which will be obligatory with 
effect  from  June  2010.  Turkey  has  not  yet  designated  the  authority  responsible  for 
implementation  of  digital  tachographs.  Alignment  in  the  road  transport  sector  is  generally 
advanced. 

No progress can be reported towards effective alignment with the acquis on rail transport. 
Although  drafting  of  the  railways  reform  package  has  been  finalised,  there  is  no  progress 
regarding its adoption. Preparedness in this sector remains at a very early stage. 

Turkey has no inland waterways transport covered by the acquis. 

Limited  progress  was  made  on  air  transport.  A  new  Regulation  on  carriage  of  liquids  on 
aircraft  was  adopted.  Implementation  is  still  in  the  pilot  phase,  which  started  at  Antalya 
international airport. In the light of the experience gained, the system will be extended to all 
airports in Turkey. The capacity of the Directorate-General for Civil Aviation (DGCA) in the 
field of aircraft maintenance has been improved. Based on its accreditation by the European 
Aviation  Safety  Agency  (EASA),  the  DGCA  is  issuing  approvals  for  maintenance 
organisations in line with EU standards. Relations with the EASA have been put on a formal 
footing  by  a  working  arrangement  signed  on  7  July  2009.  Turkey  became  a  party  to  the 
Montreal Convention.  

Further discussions on a horizontal aviation agreement took place in June 2009 and have to be 
pursued as a matter of priority in view of recognising Community designation, a fundamental 
requirement under Community law. In this respect, Turkey has yet to develop a clear strategy 
for  the  progressive  alignment  to  the  acquis  on  the  Single  European  Sky,  including  aspects 

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related  to  civil-military  coordination.  The  involvement  of  Turkey  into  the  Pan-European 
dimension of SESAR is finally ensured. 

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 
continues  seriously  to  compromise  air  safety  in  the  Nicosia  flight  information  region.  A 
technical solution has been submitted by the Commission and Eurocontrol and an agreement 
needs to be reached between the parties involved without delay. 

In  the  field  of  maritime  transport,  little  progress  can  be  reported.  Despite  years  of 
consultation,  the  maritime  safety  framework  law  has  not  been  adopted.  Legislation  on  roll-
on/roll-off  passenger  ships  has  been  amended  to  meet  the  voyage  data  recorders  (VDR) 
requirements of the International Maritime Organisation (IMO). The Regulation on seafarers 
has been further amended. The technical capacity for education and training of the saefarer's 
is  lagging  behind.  A  new  Regulation  on  tonnage  measurement  has  been  implemented. 
Preparations  for  improving  the  institutional  capacity  to  prevent  pollution  from  ships,  along 
with emergency response capacity, have not yet been launched. 

There  has  been  some  progress  on  preparing  regulations  on  SOLAS-78,  SOLAS-88  and 
Marpol  Annexes  III  and  IV.  Detention  rates  of  Turkish  vessels  dropped  further  (to  5.7%  in 
2008).  Turkey  has  moved  to  the  white  list  of  the  Paris  Memorandum  of  Understanding  No 
progress  on  maritime  security  can  be  reported.  Alignment  is  advanced  on  maritime  safety. 
The rules on market access and ship registration are not in line with the acquis. No particular 
development can be reported in the areas of combined transport and satellite navigation.  

No progress has been made on state aid. There is no established institution or legal framework 
in Turkey to regulate State aid.  

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 aircraft registered in Cyprus or whose last 
port  of  call  was  in  Cyprus,  Turkey  will  not  be  in  a  position  fully  to  implement  the  acquis 
relating to this chapter. 

Conclusion 

Limited  progress  has  been  made  on  alignment  in  the  transport  sector.  In  the  case  of  road 
transport, further alignment has been observed. However, the implementation capacity is still 
lagging behind and Turkey must give priority to implementation of the digital tachograph in 
particular. No progress can be reported in the rail sector. There has been limited progress on 
air  transport.  The  lack  of  communications  between  air  traffic  control  centres  in  Turkey  and 
the Republic of Cyprus continues seriously to compromise air safety. Turkey remains outside 
the  efforts  to  integrate  European  airspace.  Progress  in  the  maritime  sector  has  been  limited, 
the move of Turkey to the white list of the Paris MoU confirms Turkey's good performance as 
a  flag  state.  The  institutional  capacity  for  prevention  of  pollution  and  emergency  response 
should be improved. In both the air and maritime sectors, no progress has been made towards 
becoming a party to international conventions. 

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4.15.  Chapter 15: Energy 

In  the  field  of  security  of  supply,  some  progress  can  be  reported.  An  intergovernmental 
agreement  on  the  Nabucco  pipeline  project  was  signed  in  July  2009.  However,  the  agency 
which would facilitate oil stockholding arrangements has not been established. 

Regarding  the  internal  energy  market,  significant  progress  can  be  reported  on  electricity. 
Turkey  has  successfully  engaged  in  a  comprehensive  reform  of  its  electricity  market  and  in 
gradually  opening  it  to  competition.  Turkey  took  a  major  step  towards  creating  a  sound 
economic  and  financial  basis  for  the  electricity  sector  by  introducing  a  cost-based  pricing 
mechanism for the State-owned energy companies by mid-2008. Implementing regulations on 
ancillary  services  and  a  new  balancing  and  settlement  regulation  were  adopted  for  the 
electricity  market.  A  new  balancing  and  settlement  regulation  was  adopted,  but  is  not  yet 
implemented.  Following  adoption  of  the  cost-based  pricing  mechanism  last  year,  quarterly 
adjustments were applied to electricity retail prices. The threshold for eligible consumers was 
further  reduced  to  480,000 kWh,  equivalent  to  opening  50%  of  the  market.  During  the 
reporting  period,  eleven  generation  plants  with  a  total  installed  capacity  of  140  MW  were 
privatised. Privatisation of distribution assets through a block sale by using the sale method of 
100% of shares continued and privatisation of two of the regional distribution facilities was 
completed. For two other regions the process is in its final stage. The electricity theft and loss 
rate is around 14%. 

Limited progress can be reported on the natural gas sector. Positive developments took place, 
in  the  form  of  concession  of  gas  distribution  to  private  companies  in  several  regions. 
However,  most  issues  concerning  the  market  structure,  the  unbundling  of  the  transmission 
activities from supply activities and the rules for access to the network remain pending. The 
procedure  for  transfer  of  a  4  bcm  import  contract  from  BOTAS  to  the  private  sector  has 
proved inefficient to create wholesale gas trade activities and has mainly benefited the leading 
gas  exporter.  The  increasing  discrepancy  between  the  Natural  Gas  Market  Law  and 
developments on the market calls for substantial revision of the law. Natural gas infrastructure 
was further expanded and now covers 80% of the country. Sixty-four cities are connected to 
the gas grid. Investments in gas storage are being prepared and should help to balance demand 
and supply. 

Negotiations  started  in  September  2009  on  Turkey's  accession  to  the  Energy  Community 
Treaty.  Both  for  the  internal  market  in  electricity  and  gas,  renewable  energy  sources  and 
energy  efficiency,  but  also  as  regards  energy  related  environmental  issues,  the  accession  of 
Turkey to Energy Community will be of particular relevance. 

There  have  been  no  developments  in  the  field  of  state  aid.  A  number  of  draft  laws  with  a 
view  to  establishing  an  authority  for  monitoring  state  aid  were  submitted  to  parliament  but 
subsequently withdrawn. 

Good progress can be reported on renewable energy. Implementing regulations were adopted 
on  wind  energy  (clarifying  technical  evaluation  of  applications  for  licences  for  wind-based 
power)  and  on  use  of  geothermal  resources.  In  the  reporting  period,  six  geothermal  fields 
suitable for electricity generation were privatised. By the end of 2008 Turkey was producing 
17%  of  its  electricity  from  renewable  energy  sources.  The  revised  strategy  paper  for  the 
electricity  sector  set  a  target  of  producing  25%  of  the  country’s  electricity  from  renewable 
sources by the  end of 2020  and installing 20,000 MW of wind power capacity  by the  same 
year.  Considering  that  electricity  consumption  is  expected  to  double  by  the  same  date,  this 
objective will require significant efforts. 

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In the case of energy efficiency, some progress can be reported. Implementing regulations on 
the  energy  performance  and  insulation  of  buildings  were  adopted.  Further  implementing 
regulations  were  also  adopted  on  efficient  use  of  energy  and  energy  resources  and  on  the 
energy efficiency of small and medium-sized enterprises. Efforts to raise public awareness of 
energy efficiency as a means to enhance energy security and combat climate change need to 
be  continued  and  framework  legislation  must  still  be  brought  into  line  with  acquis 
requirements. 

Limited  progress  can  be  reported  on  nuclear  energy,  nuclear  safety  and  radiation 
protection.  Turkey  has  not  finalised  the  tender  procedure  for  selection  of  the  contractor  to 
build its first nuclear power plant, which will have an installed capacity of 4,800 MW. The 
single offer is being assessed and will be submitted to the Council of Ministers for approval. 
Implementing regulations on special principles and design principles for the safety of nuclear 
power plants were adopted. Regarding research reactors, implementing regulations on special 
principles  for  safety,  notification  and  reporting  of  extraordinary  incidents,  registration  and 
reporting  were  adopted.  Based  on  Turkish  declarations,  it  is  supposed  that  the  acquis  on 
control  of  high-activity  sealed  radioactive  sources  and  orphan  sources  has  been  transposed. 
An  implementing  regulation  on  nuclear  power  plant  sites  was  also  adopted.  However,  the 
Turkish Atomic Energy Agency (TAEK) continues to perform both the regulatory functions 
and its operational tasks. Turkey is not participating in the Community programme on nuclear 
safety and radiation protection. Nor has it 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 the energy sector. Developments on renewable 
energy, energy efficiency and the electricity market have been encouraging. However, in the 
cases of natural gas, nuclear energy, nuclear safety and radiation protection Turkey needs to 
implement its legislation and strategies. 

4.16.  Chapter 16: Taxation 

There has been uneven progress on indirect taxation. Turkey’s value-added tax legislation is 
partially  aligned  with  the  acquis.  Further  alignment  of  the  structure,  exemptions,  special 
schemes and application of reduced rates is needed, with particular regard to the application 
of different VAT rates on wholesale and retail sales.  

As regards excise duties, some progress can be reported, in the form of adoption of an action 
plan  on  18  May  2009  setting  clear  milestones  with  a  view  to  gradual  full  elimination  of 
discriminatory  taxation  on  alcoholic  beverages  and  imported  tobacco.  However,  the 
discrepancies between the Turkish legislation and the acquis on the structure of excise duty 
on tobacco and tobacco products remain unchanged. Turkey applies ad valorem rates and has 
no  element  of  specific  excise  duties.  The  Tobacco  Fund  remains  discriminatory.  It  sets  a 
special  duty  on  imported  tobacco  and  cigarettes  only,  which  is  not  applied  to  domestic 
products. As regards alcoholic beverages, significant progress can be reported. In connection 
with  the  action  plan  of  18  May  2009,  the  proportional  taxation  was  fully  eliminated  by  a 
government decree adopted on 6 April 2009 with effect from 14 April 2009 and new specific 
duty  rates were  set within clear milestones  mutually  accepted in  view  of  full elimination of 
remaining  discriminatory  taxation.  Turkey  has  not  yet  introduced  any  duty-suspension 
arrangement for domestic movements and fiscal warehouses.  

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There has been some progress on direct taxation. The tax burden on the minimum wage was 
reduced and the income tax brackets were increased. The Income Tax Law is being revised. 
Turkey will need to avoid introducing any measures contrary to the principles of the Code of 
Conduct for Business Taxation. 

Further  progress  can  be  reported  in  the  field  of  administrative  cooperation  and  mutual 
assistance.  The  taxpayer  call  centre,  taxpayer  service  centre  and  large  taxpayer  office 
established in the revenue administration are fully operational. Positive developments can be 
reported  in  the  fight  against  the  informal  economy.  An  action  plan  for  combating  the 
unregistered economy was enacted, with action to be taken by 2010. It includes a VAT refund 
risk-analysis  project  and  an  e-customs  system  for  cross-checks  on  people  involved  in  VAT 
fraud.  The  revenue  administration  is  responsible  for  monitoring  and  assessing  the  activities 
set out in this action plan. 

Turkey  has  made  further  progress  on  operational  capacity  and  computerisation. 
Computerisation  of  the  provincial  tax  offices  was  completed  and  the  tax  administration  is 
developing IT systems with a view to interconnectivity between the Turkish IT systems and 
those of the EU and its Member States. 

Conclusion 

There  has  been  progress  towards  legislative  alignment  in  this  chapter,  in  particular  towards 
reducing  the  discriminatory  taxation  on  alcoholic  beverages.  Turkey’s  tax  system  largely 
follows the structure of the EU acquis in the fields of VAT, excise duties and direct taxation. 
However,  several  discrepancies  need  to  be  addressed  before  achieving  full  alignment. 
Modernisation of the tax administration has continued, improving the service to taxpayers and 
increasing revenue. There have been positive developments in the fight against the informal 
economy. 

4.17.  Chapter 17: Economic and Monetary Union 

There  has  been  some  progress  on  monetary  policy.  The  Under-Secretariat  of  the  Treasury 
published  an  implementing  regulation  which  allows  insurance,  reinsurance  and  private 
companies to present not only domestic but also foreign securities as collateral to fulfil their 
technical  reserve  requirements.  This  was  a  positive  development  in  the  direction  of 
prohibition of privileged access for the public sector to financial markets. The Central Bank 
adopted several measures to ensure liquidity on the financial markets. Turkey’s legislation is 
not yet sufficiently aligned with the acquis in this area. The statute of the Central Bank does 
not yet ensure its full independence. The government and the Central Bank continue to set the 
inflation target jointly. The national currency was renamed, reverting to Turkish lira, and new 
banknotes  and  coins  were  introduced  with  effect  from  1  January  2009.  This  follows  a 
transition period after introduction of the new Turkish lira in January 2005. 

Some  progress  can  be  reported  on  economic  policy.  Turkey  submitted  the  pre-accession 
economic  programme  for  2009-2011  to  the  Commission,  albeit  after  a  delay  due  to  the 
ongoing negotiations with the IMF on a new stand-by arrangement. Macroeconomic stability 
was broadly preserved in spite of the global economic and financial crisis. The swift response 
of the authorities, which relaxed both the monetary and fiscal policies, helped mitigate some 
of the negative effects of the downturn. To address the global financial and economic crisis, 
the  government  adopted  several  fiscal  and  stimulus  measures,  mainly  consisting  of 
consumption tax cuts, tax incentives for large investments and investments in certain regions 
and  sectors,  zero-interest  loans  to  SMEs,  inducements  for  Turks  to  repatriate  savings  held 

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abroad and incentives to increase employment. The parliament adopted a law allowing the use 
of  the  Unemployment  Insurance  Fund  for  infrastructure  investments,  in  particular  in  the 
South-East Anatolia region, while  introducing  some  measures to  encourage job creation. At 
the  same  time,  the  fiscal  relaxation  may  put  at  risk  benefits  of  fiscal  consolidation  from 
previous  years,  if  they  are  not  withdrawn  in  timely  fashion.  The  absence  of  credible  fiscal 
plans  added  some  uncertainty  to  the  investment  climate.  Structural  reforms  continued,  in 
particular  privatisation  in  the  energy  sector,  albeit  at  a  slower  pace  due  to  the  challenging 
environment. Formulation and implementation of economic policy remained fragmented until 
the  Cabinet  reshuffle,  which  centralised  a  significant  number  of  institutions  and  functions 
under a single Deputy Prime Minister. 

Conclusion 

Some progress has been made on economic and monetary policy. The macroeconomic policy 
framework reflected the changing global economic conditions. Alignment with the acquis in 
the  field  of  monetary  policy  remains  incomplete.  There  are  still  shortcomings  in  the  legal 
framework, for instance as regards the full independence of the Central Bank, prohibition of 
monetary  financing  of  the  public  sector  and  prohibition  of  privileged  access  for  the  public 
sector to financial markets. 

4.18.  Chapter 18: Statistics 

Good progress has been made on statistical infrastructure. The official statistics programme 
for 2007-2011 was further updated. Progress can be reported on the coordination role of the 
Turkish  Statistical  Institute  (Turkstat)  and  on  improving  its  administrative  capacity.  The 
Turkish Statistical Law was revised. It now requires all statistical stakeholders to provide data 
to Turkstat, introducing a new provision of administrative fines for non-compliance with this 
obligation.  Another  provision  introduced  the  passive  confidentiality  principle  for  the 
dissemination of foreign trade data. Furthermore Turkstat signed co-operation protocols with 
the Council of Higher Education and the Ministry of Health. Some progress has been made on 
classifications and registers. Activities started on business demography. The changeover to 
the  European 
NACE  Rev.  2  (Statistical  Classification  of  Economic  Activities 
Communities) is under way. However, Turkey has not yet submitted a detailed description on 
progress  made  in  setting  up  the  statistical  farm  register,  which  is  a  key  element  for  the 
accession negotiations in this chapter.  

in 

Good progress has been made on sector statistics. A working group on government accounts 
was established. It aims at compiling harmonised tables on general government accounts and 
fiscal  notification.  Turkey  also  made  further  progress  on  timely  production  of  key  national 
accounts indicators in accordance with the European System of Accounts (ESA95). However, 
Turkey  has  not  yet  submitted  a  detailed  description  of  the  methodology  used  for  compiling 
national  accounts,  which  is  a  key  element  for  the  accession  negotiations  in  this  chapter.  As 
regards  agricultural  statistics,  Turkey  published  the  results  of  three  new  surveys  on  farm 
structure, crop production and animal production. Some progress has been made regarding the 
accession  partnership  priority  which  requires  Turkey  to  align  the  methodology  and 
organisational set-up for providing agriculture statistics in line with EU requirements. As for 
population and migration statistics, Turkey started to publish population data on a yearly basis 
and established a national education database. In the case of public health statistics, Turkey 
adopted a new death certificate to improve the quality of causes of death statistics. In the area 
of business statistics Turkstat further improved short-term statistics. 

Conclusion 

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Good  progress  has  been  made  in  the  area  of  statistics.  The  Statistics  Law  was  revised  and 
Turkstat  took  further  steps  to  improve  coordination  of  the  statistical  system.  Good  progress 
has been achieved  on  sector  statistics, in particular on social and business statistics. Further 
efforts  are  needed  on  national  accounts  and  agricultural  statistics  and  on  the  statistical  farm 
register. 

4.19.  Chapter 19: Social Policy and Employment 

There  is  no  progress  to  report  regarding  transposition  of  the  acquis  on  labour  law.  The 
limited scope of the Labour Law39 and transposition of a number of directives remain to be 
addressed. The administrative capacity of the Ministry of Labour and Social Security and its 
affiliated institutions is not yet sufficient. Some efforts were made to combat child labour, but 
further  resources  are  needed  to  address  this  persisting  problem.  In  the  area  of  labour  law, 
Turkey is not yet sufficiently prepared. 

Some  progress  has  been  made  in  the  area  of  health  and  safety  at  work.  Expertise  on  the 
acquis improved as a result of training and awareness-raising activities. However, the lack of 
legislation to transpose Framework Directive on the safety and health of workers at work is a 
major shortcoming. Amongst other issues, employees in the public sector are still not covered 
by the health and safety legislation. The system for collecting data on occupational diseases 
and  accidents  needs  to  be  further  strengthened.  According  to  the  latest  official  statistics, 
80,602  occupational  accidents  occurred  in  200740.  Accidents  in  the  informal  sector  go 
unreported.  As  regards  administrative  capacity, 
the  Labour  Inspection  Board  was 
strengthened,  including  by  means  of  training  and  recruitment  of  extra  staff.  However,  the 
inspector  per  employee  ratio 
to  guarantee  effective  monitoring  of 
is 
implementation of the legislation41. Preparations in this area are ongoing. 

inadequate 

There has been little progress in the social dialogue. The reinstitution of 1 May as ‘Labour 
and  Solidarity  Day’  after  28  years  was  an  encouraging  step.  The  reform  of  trade  union 
legislation is pending for several years. Full trade union rights have not yet been established 
in  Turkey.  The  current  legal  framework  is  not  in  line  with  EU  standards  and  ILO 
Conventions, in particular as regards the right to organise, the right to strike and the right to 
bargain  collectively,  for  both  the  private  and  public  sectors.  The  ILO  Committee  of  experts 
called  upon  Turkey  to  adopt  these  reforms  and  suggested  the  organisation  of  a  high-level 
bipartite  mission  to  assist  the  government.  Social  dialogue,  at  cross-industry,  sector  and 
corporate level, remains generally weak. Overall, the percentage of workers benefiting from 
collective labour agreements is low42. The channels for tripartite social dialogue, in particular 
the  Economic  and  Social  Council,  need  to  be  strengthened.  In  the  area  of  social  dialogue, 
Turkey is not yet sufficiently prepared.  

39 

40 

41 

42 

The  Labour  Law  does  not  apply,  inter  alia,  to  businesses  or  enterprises  in  agriculture  and  forestry 
which  employ  fewer  than  50 workers,  to  apprentices  and  to  trades  and  crafts  businesses  employing 
fewer than three persons. 
The  incidence  of  accidents  is  highest  in  manufacturing  of  metal  products  (except  machinery).  Fatal 
cases  of  silicosis  caused  by  poor  working  conditions  in  jeans  sandblasting  workshops  continued  to 
occur. 
There  are  591  labour  inspectors,  of  whom  306  are  social  inspectors  and  285  are  health  and  safety 
inspectors. The number of employees is around 19,500,000 (excluding civil servants). That gives a ratio 
of around one inspector for every 32,994 workers. The ILO standard is one inspector for every 20,000 
workers in transition economies.  
The  collective  agreements  concluded  in  2007  and  2008  cover  a  total  of  694,474  workers  out  of 
21,194,000 in employment (i.e. 3%). 

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There  has  been  some  progress  on  employment  policy,  in  particular  to  reduce  the  negative 
effects  of  the  economic  and  financial  crisis.  A  number  of  individual  measures  to  stimulate 
employment,  among  other  the  extension  of  short-term  work  duration  by  six  months,  was 
adopted  in  August  2009.  This  complements  the  incentives  for  employment  creation  already 
adopted in 2008 under the "Employment package". In the absence of an overall employment 
strategy, the impact has to be seen. The fight against the informal economy has been given a 
higher profile. The government adopted an action plan which combines a series of incentives 
and legal sanctions. However, the action plan lacks measurable targets and indicators and the 
method of measuring undeclared work still has to be further developed. The employment rate 
and  labour  force  participation  remain  low,  although  the  latter  increased  for  the  first  time  in 
years43 (see Economic criteria). The labour market deteriorated, against the background of the 
economic  and  financial  crisis.  The  unemployment  rate  rose  rapidly  to  13.6%  in  the  second 
quarter  of  2009,  especially  youth  unemployment.  The  latter  reached  24.9%  for  the  second 
quarter  of  2009.  As  a  result,  demand  for  the  services  of  the  Turkish  Employment  Agency 
(ISKUR) increased rapidly. However, this was not met by a proportionate increase in human 
resources. The law on Turkey’s participation in the PROGRESS Community Programme has 
entered into force. No progress can be reported towards finalisation of the Joint Assessment 
Paper on Employment Priority Policies (JAP). Preparations in this area are at an early stage.  

There has been good progress on the preparations for the European Social Fund (ESF). The 
operating  structure  established  under  the  Ministry  of  Labour  and  Social  Security,  which  is 
responsible  for  management  of  the  IPA  operational  programme  on  human  resources 
development, has recruited additional personnel and provided training. The process to confer 
powers  on  Turkish  authorities  for  decentralised  management  of  the  IPA  management  and 
control system has been finalised and a related financing agreement has been signed. Actions 
on promotion of female, youth and registered employment, on lifelong learning activities and 
on  increasing  girls’  school  enrolment  rates  will  be  supported  in  the  framework  of  the  IPA 
operational  programme  on  human  resources  development.  Preparations  in  this  area  are  on 
track. 

There  has  been  little  progress  in  the  field  of  social  inclusion.  The  percentage  of  the 
population  at  risk  of  poverty  is  very  high.  According  to  the  latest  (2007)  Poverty  Survey, 
18.56%  of  Turkey’s  population  live  below  the  poverty  line,  a  slight  increase  since  2006. 
People  living  in  rural  areas  are  at  considerably  greater  risk  of  poverty  than  urban  dwellers. 
Poverty  is  also  high  among  the  working  population,  especially  among  casual/  seasonal 
workers,  unpaid  family  workers,  the  self-employed  and  those  in  subsistence  agriculture. 
Because  social  transfers  are  lacking,  children  are  at  disproportionate  risk  of  poverty.  The 
national mechanisms for monitoring poverty and social inclusion are weak. No progress can 
be  reported  towards  the  finalisation  of  the  Joint  Social  Protection  and  Social  Inclusion 
Memorandum (JIM). Preparations in this area are at an early stage. 

There  has  been  no  progress  in  the  field  of  social  protection.  The  percentage  of  people 
covered by social security is slightly below 80% and has been declining. Efficient planning, 
coordination and provision of social protection, social assistance and social services are still 
lacking. Often this results in arbitrary delivery of services and benefits, without objective and 
transparent  criteria44.  The  draft  law  on  social  assistance  and  payments  without  premiums  is 

43 
44 

41.7% and 46.39% respectively. 
The  report  of  the  State  Supervision  Board  (DDK)  acknowledges  these  problems,  and  recommends  a 
better  definition  of  types  and  amounts of  social  assistance,  together  with  a  definition  of  poverty;  and 

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expected  to  address  these  issues,  but  has  still  not  been  adopted.  The  impact  of  the  recent 
social security reform on the socially excluded is not yet clear. Preparations in this area are at 
an early stage. 

There  has  been  no  progress  on  anti-discrimination.  There  is  no  definition  in  law  of  direct 
and  indirect  discrimination.  The  acquis  concerning  discrimination  on  grounds  of  racial  or 
ethnic  origin,  religion  or  belief,  disability,  age  and  sexual  orientation  has  not  yet  been 
transposed. There is still no Equality body in Turkey, as required by the acquis. Dialogue with 
non-governmental  operators  in  this  area  needs  to  be  improved.  Preparations  in  this  area  are 
not very advanced. 

Some  progress  can  be  reported  in  the  field  of  equal  opportunities.  A  Parliamentary 
Commission  on  Equal  Opportunities  for  Men  and  Women  was  established  (see  Political 
criteria – Economic and social rights). This will monitor developments in the field of gender 
equality, give opinions on draft laws and determine the legislative work needed to align with 
the  international  agreements  to  which  Turkey  is  a  party.  It  will  also  examine  claims  of 
violations  of  equality  between  women  and  men  and  gender-based  discrimination,  which  are 
referred  to  it  by  the  Presidency  of  parliament.  Turkey  adopted  a  national  action  plan  for 
gender  equality  for  2008-2013,  but  it  contains  no  information  on  human  or  financial 
resources.  However,  women’s  participation  in  the  labour  market  remains  the  lowest  among 
EU  Member  States  and  OECD  countries.  The  gender  pay  gap  persists45.  There  is  still  no 
Equality body in Turkey, as required by the acquis. Preparations in this area are on track. 

Conclusion 

Overall,  Turkey  made  limited  progress  in  the  field  of  social  policy  and  employment.  The 
establishment of a Parliamentary Commission on Equal Opportunities for Men and Women is 
a positive step. Preparations for participation in the European Social Fund have accelerated. 
However, the legislation on labour law, health and safety at work and on anti-discrimination 
is  not  in  line  with  EU  standards.  There  has  been  no  progress  towards  achieving  full  trade 
union  rights  in  line  with  EU  standards  and  ILO  Conventions.  Women’s  participation  in  the 
labour  market  is  very  low.  Efforts  to  combat  undeclared  work  need  to  be  stepped  up.  A 
substantial  proportion  of  the  population  is  at  risk  of  poverty,  especially  children.  Due 
attention needs to be paid to the finalisation of the Joint Social Protection and Social Inclusion 
Memorandum  and  of  the  Joint  Assessment  Paper  on  Employment  Priority  Policies.  The 
administrative capacity for effective implementation of the acquis in the area of social policy 
and employment needs to be improved. 

4.20.  Chapter 20: Enterprise and Industrial Policy 

Turkey made further progress with regard to enterprise and industrial policy principles. It 
has prepared an industrial strategy document for 2009-2013 following EU policy principles. 
The process of preparation and reaching agreement on this document and its action plan needs 
to be completed allowing industrial policy subsequently to be implemented. The Ministry of 
Industry and Trade established an entrepreneur information system, including extensive data 
on  companies  and  sectors  and  providing  a  solid  basis  for  policy  analysis  and  design.  The 

45 

suggests  the  unification  of  various  institutions  in  this  field  under  one  roof,  and  establishment  of  a 
common database. 
According to the ILO report entitled ‘Global Employment Trends for Women’ (March 2009), in Turkey 
men employed in manufacturing earn twice as much as women.  

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Coordination  Council  for  Improvement  of  the  Investment  Environment  (YOIKK),  a  key 
public-private  initiative  contributing  to  improving  the  business  environment,  continued  its 
work  and  adopted  its  third  action  plan,  now  covering  2009.  A  government  action  plan  to 
address the informal economy was adopted in February 2009. This includes specific measures 
and  incentives  in  favour  of  registered  companies  operating  in  the  formal  economy.  It  also 
includes enforcement measures against unregistered activities and awareness-raising to build 
public  and  institutional  consensus.  There  are  some  modest  signs  that  Turkey  is  planning  to 
improve the follow-up to and monitoring of policy strategies and action plans, e.g. by issuing 
quarterly  progress  reports  on  the  YOIKK  action  plans  and  appointing  additional  dedicated 
staff to monitor implementation of the industrial strategy. 

There was some improvement in the business environment, including procedures for starting 
a business and a regulation to speed up customs procedures. However, licensing procedures, 
market  exit  and  bankruptcy  proceedings  remain  cumbersome.  Various  crisis-response 
packages have been adopted by the government, introducing different types of tax advantages 
for industry and SMEs. Furthermore, in response to the economic crisis, a regulation on short 
work  was  adopted  to  help  companies  to  keep  working  during  the  crisis  instead  of  closing 
down or laying off workers. 

Some  progress  was  made  with  enterprise  and  industrial  policy  instruments.  New  loan 
programmes  were  extended  by  the  Small  and  Medium-sized  Industry  Development 
Organisation (KOSGEB). KOSGEB’s mandate was extended to all enterprises, including the 
services sector, by an amendment to the law establishing the organisation. Ratification of the 
Competitiveness and Innovation Programme (CIP) was completed in January 2009. There has 
been  a  notable  increase  in  R&D  spending,  with  a  rising  share  from  the  private  sector.  No 
further  progress  has  been  made  towards  completing  alignment  with  Directive  2000/35  on 
combating late payment in commercial transactions. 

Some progress has been made in sector policies. The Ministry of Industry and Trade prepared 
a strategy for the automobile sector. Turkey revised its national restructuring plan for the steel 
industry. The revised plan focuses in particular on companies benefiting from State aid rather 
than the entire sector. 

Conclusion 

Turkey has made further progress on this chapter, in particular in preparing a new industrial 
strategy and new sectoral strategies, which now need to be completed and published. There is 
also  wider  availability  of  enterprise  and  industrial  policy  support  instruments  and  some 
improvements  in  the  business  environment.  The  follow-up  to  and  monitoring  of  policy 
strategies and action plans have improved modestly, but need further strengthening. Overall, 
Turkey has achieved a sufficient level of alignment with the acquis in the field of enterprise 
and industrial policy. 

4.21.  Chapter 21: Trans European Networks 

Progress was made in the area of transport networks. The Ministry of Transport issued its 
strategic plan for 2009–2013. The priorities are in line with the recommendations made in the 
transport  infrastructure  needs  assessment  (TINA).  Preparations  are  being  made  for  projects 
and  are  well  advanced  for  core  network  projects.  However,  a  master  plan  for  long-term 
investment  has  not  yet  been  prepared.  Substantial  progress  is  awaited  on  development  of  a 
reliable system of transport data classified by type of transport infrastructure. 

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In  the  area  of  energy  networks,  the  European  Community  is  supporting  preparations  for 
projects  to  create  a  stronger  competitive  electricity  and  gas  market  in  the  EU  and  improve 
security  of  supply.  In  July  2009  Turkey  signed  the  Intergovernmental  Agreement  on  the 
Nabucco  gas  pipeline.  This  project  is  an  important  strategic  step  towards  closer  energy 
cooperation  between  the  EU,  Turkey  and  other  States  in  the  region  as  well  as  towards  the 
diversification  of  energy  sources.  The  timely  completion  of  the  Southern  Gas  corridor, 
through  notably  the  swift  implementation  of  the  Nabucco  Intergovernmental  Agreement, 
remains one of the EU's highest energy security priorities. The objective of the agreement is 
to set a common regulatory framework and facilitate the necessary investment decisions.  

Technical preparations to bring into operation the Turkey-Greece-Italy interconnector natural 
gas pipeline are continuing. 

As regards electricity networks, links are in place with Bulgaria, Syria, Iraq, Iran, Azerbaijan 
and  Georgia.  Preparations  for  Turkey’s  synchronisation  with  the  UCTE  (Union  for  the 
Coordination  of  Transmission  of  Electricity)  European  power  network  are  at  an  advanced 
stage. Turkey is giving priority to a number of projects contributing to completion of priority 
links 4 (Greece-Balkan countries UCTE system) and 9 (Mediterranean electricity ring) in the 
EU projects of European interest. The Babaeski (Turkey) – Filippi (Greece) line is now fully 
operational. 

Some  progress  can  be  reported  in  the  area  of  telecommunications  networks.  Turkey  has 
become  a  participant  in  the  information  and  communication  technologies  policy  support 
programme under the Competitiveness and Innovation Framework Programme.  

Conclusion 

Turkey has made some progress in the area of trans-European networks. In particular, it has 
signed  the  inter-governmental  agreement  on  the  establishment  of  the  Nabucco  pipeline. 
However, further efforts are still needed for the clear definition of the core network priority 
projects  and  for  the  development  of  reliable  transport  data  classified  by  type  of  transport 
infrastructure. 

4.22.  Chapter 22: Regional Policy and Coordination of Structural Instruments 

Some  progress  was  made  with  regard  to  the  legislative  framework.  Turkey’s  IPA 
Framework  Agreement  entered  into  force  in  December  2008,  providing  the  legal  basis  for 
implementation  of  IPA  assistance  in  Turkey  (including  the  EU  Cohesion  Policy  precursor 
components  III  and  IV  of  IPA).  A  Prime  Ministry  circular  on  the  official  appointment  of 
institutions  under  IPA  including  the  formal  appointment  of  the  Strategic  Coordinator  under 
components  III  and  IV  needs  to  be  completed.  Implementing  legislation  on  support  for 
projects and activities from development agencies entered into force in November 2008. 

Progress was made with the institutional framework. Turkey finalised the institutional set-
up and procedures for implementation of components III and IV of IPA in a satisfactory way. 
This resulted in management of both components being conferred to Turkey in July 2009 on 
the basis of certain conditions that the Turkish authorities need to fulfil in a given time period. 
This  allowed  for  the  signing  of  financing  agreements  for  all  programmes  but  the  Transport 
Operational  Programme  in  August/September;  the  latter  was  delayed  for  lack  of  mature 
projects.  The  State  Planning  Organisation,  as  the  IPA  strategic  coordinator,  established  a 
technical  committee  made  up  of  representatives  of  the  operating  structures  (OS)  and  the 
horizontal  institutions  involved  in  management  of  IPA  funds  (e.g.  the  national  authorising 

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officer (NAO)/Treasury, the Central Finance and Contracts Unit (CFCU) and the national IPA 
coordinator).  The  committee  meets  every  three months  to  ensure  smooth  implementation  of 
all four operational programmes (on transport, the environment, regional competitiveness and 
human resources development).  

Development agencies (DA) are now established in all provisional NUTS II-type regions. A 
total budget of nearly €125 million has been earmarked for the development agencies in the 
2009  national  budget.  Relevant  local  and  regional  stakeholders  are  involved  in  establishing 
the  budgets  of  individual  DAs,  but  not  in  selecting  the  provinces  to  host  the  DAs.  The 
selection criteria are unclear and the process is not sufficiently transparent.  

Limited  progress  was  made  as  regards  administrative  capacity.  Training  and  technical 
assistance  to  strengthen  central  institutions  involved  in  IPA  implementation  has  continued. 
The NAO office has been reorganised, in line with Commission recommendations, and new 
staff  were  hired.  However,  the  key  across-the-board  risk  threatening  implementation  of  all 
operational programmes remains the need for more efficient cooperation between the CFCU 
and the ministries designated as operating structures, for further strengthening the institutional 
capacity  of  the  institutions  involved  and  for  an  acceleration  of  programme  and  project 
implementation  including  more  rapid  tendering  and  contracting.  Administrative  capacity  at 
regional level remains weak. 

Some  progress  was  made  with  regard  to  programming  and  programme  implementation.  A 
solid  project  pipeline  has  been  built  up  for  the  environment  OP.  Also,  calls  for  proposals 
under  the  regional  competitiveness  OP  and  the  human  resources  development  OP  have 
created a good basis for absorbing the funds available under these programmes. Participation 
by  regional  and  local  stakeholders  was  significantly  enhanced  by  the  call  for  proposals 
procedures  and  by  involving  municipalities  in  developing  environmental  projects.  The 
transport OP has seen little success in the preparation for implementation. Preparations for the 
single  major  high  speed  rail  infrastructure  project  have  been  severely  delayed.  The  Turkish 
authorities  and  the  Commission  are  actively  seeking  alternative  projects  sufficiently  mature 
and consistent with the programme strategy.  

In  the  cases  of  monitoring  and  evaluation,  limited  progress  was  made.  Further  work  was 
done  by  the  working  group  bringing  together  operating  structures  and  the  State  Planning 
Organisation on development of the integrated management information system (MIS). Sector 
monitoring committees for all the OPs continued meeting on schedule. 

In  the  area  of  financial  management  and  control,  limited  progress  was  made.  Currently, 
these tasks are  managed  on  a  temporary basis by the CFCU. Appropriate units to  deal with 
financial  management  and  control  aspects  have  been  nominally  established  in  each  line 
Ministry,  but  the  staff  to  be  trained  and  appointed  to  them  are  currently  working  on  other 
aspects  of  the  project  cycle  (programming,  preparation  of  terms  of  reference,  etc).  The 
processes  for  building  capacity  within  the  Operating  Structures  must  be  significantly 
accelerated with a view to capacitate these structures to take up responsibilities for tendering, 
contracting financial management and control from the CFCU by mid-2011 at the latest. 

Conclusion 

Turkey made some progress on this chapter. This took the form, in particular, of finalisation 
of the legislative and institutional framework for implementation of IPA components III and 
IV and of involvement of local and regional stakeholders in preparing the project pipeline and 
setting  up  further  development  agencies.  Further  strengthening  of  administrative  capacity  is 

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needed  at  all  levels.  Turkey  has  to  strengthen  the  project  pipeline  further,  notably  in  the 
transport  sector,  in  order  not  to  lose  IPA  funds.  Establishment  of  the  MIS  to  support 
management  and  supervision  of  IPA  measures  needs  to  be  finalised.  Overall,  Turkey’s 
alignment with the acquis in this chapter remains limited. 

4.23.  Chapter 23: Judiciary and fundamental rights 

There has been some progress on the judiciary (see also under political criteria – part I of 
the report). 

As regards the independence of the judiciary, concerns remain with regard to the procedure 
laid  down  in  the  Law  on  judges  and  prosecutors  for  the  selection  of  candidate  judges  and 
prosecutors.  The  main  feature  of  the  criticism  is  that  the  criteria  used  for  this  selection  are 
open  to  subjective  interpretation.  The  case  launched  by  two  opposition  parties  with  the 
Constitutional court for annulment of certain provisions of the legislation is still pending.  

There  has  been  no  progress  on  the  composition  of  the  High  Council  of  Judges  and 
Prosecutors46 or on the reporting lines of judicial inspectors47. The Semdinli case, transferred 
to the Van military court following a decision by the Court of Cassation, is still pending. In 
2006, the civilian prosecutor previously in charge of the case was  dismissed from office by 
the High Council of Judges and Prosecutors. This disproportionate decision raised questions 
about the independence of the High Council48. 

On occasions senior members of the judiciary, of the military and of an association of judges 
and  prosecutors  made  statements  which  are  likely  to  be  perceived  as  pressure  on  individual 
courts  and  members  of  the  judiciary,  putting  thus  the  impartiality  of  the  judiciary  at  risk  in 
important cases. 

In  relation  to  the  professionalism  and  competence  of  the  judiciary,  training  of  judges  and 
prosecutors49 and prison staff carried out by the Ministry of Justice and the Justice Academy 
continued. A new Director of the Justice Academy has been appointed. However, the Justice 
Academy has still not developed into a strong and independent training provider for the entire 
magistracy, including at regional level. 

As regards the efficiency of the judiciary, the national judicial network project (UYAP50) has 
had  positive  results  on  court  proceedings.  Lawyers  are  also  reportedly  using  the  system 
increasingly since March 2007; however, problems accessing the system are reported in small 
cities.  Mediation  as  an  alternative  to  resolve  disputes  is  not  used  widely;  this  points  to  the 
need  to raise  awareness  amongst  the judicial actors and the public concerned. Provisions of 

46 

47 

48 

49 
50 

The  composition  of  the  High  Council  is  not  representative  of  the  judiciary  as  a  whole;  only  senior 
members of the Court of Cassation and of the Council of State are members of this Council. 
The judicial inspectors, who are responsible for evaluating the performance of judges and prosecutors, 
are attached to the ministry, not to the High Council. 
The Semdinli case concerns the bombing in November 2005 that killed one person and injured others in 
the town of Semdinli in Southeast Turkey. The civilian prosecutor in this case published the indictment 
in  March 2006.  It  included  accusations  against  high-ranking  military  commanders.  The  General  Staff 
criticised the indictment and urged those bearing constitutional responsibility to take action. The High 
Council of Judges and Prosecutors took the dismissal decision in April 2006. 
This involves a two-year pre-service and continuous in-service training. 
UYAP is an information system, an e-justice system. 

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the Criminal Procedure Code such as return of the indictment and cross-examination have not 
been used sufficiently in practice. 

On  1  May  2009  there  were  a  total  of  7,081  judges  (6,914  on  1  May  2008)  and  4,040 
prosecutors  (3,917  on  1  May  2008).  On  the  same  day,  the  total  number  of  vacant  posts  for 
judges and prosecutors remained high: 3,875 as compared to 4,166 on 1 May 2008. In 2008, a 
total  of  470  judges  and  prosecutors  were  appointed  after  completing  their  training  at  the 
Justice Academy. In the same year, after three competitions, 1,390 candidate civil judges and 
167  candidate  administrative  judges  entered  the  Justice  Academy.  Another  200  followed  in 
the  first  half  of  2009.  2,000  auxiliary  staff  was  recruited  in  2008.  Overall,  despite  progress 
made in hiring judicial staff, the number of vacancies within the judiciary remains significant. 

There  have  been  no  developments  on  the  establishment  of  the  regional  courts  of  appeal. 
Under  the  law,  these  should  have  been  operational  by  June  2007.  A  final  decision  on  their 
number and seats and on the timely provision of the material and human resources necessary 
for their operations has yet to be taken. 

The government approved the judicial reform strategy in August 2009. This is a positive step 
ahead  both  in  terms  of  the  consultative  process  followed  before  its  approval  but  also  of  its 
content that broadly provides for the right direction for reforms. The Ministry of Justice had 
presented  a  draft  strategy  in  spring  2008,  further  to  which  consultations  with  stakeholders, 
including  civil  society,  took  place.  Judges  and  prosecutors,  including  the  High  Courts, 
discussed  the  draft  strategy  on  a  number  of  occasions.  The  draft  was  also  posted  on  the 
website  of  the  ministry  for  comments.  The  strategy  is  comprehensive  and  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  access  to  justice  and  to  improve  the  penitentiary 
system. An action plan to implement the strategy has also been approved. 

(See also 2.1. Democracy and the rule of law) 

Limited progress can be reported on anti-corruption (see also under political criteria – part I 
of  the  report).  The  new  law  amending  the  Criminal  Code  and  the  Code  of  Misdemeanours 
takes into account the GRECO recommendations, aligns Turkish legislation with international 
conventions and implements the requirements of the OECD Bribery Convention together with 
the recommendations of the Financial Action Task Force (FATF) concerning the prevention 
of money-laundering.  

The  government,  under  the  coordination  of  the  Prime  Ministry  Inspection  Board  with  the 
participation  of  other  State  institutions,  carried  out  a  broad  consultation  with  stakeholders, 
including NGOs, with a view to preparing a national anti-corruption strategy.  

In  the  context  of  a  fraud  case  against  the  charity  association  Deniz  Feneri  in  Germany  last 
year,  the  Turkish  prosecution  continued  the  investigation  in  Turkey.  Assets  of  the  main 
suspects have been frozen in Turkey. No indictment has been submitted to the courts. 

A  seminar  took  place  on  “Methods  to  Combat  and  Prevent  Corruption”  bringing  together 
local and international academics, experts and officials to discuss the methods and measures 
for the prevention of, and fight against corruption. Discussions focused on methods to combat 
corruption  at  both  national  and  international  level,  investigation  methods,  awareness  raising 
activities, financing of political parties and the role of the civil society, in particular the media 
and NGOs.  

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No progress has been made on adoption of legislation on the financing of political parties and 
election  campaigns,  which  would  increase  transparency.  There  is  no  state  body  with  the 
authority to audit election campaign financing. 

(See also 2.1: Democracy and the rule of law) 

As  regards  fundamental  rights,  there  has  been  some  progress  (see  also  under  political 
criteria and chapter 19: Social policy and employment)). 

Turkey  expressed  its  formal  intent  to  take  part  in  the  work  of  the  EU  Fundamental  Rights 
Agency.  There  have  been  no  developments  on  the  institutions  monitoring  and  promoting 
human  rights,  which  lack  independence  and  resources.  As  regards  the  establishment  of  the 
ombudsman,  in  December  2008  the  Constitutional  court  ruled  that  the  establishment  of 
institutions  not  explicitly  mentioned  in  the  Constitution  would  distort  the  integrity  of  the 
administration  and  that  parliament  had  no  legislative  power  to  establish  such  an  institution. 
The necessary Constitutional amendment for the establishment of the ombudsman has yet to 
be adopted.  

As  regards  prohibition  of  torture  and  inhuman  or  degrading  treatment  or  punishment,  the 
government  made  limited  efforts  to  ensure  compliance  with  the  legal  safeguards  to  prevent 
torture and ill-treatment. Allegations of torture and ill-treatment and impunity of perpetrators 
remain causes of concern. Pending ratification of the Optional Protocol to the UN Convention 
against torture, there is no independent national preventive mechanism in place for monitoring 
places of detention. 

With regard to respect for private and family life and, in particular, the right to protection of 
personal  data,  Turkey  needs  to  align  its  legislation  with  the  data  protection  acquis,  in 
particular  Directive  95/46/EC,  and,  in  that  context,  to  set  up  a  fully  independent  data 
protection supervisory authority. Turkey also needs to ratify both the CoE Convention for the 
protection of individuals with regard to automatic processing of personal data (CETS No 108) 
and the additional protocol to it on supervisory authorities and trans-border data flow (CETS 
No 181). Wiretapping has reportedly been used extensively and records of it published in the 
press. 

In the area of freedom of thought, conscience and religion, the government has undertaken a 
dialogue  with  both  the  Alevis  and  the  non-Muslim  religious  communities.  However,  their 
specific problems still have to be addressed. A legal framework in line with the ECHR has yet 
to be established, which would enable the Alevis and the non-Muslim religious communities 
to function without undue constraints. 

Regarding freedom of expression, including freedom and pluralism of the media, article 301 
of  the  Turkish  Criminal  Code  is  no  longer  used  systematically  to  restrict  freedom  of 
expression.  However,  there  are  prosecutions  based  on  a  number  of  other  articles  of  the 
Criminal  Code.  There  are  insufficient  guarantees  in  Turkish  law  to  exercise  freedom  of 
expression in line with the ECHR and the ECtHR case law. Political pressures on the media 
and legal uncertainties affect freedom of the press in practice. 

As regards freedom of assembly and association, including the right to form political parties 
and the right to establish trade unions, the legal framework on associations is broadly in line 

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with  European  standards51.  However,  associations  face  disproportionate  scrutiny  of  their 
activities  which  in  some  cases  has  led  to  judicial  proceedings.  There  is  no  progress  on 
amendments to the legal provisions on the closure of political parties. 

As  regards  treatment  of  socially  vulnerable  and  disabled  persons  and  the  principle  of  non-
discrimination, in December 2008 Turkey ratified the UN Convention on the rights of persons 
with  disabilities.  However,  people  with  physical  disabilities  have  problems  in  accessing 
services  mainly  due  to  physical  barriers  and  lack  of  awareness.  Mental  health  is  an  area  of 
concern and there is no independent body in Turkey to carry out inspections of mental health 
institutions. 

Anti-discrimination is enshrined in the Constitution and upheld in several laws. However the 
legal framework is not adequately aligned with the EU acquis (see chapter 19 – Social policy 
and  employment).  Provisions  of  the  Turkish  Criminal  Code  on  "public  exhibitionism"  and 
"offence against public morality" are sometimes used to discriminate against the lesbian, gay, 
bi-sexual,  transvestite  and  transgender  (LGBTT)  community.  Homophobia  has  resulted  in 
cases of physical and sexual violence while courts have on occasions applied the principle of 
"unjust provocation" in favour of perpetrators of crimes against transsexuals and transvestites. 

With regard to the right to education, the gender gap in primary education was halved from 
2.3% in 2007/2008 to approximately 1% in 2008/2009. The number of children in pre-school 
education increased by 14% from 2007 to 2008, taking the overall pre-school education rate 
up to 33%. The number of teachers in pre-school education also increased by 14% from 2007 
to 2008. The e-school system enables the Ministry of National Education to identify and reach 
children  who  are  out  of  school  at  any  given  time.  However,  regional  disparities  in  primary 
school enrolment persist: there is a difference of more than 10% between some western and 
eastern parts of the country. As regards continuation to secondary school, the net enrolment 
rate drops from 96.5 % at primary school52 to 58.5% at secondary school. 

On  the  right  to  property,  the  Law  on  Foundations  of  February  2008  has  been  implemented 
smoothly  over  the  reporting  period.  However,  this  law  does  not  address  the  issues  of 
properties seized and sold to third parties or of properties of foundations merged before the 
new  legislation  was  adopted.  Syriacs  continue  to  face  difficulties  in  relation  to  property.  A 
number  of  court  cases  are  in  progress  concerning  both  private  individuals  and  religious 
institutions.  In  particular,  the  Mor  Gabriel  Syriac  Orthodox  monastery  has  faced  problems 
with  land  ownership.  Turkey  needs  to  ensure  full  respect  of  the  property  rights  of  all  non-
Muslim religious communities. 

With regard to gender equality and women's rights, the legal framework is broadly in place 
(see  chapter  19  –  Social  policy  and  employment).  However,  very  limited  progress  has  been 
made to date and further significant efforts are needed to turn the legal framework into reality 
and to narrow the gap  between  men  and women in economic participation and opportunity, 
political empowerment and access to education. Domestic violence, honour killings and early 
and forced marriages remain serious problems in some areas of the country. There is a need 
for  further  training  and  awareness-raising  on  women’s  rights  and  gender  equality,  for  both 
men and women. 

51 

52 

This does not refer to trade unions: the current Turkish legislation on the right to organise, to bargain 
collectively and to strike does not meet EU standards (see chapter 19 Social policy and employment). 
This rate was approximately 97% last year. The difference of approximately half a percentage point is 
mainly due to a change of statistical methods used by the Ministry of National Education to collect data. 

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As regards the rights of the child, efforts need to be further stepped up in all areas including 
administrative  capacity,  health  indicators,  education,  the  juvenile  justice  system  and  child 
labour.  Cases  of  children  between  15  and  18  years  of  age  tried  as  adults  and  facing 
disproportionate sentences raise serious concerns. 

With regard to liberty and security and the right to a fair trial, access to justice was relatively 
easier in urban areas while there have been problems in rural areas, in particular in the South-
East. Children from 15 to 18 years of age detained under the anti-terror law for participating 
in  demonstrations  have  not  had  access  to  a  lawyer  immediately  after  detention.  Overall, 
effective  legal  assistance  is  limited  and  a  number  of  criminal  defendants  remain 
unrepresented. Defendants'  awareness  of the availability of free legal assistance  needs to be 
raised. 

As regards minority rights and cultural rights, Turkey has made some progress, especially in 
the form of launching the Kurdish-language TV channel TRT 6. However, restrictions remain, 
particularly on use of languages other than Turkish in private TV and radio broadcasting, in 
political life, in education and contacts with public services. The legal framework on the use 
of  languages  other  than  Turkish  is  open  to  restrictive  interpretations  and  implementation  is 
inconsistent.  There  has  been  no  progress  in  the  situation  of  the  Roma,  who  frequently  face 
discriminatory treatment, while demolitions of their districts without provision of alternative 
housing are continuing. 

Overall,  there  has  been  some  progress  as  regards  the  judiciary.  The  adoption  by  the 
government  of  the  judicial  reform  strategy  following  a  process  of  consultation  with  all 
stakeholders  is  a  positive  step.  The  measures  taken  to  increase  staff  and  resources  are  also 
positive  and  need  to  be  continued.  However,  concerns  with  particular  regard  to  the 
independence, impartiality and effectiveness of the judiciary have yet to be addressed. With 
respect to anti-corruption, there has been limited progress on strengthening the legislation and 
institutional set-up to fight corruption that remains prevalent in many areas. The adoption of 
effective implementation of the national anti-corruption strategy will be crucial. With regard 
to  fundamental  rights,  there  has  been  some  progress,  in  particular  on  cultural  rights.  On 
several areas the government has started to take the initiative, thus contributing to the creation 
of  an  atmosphere  conducive  to  addressing  issues.  However,  these  efforts  need  to  be 
continued, in order to ensure full respect of fundamental rights  as guaranteed by the ECHR 
and the case law of the ECtHR. 

4.24.  Chapter 24: Justice, Freedom and Security 

Limited progress can be  reported  in  the field of migration  and  asylum. In October 2008 a 
Development  and  Implementation  Office  on  Asylum  and  Migration  Legislation  and 
Administrative Capacity was set up. This office reports to the Under-Secretary of the Ministry 
of the Interior (MoI) and carries out studies, projects and needs analyses on the legislative and 
administrative  structure  for  integrated  border  management  (IBM)  in  line  with  the  national 
action  plan  on  asylum  and  migration  and  with  the  national  action  plan  on  adoption  of  the 
acquis (NPAA). The resources of this office are very limited compared with its tasks.  

The  Task  Force  for  Asylum  and  Migration  plays  a  key  role  in  ensuring  uniform 
implementation  of  existing  legislation.  Under  the  coordination  of  the  new  bureau,  the  task 
force met for the first time since summer 2007 in May 2009.  

No major legislative developments can be reported in this area. As a result of adoption of the 
new Law on Social Insurance and General Health Insurance, access for asylum-seekers  and 

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refugees to the Social Solidarity Fund has been limited. However, according to the MoI, the 
needs  of  asylum-seekers  were  met  from  the  budget  of  the  MoI’s  Department  for  Aliens, 
Borders and Security. 

Turkey  remains  a  very  important  transit  and  destination  country  for  irregular  migration.  In 
2008,  65,737  illegal  immigrants  were  apprehended  by  Turkish  law  enforcement  agencies, 
followed by another 15,701 in the first six months of 2009. This figure shows a slight increase 
in comparison with 2007 (when the total was 64,290). The number of smugglers apprehended 
also  increased,  from  1,242  in  2007  to  1,305  in  2008,  the  vast  majority  (1,235)  still  being 
Turkish  citizens.  The  capacity  of  the  accommodation  for  illegal  migrants  remains  low, 
although two new units were inaugurated with capacity for an additional 290 persons53, thus 
raising the total to 2,881.  

With 11,248 new asylum seekers in 2008 the number nearly doubled in comparison to 2007 
(5,831  new  asylum  seekers).  Out  of  the  11,248  applicants  6,877  are  Iraqis,  1,997  Iranians, 
1,571 Afghans, 396 Somalis and 407 citizens of other nations. In comparison to 2007 these 
figures show an increase of 210% for Afghans, 194% for Iraqis and 15% for Iranians while 
the figure for Somalis decreased by 145%. The Turkish government spent the equivalent of 
USD 1.1 million in 2008 to cover the basic needs of all asylum seekers – recognised refugees 
and “temporary asylum seekers” or “guests”. 

Work  is  progressing  on  setting  up  the  country  of  origin  information  and  asylum  case-
management systems.  

The Turkish authorities have started screening apprehended illegal migrants, although not in a 
consistent manner, in order to identify persons in need of protection. 

High  migration  inflows  are  putting  pressure  on  the  Turkish  asylum  and  migration  system. 
Hence, reorganisation of this system and  conclusion of readmission agreements with source 
countries  remain  of  key  importance.  Turkey  continued  to  negotiate  readmission  agreements 
with Pakistan, Iran and Libya. No further progress was made on the readmission agreement 
with Afghanistan during the reporting period. Concluding negotiations on an EC readmission 
agreement  with  Turkey  is  a  priority  for  the  EU.  Turkey  recently  accepted  to  resume  formal 
negotiations blocked since December 2006. Until the EC readmission agreement with Turkey 
is  concluded,  and  in  line  with  the  conclusions  of  the  European  Council,  already  existing 
bilateral agreements should be implemented. 

Turkey maintains the geographical limitation on the 1951 Convention relating to the Status of 
Refugees and the related 1967 Protocol. High-quality preparatory studies and an adequate set-
up with sufficient capacity to cater for the large number of persons registered every year are 
lacking.  Limited  progress  was  made  on  establishing  a  network  of  six  centres  for  reception, 
screening  and  accommodation  of  refugees  and  asylum-seekers,  two  centres  for  illegal 
migrants  and  a  new  set  of  procedures  and  management  rules  for  these  centres.  Specific 
training curricula for asylum and migration staff and a mechanism to keep the trained staff in 
the system are missing. 

Key  priorities  in  the  field  of  asylum  remain  fair,  equal  and  consistent  access  to  asylum 
procedures for everyone (including in airport transit areas), access to legal aid and to UNHCR 
staff,  reduction  of  the  waiting  time  for  asylum  procedures  and  access  to  judicial  review  of 
decisions.  

53

Bitlis with capacity for 150 on 5 December 2008 and Adana for 140 persons on 13 March 2009. 

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The  continuing  obligation  to  pay  high  residence  permit  fees  (‘icamet’)  every  six  months 
prevents refugees recognised by UNHCR from departing to a resettlement country unless the 
outstanding  amounts  and  overstay  fines  since  their  arrival  in  Turkey  are  paid.  The 
requirement  to  pay  the  fee  might  also  apply  to  highly  vulnerable  individuals  or 
unaccompanied minors, who have no legal means to obtain that sum.  

There has been little progress on visa policy. Turkey does not apply a uniform policy towards 
all EU citizens as regards the visa obligation. Currently, citizens of 15 EU Member States are 
required to hold a visa to enter Turkey. This visa can be obtained at the Turkish borders and, 
depending  on  the  nationality  of  the  applicant,  will  be  valid  for  a  duration  of  one  to  three 
months, and for one or several entries. Citizens of the other 12 Member States are exempted 
from the visa obligation for a short stay of up to 90 days.  

Turkey  continues  to  voluntary  align  further  with  the  positive  and  negative  EU  visa  lists;  in 
that regard, it has granted visa exemption to citizens of Brunei Darussalam in April 2009. In 
the interest of a regional approach, Turkey maintains a visa-free regime for citizens of some 
South-Eastern  European  countries.  Recently,  it  concluded  a  bilateral  visa  exemption 
agreement with Kosovo.  

Sticker-  and  stamp-type  visas  are  still  issued  at  borders.  Introduction  of  airport  transit  visas 
and  of  the  new  Turkish  visa  stickers  with  higher  security  features  is  still  pending.  Turkey 
needs  to  continue  its  efforts  to  improve  the  security  features  of  visas,  passports  and  travel 
documents to ultimately align them with the EU security features and standards. In particular, 
the  introduction  of  biometric  identifiers  in  these  documents  is  important.  Likewise,  the 
improvement of security features of residence permits is crucial. 

Common  training  sessions  have  been  organised  on  visa  and  passport  procedures  for  current 
and  would-be  consular  staff  of  the  Ministry  of  Foreign  Affairs,  with  the  participation  of 
relevant staff from the Ministry of the Interior. However, the training did not focus enough on 
document  security  issues.  Since  May  2009  most  of  the  Turkish  representations  abroad  have 
been  connected  to  ‘Konsolosluk.net’,  the  Ministry  of  Foreign  Affairs  database  on  persons 
banned  from  entering  Turkey.  This  is  also  interlinked  with  ‘Polnet’,  the  police  database  in 
order  to  share  information  with  a  view  to  more  secure  and  faster  processing  of  the 
applications. 

In  the  case  of  external  borders  and  Schengen,  limited  progress  has  been  achieved. 
Following  establishment  of  the  new  bureau  on  asylum  and  migration,  the  Task  Force  on 
External  Borders  was  restructured  and,  since  January  2009,  has  been  meeting  every  two 
months.  Modernisation  of  the  border  crossing  points  (BCPs)  continued.  The  specialised 
department on border security studies within the Police Academy started up with 48 students. 

Limited  progress  has  been  achieved  in  the  implementation  of  the  National  Action  Plan  on 
IBM  and  in  the  definition  of  a  clear  roadmap.  An  official  mechanism  to  monitor 
implementation  of  the  plan  is  also  missing.  Efficient  and  coordinated  risk  analysis  at  the 
borders, along with quality management units at the border agencies, are important.  

Cooperation  between  the  agencies  involved  in  border  management  is  weak,  in  particular 
between the police and the customs enforcement authorities. Further steps need to be taken to 
establish a new civilian, non-military, border law enforcement body under the Ministry of the 
Interior  to  perform  border  control  tasks.  In  the  light  of  the  flows  of  illegal  migration  via 
Turkey, good border cooperation with neighbouring countries is essential. Turkey has shown 
efforts with a view to conclude a working arrangement with FRONTEX.  

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No progress can be reported on judicial cooperation in criminal and civil matters. During 
the  reporting  period  1,761  requests  for  mutual  legal  assistance  on  criminal  matters  were 
received by Turkey, of which 251 were processed. A further 1,898 requests falling within the 
ambit  of  judicial  cooperation  on  civil  matters  were  received  in  the  same  period  and  662  of 
them were processed. The number of Turkish officials appointed as contact points increased 
from  two  to  five.  Turkey  has  not  yet  signed  the  Council  of  Europe  Convention  against 
Cybercrime. No steps have been taken to sign a cooperation agreement with EUROJUST.  

Turkey is party to all the main conventions on police cooperation and contributes actively to 
such cooperation at regional and international levels. The code of ethics adopted in line with 
international  standards  has  now  been  introduced  into  the  training  programmes  for  law 
enforcement agents. A Regulation on reviewing and redrafting the mandate of the police and 
gendarmerie  within  the  borders  of  provincial  and  district  municipalities  was  published  in 
March  2009.  Turkey  signed  two  additional  bilateral  agreements  on  police  cooperation,  one 
with Lebanon in November 2008 and one with Spain in April 2009. However, due to the lack 
of adequate legislation on personal data protection, international cooperation in this field and 
an operational agreement with Europol remain difficult.  

Limited  progress  has  been  made  in  the  fight  against  organised  crime.  The  Regulation 
implementing the Witness Protection Law was adopted in November 2008. The ratification of 
two  implementing  regulations  is  underway.  Witness  protection  programmes  are  currently 
being implemented. A Department for Witness Protection was established within the Turkish 
police force in June 2008. The capacity of the special unit dealing with criminal proceedings 
within the Department for Combating Smuggling and Organised Crime has been enhanced. 

There  has  been  progress  on  establishing  of  the  legal  framework  for  a  nationwide  DNA  and 
fingerprint database and investment in forensics has increased. The strategy against organised 
crime, in line with EU best practice, needs to be updated and followed up by a specific action 
plan. The quality and reliability of statistics on law enforcement in this field are crucial.  

Some progress can be reported on combating human trafficking. Turkey signed the Council of 
Europe Convention on Action against Trafficking in Human Beings in March 2009. In 2008 a 
total of 253 traffickers were arrested and 120 victims identified, while as of August 2009, 258 
traffickers  have  been  arrested  and  67  victims  identified.  Following  the  2005  amendment  of 
the  Penal  Code  introducing  tougher  penalties  for  human  trafficking,  the  number  of 
prosecutions  against  traffickers  continued  to  increase.  In  2008  a  total  of  273  suspected 
traffickers were prosecuted, a significant increase from 160 suspected traffickers prosecuted 
in  2007  Institutional  capacity  to  combat  human  trafficking  was  further  strengthened,  in 
particular  by  means  of  training  for  judges,  prosecutors  and  law  enforcement  officers.  The 
National  Task  Force  on  Combating  Human  Trafficking,  coordinated  by  the  Ministry  of 
Foreign Affairs (MoFA), continued to meet regularly. Voluntary return of victims is provided 
for  in  co-operation  with  IOM,  NGOs,  law  enforcement  bodies  and  relevant  institutions  in 
source countries (543 cases between 2005 – 2008, of which 78 in 2008). 

However,  it  is  important  to  improve  the  task  force's  structure  and  powers.  A  coherent 
statistical system for monitoring human trafficking is not available. Furthermore, according to 
the  available  official  statistics,  there  has  been  a  decrease  in  identification  and  referral  of 
trafficked persons to protection and support mechanisms.  

No  major  legislative  developments  took  place  in  this  area  during  the  reporting  period. 
Ratification  of  the  Council  of  Europe  Convention  on  Action  against  Trafficking  in  Human 
Beings is still pending. Adoption of the second National Action Plan on Combating Human 

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Trafficking  has  been  pending  for  the  last  two  years.  The  sustainability  of  the  157  free 
emergency  helpline,  currently  operated  by  the  International  Organisation  for  Migration 
(IOM),  and  its  transfer  to  relevant  public  authorities  remain  to  be  urgently  addressed. 
Sustainable  funding  for  the  two  centres  for  victims  of  trafficking  in  Ankara  and  Istanbul 
which are managed by civil society organisations is not guaranteed. Turkey also needs to step 
up efforts on the prevention side and as regards the protection of victims of trafficking. (For 
the fight against money laundering see Chapter 4). 

As regards the fight against terrorism, implementing legislation has been adopted to identify 
transactions  suspected  of  being  related  to  terrorist  financing.  The  Financial  Crimes 
Investigation  Board  (MASAK)  received  228  reports  of  suspicious  transactions  in  2008 
compared with 144 in 2007. A Counter-terrorism Troika took place in September allowing for 
an  an  exchange  of  views  and  for  a  better  mutual  understanding  of  Turkey's  and  the  EU's 
concerns. However, Turkey has not ratified the International Convention for the Suppression 
of  Acts  of  Nuclear  Terrorism  and  the  Council  of  Europe  Convention  on  the  Prevention  of 
Terrorism.  Compliance  with  the  nine  special  recommendations  by  the  FATF  (Financial 
Action  Task  Force)  on  financing  of  terrorism,  particularly  on  freezing  and  confiscation  of 
terrorist assets and on wire transfers, is limited. 

Some  progress  can  be  reported  in  the  fight  against  drugs.  The  coordination  board  and 
scientific committee continued to meet on a quarterly basis. A number of action plans have 
been  adopted  at  provincial  level,  in  Aksaray,  Edirne,  Kırıkkale,  Kırklareli,  Kütahya, 
Osmaniye,  Sakarya,  Sinop,  Tunceli,  Yozgat  and  Kastamonu.  In  November  2008,  the 
parliamentary commission on the fight against drugs and on drug demand reduction published 
a  report  which  made  a  set  of  recommendations  concerning  the  institutional  and  legislative 
framework. In total eight seizures, including amongst others 39,191 kg of hashish and 15,447 
kg  of  heroin  were  made  by  Turkish  law  enforcement  bodies  and  joint  action  on  controlled 
delivery continued. 

In October 2008 the National Reitox Focal Point was upgraded to a division attached directly 
to  the  Department  for  Combating  Smuggling  and  Organised  Crime  of  the  Turkish  police. 
However,  its  human  resources  capacity  is  relatively  weak  and  it  still  lacks  an  autonomous 
budget.  The  agreement  concerning  the  participation  of  Turkey  in  the  European  Monitoring 
Centre for Drugs and Drug Addiction (EMCDDA) has not been ratified. A balanced approach 
between  drugs  supply  reduction  and  demand  reduction  has  not  been  achieved.  Prevention, 
treatment and rehabilitation facilities need to be further developed.  

Some progress was made on customs cooperation. The Under-Secretariat for Customs made 
efforts to strengthen its administrative and operational capacity, but little progress was made 
towards  substantially  decreasing 
thus  hampering 
implementation  of  a  risk  management  system  aligned  with  EU  requirements.  Efforts  were 
made  to  achieve  IT  interconnectivity  with  the  EU  systems  on  transit  (NCTS)  and  tariffs 
(TARIC and the quota and surveillance system), but the Under-Secretariat has not adopted an 
IT strategy. 

the  rate  of  physical 

inspections, 

The  efforts  made  to  improve  the  training  of  customs  officers  in  regional  offices  were 
insufficient to ensure uniform enforcement of the customs rules. Turkey has been one of the 
main  suppliers  of  counterfeit  products  seized  by  EU  customs  authorities  and  lacks 
enforcement capacity for IPR controls on both imports and exports. 

For counterfeiting of the euro please see chapter 32. 

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Conclusion 

Some, but uneven progress was made in the area of justice, freedom and security. Turkey has 
achieved  limited  progress  on  external  borders  and  Schengen.  Limited  progress  can  also  be 
reported in the field of migration and asylum. In the face of a sharp increase in asylum seekers 
efforts  need  to  continue  to  reorganise  the  system.  As  to  the  EC-Turkey  readmission 
agreement, Turkey recently accepted to resume formal negotiations blocked since December 
2006.  Turkey  has  shown  efforts  with  a  view  to  conclude  a  working  arrangement  with 
FRONTEX. There has been little progress on visa policy and none on judicial cooperation in 
criminal and civil matters. 

4.25.  Chapter 25: Science and Research 

Good  progress  can  be  reported  on  science  and  research  policy.  Three  Regulations  on  R&D 
support  programmes  were  updated  to  increase  the  effectiveness  of  the  existing  support 
programmes  for  SMEs,  entrepreneurs  working  in  the  fields  of  innovation  and  high 
technologies and international research cooperation activities by industry. 

A  Minister  of  State  has  been  appointed  to  coordinate  all  stakeholders  involved  in  R&D 
policy-making  and  all  the  institutions  under  various  ministries.  The  national  level  of  R&D 
support  has  increased  sharply  over  the  last  few  years  and  has  been  maintained  despite  the 
economic crisis. In particular, an additional €100 million were allocated to the Scientific and 
Technological Research Council (Tübitak) in 2009, thus increasing its 2009 budget by 36%. 
The administrative capacity of the Scientific and Technological Research Council (Tübitak) 
has been reinforced by recruiting new staff, enabling Turkey to attend more frequently the 7th 
Framework Programme governance bodies. Turkey has also a very well functioning National 
Contact Point Network.  

A  special  issue  of  Tübitak’s  magazine  was  devoted  to  Darwin  and  the  evolution  theory  in 
June 2009, thus ending the controversy that followed the decision to postpone the publication 
of a special issue on this subject in March. 

Turkish  participation  in  the  7th  Framework  Programme  for  research  and  technological 
development (FP7) improved. The most successful areas include information communication 
technologies,  nano-materials,  transport,  food,  biotechnology  and  security.  The  Action  Plan 
established  for  2007-2008  has  proven  to  be  very  useful  to  improve  information  sharing  on 
research opportunities under the FP7 and to increase awareness on the importance of engaging 
in research with the EU. The discussions with the Commission to update the Action Plan for 
2009-2010 started, after Turkey sent its draft proposal in August 2009. 

The procedure to associate Turkey to the Seventh Euratom Research Framework Programme 
(2007-2013)  has  been  launched  based  on  the  authorisation  from  the  Council  on  the  draft 
Science & Technology (S&T) agreement, with the objective to make the association effective 
as from 2010.  

Active  cooperation  with  the  Joint  Research  Centre  (JRC)  continued  in  the  form  of 
participation by Turkish researchers in JRC workshops, high-level meetings, involvement in 
JRC projects and networks and secondment of Turkish researchers to JRC institutions. 

Concerning integration into the European Research Area (ERA), Turkey is an observer in 
the EU Scientific and Technical Research Committee (Crest) and has nominated observers in 
the  other  ERA  governance  bodies.  Turkey  has  taken  several  measures  at  national  level,  in 
particular  with  mobility  of  researchers  and  investment  in  research,  which  contribute  to  the 

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objectives  of  the  European  Research  Area.  In  addition,  Turkey  is  actively  participating  in 
other  European  initiatives  including  Cooperation  in  the  field  of  scientific  and  technical 
research  (COST),  the  European  Space  Agency  (ESA),  the  European  Science  Foundation 
(ESF),  the  Competitiveness  and  Innovation  Programme  (CIP),  the  European  Molecular 
Biology Conference (EMBC) and EUREKA. In EUREKA, Turkey ranked 12th in 2008 out of 
the 38 member countries, up from 28th place in 2007. Turkey is well embedded in the EU’s 
international  cooperation  activities,  such  as  research  coordination  with  the  Western  Balkan 
countries,  Eastern  Europe,  Central  Asian  countries,  the  Black  Sea  region  and  the 
Mediterranean  countries.  The  success  rate  of  Turkish  students  and  scientists  in  obtaining 
Marie Curie grants has increased. 

Turkey  is  participating  in  the  Eurostars  Article  169  Initiative,  which  aims  to  support 
cooperative research and development projects by SMEs working in the fields of innovation 
and high technologies. 

As  decided  at  the  18th  meeting  of  the  Supreme  Council  for  Science  and  Technology  in 
December  2008,  a  coordination  committee  was  established  to  encourage  and  facilitate 
mobility of international researchers for long-term stays or permanent settlement in Turkey. 

Conclusion 

Overall,  good  progress  has  been  achieved  in  terms  of  preparation  for  EU  accession  and 
integration  into  the  European  Research  Area.  The  success  rate  for  Turkey’s  participation  in 
the 7th Framework Programme is increasing. However, there is still room for improvement. 

4.26.  Chapter 26: Education and Culture 

As  regards  education,  training  and  youth,  there  was  good  progress  over  the  reporting 
period. 

The  Lifelong  Learning  and  Youth  in  Action  Programmes  continued  to  attract  grant 
applications  far  exceeding  the  available  budget.  For  the  decentralised  actions  alone,  the 
Turkish  National  Agency  received,  under  the  last  budgetary  period,  more  than  7000 
applications  for  projects  and  individual  mobilities  and  signed  more  than  2000  grant 
agreements  with  beneficiaries.  Wide  geographic  coverage  was  once  again  achieved.  The 
timely payment of Turkey's contribution enabled the programme so start smoothly. The law 
aiming  at  improving  the  administrative  capacity  of  the  National  Agency  was  adopted  by 
Parliament.  Turkey  continued  progress  in  relation  to  the  EU  common  benchmarks  for  the 
Education  and  Training  2010  work  programme  and  improved  its  performance  on  all 
benchmarks,  including  the  participation  of  adults  in  lifelong  learning.  Participation  in  early 
childhood  education  has  also  continued  to  increase.  Turkey  has  already  reached  the  EU 
benchmark  as  regards  the  cumulative  growth  since  the  year  2000  in  the  number  of 
mathematics,  science  and  technology  graduates,  which  was  above  the  EU  average.  In  the 
other areas, Turkey performs far below EU average, but has made significant progress since 
2000.  

The  government  promotion  of  girls´  education  through  country-wide  campaigns  contributed 
to  a  significant  reduction  of  the  gender  gap  in  primary  and  secondary  education.  Between 
2007  and  2008,  the  gender  gap  in  primary  education  has  been  halved  to  1%  point  and  has 
decreased  by  a  fifth  to  4  percentage  points  in  secondary  education.  However,  high  regional 
disparities remain in access to education, both for boys and - even more - for girls. 

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In the area of higher education, twenty-three new universities were established, although most 
of  them  need  proper  facilities  and  teaching  staff.  Turkey  is  at  an  advanced  stage  of 
implementing the Bologna process. However, no procedures for recognition of prior learning 
are  in  place  either  at  the  national  or  at  the  institutional/programme  level.  Future  challenges 
include also the development of an external quality assurance system and widening the access 
to higher education. 

The  Council  of  Higher  Education  decided  to  abolish  the  coefficient  system,  which  was 
applied to the university entrance and placement exam scores for the graduates of vocational 
and technical secondary schools since 1998. The new system, to be in effect as from 2010, is 
expected to give graduates of vocational and technical secondary schools equal opportunities 
to enter higher education. This is likely to increase the enrolment rate in vocational secondary 
education.  However,  the  quality  of  the  vocational  secondary  education  still  needs  to  be 
improved despite the interventions in the last decade. 

The  quality  of  the  vocational  secondary  education  still  needs  to  be  improved  despite  the 
interventions  in  the  past  decade.  Under  the  coordination  of  the  Vocational  Qualifications 
Authority  (VQA),  centres  for  ‘sectoral  occupational  standards  development,  skill  and 
knowledge  testing  and  certification’  were  established  and  started  to  develop  occupational 
standards and infrastructure for knowledge and skills tests in cooperation with relevant NGOs 
and  private-sector  organisations.  Turkey  needs  to  continue  its  efforts  to  establish  a  national 
qualifications system applying to all types of education, training and qualifications and linked 
to the European Qualification Framework. 

There has also been limited progress in the area of culture. Turkey continued to participate in 
the Community’s Culture Programme. Preparations for Istanbul as the 2010 European Capital 
of  Culture  also  continued,  despite  the  resignations  of  key  members  of  the  executive 
committee. The schedule of events for 2010 has now been finalised.  

Turkey  has  signed,  but  not  yet  ratified,  the  UNESCO  Convention  on  the  Protection  and 
Promotion of the Diversity of Cultural Expressions. 

Conclusion 

There  has  been  some  progress,  in  particular  in  the  area  of  education,  where  the  gender  gap 
decreased  further  and  Turkey  continued  to  improve  its  performance  in  relation  to  the  EU 
common benchmarks. Turkey needs to sustain its efforts in the area of education and culture. 

4.27.  Chapter 27: Environment 

Good  progress  can  be  reported  on  horizontal  legislation.  Turkey  has  ratified  the  Kyoto 
Protocol.  The  Environmental  Impact  Assessment  (EIA)  Directive  has  been  transposed  to  a 
large degree. However, procedures for public and transboundary consultations have not been 
fully aligned. Some articles of the Environment Law, related to the exclusion of petroleum, 
geothermal resources and mine exploration from environmental impact assessment, has been 
cancelled by the Constitutional Court in order to improve environmental protection. Turkey is 
not a party to the Espoo and Aarhus Conventions. The Emissions Trading Directive 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, public 
participation  and  public  access  to  environmental  information.  Nor  has  Turkey  yet  started 
negotiations on the memorandum of understanding on its participation in the Community civil 
protection financial instrument. 

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Limited  progress  can  be  reported  on  air  quality.  Turkey  has  adopted  legislation  on  the  air 
quality  framework  legislation  and  daughter  directives,  but  its  alignment  with  the  acquis 
remains  to  be  confirmed.  However,  the  administrative  capacity  for  implementation  of  the 
directive on regional air quality is not sufficient. The clean air centre in Marmara has not yet 
been established. Some progress can be reported on the trade of ozone depleting substances 
and  the  legislation  related  to  sulphur  content  of  certain  liquid  fuels.  No  progress  has  been 
made  legislation  related  to  the  acquis  on  emissions  of  volatile  organic  compounds  and 
national emission ceilings. 

Limited  progress  can  be  reported  in  the  field  of  waste  management.  New  legislation  on 
packaging waste was adopted. As regards implementation, there have been complaints by EU 
companies  about  the  implications  of  the  by-law,  adopted  last  year,  restricting  use  of  certain 
hazardous  substances  in  electrical  and  electronic  equipment.  They  argue  that  the  new 
legislation  is  creating  difficulties  for  trade.  No  progress  has  been  made  regarding  the 
directives on landfill and mining waste. 

There  has  been  no  progress  in  the  area  of  water  quality.  The  overall  level  of  alignment 
remains low. The institutional framework for water management is not organised on a river 
basin basis. Transboundary consultations on water issues are at a very early stage. 

No progress can be reported on nature protection. The continuing loss of habitats is a cause 
for concern. The list of potential Natura 2000 sites has not yet been compiled. Adoption of a 
framework  law  on  nature  protection  and  implementing  legislation  on  birds  and  habitats  has 
again been postponed. A national biodiversity strategy and action plan remain to be adopted. 
Legislation in policy areas linked to nature protection requires particular attention. 

Limited  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 Directives. However, the overall level of 
transposition  and  implementation  capacity  remain  low.  Introduction  of  an  integrated  permit 
system is at an early stage. 

There  has  been  good  progress  in  the  field  of  chemicals.  The  legislation  on  signing  the 
Stockholm  Convention  on  Persistent  Organic  Pollutants  has  been  adopted.  By-laws  were 
adopted  on:  the  inventory  and  control  of  chemicals;  compilation  and  distribution  of  safety 
data-sheets  relating  to  dangerous  substances  and  preparations;  restriction  of  production, 
placing  on  the  market  and  use  of  certain  dangerous  substances  and  preparations;  and 
classification,  packaging  and  labelling  of  dangerous  substances  and  preparations.  However, 
the  overall  level  of  transposition  remains  low.  The  capacity  is  insufficient  for  effective 
implementation. 

No progress can be reported on genetically modified organisms. 

Alignment in the field of noise is well advanced. Preparation of noise maps and action plans 
is at an early stage. 

Some progress has been made in the area of administrative capacity. A by-law was adopted 
to enhance environmental protection by defining procedures and principles for environmental 
inspectorates, environmental management departments and certified inspection companies to 
increase  the  effectiveness  of  the  environmental  inspection  system.  However,  although  the 
Directorate-General for State Hydraulic Works has now been attached to the Ministry of the 
Environment  and  Forestry,  its  objectives  have  still  not  been  streamlined  with  those  of  the 
ministry.  No  progress  has  been  made  towards  establishing  a  national  environment  agency. 

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Responsibility  for  nature  protection  is  not  clearly  defined  between  the  various  competent 
institutions.  Administrative  capacity  needs  further  strengthening,  including  coordination 
between  the  relevant  authorities  at  all  levels.  Mainstreaming  environmental  protection  into 
other policy areas 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,  the  Law 
establishing  the  Directorate-General  for  State  Hydraulic  Works  and  the  tourism  legislation, 
are still a major concern for natural areas. 

Conclusion 

Turkey has made progress in the field of chemicals and on horizontal legislation by signing 
the Kyoto Protocol. Some progress can be reported on waste, air quality, industrial pollution 
and  risk  management  and  chemicals.  However,  the  overall  level  of  alignment  remains 
insufficient. Turkey has made no progress in the areas of water quality, nature protection and 
GMOs.  Non-establishment  of  fully  fledged  EIA  procedures 
is  hampering  further 
improvements in implementation and enforcement of the EIA Directive. 

4.28.  Chapter 28: Consumer and Health Protection 

Turkey has made little progress in the field of consumer protection.  

The  consumer  movement  continues  to  be  weak.  Cooperation  and  partnership  between  the 
existing NGOs are limited and NGOs suffer from lack of funds. Their relationship with State 
bodies  is  weak.  They  are  not  sufficiently  taken  into  consideration  by  the  government  as  a 
stakeholder. Preparations in this area are underway. 

Little  progress  has  been  made  on  product  safety-related  issues.  The  Regulation  on  market 
surveillance of products has been amended in order to harmonise the safety testing practices 
of  different  market  surveillance  authorities.  However,  preventing  measures  against  unsafe 
products  are  applied  at  minimum.  Effectiveness  of  market  surveillance  activities  need  to  be 
increased  and  the  concept  of  risky  products  need  to  be  studied  in  the  public  opinion.  The 
revision of the general product safety legislation is outstanding. This is a key element for the 
accession negotiations on this chapter. Preparations in this area are on track. 

In  the  area  of  non-safety-related  issues,  drafting  of  the  consumer  protection  law  has  been 
finalised. This is a key element for the accession negotiations on this chapter. The Regulation 
on the principles and implementing rules for commercial advertisements and promotion was 
amended  to  prevent  misleading  and  confusing  advertisements  and  regulate  campaigns  to 
promote  bank  credits.  However,  the  number  of  legally  qualified  staff  in  the  Ministry  of 
Industry and Trade continues to lag behind. There is no follow-up to decisions by the advisory 
Consumer  Council.  Courts  and  arbitration  committees  do  not  always  interpret  and 
comprehend consumer legislation consistently. Specialisation of the arbitration committees is 
still  low.  Overall,  coordination  and  cooperation  between  related  stakeholders  is  neither 
sufficient nor consistent. Nevertheless, preparations in this area are on track. 

In the field of public health, Turkey has made some progress.  

Good  progress  has  been  made  in  the  area  of  tobacco.  Legal  alignment  with  the  acquis 
concerning tobacco products, especially as regards tar yields and oral tobacco, was completed. 
This is a key element for the accession negotiations on this chapter. Complete alignment with 
the acquis on tobacco advertising will be achieved through a by-law. Implementation of the 
tobacco acquis is advanced and administrative capacity is being built up. Turkey has signed 

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on  29  May  2009  a  licence  agreement  to  use  EU  pictorial  warnings  on  tobacco  products.  In 
addition,  Turkey's  efforts  towards  smoke-free  environments  resulted  in  a  comprehensive 
smoking  ban  in  bars,  pubs,  hotels,  clubs,  cafes  and  restaurants  as  of  19  July  2009. 
Preparations in this area are advanced. 

In  the  field  of  communicable  diseases,  Turkey  has  made  some  progress.  With  regard  to 
enforcement of the legislation, the field epidemiologists were trained on early detection and 
control measures  on  specific diseases. Progress was  made  on  establishment  of  an  electronic 
network  by  providing  technical  training  and  installing  equipment  in  clinical  microbiology 
laboratories. An early warning and response system for intestinal diseases has been developed 
on a trial basis  with  a view to extension to the rest  of the  country. Some progress  has  been 
made on alignment  by amending the national strategic plan for 2009-2013 on strengthening 
surveillance  and  control  of  communicable  diseases,  which  lays  down  the  principles  and 
procedures  for  the  administrative  structures  to  that  end.  These  include  committees  and 
commissions that will serve as planning, monitoring and evaluation bodies to ensure efficient 
coordination  and  implementation  of  control  measures  and  surveillance.  No  progress  can  be 
reported on establishment of a National Institute of Public Health. A draft law on this subject 
has yet to be adopted. Preparations in this area are well on track. 

Turkey  has  made  good  progress  as  regards  blood.  A  by-law  laid  down  the  standards  and 
specifications  for  a  quality  system  for  blood  collection,  storage  and  transfusion  units.  Legal 
alignment in this field is advancing well, but the administrative capacity for implementation 
of the legislation needs further strengthening. Preparations in this area are on track. 

No progress can be reported in the field of tissues and cells. Preparations to make TÜRKÖK, 
the  National  Cell  Coordination  Centre,  operational  are  underway.  Preparations  in  this  area 
have started. 

Little progress can be reported on mental health. A joint working group has been established 
together  with  the  Ministry  of  Health  and  Social  Services  and  the  Child  Protection  Agency. 
The  group  is  working  with  the  WHO  on  a  community-based  service  delivery  model. 
However,  Turkey  still  has  limited  resources  in  the  field  of  mental  health.  Establishment  of 
community-based  services  as  an  alternative  to  institutionalisation  is  crucial.  Specific  efforts 
are needed to provide for health care tailored to children and young people in this field. The 
mental health action plan has yet to be finalised. Preparations in this area are at an early stage. 

Some  progress  can  be  reported  in  the  area  of  socio-economic  determinants  of  health.  The 
preliminary  results  of  the  2008  Turkey  Demographic  and  Health  Survey  revealed  that  the 
over-65  age  group  has  reached  its  highest  level  ever.  The  fertility  rate  has  dropped  to  2.15 
from  4.33  between  1978  and2008.  In  terms  of  access  to  health  services,  92%  of  mothers 
received some antenatal care during their last pregnancy and 90% of births were delivered in a 
hospital  or  health  centre.  Progress  can  be  reported  in  cancer  control.  The  national  cancer 
control programme has set clear milestones for 2009-2015 on preventing and fighting breast 
and cervical cancers. It envisages screening 70% of the population by 2012. However, the age 
to  start  cervical  cancer  screening  (as  proposed  in  the  national  screening  standards)  does  not 
match  the  age  range  advocated  in  the  Council  Recommendation  on  cancer  screening.  In 
addition to screening standards on breast and cervical cancer, national screening standards for 
colorectal cancer have also been published and community-based screening has started. The 
National  Cancer  Institute  has  not  yet  been  established.  Preparations  in  these  areas  are 
ongoing. 

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Conclusion 

Overall, some progress has been made on consumer and health protection. A satisfactory level 
of legal alignment has been reached. In the area of consumer protection, more efforts remain 
necessary,  in  particular  on  non-safety-related  issues  and  to  ensure  due  enforcement  of 
consumer protection in general. In the area of public health, some progress can be reported, in 
particular  on  tobacco  control  and  on  strengthening  the  administrative  capacity  on 
communicable diseases. Preparations are underway to complete alignment with the acquis on 
blood  and  blood  components,  and  tissues  and  cells.  However,  the  institutional  capacity 
necessary for legislative approximation and implementation in the field of public health is not 
fully in place. 

4.29.  Chapter 29: Customs Union 

Some  progress  can  be  reported  in  the  field  of  customs  legislation.  Turkey  adopted  a  new 
customs law and aligned its legislation further with the modernised EC Customs Code. The 
Turkish Customs Administration now needs to adopt implementing rules in order to make the 
law applicable. The legislation on IPR has been improved although it is not yet fully aligned 
with the acquis. The law on free zones was amended to include free-trade zones in Turkey’s 
customs  territory.  Nevertheless,  alignment  with  the  acquis  is  still  incomplete,  because 
operations  in  free-trade  zones  are  not  fully  subject  to  customs  procedures  and  the  new  law 
stipulates exemptions that do not exist in the acquis for goods that can be consumed or used 
in  the  free  zones.  No  progress  can  be  reported  on  Turkey’s  duty  relief  legislation,  which 
provides  for  duty-free  shops  at  entry  points  and  is  not  fully  in  line  with  Turkey’s  Customs 
Union obligations. Implementing provisions have been issued on post-clearance examination 
and control of risky procedures. The inward processing arrangements were aligned with the 
EU acquis, by prohibiting drawback in connection with importation of materials originating 
from  third  countries  for  production  of  processed  agricultural  products  to  be  exported  to  the 
EU. 

Some  progress  was  made  on  administrative  and  operational  capacity.  Turkey’s 
enforcement  capacity  was  strengthened  by  purchasing  equipment  (scanners)  and  recruiting 
officers. Nevertheless, use of the risk-analysis system could be further improved and physical 
checks  are  still  performed  too  often.  Particular  efforts  are  necessary  to  enforce  intellectual 
property  rights  for  imports  and  exports,  since  Turkey  remains  one  of  the  main  sources  of 
counterfeit products seized by EU customs authorities.  

The  import  and  export  declarations  procedure  is  fully  automated.  Progress  has  been  made 
towards IT interconnectivity with EU systems, as projects to develop the new computerised 
transit  system  and  tariff-related  systems  (TARIC  and  the  quota  and  surveillance  systems) 
have been advancing. Turkey has continued to increase the level of automation of the customs 
administration, despite the absence of a formal IT strategy.  

A  protocol  on  exchanges  of  pre-shipment  information  was  signed  between  Turkey  and 
Russia. Customs cooperation agreements with Syria and South Africa were ratified. 

‘Customs Union’ 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 aircraft registered in Cyprus or whose last 

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port  of  call  was  in  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 the field of customs legislation, thanks to its 
Customs  Union  with  the  EU.  Nevertheless,  further  alignment  with  the  EU  acquis  is  still 
needed in some areas, such as free-trade zones, intellectual property rights and customs duty 
relief. Duty-free sales of products covered by the Customs Union at entry points have to be 
abolished.  Turkey  has  made  progress  on  administrative  capacity,  but  efforts  would  be 
required  to  make  greater  use  of  simplified  procedures  and  risk-based  controls  in  order  to 
reduce  the  number  of  physical  controls  and  release  human  resources  whilst  facilitating 
legitimate  trade.  The  fight  against  counterfeit goods  remains  a  cause  for  concern.  Particular 
efforts to enforce intellectual, industrial and commercial property rights are important. 

4.30.  Chapter 30: External Relations 

Limited progress can be reported in the field of the common commercial policy. 

Turkey’s  alignment  with  the  EC’s  common  commercial  policy  is  high.  However,  since  1 
January 2009, the communiqués on standardisation in foreign trade as part of Turkey’s new 
import arrangements placed restrictions on goods originating from third countries but in free 
circulation in the EU and which are exported to Turkey under ATR certificates. Such goods 
are subject to conformity assessment procedures based on documentation or physical checks 
at  customs  posts,  hence  delaying  and  inhibiting  access  to  the  Turkish  market.  Furthermore, 
Turkey  adopted  legislation  requiring  imported  textile  and  clothing  products  to  obtain  a 
certificate from the Turkish Textile Exporters Association. These two measures have distorted 
bilateral  trade  relations,  in  addition  to  the  unresolved  infringements  of  the  Customs  Union 
legislation. Moreover, the increased use of the erga-omnes safeguard instrument over the last 
years negatively affects trade relations with the EU. Very limited progress can be reported on 
alignment of the  Turkish general system of preferences (GSP).  The  geographic and product 
coverage of the Turkish system still needs to be aligned with the EU’s GSP. 

The level of coordination with the EU within the World Trade Organisation has, by and large, 
been  satisfactory,  although  there  is  still  room  for  improvement  in  some  areas  of  the  Doha 
Development Agenda, notably the agriculture negotiations and trade facilitation. To a certain 
extent, the same applies to Turkey’s positions in the OECD.  

There has been some progress with medium- and long-term export credits to companies. No 
progress has been made on dual-use goods controls. 

No further progress can be reported on bilateral agreements with third countries. The level 
of  alignment  with  the  EC’s  bilateral  agreements  remained  satisfactory.  Turkey  signed  free-
trade agreements with Montenegro, Serbia and Chile. 

Turkey made some progress in the fields of development policy and humanitarian aid. The 
amount  of  official  development  aid  granted  by  Turkey  totalled  some  €557  million  in  2008, 
which is 0.1 % of GDP. The level of alignment has remained satisfactory in this field. 

‘External relations’ 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 aircraft registered in Cyprus or whose last 

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port  of  call  was  in  Cyprus,  Turkey  will  not  be  in  a  position  fully  to  implement  the  acquis 
relating to this chapter. 

Conclusion 

Although Turkey has achieved a high level of alignment in this area, owing to the Customs 
Union, it has not completed alignment, particularly with regard to coordination of positions in 
the WTO. A number of longstanding trade irritants remain unresolved and continue to disrupt 
proper functioning of the Customs Union. 

4.31.  Chapter 31: Foreign, security and defence policy 

The regular political dialogue between the EU and Turkey continued to cover international 
issues  of  common  interest,  including  Iraq,  Iran,  the  South  Caucasus,  Pakistan,  Afghanistan, 
the Middle-East peace process and the Balkans. (Concerning neighbourly relations with other 
enlargement countries and Member States, see the section on the political criteria.) 

Concerning relations with Iraq, the cross-border terrorist activities of the PKK, listed on the 
EU  list  of  terrorist  organisations,  continue  to  pose  a  security  challenge  to  Turkey.  Turkey 
maintained close official contacts with Iraqi authorities, including with the Kurdistan regional 
government.  Overall,  bilateral  relations  continued  to  improve.  High-level  bilateral  meetings 
intensified.  The  Iraqi  President  attended  the  5th  World  Water  Forum  in  Istanbul  in  March 
2009. The Turkish President paid an official visit to Iraq in March, the first of its kind for 33 
years. Turkey played an important role in efforts to ease tensions between Iraq and Syria. 

As  for  relations  with  Iran,  Turkey  sees  Iran  as  an  important  partner  in  the  region,  not  only 
bilaterally,  but  also  with  respect  to  regional  stability.  Turkey  supports  the  EU  position  on 
Iran’s nuclear programme. During a meeting with his Iranian counterpart in Tehran in March, 
the  Turkish  President  called  for  Iran  to  play  a  constructive  role  in  the  region  and  –  on  the 
nuclear dispute – to seize the opportunities offered by the international community. 

As regards relations with the Southern Caucasus, following the visit by the Turkish President 
to Armenia in September 2008, the two countries increased the number of working and high-
level bilateral meetings and moved significantly towards normalising their bilateral relations. 
In  August,  the  two  parties  agreed  to  complete  domestic  political  consultations  within  six 
weeks with a view to preparing the signature and ratification of two protocols addressing the 
establishment  of  diplomatic  relations  and  the  development  of  bilateral  relations.  During  the 
reporting period Turkey kept its land border with Armenia closed.  

Turkey  continued  its  constructive  role  in  the  Middle-East  peace  process.  Until  December 
2008,  Turkey  mediated  indirect  talks  between  Israel  and  Syria,  which  halted  following  the 
Gaza  conflict  in  January  2009.  Turkey,  has  expressed  its  willingness  to  continue  mediation 
efforts,  but  the  parties  have  not  agreed  to  resume  talks.  During  the  Gaza  conflict  Turkey 
expressed strong concerns on Israel's military operations, and played an active role to reach a 
ceasefire.  Turkey  continues  to  contribute  to  stabilisation  in  Lebanon,  through  diplomatic 
activities and its participation in UNIFIL. 

Turkey  continued  its  valuable  efforts  to  bring  Afghanistan  and  Pakistan  closer.  Turkey 
remains  engaged  in  NATO’s  International  Security  Assistance  Force  (ISAF)  and  is 
contributing  to  civil  and  military  capacity-building.  Turkey  convened  a  number  of  trilateral 
summits  with  Afghanistan  and  Pakistan,  which  have  sometimes  also  included  other 
neighbouring  countries,  and  has  offered  to  host  the  fourth  Regional  Conference  on 

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Afghanistan  (RECCA)  next  year.  Furthermore,  Turkey  has  been  a  regular  participant  in  the 
Special Envoys’ meetings (with US and European envoys to the region).  

Turkey is continuing to intensify its relations with African countries, including the process of 
opening 15 new embassies in Africa. Following Parliament's authorisation in February 2009, 
Turkey sent a vessel to the Gulf of Aden to join the UN-led international anti-piracy coalition. 

Turkey’s  broad  alignment  with  common  foreign  and  security  policy  (CFSP)  statements, 
declarations and démarches continued. Turkey aligned itself with 99 CFSP declarations from 
a  total  of  128  declarations  adopted  by  the  EU  during  the  reporting  period.  Turkey  did  not 
follow the EU position expressed in statements concerning some Africa-related issues and in 
declarations concerning for example Uzbekistan, Syria, Iran and Yemen.  

No particular developments can be reported as regards restrictive measures. 

Concerning  non-proliferation  of  weapons  of  mass  destruction,  Turkey  is  party  to  all  the 
existing international arrangements. 

Turkey  has  not  aligned  itself  with  the  EU  position  on  membership  of  certain  suppliers’ 
groups, such as the Wassenaar Arrangement on Export Controls for Conventional Arms and 
Dual-Use Goods and Technologies (for dual-use goods, see Chapter 30 – External relations). 

With regard to cooperation with international organisations, Turkey has not signed the statute 
of the International Criminal Court. Turkey will continue holding a non-permanent seat in the 
UN  Security  Council  until  2010.  The  second  forum  of  the  UN-backed  Alliance  of 
Civilisations, a 2005 joint initiative by Turkey and Spain, was held in Istanbul in April. 

There  have  been  no  particular  developments  with  regard  to  security  measures  (classified 
information). 

Within  the  framework  of  the  European  security  and  defence  policy  (ESDP),  Turkey  is 
continuing  to  contribute  to  the  EU-led  military  mission  in  Bosnia  and  Herzegovina 
(EUFOR/ALTHEA).  Turkey  is  also  contributing  to  EUPM,  the  EU-led  police  mission  in 
Bosnia  and  Herzegovina  and  to  the  EULEX  mission  in  Kosovo.  Turkey  wishes  to  enhance 
cooperation on ESDP, while stressing its discontent with its status within this framework, due 
to the stalemate  over conclusion of  a  bilateral security  agreement with  the EU and  over the 
administrative arrangements with the European Defence Agency.  

However, in the area of EU-NATO relations beyond the ‘Berlin plus’ arrangements, Turkey 
continues  to  object  to  EU-NATO  cooperation  which  would  involve  all  EU  Member  States. 
This  creates  problems  for  EU-NATO  cooperation,  notably  in  the  context  of  civilian  ESDP 
missions. 

Conclusion 

Turkey’s alignment with the EU’s common foreign and security policy continued. Turkey has 
continued to develop a positive role contributing to stabilisation in regions such as the South 
Caucasus  and  the  Middle  East.  Turkey  has  strengthened  its  diplomatic  relations  with  Iraq, 
including  contacts  with  the  Kurdish  regional  government.  Diplomatic  efforts  to  normalise 
relations with Armenia have moved forward significantly. 

EN 

87 

   EN 

Turkey  is  contributing  substantially  to  ESDP  and  seeking  greater  involvement  in  ESDP 
activities.  However,  Turkey  objects  to  EU-NATO  cooperation  which  would  involve  all  EU 
Member  States.  Turkey  has  not  aligned  with  the  EU  position  on  membership  of  the 
Wassenaar Arrangement. 

4.32.  Chapter 32: Financial Control 

Limited  progress  has  been  made  in  the  area  of  public  internal  financial  control  (PIFC), 
where  alignment  with  the  acquis  is  advanced.  The  current  primary  and  implementing 
legislation was amended in 2008 and now meets the basic requirements to implement PIFC. A 
number  of  pieces  of  implementing  legislation  were  approved  in  the  course  of  200954.  The 
Ministry  of  Finance  has  now  registered  803  internal  auditors  in  209  administrations,  all 
trained  and  certified.  More  financial  officers  have  been  employed  in  budget  spending  units 
and there are now 461 expert financial officers in the central government administration55.  

However,  the  2002  PIFC  policy  paper  and  the  related  action  plan  remain  to  be  updated, 
especially  in  relation  to  the  roles  of  internal  audit  and  inspection  and  of  the  Internal  Audit 
Coordination  Board  and  the  central  harmonisation  unit  (CHU)  for  internal  audits.  The 
location  of  the  CHU  still  has  to  be  decided  to  ensure  optimum  development  of  the  public 
internal audit profession. Staffing of internal audit units needs to be addressed. The steering 
role of the Ministry of Finance in the reform process must still be strengthened. 

No  progress  can  be  reported  on  external  audit.  The  Law  on  External  Audit,  extending  the 
scope  of  the  Turkish  Court  of  Auditors  (CoA)  and  aligning  the  CoA  with  the  relevant 
international standards, was sent to parliament in 2005. It has yet to be adopted. 

There has been little progress on the protection of the EU’s financial interests. Concerning 
assessments  and  investigations  of  suspected  fraud  cases,  cooperation  between  the  European 
Anti-Fraud Office (OLAF) and the Prime Ministry Inspection Board (PMIB) can be regarded 
as  good.  However,  a  formal  appointment  of  the  PMIB  as  Anti-Fraud  Cooperation  Structure 
(AFCOS) is yet outstanding and its operational independence has to be further developed. A 
legal basis in national law for AFCOS is still required, involving not only the PMIB but also 
establishment of a network able to operate across the board to address prevention, detection 
and follow-up issues. 

There have been no developments with regard to the implementation of the Convention on the 
Protection  of  the  European  Communities’  Financial  Interests  (PIF  Convention)  and  its 
Protocols.  Monitoring  by  the  Turkish  authorities  of  actual  application  of  the  Convention 
remains insufficient.  

Significant  progress  can  be  reported  on  protection  of  the  euro  against  counterfeiting. 
‘New’ was removed from ‘new Turkish lira’ with effect from 1 January 2009. As part of the 
re-minting exercise, Turkey redesigned Turkish coins to eliminate similarities with euro coins. 
However, institutions serving as the national analysis centre, national coin analysis centre and 
national central office have not yet been officially appointed to ensure institutionalisation and 

54 

55 

Action  plan  guide  for  harmonisation  with  public  internal  control  standards  (4  February  2009); 
Principles and procedures for cancellation of public internal auditor certificates (13 January 2009); and 
communiqué  on  procedures  and  principles  regarding  selection  of  internal  auditor  candidates  (5  April 
2009). 
Also  231  candidates  who  have  passed  the  examination  for  positions  as  expert  financial  services 
assistants are entitled to be appointed in strategy development units (SDUs) of public administrations. 

EN 

88 

   EN 

                                                 
sustainable cooperation with EU institutions. Sanctions against credit institutions which fail to 
withdraw counterfeits from circulation and against medals and tokens similar to euro coins are 
missing from the legislation. 

Conclusion 

Overall, limited progress can be reported in the area of financial control, in which alignment 
is  fairly  advanced.  Legislation  implementing  the  public  financial  management  and  control 
(PFMC)  law  is  in  place,  but  a  number  of  amendments  relating  to  internal  control  are  still 
missing and revision of the PIFC policy paper and action plan has not been completed. The 
External  Audit  Law,  which  would  bring  external  audits  into  line  with  relevant  international 
standards,  has  not  yet  been  adopted.  The  anti-fraud  cooperation  structure  remains  to  be 
developed. In a very significant development, Turkey has redesigned and re-minted Turkish 
coins in order to eliminate similarities with euro coins. 

4.33.  Chapter 33: Financial and Budgetary Provisions 

Further  progress  was  made  in  this  chapter.  The  basic  principles  and  institutions  underlying 
Turkey's customs policy, VAT system and national accounts and GNI calculations are largely 
in  line  with  the  EU’s  own  resources  system.  Alignment  with  the  relevant  chapters  of  the 
acquis  (on  customs,  taxation,  statistics  and  financial  control)  has  continued,  in  particular  as 
regards the European System of Accounts (ESA 95).  

The  own  resources  acquis  is  directly  applicable  upon  membership  and  therefore  does  not 
require  transposition.  However,  coordination  structures  and  implementing  rules  need  to  be 
established  to  ensure  correct  calculation,  collection,  payment  and  control  of  own  resources 
and  reporting  to  the  EU  for  implementation  of  the  own  resources  rules.  Stronger 
administrative capacity will also be needed, particularly in the areas of agriculture, customs, 
taxation, statistics and financial control. Effective instruments have to be established to fight 
customs duty and VAT fraud in order to protect the EU’s financial interests. 

Conclusion 

The  acquis  in  this  area  is  directly  applicable  upon  accession.  Turkey's  alignment  with  the 
basic  principles  and  institutions  of  the  acquis  is  well  advanced.  In  due  course,  however, 
effective coordination structures, administrative capacity and implementing rules will need to 
be established. Preparations in this area are at an early stage. 

EN 

89 

   EN 

STATISTICAL ANNEX 

STATISTICAL DATA (as of 14 September 2009) 
Turkey 

Basic data 
Population (thousand) 
Total area of the country (km²) 

National accounts 
Gross domestic product (GDP) (million national currency) 
GDP (million euro) 
GDP (euro per capita) 
GDP (in Purchasing Power Standards (PPS) per capita) 
SI: GDP (in PPS per capita, EU-27=100) 
SI: Growth rate of GDP (national currency, at constant prices, % change on previous year) 
SI: Employment growth (national accounts, % change on previous year) 
Labour productivity growth: GDP growth per person employed (% 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-27=100) 
Gross value added by main sectors (%) 

Agriculture 
Industry 
Construction 
Services 

Final consumption expenditure, as a share of GDP (%) 
Gross fixed capital formation, as a share of GDP (%) 
Changes in inventories, as a share of GDP (%) 
Exports of goods and services, relative to GDP (%) 
Imports of goods and services, relative to GDP (%) 

Industry 
Industrial production volume index (2000=100) 

Inflation rate 
SI: Consumer price index (CPI), (total, % change on previous year) 

Balance of payments 
Balance of payments: current account total (million euro) 
Balance of payments current account: trade balance (million euro) 

Note

1) 

Note

Note

Note

Note

2000 

1999 
2005 
2002 
65 787  66 889  67 896  68 838  69 770  70 692  71 610 
783 562 783 562  783 562 783 562 783 562 783 562 783 562

2003 

2001 

2004 

2006 
2007 
2008 
70 586 
69 689b 
72 520 
783 562  783 562  783 562 

2001 

2000 

1999 

2005 
2002 
104 596 166 658  240 224 350 476 454 781 559 033 648 932
233 424 289 446  219 816 243 570 269 322 314 304 387 655
5 652 
3 690 

2003 

2004 

2006 

2008 

2007 
758 391  843 178  950 098 
419 013  472 879  501 109 
6 731b 

3 684 
7 000.0 7 600.0  7 000.0 7 000.0 7 000.0 8 100.0 9 100.0 10 100.0e 11 100b  11 400.0e 

4 504 

4 640 

3 375 

4 027 

6 036 

7 050 

39.1 
-3.4 
2.1 
-5.4 
26.4 
48.8 

10.7 
25.4 
5.6 
58.3 
80.7 
18.9 
0.2 
19.4 
19.3 

1999 
: 

1999 
64.9 

39.9 
6.8 
 -0.4e 
7.2e 
: 
53.1e 

10.8 
24.6 
5.4 
59.2 
82.2 
20.4 
0.4 
20.1 
23.1 

2000 
100.0 

2000 
54.9 

35.5 
-5.7 
 -1.0e 
 -4.7e 
: 
48.9e 

9.4 
23.8 
4.7 
62.1 
80.8 
15.9 
-0.9 
27.4 
23.3 

2001 
91.3 

2001 
54.4 

34.3 
6.2 
 -1.8e 
8.1e 
: 
48.9e 

11.4 
23.2 
4.6 
60.8 
80.8 
16.7 
0.9 
25.2 
23.6 

2002 
99.9 

2002 
45.0 

33.9 
5.3 
 -1.0e 
6.3e 
: 
49.5e 

11.1 
23.5 
4.5 
60.8 
83.5 
17.0 
0.6 
23.0 
24.0 

37.3 
9.4 
3.0e 
6.1e 
: 
53.8e 

10.7 
23.0 
5.0 
61.3 
83.2 
20.3 
-1.0 
23.6 
26.2 

40.4 
8.4 
1.4e 
6.9e 
: 
57.9e 

10.6 
23.0 
5.0 
61.3 
83.5 
21.0 
-1.0 
21.9 
25.4 

42.5 
6.9 
1.3e 
5.5e 
: 
61.8e 

9.4 
22.9 
5.4 
62.4 
82.9 
22.3 
-0.2 
22.7 
27.6 

44.7b 
4.7 
1.1e 
3.3e 
: 
62.9e 

8.5 
22.3 
5.4 
63.7 
83.7 
21.8 
-0.4 
22.3 
27.5 

45.5e 
0.9 
1.8e 
 -0.9e 
: 
64.0e 

8.5 
21.9 
5.2 
64.4 
82.6 
19.9 
1.9 
23.9 
28.4 

2003 
108.7 

2004 
119.3 

2005 
128.7 

2006 
136.3 

2007 
143.6 

2008 
140.5 

2003 
25.3 

2004 
10.6 

2005 
8.2 

2006 
9.6 

2007 
8.8 

2008 
10.4 

1999 
-868 
-9 168 

2000 
-10 741 
-23 882 

2001 
4 198 
-3 755 

2002 
-662 
-6 758 

2004 

2005 
2003 
-6 643 
-11 601 -17 794
-11 925 -18 278 -26 516

2006 
-25 401 
-32 607 

2007 
-27 547 
-34 079 

2008 
-28 233 
-36 080 

EN 

90 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance of payments current account: net services (million euro) 
Balance of payments current account: net income (million euro) 
Balance of payments current account: net current transfers (million euro) 

of which government transfers (million euro) 
Net foreign direct investment (FDI) (million euro) 
Foreign direct investment (FDI) abroad (million euro) 

of which FDI of the reporting economy in EU-27 countries (million euro) 

Foreign direct investment (FDI) in the reporting economy (million euro) 

of which FDI of EU-27 countries in the reporting economy (million euro) 

Public finance 
General government deficit/surplus, relative to GDP (%) 
SI: General government debt, relative to GDP (%) 

Financial indicators 
Gross foreign debt of the whole economy, relative to GDP (%) 
Gross foreign debt of the whole economy, relative to total exports (%) 
Money supply: M1 (banknotes, coins, overnight deposits, million euro) 
Money supply: M2 (M1 plus deposits with maturity up to two years, million euro) 
Money supply: M3 (M2 plus marketable instruments, million euro) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
Interest rates: day-to-day money rate, per annum (%) 
Lending interest rate (one year), per annum (%) 
Deposit interest rate (one year), per annum (%) 
euro exchange rates: average of period - 1 euro = … national currency 
Effective exchange rate index (2000=100) 
Value of reserve assets (including gold) (million euro) 

External trade 
Value of imports: all goods, all partners (million euro) 
Value of exports: all goods, all partners (million euro) 
Trade balance: all goods, all partners (million euro) 
Terms of trade (export price index / import price index, 1998=100) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 
Natural growth rate: natural change (births minus deaths) (per 1000 inhabitants) 
Infant mortality rate: deaths of children under one year of age per 1000 live births 

Note

Note

2) 
3) 
4) 

5) 
6) 

Note

7) 

Note

7 039 
-3 319 
4 580 
330 
129 
-605 
: 
735 
: 

1999 
: 
: 

1999 
41.7 
214.3 
8 635 
41 324 
42 950 
30 856 
79.8 
86.1 
85.5 
0.447 
121.4e 
24 253 

12 316 
-4 333 
5 158 
221 
121 
-942 
: 
1 063 
: 

10 201 
-5 583 
3 335 
224 
3 188 
-555 
: 
3 743 
: 

2000 
: 
42.9 

2001 
-33.0 
77.6 

2000 
44.7 
222.4 
12 205 
51 591 
54 207 
44 492 
56.0 
51.2 
38.2 
0.575 
100.0 
25 331 

2001 
57.7 
210.4 
8 965 
37 253 
38 973 
26 977 
95.5 
78.8 
62.2 
1.102 
46.8e 
22 660 

8 339 
-4 816 
2 573 
526 
1 013 
-185 
: 
1 198 
: 

2002 
-12.9 
73.7 

2002 
56.2 
222.8 
9 291 
36 325 
38 041 
20 035 
49.6 
53.7 
53.9 
1.440 
40.1e 
26 949 

9 292 
-4 912 
902 
257 
1 107 
-441 
: 
1 548 
: 

2003 
-11.3 
67.3 

2003 
47.3 
205.5 
13 188 
47 398 
50 488 
29 025 
36.1 
42.8 
40.3 
1.695 
40.4e 
28 134 

10 288 
-4 509 
898 
252 
1 612 
-627 
: 
2 239 
: 

12 276 
-4 722 
1 169 
485 
7 208 
-855 
: 
8 063 
: 

11 015 
-5 329 
1 520 
495 
15 184 
-736 
: 
15 920 
: 

10 112 
-5 212 
1 632 
590 
14 665 
-1 537 
: 
16 202 
: 

11 906 
-5 423 
1 364 
495 
10 615 
-1 758 
0 
12 373 
2 

2004 
-4.5 
59.2 

2005 
-0.6 
52.3 

2006 
-0.1 
46.1 

2007 
-1.2 
39.4 

2008 
: 
: 

2005 
35.2 
161.1 
38 978 

2007 
38.4 
172.1 
44 644 

2004 
2006 
2008 
41.2 
39.4 
: 
175.0 
173.7 
: 
39 927 
38 616 
15 762 
59 415  150 152 160 193 201 366  203 840 
63 411  164 302 171 832 215 308  214 473 
43 328 
83 772  100 358 140 157  138 301 
22.0 
29.1 
23.6 
1.777 
39.3e 
27 654 

17.3 
20.1 
22.3 
1.789e 
44.5e 
52 058 

16.1 
19.7 
22.9 
1.896 
: 
52 442 

15.1 
23.8 
19.9 
1.677 
43.6e 
44 277 

15.8 
19.0 
21.5 
1.809 
39.1e 
48 116 

2000 
1999 
59 444 
38 351 
24 964 
30 182 
-13 387 -29 263 
103.0 
112.6 
56.4 
58.0 
52.4 
55.4 

2002 
54 478 
38 137 

2003 
60 163 
41 679 

2004 
2001 
78 528 
46 256 
35 062 
50 891 
-11 194 -16 341 -18 484 -27 637
102.0 
100.7 
57.9 
56.0 
49.3 
47.9 

100.0 
58.0 
50.6 

100.1 
56.6 
49.8 

2007 

2008 

2006 

2005 
93 410  111 096 123 959  136 438 
89 522 
58 849 
-46 917 
-34 560 
96.9 
99.3 
47.9 
56.4 
37.0 
45.2 

68 020 
-43 076 
96.0 
56.1 
42.6 

78 126 
-45 833 
103.5 
56.3 
40.3 

1999 
15.4 
34.9 

2000 
14.1 
31.5 

2001 
13.7 
28.4 

2002 
13.5 
25.6 

2003 
13.2 
23.1 

2004 
12.9 
20.9 

2005 
12.6 
18.9 

2006 
12.6p 
17.5 

2007 
12.8 
16.7 

2008 
: 
16.0 

EN 

91 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life expectancy at birth: male (years) 
Life expectancy at birth: female (years) 

Labour market 
Economic activity rate (15-64): share of population aged 15-64 that is economically active (%) 
SI: Employment rate (15-64): share of population aged 15-64 that is in employment (%) 

Note 

Share of male population aged 15-64 that is in employment (%) 
Share of female population aged 15-64 that is in employment (%) 

SI: Employment rate of older workers (55-64): share of population aged 55-64 that is in 
employment (%) 
Employment by main sectors (%) 

68.7 
72.8 

1999 
55.2 
50.8 
72.7 
28.9 

69.0 
73.1 

2000 
52.4 
48.9 
71.7 
26.2 

69.4 
73.5 

2001 
52.3 
47.8 
69.3 
26.3 

69.8 
73.9 

2002 
52.3 
46.7 
66.9 
26.6 

70.1 
74.3 

2003 
51.1 
45.5 
65.9 
25.2 

70.5 
74.6 

2004 
51.5 
46.1 
67.9 
24.3 

70.9 
75.0 

2005 
51.3 
45.9 
68.2 
23.7 

71.1 
75.3 

2006 
51.1 
45.9 
68.0 
23.8 

71.2 
75.6 

2007 
49.8 
44.6 
66.8 
22.8 

71.4 
75.8 

2008 
50.6 
44.9 
66.6 
23.5 

39.3 

36.4 

35.9 

35.3 

32.7 

33.1 

30.8 

30.1 

27.1 

27.4 

Agriculture 
Industry 
Construction 
Services 

SI: Unemployment rate: share of labour force that is unemployed (%) 

Share of male labour force that is unemployed (%) 
Share of female labour force that is unemployed (%) 

Unemployment rate of persons < 25 years: share of labour force aged <25 that is unemployed 
(%) 
SI: Long-term unemployment rate: share of labour force that is long-term unemployed (%) 

Social cohesion 
Average nominal monthly wages and salaries (national currency) 
Index of real wages and salaries (index of nominal wages and salaries divided by the CPI) 
(2000=100) 
SI: Early school-leavers: share of population aged 18-24 having not completed upper 
secondary education and not currently in education or training (%) 

Standard of living 
Number of passenger cars per 1000 population 
Number of subscriptions to cellular mobile telephone services per 1000 population 

Infrastructure 
Density of railway network (lines in operation, per 1000 km²) 
Length of motorways (thousand km) 

Innovation and research 
SI: Spending on human resources (public expenditure on education) relative to GDP (%) 
SI: Gross domestic expenditure on research & development, relative to GDP (%) 
SI: Percentage of households who have Internet access at home (%) 

Note 
8) 

Note 

Note 

40.2 
17.2 
6.2 
36.5 
7.7 
7.7 
7.6 

15.0 
2.1 

36.0 
17.7 
6.3 
40.0 
6.5 
6.6 
6.3 

13.1 
1.3 

37.6 
17.5 
5.2 
39.7 
8.4 
8.7 
7.5 

16.2 
1.7 

34.9 
18.5 
4.5 
42.1 
10.3 
10.7 
9.4 

19.2 
2.9 

33.9 
18.2 
4.6 
43.4 
10.5 
10.7 
10.1 

20.5 
2.5 

34.0 
18.3 
4.7 
43.0 
10.3 
10.5 
9.7 

19.7 
4.0 

29.5 
19.4 
5.3 
45.8 
10.3 
10.3 
10.3 

19.3 
4.1 

27.3 
19.7 
5.7 
47.3 
9.9 
9.7 
10.3 

18.7 
3.5 

Note 

1999 
: 
: 

2000 
: 
: 

2001 
: 
: 

2002 
372.1 
: 

2003 
492.0 
: 

2004 
529.4 
: 

2005 
595.4 
: 

2006 
: 
: 

23.5 
20.8 
5.9 
49.8 
10.3 
10.0 
11.0 

20.0 
3.1 

2007 
: 
: 

23.7 
21.0 
5.9 
49.5 
11.0 
10.7 
11.6 

20.5 
2.9 

2008 
: 
: 

: 

58.8 

57.3 

54.8 

53.0 

54.6 

51.3 

50.0 

47.8 

46.1 

1999 
61.9 
116.8 

2000 
66.1 
225.2 

2001 
66.8 
269.5 

2002 
66.8 
338.8 

2003 
67.4 
399.7 

2004 
76.4 
491.0 

2005 
80.6 
609.0 

2006 
84.7 
726.2 

2007 
92.9b 
889.3b 

2008 
96.3 
932.5 

1999 
11.1 
1.7 

1999 
2.7 
0.6 
: 

2000 
11.1 
1.8 

2000 
2.6 
0.6 
: 

2001 
11.1 
1.9 

2001 
2.3 
0.7 
: 

2002 
11.0 
1.9 

2002 
2.8 
0.7 
: 

2003 
11.1 
1.9 

2003 
3.0 
0.6 
: 

2004 
11.1 
1.9 

2004 
3.0 
0.7 
7.0 

2005 
11.1 
1.8 

2005 
3.1 
0.8 
8.0 

2006 
11.1 
2.0 

2006 
3.0 
0.8 
: 

2007 
11.1 
2.0 

2007 
3.3 
0.7 
18.9 

Environment 
SI: Total greenhouse gases emissions, CO2 equivalent (tons, 1990=100) 

Note 

1999 
151.0 

2000 
165.0 

2001 
154.0 

2002 
159.0 

2003 
168.0 

2004 
174.0 

2005 
184.0 

2006 
196.0 

2007 
219.0 

EN 

92 

2008 
11.1 
2.0 

2008 
3.0 
: 
24.5 

2008 
: 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SI: Energy intensity of the economy (kg of oil equivalent per 1000 euro GDP 2004) 
SI: Share of renewable energy in electricity consumption (%) 
SI: Road freight transport as a share of total inland freight transport (modal split of freight 
transport) (%) 

290.9 
29.5 

295.2 
24.3 

293.2 
19.1 

286.8 
25.6 

291.5 
25.2 

279.2 
30.9 

267.1 
24.7 

273.3 
25.5 

282.0 
19.1 

: 
17.3p 

94.8 

94.3 

95.3 

95.5 

94.6 

94.4 

94.4e 

94.3 

: 

: 

Energy 
Primary production of all energy products (thousand TOE) 
Primary production of crude oil (thousand TOE) 
Primary production of hard coal and lignite (thousand TOE) 
Primary production of natural gas (thousand TOE) 

Net imports of all energy products (thousand TOE) 
Gross inland energy consumption (thousand TOE) 
Electricity generation (thousand GWh) 

Agriculture 
Agricultural production volume index of goods and services (producer prices, previous 
year=100) 
Total utilised agricultural area (thousand hectare) 
Livestock: cattle (thousand heads, end of period) 
Livestock: pigs (thousand heads, end of period) 
Livestock: sheep and goats (thousand heads, end of period) 
Production and utilisation of milk on the farm (total whole milk, thousand tonnes) 
Crop production: cereals (including rice) (thousand tonnes, harvested production) 
Crop production: sugar beet (thousand tonnes, harvested production) 
Crop production: vegetables (thousand tonnes, harvested production) 

Note 

1999 
27 659 
3 087 
13 284 
665 
46 028 
74 275 
116.4 

2000 
26 047 
2 887 
12 487 
582 
54 291 
80 500 
124.9 

2001 
24 576 
2 679 
12 282 
284 
49 536 
75 402 
122.7 

2002 
24 281 
2 564 
11 360 
344 
54 234 
78 331 
129.4 

2003 
23 783 
2 494 
10 777 
510 
60 505 
83 826 
140.6 

2004 
24 332 
2 389 
10 532 
644 
63 232 
87 818 
150.7 

2005 
24 549 
2 395 
11 213 
816 
67 266 
91 074 
162.0 

2006 
26 580 
2 284 
13 087 
839 
73 256 
99 642 
176.3 

2007 
27 453 
2 241 
14 797 
827 
80 596 
107 625 
191.6 

2008 
: 
: 
: 
: 
: 
: 
198.6 

Note 

1999 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

9) 

94.7 
39 180 
11 054 
3 
38 030 
: 
28 749 
17 102 
22 083 

104.2 
38 757 
10 761 
3 
35 693 
: 
32 108 
18 821 
22 357 

93.3 
40 967 
10 548 
3 
33 994 
: 
29 426 
12 633 
21 930 

108.5 
41 196 
9 803 
4 
31 954 
: 
30 686 
16 523 
23 698 

98.0 
40 645 
9 788 
7 
32 203 
: 
30 658 
12 623 
24 018 

101.6 
41 210 
10 069 
4 
31 811 
: 
33 957 
13 517 
23 215 

106.9 
41 223 
10 526 
2 
31 822 
: 
36 471 
15 181 
24 320 

: 
40 496 
10 871 
1 
32 260 
: 
34 642 
14 452 
24 017 

: 
39 505 
11 037 
2 
31 749 
: 
29 256 
12 415 
25 676 

: 
39 073 
10 860 
2 
29 568 
: 
29 287 
15 488 
27 214 

SI = Structural indicators 
: = not available 
p = provisional value 
e = estimated value 
b = break in series 
1) 
2) 
3) 
4) 
type liquid funds). 
5) 
6) 
7) 
8) 
9) 

Averages of monthly data, lending to enterprises for more than one year.  
Averages of monthly data, up to one year or longer. 
Calculated on the basis of ISIC Rev.3, base year 2003 as Paasche index. 
From 2004 onwards, data source is the General Directorate of Public Security. 
Excluding the number of buffaloes. 

Including lakes. 
Before December 2005, M1 included currency in circulation and demand desposits (TRY). From December 2005 onwards, M1 includes currency in circulation and demand deposits (TRY, FX). 
Before December 2005, M2 included M1 and time deposits (TRY). From December 2005 onwards, M2 includes M1 and time deposits (TRY, FX). 
Before December 2005, M3 included M2 and official deposits (time/demand). From December 2005 onwards, M3 includes M2, funds received from repo transactions and money market funds (B 

EN 

93 

EN