COMMISSION STAFF WORKING DOCUMENT TURKEY 2015 REPORT Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS EU Enlargement Strategy
Date: 2015-11-10
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Türkiye, accession criteria, accession negotiations, pre-accession strategy

EUROPEAN 
COMMISSION 

Brussels, 10.11.2015  
SWD(2015) 216 final 

COMMISSION STAFF WORKING DOCUMENT 

TURKEY 
2015 REPORT   

Accompanying the document 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

EU Enlargement Strategy 

{COM(2015) 611 final} 
{SWD(2015) 210 final} 
{SWD(2015) 211 final} 
{SWD(2015) 212 final} 
{SWD(2015) 213 final} 
{SWD(2015) 214 final} 
{SWD(2015) 215 final} 

EN 

   EN 

 
 
 
 
  
 
Table of Contents 

1. 

INTRODUCTION....................................................................................................... 4 

1.1.  Context .............................................................................................................. 4 
1.2.  Summary of the report....................................................................................... 4 

2.  POLITICAL CRITERIA AND ENHANCED POLITICAL DIALOGUE................. 7 

2.1.  Democracy ........................................................................................................ 7 
2.2.  Public administration reform........................................................................... 11 
2.3.  Rule of law ...................................................................................................... 14 
2.4.  Human rights and the protection of minorities................................................ 21 
2.5.  Regional issues and international obligations ................................................. 26 

3.  ECONOMIC CRITERIA .......................................................................................... 27 

3.1.  The existence of a functioning market economy............................................. 28 
3.2.  The  capacity  to  cope  with  competitive  pressure  and  market  forces  within 

the Union ......................................................................................................... 32 

4.  ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP...................... 34 

4.1.  Chapter 1: Free movement of goods ............................................................... 34 
4.2.  Chapter 2: Freedom of movement for workers ............................................... 36 
4.3.  Chapter 3: Right of establishment and freedom to provide services............... 36 
4.4.  Chapter 4: Free movement of capital .............................................................. 37 
4.5.  Chapter 5: Public procurement........................................................................ 37 
4.6.  Chapter 6: Company law................................................................................. 40 
4.7.  Chapter 7: Intellectual property law................................................................ 40 
4.8.  Chapter 8: Competition policy ........................................................................ 41 
4.9.  Chapter 9: Financial services .......................................................................... 42 
4.10.  Chapter 10: Information society and media .................................................... 42 
4.11.  Chapter 11: Agriculture and rural development.............................................. 43 
4.12.  Chapter 12: Food safety, veterinary and phytosanitary policy........................ 44 
4.13.  Chapter 13: Fisheries....................................................................................... 45 
4.14.  Chapter 14: Transport policy........................................................................... 46 
4.15.  Chapter 15: Energy.......................................................................................... 47 
4.16.  Chapter 16: Taxation....................................................................................... 48 
4.17.  Chapter 17: Economic and monetary policy ................................................... 49 
4.18.  Chapter 18: Statistics....................................................................................... 50 
4.19.  Chapter 19: Social policy and employment .................................................... 51 
4.20.  Chapter 20: Enterprise and industrial policy................................................... 53 
4.21.  Chapter 21: Trans-European networks............................................................ 54 
4.22.  Chapter 22: Regional policy and the coordination of structural instruments.. 55 
4.23.  Chapter 23: Judiciary and fundamental rights................................................. 55 
4.24.  Chapter 24: Justice, freedom and security ...................................................... 69 
4.25.  Chapter 25: Science and research.................................................................... 74 

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4.26.  Chapter 26: Education and culture .................................................................. 75 
4.27.  Chapter 27: Environment and climate change ................................................ 76 
4.28.  Chapter 28: Health and consumer protection .................................................. 78 
4.29.  Chapter 29: Customs union ............................................................................. 79 
4.30.  Chapter 30: External relations......................................................................... 80 
4.31.  Chapter 31: Foreign, security and defence policy........................................... 81 
4.32.  Chapter 32: Financial control .......................................................................... 83 
4.33.  Chapter 33 — Financial and budgetary provisions ......................................... 85 

Annex I – Relations between the EU and Turkey ............................................................. 86 

Annex II – Statistical Annex ............................................................................................. 88 

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1. 

INTRODUCTION

1

1.1. 

Context  

Turkey  has  been  linked  to  the  EU  by  an  Association  Agreement  since  1964  and  a  customs 
union was established in 1995. The European Council granted the status of candidate country 
to Turkey in December 1999 and accession negotiations were opened in October 2005.  

Within the framework of accession negotiations, 14 chapters have been opened so far and one 
of  these  was  provisionally  closed.  Preparations  started  for  the  opening  of  chapter  17- 
economic  and  monetary  policy  which  would  underpin  the  envisaged  high  level  economic 
dialogue  with  Turkey.  Opening  benchmarks  for  Chapters  23  and  24  on  the  rule  of  law  still 
need to be defined so as to provide Turkey with a roadmap for reforms in this essential area. 
Turkey  can  accelerate  the  pace  of  negotiations  by  advancing  in  the  fulfilment  of  the 
benchmarks,  meeting  the  requirements  of  the  negotiating  framework  and  by  respecting  its 
contractual obligations towards the EU 

The  EU  and  Turkey  continued  to  enhance  dialogue  and  cooperation  in  the  areas  of  joint 
interest, which support and complement the accession negotiations, including with a number 
of  mutual  visits  at  the  highest  level.  Political  dialogue  on  foreign  and  security  policy 
continued,  including  on  counter-terrorism,  against  the  background  of  Turkey  joining  the 
international  coalition  against  Da'esh.  Cooperation  on  visas,  mobility  and  migration  was 
pursued  in  the  framework  of  the  visa  liberalisation  dialogue  launched  in  December  2013. 
Turkey continued to provide unprecedented humanitarian aid and support to about 2.2 million 
refugees  from  Syria  and  Iraq.  A  Joint  EU-Turkey  Action  Plan  for  refugees  and  migration 
management  was  welcomed  by  the  European  Council  in  October.  The  Commission  and 
Turkey agreed to step up cooperation on energy and launched a High Level Energy Dialogue. 
Developing  further  close  economic  ties  was  also  a  shared  priority  and  both  sides  agreed  to 
initiate procedures in view of a modernisation and extension of the Customs Union.  

1.2. 

Summary of the report 

As  regards  the  political  criteria,  the  pace  of  reforms  slowed  down,  also  due  to  protracted 
elections.  The  outgoing  government  made  efforts  to  reinvigorate  the  EU  accession  process. 
However, this repeated commitment was offset by the adoption of key legislation in the area 
of the rule of law, freedom of expression and freedom of assembly that ran against European 
standards. The political landscape continues to be divided. 

The 7 June general election saw a record 84% turnout, a clear sign of the strength of Turkish 
democracy with all major political parties being represented in the new parliament. However, 
a  government  could  not  be  formed  by  the  constitutional  deadline  and  repeat  elections  took 
place on 1 November. Amongst the shortcomings in the legal framework regulating elections, 
the 10% threshold of votes for parties to be represented in parliament need to be addressed as 
a priority.  

In  the  reporting  period  Turkey  saw  its  security  situation  increasingly  deteriorate.  The 
authorities  launched  an  extensive  anti-terror  military  and  security  campaign  against  the 
Kurdistan Workers’ Party (PKK), which remains on the EU list of terrorist organisations, both 

1  This  report  covers  the  period  from  October  2014  to  September  2015.  It  is  based  on  input  from  a  variety  of 
sources, including contributions from the government of Turkey, the EU Member States, European Parliament 
reports and information from various international and non-governmental organisations. As a rule, legislation or 
measures which are under preparation or awaiting parliamentary approval have not been taken into account. 

4 

 
 
  
                                                            
in  Turkey  and  in  Iraq.  The  settlement  process  of  the  Kurdish  issue  came  to  a  halt  despite 
earlier positive developments on the issue.  

Turkey  was  struck  by  the  deadliest  terrorist  attack  in  its  modern  history,  on  10  October  in 
Ankara, claiming the lives of scores of demonstrators gathering for a peace rally sponsored by 
trade unions and opposition parties' youth branches. It is essential that swift and transparent 
investigations are conducted into these heinous acts which were aimed to destabilise and harm 
Turkey's democracy.  

Turkey  is  moderately  prepared  in  the  area  of  public  administration  reform.  It  has  a  strong 
public  service  and  is  committed  to  a  user-oriented  administration.  However,  impetus  for  a 
more comprehensive reform is weak. Recent dismissals and demotions in the context of the 
fight against the ‘parallel structure’ were a source of concern.  

Civil society has remained active, growing in numbers and continuing to be involved in many 
spheres of public life, but restrictions to freedom of assembly remain a serious concern. 

Turkey's judicial system has some level of preparation. The independence of the judiciary and 
the principle of separation of powers have been undermined and judges and prosecutors have 
been under strong political pressure. The government's campaign against the alleged ‘parallel 
structure’ within the state was actively pursued, at times encroaching on the independence of 
the judiciary. Substantial efforts are needed to restore and ensure its independence. 

As  regards  the  fight  against  corruption,  Turkey  has  some  level  of  preparation  to  effectively 
prevent  and  fight  corruption.  Turkey's  track  record  in  the  fight  against  corruption  remains 
inadequate.  Corruption  remains  widespread.  The  undue  influence  by  the  executive  in  the 
investigation and prosecution of high-profile corruption cases continues to constitute a major 
concern.  

Turkey has achieved some level of preparation in the fight against organised crime. Financial 
investigations  remain  under-used.  Precautionary  freezing  of  assets  is  rarely  applied  and  the 
level of assets confiscated is low. The absence of data protection legislation is an impediment 
for wider cooperation with EU agencies and Member States.  

Turkey’s Constitution guarantees the protection of human rights and fundamental freedoms. 
Implementation  had  considerably  improved  over  the  past  few  years.  However,  major 
shortcomings remain. The enforcement of rights stemming from the European Convention on 
Human Rights (ECHR) and the case law of the European Court of Human Rights (ECtHR) is 
not  fully  ensured.  There  is  an  urgent  need  to  adopt  a  comprehensive  framework  law  on 
combating  discrimination  in  line  with  European  standards.  Turkey  also  needs  to  effectively 
guarantee the rights of women, children, and lesbian, gay, bisexual, transgender and intersex 
(LGBTI)  individuals  and  ensure  sufficient  attention  to  the  social  inclusion  of  vulnerable 
groups such as the Roma. 

There  was  significant  backsliding  in  the  areas  of  freedom  of  expression  and  freedom  of 
assembly.  Legislation  on  internal  security  contradicts  the  measures  outlined  in  the  March 
2014 action plan on the prevention of violations of the ECHR by granting broad discretionary 
powers  to  the  law  enforcement  agencies  without  adequate  oversight.  After  several  years  of 
progress on freedom of expression, serious backsliding was seen over the past two years, with 
some level of preparation in this field. While it had been possible to discuss some sensitive 
and  controversial  issues  in  a  free  environment,  ongoing  and  new  criminal  cases  against 
journalists, writers or social media users are of considerable concern. Changes to the internet 
law,  which  are  a  significant  setback  from  European  standards,  increased  the  government’s 
powers to block content without a court order on an unduly wide range of grounds.  

5 

 
Turkey supported the resumption of the talks on the Cyprus settlement in May and expressed 
its  support  for  the  UNSG  Special  Advisor’s  efforts.  Turkey’s  continued  commitment  and 
contribution  in  concrete  terms  to  this  comprehensive  settlement  remains  crucial.  However, 
Turkey  has  still  not  fulfilled  its  obligation  to  ensure  full  and  non-discriminatory 
implementation of the Additional Protocol to the Association Agreement and has not removed 
all  obstacles  to  the  free  movement  of  goods,  including  restrictions  on  direct  transport  links 
with  Cyprus.  There  was  no  progress  on  normalising  bilateral  relations  with  the  Republic  of 
Cyprus.  The  conclusions  on  Turkey  that  were  adopted  by  the  Council  (General  Affairs  and 
External  Relations)  on  11  December  2006  and  endorsed  by  the  European  Council  on  14/15 
December 2006 remain in force. They stipulate that negotiations will not be opened on eight 
chapters2  relating  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.  

Turkey needs to commit itself 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  EU  has  expressed  once 
again serious concern and urged Turkey to avoid any kind of threat or action directed against 
a Member State, or source of friction or actions that damages good neighbourly relations and 
the peaceful settlement of disputes. 

Regarding  the  economic  criteria,  the  Turkish  economy  is  well  advanced  and  can  be 
considered  a  functioning  market  economy.  Economic  growth  has  been  moderate.  Turkey 
continued  to  face  external  and  internal  imbalances,  calling  for  adjustments  in  monetary  and 
fiscal  policies  as  well  as  an  acceleration  of  comprehensive  structural  reforms.  The  large 
current  account  deficit  continued  to  contribute  to  the  economy's  vulnerability  to  shifts  in 
global monetary conditions and risk sentiment. On the internal side, inflation continued to run 
at a relatively high rate, which is problematic in terms of macro-economic stability, resource 
allocation  and  re-distributive  effects.  It  again  exceeded  the  official  target;  nevertheless  the 
central  bank  cut  interest  rates.  Public  debt  has  attained  a  sustainable  level,  but  the  general 
government  structural  balance  has  been  significantly  negative.  Unemployment  increased 
slightly to an annual average of 9.9 %. Some progress was made in structural reforms such as 
improving  schooling  rates  and  further  liberalising  the  energy  sector.  Such  reforms  need  to 
accelerate to improve the functioning of the markets for goods, services and labour.  

Turkey has a good level of preparation in acquiring the capacity to cope with the competitive 
pressure  and  market  forces  within  the  EU.  The  quality  of  education  and  gender  equality  in 
education needs particular attention. Efforts are needed to ensure the transparency of state aid 
and to remove constraints and exceptions in the area of public procurement.  

Regarding  its  ability  to  take  on  the  obligations  of  membership,  Turkey  has  continued  to 
align with the acquis, albeit at a slower pace, and has achieved a good level of preparation in 
many areas. Turkey is well advanced in the areas of company law, financial services, trans-
European networks and science and research. The country has also achieved a good level of 
preparation in the areas of free movement of goods, intellectual property law, enterprise and 
industrial policy, customs union and external relations. Turkey remained highly mobilised to 
tackle the extraordinary migration and asylum challenges. Turkey has achieved a good level 
of preparation in the area of financial control. Further significant efforts are however needed 
to  implement  public  internal  financial  control  at  all  levels.  Turkey  is  only  moderately 
prepared  on  public  procurement  as  important  gaps  remain  in  its  alignment.  Turkey  is  also 

2 Free movement of goods, right of establishment and freedom to provide services, financial services, agriculture 
and rural development, fisheries, transport policy, customs union, and external relations. 

6 

 
                                                            
moderately prepared in the area of statistics where further significant efforts are needed across 
the  board.  In  all  areas,  more  attention  needs  to  be  given  to  enforce  legislation  whilst  many 
areas require further significant progress to achieve legislative alignment with the EU acquis. 

In the past year, events in Syria and Iraq meant Turkey had to face a further increase in the 
number  of  refugees  and  displaced  people.  Turkey  is  currently  hosting  the  largest  refugee 
population in the world, of which close to 2 million are Syrians. Managing such a huge influx 
of refugees  and displaced persons is a major challenge for Turkey, which  has already spent 
more than EUR 6.7 billion to this purpose. 

2. 

POLITICAL CRITERIA AND ENHANCED POLITICAL DIALOGUE 

2.1. 

Democracy 

Elections 

The  7 June  general  election  saw  a  very  high  84 %  turnout,  a  clear  sign  of  the  strength  of 
Turkish democracy. All major political parties won seats in the new parliament.  Fundamental 
freedoms in the election period were generally respected but a substantial number of attacks 
on  candidates  and  party  offices  took  place.  The  President’s  active  role  in  the  campaign, 
perceived as favouring the ruling party, and the increased pressure on the media gave cause 
for  concern.  A government  could  not  be  formed  and  repeat  elections  took  place  on  1 
November, again with a very high turnout of 85 %. All major political parties re-won seats in 
the  parliament  with  the  ruling  party  securing  enough  votes  to  form  a  majority  government. 
The security of the repeat election was ensured despite concerns due to the situation notably 
in the east and southeast of the country. Media freedom remained an area of serious concern. 
Shortcomings in the legal framework regulating elections need to be addressed as a priority, 
particularly the 10 % threshold of votes to be represented in parliament. 

The general election took place on 7 June. The 550 members of parliament were elected for a 
four-year  term  under  a  proportional  representation  system.  All  four  major  parties  won 
representation  in  the  new  parliament.  The  ruling  Justice  and  Development  Party,  AKP, 
obtained 40.87 % (258 seats); the main opposition Republican People’s Party, CHP, 24.95 % 
(132  seats);  the  Nationalist  Movement  Party,  MHP,  16.29 %  (80  seats);  and  the  Peoples’ 
Democratic  Party,  HDP,  13.12 %  (80  seats).  HDP  competed  for  the  first  time  as  a party, 
instead  of  putting  forward  independent  candidates.  It  succeeded  in  reaching  out  beyond  its 
core  voters  to  pass  the  10 %  national  threshold  necessary  to  obtain  seats  in  parliament,  the 
highest  such  threshold  among  Council  of  Europe  member  countries.  Civil  society  played  a 
valuable role in monitoring the electoral operations. 

The campaign was confrontational and focused on a possible shift to a presidential system of 
governance,  the  Kurdish  peace  process  and  socioeconomic  issues.  Fundamental  freedoms 
were generally respected. However, a high number of attacks on candidates and party offices 
took place, some resulting in fatalities. According to international observers, the involvement 
of  the  President  was  perceived  as  favouring  the  ruling  party  and  as  overstepping  the 
President’s  constitutional  prerogatives.  The  use  of  public  resources  to  support  the  AKP 
campaign  was  criticised.  The  media  faced  increased  pressure  and  intimidation,  which 
contributed to self-censorship. Concerns were raised over the transparency and independence 
of  the  Radio  and  Television  Supreme  Council  (RTÜK)  and  the  transparency  of  the  election 
administration, in particular the lack of judicial remedy in election matters.  

A  government  could  not  be  formed  by  the  constitutional  deadline  and  repeat  elections  took 
place on 1 November, again with a very high turnout of 85 %. Reported results show that the 

7 

 
 
AKP obtained 49.5 % (317 seats), CHP 25.3 % (134 seats), MHP 11.9 % (40 seats) and HDP 
10.8 % (59 seats). The ruling AKP secured enough votes to form a majority government. The 
atmosphere of the campaign was affected by a challenging security environment, in particular 
the terrorist bomb attack in Ankara on 10 October. There were the increased tensions across 
the  country  which  included  attacks  on  media  outlets  and  on  party  members,  offices  and 
campaign staff. According to international observers, citizens could choose between genuine 
and  diverse  political  alternatives,  however  the  campaign  environment  limited  the  ability  to 
campaign freely and media freedom was an area of serious concern. Adopting a legal basis for 
international  and  domestic  election  observers  would  increase  trust  in  the  electoral  process. 
Campaign  financing  is  not  regulated  in  a comprehensive  manner,  limiting  the  transparency 
and accountability of the process. 

Parliament 

Political confrontation ahead of the general election continued to hamper parliament’s work. 
The  parliament  in  office  after  the  7  June  election  convened  only  exceptionally  as  elections 
were  repeated  on  1  November.  There  was  no  progress  in  aligning  the  legal  framework  on 
political  parties  and  parliamentary  immunity  with  European  standards.  A comprehensive 
reform  of  parliament’s  rules  and  procedures  is  also  needed  to  improve  the  inclusivity, 
transparency  and  quality  of  law-making  and  effective  oversight  of  the  executive.  Structured 
civil  society  consultation  arrangements  should  be  developed  as  part  of  the  legislative  and 
policy-making processes. The new parliament needs to give priority to addressing these long-
standing shortcomings. 

The  system  of  parliamentary  immunity  lacks  specific  and  objective  criteria  for  taking 
decisions on lifting immunity. Such decisions should be based on the merits of the case and 
not  subject  to  political  considerations.  A  restrictive  interpretation  of  the  Constitution  and 
shortcomings in anti-terror legislation continue to pose a risk to the freedom of expression of 
members of parliament (MPs).  

Legal  framework  on  elections  and  political  parties  needs  to  be  aligned  with  European 
standards. The election requirement that a party must obtain at least 10 % of valid votes to be 
represented  in  parliament  is  still  in  place.  The  rules  on  the  closure  of  political  parties  are 
unchanged.  There  are  important  shortcomings  on  funding  for  political  parties  and  election 
campaigns (see Fight against corruption). Comprehensive ethical regulations for members of 
parliament,  such  as  declaration  of  assets  and  rules  on  conflict  of  interest,  are  yet  to  be 
adopted. 

Parliament’s  ability  to  perform  its  key  functions  of  law-making  and  oversight  of  the 
executive  continued  to  be  dominated  by  political  confrontation  and  several  plenary  debates 
were marred by incidents. Key laws were most often prepared and adopted without sufficient 
consultation  with  stakeholders  and  debate  in  parliament.  Drafts  with  significant  impact  on 
fundamental  freedoms  were  not  referred  to  the  committee  on  human  rights  or  to  the 
committee for EU harmonisation. Omnibus laws were again widely used to amend legislation 
in unrelated policy fields. The absence of a stable and forward-looking agenda hampered the 
involvement of MPs and stakeholders. Media accreditation and rules for inviting stakeholders 
were  applied  selectively,  limiting  the  transparency  of  parliamentary  work.  There  was  no 
progress  on  reforming  the  parliamentary  rules  and  procedures  to  improve  the  inclusiveness, 
transparency and quality of law-making. Traditional instruments of parliamentary oversight of 
the  executive,  including  parliamentary  questions  and  investigative  committees,  were 
frequently  used.  However,  the  effectiveness  of  these  instruments  remained  limited  as  the 
follow-up by the executive was generally insufficient. The work and reports of parliamentary 
investigative  committees  received  good  media  coverage,  but  a  court  decision  prohibited 

8 

 
media  from  reporting  on  the  outcome  of  the  investigative  committee  on  allegations  of  high 
level corruption cases.  

The  parliament  in  office  after  the  7  June  election  convened  only  exceptionally  as  elections  
were repeated on 1 November. 

There was no improvement in parliament’s oversight of public spending. Scrutiny of public 
expenditure  remained  superficial  in  the  absence  of  a  specialised  committee  with  technical 
expertise to follow up reports from the Turkish Court of Accounts. 

Governance 

A government could not be formed after the 7 June election and an interim government took 
office  in  the  run  up  to  the  repeat  election.  The  outgoing  government  made  efforts  to 
reinvigorate  the  EU  accession  process,  which  needs  to  be  pursued  with  renewed 
determination.  The  outgoing  government’s  campaign  against  the  alleged  ‘parallel  structure’ 
within  the  state  was  actively  pursued,  at  times  encroaching  on  the  independence  of  the 
judiciary.  The  President  remained  engaged  in  a  wide  range  of  domestic  and  foreign  policy 
issues  which  led  within  Turkey  to  criticism  that  he  was  overstepping  constitutional 
prerogatives.  The  Kurdish  peace  process  effectively  came  to  a  halt  in  the  wake  of  a 
resurgence  of  violence  by  the  PKK  leading  to  an  extensive  governmental  response.  It  is 
imperative to resume the Kurdish peace process as a matter of urgency.  

In his first year as Turkey’s first directly elected President, Recep Tayyip Erdoğan remained 
actively  engaged  in  key  domestic  and  foreign  policy  issues.  His  priorities  included  the 
adoption  of  a  new  constitution  setting  up  a  presidential  system  of  governance  and  fighting 
against  the  alleged  ‘parallel  structure’  within  the  state  under  the  influence  of  the  Gülen 
Movement. On several occasions the President publicly challenged other institutions, notably 
the judiciary and the central bank. He made a number of statements against the media or other 
forms  of  expression.  The  opposition  criticised  the  President  for  overstepping  his  powers,  in 
particular for not keeping to the traditional conciliatory role assigned by the Constitution. A 
government  could  not  be  formed  after  the  7  June  election  and  an  interim  government  took 
office on 30 August in the run up to the repeat election. In the period before the elections, the 
outgoing  government  led  by  Prime  Minister  Davutoğlu  maintained  continuity  in  key  policy 
areas  and  put  emphasis  on  the  EU  accession  process.  It  implemented  its  communication 
strategy, including by holding a series of consultations with civil society across Turkey. Only 
a few reforms were introduced, and several pieces of legislation that were adopted, such as the 
internal security package, were not meeting key European standards.  

After initial positive developments in settling the Kurdish issue, the peace process effectively 
came  to  a  halt  in  July,  in  the  wake  of  a  resurgence  of  violence  by  the  PKK  and  the 
government's extensive response that followed. The government holds a key responsibility to 
create  the  conditions  for  the  resumption  of  the  peace  process  (see  Situation  in  the  east  and 
south-east).  

The  fight  against  the  alleged  ‘parallel  structure’  was  formally  included  in  the  governmental 
programme and in the agenda of the National Security Council. Significant reassignments and 
dismissals in the police, civil service and judiciary continued (see also Public administration 
reform).  Members  of  the  executive  made  public  statements  on  the  ongoing  judicial 
investigations targeting members of the alleged ‘parallel structure’, thus interfering with the 
independence  of  the  judiciary.  These  judicial  investigations  expanded  significantly,  with 
charges  ranging  from  illegal  wiretapping  and  espionage  to  belonging  to  an  armed  terror 
organisation. Any such allegation needs to be examined with due respect for the separation of 

9 

 
powers and the independence of the judiciary. Transparent procedures and due process need 
to be applied in line with the Constitution. 

Regarding  local  government,  fiscal  decentralisation  remains  limited  despite  the  2012 
amendment  to  the  Law  on  Metropolitan  Municipalities,  which  extended  the  scope  of 
municipalities’ powers. Municipalities need the necessary financial resources to carry out the 
responsibilities transferred to them. 

The  Ombudsman  was  active  and  has  built  up  its  capacity  of  handling  ordinary  cases  of 
maladministration. In 2014, it took decisions on 89 % of 7 167 complaints received. In 2015, 
the caseload increased sharply, reaching 25 000 at the end of August. Public administration 
improved its follow-up on the Ombudsman’s recommendations to 38 % in 2014 from 24 % in 
2013.  The  Ombudsman  lacks ex  officio  powers  to  initiate  investigations  and  to  intervene  in 
cases  with  legal  remedies.  The  institution  was  not  involved  in  cases  of  human  rights' 
violations in the east and south-east. 

The  legal  framework  insufficiently  protects  Turkey’s  eight  independent  regulatory 
authorities from undue political interference. Their work needs to become more transparent. 

Civil society 

Civil society has remained active, growing in numbers and continuing to be involved in many 
spheres of public life in Turkey, including electoral monitoring. Some progress was made in 
improving  cooperation  between  the  government  and  civil  society  organisations.  The 
authorities  have  continued  their  engagement,  albeit  to  a  lesser  degree,  with  organisations 
focused  on  human  rights.  Systematic  and  inclusive  mechanisms  for  consulting  civil  society 
need  to  be  put  in  place,  notably  on  new  legislation.  The  legal,  financial  and  administrative 
environment needs to be more conducive to the development of civil society. 

An empowered civil society is a crucial component of any democratic system and should be 
recognised  and  treated  as  such  by  the  state  institutions.  There  are  good  examples  of 
interaction  between  the  authorities  and  civil  society,  including  preparation  of  the  Tenth 
National Development Plan (2014-2018) and four well-attended meetings across the country 
focusing  on  EU  issues.  The  EU-Turkey  Civil  Society  Dialogue  programmes  have  now 
involved more than 1 650 Turkish civil society organisations (CSOs) with their counterparts 
in the EU. The programmes contribute to the development of civil society and enable greater 
recognition of CSOs at the local level. 

However,  in  the  absence  of  structured  arrangements  for  their  participation,  CSOs  have 
frequently  not  been  able  to  take  an  active  part  in  the  policy  and  legislative  processes. 
Systemic problems, such as restrictions on registering and the procedures for the authorisation 
and functioning of associations, need to be addressed. A number of CSOs have also continued 
to see their regular operations challenged through court closure cases, penalties, restrictions or 
discriminatory practices by public authorities. Restrictions on freedom of assembly remained 
a problem for segments of civil society (see freedom of association and freedom of assembly). 
In  some  cases  the  activities  of  human  rights  defenders  were  also  subject  to  penalties, 
investigations and court cases. 

Current  legislation,  including  tax  rules,  is  not  conducive  to  stimulating  private  donations  to 
CSOs. Civil society remains financially vulnerable and dependent on public project grants. At 
the same time, public funding has not been sufficiently transparent. 

Civilian oversight of the security forces 

10 

 
The  situation  in  this  area  remained  stable,  without  undue  interference  in  politics  by  the 
military.  Civilian  oversight  of  the  law  enforcement  duties  of  the  gendarmerie  was  widened. 
The military and intelligence services lack accountability in parliament. 

In  the  reporting  period,  the  armed  forces  did  not  exert  any  undue  influence  on  politics  and 
abstained from commenting on political issues beyond their professional remit. The Supreme 
Military  Council,  composed  of  civilian  and  military  leaders,  appointed  a  new  Chief  of  the 
General Staff and force commanders. The Chief of the General Staff continued to report to the 
Prime Minister rather than to the Minister of Defence. In March 2015, a High Criminal Court 
acquitted  all  defendants  in  the  re-trial  of  the  ‘Sledgehammer’  case  of  an  alleged  coup  plot. 
The judicial investigation into the 28 February ‘postmodern coup’ of 1997 continued. 

The  parliamentary  security  and  intelligence  committee  continued  to  have  a  very  limited 
oversight  mandate.  The  legal  framework  for  overseeing  military  expenditure  is  yet  to  be 
improved.  Access  to  audit  reports  from  the  Turkish  Court  of  Accounts  on  security,  defence 
and  intelligence  agencies  remains  constrained.  On  the  positive  side,  the  internal  security 
package  widened  civilian  oversight  of  the  law  enforcement  duties  of  the  gendarmerie.  The 
authority  to  appoint,  suspend  and  supervise  gendarmerie  personnel  in  the  provinces  was 
transferred from the Gendarmerie General Command to the Ministry of Interior. The Law on 
Provincial Administrations still provides for the involvement of the armed forces in domestic 
security operations without civilian oversight. 

2.2. 

Public administration reform 

Turkey is moderately prepared with the reform of its public administration. Some progress 
was made in the past year, mainly with service delivery to citizens and businesses, thanks to a 
strong commitment to a user-oriented administration. 

Turkey benefits from a strong public service and administrative capacity. However, political 
and  administrative  engagement  for  a  more  comprehensive  public  administration  reform 
remains a challenge. Recent dismissals and demotions in the context of the fight against the 
‘parallel structure’ were a source of concern. In the coming year, Turkey should in particular: 

→  focus  on  more  coordinated  management  of human resources,  including  introduction  of  a 
modern and integrated information system and more transparent procedures for recruitments, 
promotions and dismissals to safeguard merit-based principles; 

→ start to develop and systematically implement impact assessments to support policy- and 
law-making; 

→ allocate more funding to support strategic plans and legislative proposals. 

Public service and human resources management 

Turkey’s public service is regulated by the Law on Civil Servants which establishes several 
categories of civil servants covered by specific legal acts. Recruitments and promotions are 
in  principle  merit-based  following  mandatory  centralised  entry  examinations.  However, 
concerns remain as regards the application of the merit-based principle to senior management 
positions. As there is possible political influence during the oral interview phase of the entry 
examination  and  as  a  high  number  of  employees  have  been  converted  into  permanent  civil 
servants  without  entry  examinations,  the  credibility  of  the  system  is  undermined.  Female 
representation has slightly increased, reaching 36.5 % in the civil service and 9.7 % at senior 
management level in 2015. The 3 % quota for disabled persons could not be filled and more 
than  24 000  such  posts  remained  vacant.  Merit-based  principles  for  dismissals  have  been 
legally  established  and  procedures  are  in  place  to  allow  dismissed  civil  servants  to  appeal. 

11 

 
However,  the  recent  dismissals  and  demotions  of  a  significant  number  of  civil  servants  in 
managerial positions on grounds of alleged participation in the ‘parallel structure’ within state 
institutions are a source of concern. 

The  State  Personnel  Administration,  under  the  supervision  of  the  Ministry  of  Labour  and 
Social  Security,  has  the  central  coordination  responsibility  for  the  management  of  human 
resources. However, it lacks the coordination and monitoring capacity to ensure that modern 
human  resources  management  standards  are  systematically  implemented.  Human  resources 
management  units  are  in  place  in  various  services,  but  implement  different  approaches.  A 
modern  human  resources  management  information  system  providing  real-time  data  on  the 
civil service is necessary to ensure efficient overall management of the civil service. The civil 
service remuneration  system is regulated according to the principle of equal pay for  equal 
work.  In  practice,  however,  there  are  some  flaws  when  it  comes  to  transparency.  Training 
strategies  and  plans  are  in  place  to  ensure  professional  development  of  civil  servants,  but 
they could be further improved. 

Turkey has established an ethics board for civil servants in the Prime Ministry and has set up 
ethics committees in public authorities to foster integrity in the civil service. The Criminal 
Code  criminalises  active  and  passive  bribery,  corruption  and  abuse  of  office.  Disciplinary 
procedures are regulated in the Law on Civil Servants. However, there are no integrity plans 
in  place.  In  addition,  the  existing  system  of  asset  declaration  and  disclosure,  conflict  of 
interest and post-employment of civil servants fails to actively promote integrity in the civil 
service. 

Policy development and coordination 

Turkey has the legal and institutional structure in place to ensure a consistent policy-making 
system,  including  on  European  integration.  Policy  coordination  among  central  government 
units is generally strong. However, there is no coordinated annual planning and monitoring of 
whole-of-government performance. Sectoral strategies are not developed in a uniform manner 
and 
their 
implementation, in case budgetary needs have been underestimated. 

they  are  not  systematically  costed, 

therefore  potentially 

jeopardising 

Current  arrangements  partially  ensure  that  policy  and  legislative  development  is  inclusive 
and  evidence-based.  Ministries  have  well-developed  capacities  with  dedicated  policy  and 
legal units. The Ministry for European Affairs, in coordination with the Directorates-General 
for  EU  Affairs  in  relevant  ministries,  has  developed  a  well-functioning  system  to  steer 
alignment  with  the  acquis,  the  body  of  EU  law.  A  regulatory  obligation  exists  for  inter-
ministerial  and  public  consultations  on  draft  policies  and  legislation,  but  in  practice  public 
consultations  are  neither  systematically  organised  nor  monitored.  Regulatory  impact 
assessments  are  also  not  systematically  carried  out,  despite  the  legal  requirement.  Financial 
impact assessments are not generally published for strategy documents. Ensuring the quality 
and uniform application of impact assessments is a key challenge. 

Public  scrutiny  of  government  work  is  weak  and  parliamentary  scrutiny  suffers  from  the 
limited capacity of the parliamentary committees. The oversight role has been weakened by 
the government’s slow response to parliamentary questions. 

Accountability of the administration 

The state administration is organised in a hierarchical and rational way. Ministries report to 
the  Council  of  Ministers  and  constitutional  bodies  to  the  parliament.  Public  agencies  have 
clearly  established  lines  of  accountability  to  their  parent  institutions.  State  institutions  are 
required  to  submit  annual  accountability  reports  on  the  use  of  resources  to  achieve  targets. 
These  reports  are,  however,  not  specifically  followed  up  by  the  Council  of  Ministers. 

12 

 
Regarding  lines  of  accountability  within  institutions,  there  is  a  culture  of  managerial 
accountability and delegation of responsibilities (see Chapter 32). Legal privileges granted to 
public  officials,  notably  the  requirement  for  prior  authorisation  from  their  administrative 
hierarchy, continue to protect public officials from criminal and administrative investigations. 

The relevant internal and external oversight arrangements are in place to ensure the citizens' 
right  to  good  administration.  The  Ombudsman’s  active  approach  in  this  area  is  a  positive 
development.  In  2014  the  administration  improved  its  follow-up  of  the  Ombudsman’s 
recommendations (See Governance). The right to access public information is regulated by 
the law on the right to information. Broad exemptions are, however, allowed on the grounds 
of protecting state secrets, commercial secrets and personal data. There is no central body or 
independent commissioner to oversee the implementation of the law.  

The  right  to  administrative  justice  and  fair  treatment  is  regulated  in  the  Code  of 
Administrative  Procedures.  Administrative  disputes  are  dealt  with  by  the  administrative 
courts, tax courts, regional administrative courts and the Council of State. The efficiency of 
administrative  courts  is  considered  to  be  high.  The  Constitution  ensures  public  liability  and 
the  right  to  seek  compensation,  but  practical  application  is  difficult  to  assess  since  no 
institution is responsible for collecting the relevant data. 

Public financial management 

Turkey  has  pursued  reforms  in  various  public  finance  areas,  but  there  is  no  overarching 
public  financial  management  reform  programme  that  would  better  ensure  sequencing  of 
these  reforms.  The  annual  budget  is  prepared  as  part  of  the  medium-term  budgetary 
framework.  Overall  fiscal  discipline  is  ensured despite  the  absence  of  an  independent  fiscal 
council.  The  main  elements  for  ensuring  budget  transparency  are  in  place  as  the  annual 
financial report includes full information and is made available to parliament on time. Since 
January a new accounting regulation aims to improve financial reporting during the year and 
provides  a  new  format  for  end-of-year  reporting.  Revolving  funds  are  a  specific  cause  of 
concern  as  they  are  not  included  in  the  annual  budget  process  or  in  the  Treasury  single 
account. 

Service delivery to citizens and businesses 

Turkey  has  a  strong  commitment  to  a  user-oriented  administration,  in  particular  by 
expanding e-government services. The number of services provided through the e-government 
gateway has doubled over the past two years. At the end of 2014 a quarter of the population 
was  using  the  e-services,  and  public  satisfaction  rate  with  them  is  high.  General  access  to 
public  services  is  good  but  disabled  persons’  access  to  public  services,  including  public 
buildings, remained low.  

In  the  absence  of  a  law  on  general  administrative  procedures,  the  legal  framework  on 
administrative  procedures  is  very  fragmented.  Further  efforts  are  needed  to  simplify 
administrative procedures. 

Strategic framework for public administration reform 

Turkey has no overarching strategy for public administration reform but several planning 
documents, especially the 10th development plan, its 2014 annual programme and the strategic 
plans  of  the  institutions,  cover  a  number  of  relevant  areas.  Political  support  and 
administrative impetus for a more comprehensive reform agenda are a challenge. There is no 
cross-cutting  system  for  monitoring  and  reporting  on  the  planning  documents,  since 
management of public administration reform is highly decentralised and the department in the 

13 

 
Prime Ministry responsible for strengthening the administration lacks sufficient coordination 
mandate and capacity.  

Financial sustainability of the overall public administration reform is not ensured, as the key 
planning  documents  do  not  specify  the  expected  costs.  They  are  also  not  reflected  in  the 
medium-term expenditure framework. 

2.3. 

Rule of law 

Functioning of the judiciary 

Turkey’s  judicial  system  reached  some  level  of  preparation.  Between  2007  and  2013,  the 
judicial  system  had  achieved  significant  improvements,  related  to  its  independence,  the 
quality of trials, juvenile justice, a substantial reduction in use of police custody, more limited 
use of pre-trial detention, and respect for human and fundamental rights, including abiding by 
the case law of the European Court of Human Rights (ECtHR). Turkey also worked towards 
making  the  judiciary  more  efficient,  achieving  some  real  successes  such  as  wider  use  of 
information and communication technologies. 

However, there has been no progress since early 2014. The independence of the judiciary and 
respect  of  the  principle  of  separation  of  powers  have  been  undermined  and  judges  and 
prosecutors have been under strong political pressure. In the coming year, Turkey should in 
particular: 

→ create a political and legal environment that allows the judiciary to perform its duties in an 
independent  and  impartial  manner,  with  the  executive  and  legislature  fully  respecting  the 
separation of powers; 

→  limit  the  role  and  influence  of  executive  power  within  the  High  Council  of  Judges  and 
Prosecutors and provide sufficient guarantees against transfers of judges against their will; 

→  introduce  further  safeguards  against  any  interference  by  the  High  Council  of  Judges  and 
Prosecutors in judicial proceedings. 

Strategic documents 

A revised judicial reform strategy was adopted in April 2015. The strategy targets the main 
shortcomings  of  the  judicial  system.  However,  it  is  a  very  general  planning  document, 
specifying  lead  institutions  and  broad  timelines,  but  providing  only  limited  detail  on 
envisaged steps and actions and no assessment of budgetary implications.  

Management bodies 

The  High  Council  of  Judges  and  Prosecutors  (HSYK)  is  the  key  institution  managing  the 
judiciary.  It  is  responsible  for  appointing,  transferring,  promoting,  suspending  and 
dismissing  judges  and  prosecutors,  as  well  as  for  dealing  with  disciplinary  issues.  The 
Council  also  renders  final  decisions  on  Ministry  of  Justice  proposals  to  abolish  a  court  or 
change a court’s jurisdiction. 15 of the HSYK’s 22 members are chosen from among judges 
and  prosecutors.  The  Council  independently  administers  a  budget  of  EUR  12.5  million. 
HSYK  is  supported  by  a  well-staffed  office  led  by  a  Secretary-General.  However,  annual 
reports, minutes of meetings and other relevant documents are not published. 

Between  2007  and  2013  the  process  of  judicial  reform  in  Turkey  has  progressed  towards 
implementing European standards of effectiveness, independence and impartiality. The most 
important  building  block  was  the  reform  of  the  HSYK  in  2010.  However,  following 
legislative changes in 2014 and personnel changes in the Council, the executive reasserted its 
influence over the Council. As ex officio members, the Minister of Justice, acting as president 

14 

 
of  the  Council,  and  his  Undersecretary  play  an  extensive  role  in  the  work  of  the  HSYK, 
particularly on disciplinary issues and transfers. The 2014 legislation also gave the Minister 
increased powers to appoint the staff of the Council’s secretariat. More transparency in the 
work of HSYK and its strict adherence to procedures are needed to strengthen its credibility 
and trust in the judiciary. 

Independence and impartiality 

Judicial independence and impartiality are enshrined in the Constitution and the law. On the 
basis of the existing legislation, an electronic system allocates cases to the courts and judges 
which  is  though  not  entirely  random.  However,  in  practice,  there  are  numerous  reports  of 
selective  justice  and  political  interference  in  court  cases.  Representatives  of  the  executive 
have continued to publicly undermine the credibility of the judiciary as a whole. 

The  strong  role  of  representatives  of  the  executive  in  the  HSYK  raises  concerns  about  the 
Council’s  independence.  Decisions  to  launch  disciplinary  proceedings  against  judges  and 
public prosecutors, as well as the annual routine inspection schemes, require approval by the 
Minister  of  Justice  who,  as  ex  officio  president  of  the  Council,  supervises  the  inspection 
board.  The  Minister’s  power,  again  as  ex  officio  president  of  the  Council,  to  appoint  the 
personnel  of  the  Council  secretariat  also  undermines  the  Council’s  independence.  There  are 
important  limitations to the principle of immovability of judges. Accusations  of  conspiracy 
by  the  executive  in  the  fight  against  the  ‘parallel  structure’  led  to  a  high  number  of  judges 
being  transferred  against  their  will  in  the  past  two  years.  With  the  exception  of  dismissals, 
HSYK decisions such as transfers of judges against their will are not open to judicial review. 
A number of disciplinary and criminal cases against judges and prosecutors have lacked due 
process,  and  in  some  instances  have  been  based  on  their  rulings.  This  contradicted  basic 
principles of the rule of law and considerably undermined the independence of the judiciary. 
(See Chapter 23) 

Accountability 

There  is  no  code  of  ethics  for  judges  and  prosecutors.  Lawyers  have  to  abide  by  the 
professional principles of the Union of Turkish Bar Associations. Integrity training is part of 
the curriculum for initial training but is not a criterion in the initial selection and nomination 
process,  or  in  the  appointments  to  senior  positions.  The  HSYK  inspection  board  is  the 
authority  responsible  for  launching  disciplinary  proceedings  and  for  taking  decisions  on 
disciplinary and ethical matters. In 2013, 2014 and 2015, respectively, 13, 6 and 9 judges 
and  prosecutors  were  dismissed.  All  judges/judges  of  High  Courts,  including  members  of 
HSYK, have to declare their assets. 

Professionalism and competence 

Candidates  to  become  judges  and  prosecutors  are  recruited  through  a  combination  of  a 
written  examination  and  an  interview.  The  interview  is  conducted  by  a  board  of  seven 
members. Currently, five of them are senior officials of the Ministry of Justice and the other 
two come from the Justice Academy. The HSYK does not play any role in this process.  

The  HSYK  exercises  the  power  to appoint  and  transfer  judges  and  public  prosecutors.  The 
Undersecretary of the Ministry of Justice has full voting rights on these issues. The HSYK is 
also  responsible  for  evaluating  the  performance  of  and  promoting  judges  and  prosecutors. 
Assessment  criteria  for  the  promotion  process  are  published  in  the  Official  Gazette.  The 
HSYK  can  also  dismiss  a  judge  or  prosecutor  from  his  profession  following  a  specified 
procedure.  The  dismissed  judge  or  prosecutor  has  the  right  to  appeal  to  judicial  bodies. 
However, there have been numerous cases of dismissals being processed hastily. 

15 

 
Quality of justice 

Pre-service and in-service training of candidate judges and prosecutors is given by the Justice 
Academy.  The  executive  appoints  the  President  of  the  academy  and  deputies,  following  the 
2014 February legislative changes. There is no strategy for developing systematic training for 
legal practitioners and increasing the capacity of the academy.  

With  11.9  professional  judges  and  6.2  prosecutors  per  100 000  inhabitants  and  a  budget  of 
EUR 3.2 billion in 2015, representing 0.5% of GDP and 42 € per inhabitant, the judiciary’s 
human and financial resources in 2015 seem proportionate to the challenges. 

Mediation  and  other  various  alternative  dispute  resolution  mechanisms  are  in  place  but  are 
only marginally used. Overall, the quality of judicial decisions has improved in recent years, 
but the weak reasoning and poor quality of certain indictments – without appropriate selection 
and  assessment  of  relevance  of  evidence  to  support  the  case  –  remain  a  serious  criminal 
justice  issue  (e.g.  in  terrorism-related  cases).  Consideration  is  being  given  to  establishing  a 
court of appeals, which would help ensure consistency of case law. 

Courts  across  the  country  tend  to  have  modern  ICT  equipment.  In  most  courts,  cases  are 
assigned through an automated IT system which offers lawyers and parties protected access to 
important  information  about  judicial  proceedings,  and  is  used  for  the  purpose  of  statistical 
reporting.  Turkey  has  observer  status  in  the  European  Judicial  Training  Network  (EJTN). 
However, Courts do not issue regular activity reports.  

Efficiency 

In general, the Turkish judicial system has the capacity to handle the caseload it receives. In 
2012, the backlogs of civil, criminal and administrative cases were reduced, with a clearance 
rate,  at  first  instance,  at  116%  for  civil  cases,  127%  for  administrative  cases  and  108%  for 
criminal cases. However, comparable data for the years 2013 and 2014 are not available and 
this positive trend cannot at present be confirmed. The heavy and increasing workload of the 
court of cassation supports the ongoing reflection on creating an appellate court system. The 
issue  of  length  of  proceedings  has  been  a  long-standing  problem  in  the  Turkish  judiciary. 
Additionally,  public  authorities’  disrespect  towards  some  court  rulings  has  also  a  negative 
impact on their enforcement. 

Reflecting  the  size  of  the  country,  the  judicial  network  is  complex.  There  is  a  sufficient 
number of support staff but no human resources management strategy exists.  

Fight against corruption 

Turkey has reached some level of preparation in the fight against corruption. No progress 
has  been  achieved  in  the  past  year,  in  the  absence  of  legislative  developments  on  public 
transparency.  Corruption  perception  remains  widespread.  The  legal  and  institutional 
framework that allows undue influence by the executive in the investigation and prosecution 
of high-profile corruption cases constitutes a major source of concern. Turkey does not have 
an  independent  anti-corruption  body.  A  broad  political  consensus  is  required  to  tackle 
corruption properly. In the coming year, Turkey should in particular: 

→  strengthen  the  independence  of  prosecution  and  law  enforcement  agencies  in  high-level 
corruption cases; 

→  adopt  legislation  ensuring  deterrent  sanctions  for  corruption  offences  and  ensure  their 
effective enforcement; 

16 

 
→  adopt  an  updated  anti-corruption  strategy  and  action  plan  setting  out  a  clear  vision  and 
selecting a realistic number of priorities to tackle corruption effectively as well as establish an 
independent anti-corruption body in line with UNCAC provisions. 

Track record 

The  track  record  of  investigations,  prosecutions  and  convictions  remained  inadequate. 
This  was  particularly  true  of  high-level  corruption  cases  implicating  political  figures.  
Prosecutions  in  such  cases,  including  the  Deniz  Feneri  case  and  the  December  2013 
corruption  investigations,  resulted  in  no  convictions.  Serious  concerns  remain  over  the 
effectiveness of these investigations due to interference by the executive. Political authorities 
should ensure law enforcement bodies are fully empowered to act effectively and impartially 
when investigating corruption allegations. 

A  total  of  279 574  corruption  investigations  were  conducted  in  2014,  leading  to  64 239 
convictions.  Public  procurement  —  in  particular  concessions  and  public  and  private 
partnerships — as well as land administration, energy, construction and transportation remain 
particularly vulnerable to corruption. 

Financial  investigations  are  not  conducted  systematically  in  cases  of  corruption  and 
organised crime. The freezing of alleged criminal assets as a protective measure continued to 
work effectively. The number of corruption cases in which criminal assets were confiscated 
increased from 11 048 in 2013 to 12 324 in 2014. The level of detection and investigation of 
foreign  bribery  offences  remained  limited.  With  few  exceptions,  sentences  are  not  deterrent 
and courts defer judgments on major corruption offences. 

Political  influence  on  judges  and  prosecutors  and  other  law  enforcement  officers  was  a 
serious  cause  of  concern  as  politicians  continued  to  frequently  publicly  criticise  and  exert 
pressure  on  ongoing  corruption  investigations.  This  was  exemplified  by  the  removal, 
suspension or subsequent prosecution of judges, prosecutors and law enforcement officers, in 
particular  those  who  led  the  17-25 December 2013  corruption  investigations  and  the  Deniz 
Feneri case. 

The  Constitutional  Court  was  systematically  late  with  its  decisions  on  external  financial 
audits,  publishing  its  financial  audit  decisions  on  AKP  and  CHP  2010  accounts  only  in 
December  2014  (see  also  Chapter  23-  Judiciary  and  fundamental  rights).  In  the  past  five 
years  no  political  party  has  been  referred  to  the  Public  Prosecutor  for  violating  the  party 
financing provisions of the Law on Political Parties. 

The  existing  system  of  asset  declaration  and  verification  has  limited  scope  and  asset 
declarations  are  not  made  public.  In  2014,  nine  public  officials  were  convicted  and  42 
acquitted on charges of illicitly acquiring or concealing property. One judgment was deferred. 
Turkey still needs to establish a proper asset disclosure and conflict of interest mechanism.  
Whistle-blowing is rare given the inadequate protection provided by the current law. 

The  track  record  of  access  to  information  is  positive.  In  2014,  only  2.7 %  of  requests  for 
access to information were refused, against 3.4 % in 2013. The share of appeals refused by the 
Board of Review of the Access to Information fell from 50.6 % in 2013 to 36.3 % in 2014. 
However,  at  just  a  quarter  of  the  population,  public  awareness  of  the  right  to  information 
remained low. Protection of state secrets, commercial secrets and individual privacy were the 
most common grounds for refusing information requests. 

Institutional framework 

17 

 
 
On prevention of corruption, an independent anti-corruption body has not been established 
yet. The inadequate policy coordination among the various institutions in charge of preventing 
corruption constitutes a major impediment to the effectiveness of the anti-corruption policy. 
The  Prime  Ministry  Inspection  Board  coordinates  preventive  anti-corruption  measures. 
However, the board lacks both independence and ex officio investigation powers. The Prime 
Ministry Communications Centre (BIMER) continued to act as the primary body for receiving 
corruption  and  maladministration  complaints.  In  2014  alone,  the  centre  received  more  than 
460 000  complaints,  95 %  of  which  were  submitted  online  or  via  a  hotline.  Anti-corruption 
awareness-raising  campaigns  have  not  been  conducted  on  a  systematic  basis.  The 
Ombudsman remained silent on corruption. No comprehensive policy is in place yet to fight 
corruption in the private sector. 

As regards the law enforcement and prosecution side, the country lacks a specialised court 
and prosecution service designated by the Supreme Board of Judges and Prosecutors (HSYK) 
with  the  permanent  authority  to  deal  with  anti-corruption  investigations.  In  addition  to  the 
lack  of  independence  of  the  HSYK  and  law  enforcement  officers,  the  existing  legal 
framework  prevents  effective  anti-corruption  investigations.  Information-sharing  between 
police and the Financial Intelligence Unit is automated and electronic access to databases by 
the relevant agencies is broadly in place. 

Legal framework 

Although  passive  and  active  bribery  are  defined  in  the  Criminal  Code,  the  definition  of  the 
latter  is  not  in  line  with  the  recommendations  of  the  Group  of  States  against  Corruption 
(GRECO).  The  legislation  on  political  party  and  electoral  campaign  financing  is  deficient. 
The parliamentary elections in June and November 2015 took place in a legal and institutional 
context in which individual persons such as party candidates and independent candidates were 
not  subject  to  any  of  the  transparency  requirements  that  apply  to  political  parties.  Due  to 
numerous  exceptions  allowed  by  the  public  procurement  law,  public  tenders  remain 
particularly  vulnerable  to  corruption.  In  the  Penal  Code  as  amended  in  2013,  penalties 
imposed for bid-rigging are not deterrent and suspects convicted of tender-rigging charges can 
benefit from deferred judgments. These were applied to 572 convicts in 2014. Anti-corruption 
legislation is inadequate to prevent, prosecute and penalise conflicts of interest effectively and 
to ensure that asset declarations become an effective tool in the fight against corruption. The 
penalties for these offences are not deterrent and enforcement remains weak. Turkey has no 
legislation  governing  lobbying.  Frequent  changes  to  protective  measures  in  the  Criminal 
Procedures  Code,  such  as  legal  limitations  on  probation,  arrest,  search  and  confiscation, 
hamper the effectiveness of investigations. 

Turkey is party to the UN Convention  against Corruption  and has criminalised the unfair 
acquisition of property by public officials. The first implementation review was published in 
June.  The  country  signed  and  ratified  the  relevant  Council  of  Europe  anti-corruption 
conventions and the OECD Convention on Combating Bribery of Foreign Public Officials in 
International Business Transactions. However, the OECD’s Foreign Bribery Report published 
in December 2014 expressed concern over Turkey’s limited enforcement of the foreign anti-
bribery legislation. 

Strategic framework 

The initial objectives set out in the 2010-2014 anti-corruption strategy and action plan have 
not  been  met  in  the  absence  of  legislative  developments  on  public  transparency.  The  initial 
action plan highlighted a total of 28 preventive, enforcement and awareness-raising measures. 
Initial objectives such as revising the legislation on state and trade secrets, public procurement 
and the permission system in investigations related to public officials have not been addressed 

18 

 
so  far.  Civil  society  has  participated  only  marginally  in  the  implementation  of  the  strategy. 
There was no transparency in the work of the working groups as reports on their work are not 
public. Turkey has not updated its anti-corruption strategy or action plan. 

Fight against organised crime 

Turkey has achieved some level of preparation in the fight against organised crime. Some 
progress has been made over the past year to increase investigation capacity and adopt and 
implement new strategies in the field. 

However, statistics on the number of final convictions and other important indicators are not 
available.  Financial  investigations  remain  under-used.  Precautionary  freezing  of  assets  is 
rarely applied and the level of assets confiscated is low. In the coming year, Turkey should in 
particular: 

→  adopt  sound  data  protection  legislation  in  line  with  European  standards  to  create  the 
conditions for efficient and effective international police and  judicial cooperation, including 
with Europol and Eurojust; 

→ take measures to improve its track record, in particular by dismantling criminal networks 
and confiscating criminal assets; 

→  collect  and  use  appropriate  aggregate  statistics  to  facilitate  threat  assessment,  policy 
development and implementation. 

Track record 

There are no statistics available for final convictions for serious and organised crime. Police 
carried out 61 operations in 2015 compared with 65 in 2014 and almost the double in 2013 for 
illegal possession of guns. The number of arrested suspects was 69, substantially less than in 
previous years (129 in 2014 and 653 in 2013).  The number of migrants’ smugglers in 2014 
was  803,  most  of  them  (624)  of  Turkish  nationality.  The  number  of  suspicious  transaction 
reports submitted to the Financial Crimes Investigation Board was 36 483 in 2014 compared 
with 25 592 in 2013; those on terrorism financing was 1 159 in the first semester of 2015 and 
744 in 2014. There are no available statistics on trafficking in  human beings, investigations 
and  convictions  for  money  laundering,  precautionary  freezing  of  assets  during  the  initial 
phase  of  investigations  or  confiscation  of  criminal  assets.  The  Turkish  law  enforcement 
authorities detained 117 686 suspects in 2014 in relation to 77 664 drug related crimes.  

Institutional and operational capacity 

Turkey has 432 768 police officers which corresponds to 557 per 100 000 inhabitants. Initial 
and in-service training is provided by the police academy. However,  its capacity to provide 
specialised training is limited.  

Specialised units are in place to combat terrorism and trafficking in human beings, drugs and 
cybercrime,  and  for  witness  protection  and  financial  investigations.  Specialisation  and 
effectiveness  need  to  be  developed  through  training  and  retention  of  staff  in  the  respective 
units.  The  general  level  of  police  equipment  is  good  in  terms  of  vehicles,  radio 
communication  systems,  software,  hardware  and  premises.  However,  as  part  of  the 
government's  response  to  anti-corruption  allegations  in  December  2013,  the  national  police 
faced  a  high  number  of  staff  changes  and  reassignments  as  well  as  arrests  and  suspensions, 
which have impacted on the effective functioning of the relevant institutions. 

19 

 
 
 
The  various  law  enforcement  agencies  have  numerous  databases,  for  example  on  passports, 
human trafficking and gun licences. However, clear procedures governing mutual access and 
data  sharing  are  lacking.  Further  specialisation  of  courts  to  deal  with  organised  crime  is 
needed.  Inter-agency  cooperation  on  the  ground  needs  to  be  improved.  An  operational 
agreement with Europol is not in place due to the lack of data protection legislation in line 
with  European  standards.  This  is  despite  Turkey  having  concluded  a  strategic  cooperation 
agreement with Europol in July 2004. International cooperation needs to be stepped up. There 
have been only a few cases of successful international cooperation on asset confiscation in the 
past five years despite requests for assistance in many cases. 

Since  a  Law  on  Witness  Protection  was  adopted  in  January  2008,  witness  protection  units 
have  been  established  under  the  national  police  and  Gendarmerie  General  Command  in  78 
provinces.  A  Witness  Protection  Board  composed  of  11  officials  decides  whether  to  launch 
protection measures. The witness protection law is applicable to crimes punishable by solitary 
confinement  for  life,  life  imprisonment  and  imprisonment  for  10  years  or  more,  as  well  as 
crimes committed as part of a criminal  organisation as  defined  in the  Penal Code  and  other 
laws  with  criminal  provisions.  There  were  185  people  enrolled  in  the  witness  protection 
scheme.  The  police  and  judiciary  have  signed  a  memorandum  of  understanding;  however, 
their respective roles need to be defined more clearly to improve coordination.  

In  the  fight  against  cybercrime,  Turkey  established  a  24/7  contact  point  in  the  national 
police  in  line  with  the  Council  of  Europe  Convention  on  Cybercrime  ratified  in  May  2014. 
Turkey signed the Council of Europe Convention for the Protection of Individuals with regard 
to  Automatic  Processing  of  Personal  Data  in  January  1981  but  has  yet  to  ratify  it.  An 
amendment 
the  Telecommunications 
Communications Presidency to remove or block access to content within four hours without a 
court order is a matter of concern (see also political criteria and Chapter 23 on Judiciary and 
fundamental rights). 

in  March  2015  allowing 

internet 

law 

the 

to 

A National Cyber Security Council including senior representatives from relevant ministries 
and  institutions  has  been  set  up.  The  Council  has  been  tasked  with  developing  a  national 
policy to counter the cybercrime  threat and, in particular, to defend key strategic assets and 
raise  public  awareness.  The  strategy  and  action  plan  on  cyber  security  (2013-2014)  are 
currently being updated, with the Ministry of Transport coordinating. 

A  financial  intelligence  unit  is  in  place  within MASAK,  the  Financial  Crimes  Investigation 
Board.  The  number  of  suspicious  transactions  analysed  by  the  board  has  been  rising  every 
year.  The  board  has  increased  the  number  of  investigation  staff  and  is  upgrading  its  IT 
infrastructure.  Currently,  it  collects  crime  statistics  on  an  annual  basis.    Information  on 
suspicious  transactions  is  used  to  help  improve  threat  assessments  and  the  development  of 
national policies and strategies. 

Legal framework 

The  Criminal  Code  is  largely  in  line  with  the  acquis  covering  specific  types  of  crimes.  A 
number  of  shortcomings  in  the  investigation  phase  need  to  be  addressed,  including  the 
timeline and detailed arrangements for using special investigation measures. The investigative 
powers  of  the  border  police  and  customs  remain  very  limited  and  highly  dependent  on  the 
police. The law on confiscation of criminal assets is partially in line with the acquis. Rules on 
third-party confiscation and extended confiscation and precautionary freezing of assets need 
to be aligned. 

The legislation to combat money laundering and financing of terrorism is largely in line with 
the recommendations of the Financial Action Task Force, which has removed Turkey from its 

20 

 
permanent monitoring process. Turkey has committed to work with the task force to address 
all issues identified in its mutual evaluation report. 

Strategic framework 

Turkey is providing input to the Serious and Organised Crime Threat Assessment, although it 
has not yet adopted Europol’s reporting methodology. Turkey is implementing its 2010-2015 
national strategy and 2013-2015 action plan against organised crime under the coordination of 
the Ministry of Interior. 

On  drugs,  Turkey  is  implementing  its  2013-2018  national  strategy  against  drugs  and  2013-
2015 action plan under the coordination of the national police. The strategy and action plan 
address topics such as coordination, reduction of supply, prevention, treatment, rehabilitation, 
harm reduction, international cooperation, data collection, research and assessment. Following 
a Prime Ministry circular of November 2014, an anti-drug emergency action plan has entered 
into force with a number of complementary objectives. 

Turkey is currently updating its 2013-2014 strategy and action plan on cyber security in order 
to identify and address emerging cyber threats. 

A  comprehensive  multi-disciplinary  and  victim-oriented  approach  to  human  trafficking 
remains to be developed. 

Fight against terrorism 

Turkey  was  struck  by  the  deadliest  terrorist  attack  in  its  modern  history,  on  10  October  in 
Ankara, an attack which followed a similar pattern to the one in Suruç in July, which claimed 
more than 30 lives and was attributed to Da'esh. 

Turkey has in recent months been giving priority to the PKK in its efforts to fight terrorism, 
particularly following a severe surge of violence in the country since July. The PKK remains 
on  the  EU  list  of  terrorist  organisations.  Turkey  is  legitimate  to  defend  itself  against  such 
terrorist violence, but measures taken need to be proportionate (see Situation in the east and 
south  east).  Turkey  joined  the  international  coalition  against  Da'esh  in  September  2014. 
Following  the  Da'esh  attributed  terrorist  attack  in  Suruç  in  July,  Turkey  strengthened  its 
engagement  with  the  coalition  and  launched  several  air-strikes  against  Da'esh  positions  in 
Syria. It also reached an agreement with the US on the use of Incirlik base for the coalition 
forces.  Turkey  has  been  seriously  affected  by  the  phenomenon  of  foreign  terrorist  fighters 
transiting through the country and is a source for terrorist fighters. It has improved its regime 
for combating the financing of terrorism. Turkey’s active counter-terrorism dialogue with the 
EU  has  continued,  with  particular  attention  paid  to  foreign  terrorist  fighters  on  which  an 
experts’  meeting  was  held  in  June.  The  phenomenon  of  foreign  terrorist  fighters  needs  a 
dedicated  approach  by  the  intelligence  and  law  enforcement  community  and  a  consistent 
judicial  policy.  A  comprehensive  strategy  is  needed  to  effectively  prevent  and  counter 
radicalisation.  This  needs  to  be  done  in  close  cooperation  with  religious  leaders  and 
communities, social workers, the education system and youth organisations.  

2.4. 

Human rights and the protection of minorities 

Overall situation 

Turkey’s Constitution guarantees the protection of human rights and fundamental freedoms. 
Implementation had considerably improved in the last decade. However, major shortcomings 
remain.  The  enforcement  of  rights  stemming  from  the  European  Convention  on  Human 
Rights (ECHR) and the case law of the European Court of Human Rights (ECtHR) is not yet 
fully ensured. There was significant backsliding in the past two years notably in the areas of 

21 

 
freedom of expression and freedom of assembly. Legislation on internal security was adopted 
which contradicts the measures outlined in the March 2014 action plan on the prevention of 
violations of ECHR by granting broad discretionary powers to the law enforcement agencies 
without  adequate  judicial  or  independent  parliamentary  oversight.  Most  recently,  the 
escalation of violence in the east and south east since July gave rise to serious concerns over 
human rights violations. Anti-terror measures taken in this context need to be proportionate. 
Turkey  should  widen  the  scope  and  improve  the  monitoring  of  the  implementation  of  the 
action plan to cover all rights and the case law of the ECtHR. 

Shortcomings particularly affect the following areas: 

•   Freedom  of  expression  is  frequently  challenged,  in  particular  through  arbitrary  and 
restrictive interpretation of the legislation, political pressure, dismissals and frequent court 
cases against journalists which also lead to self-censorship. 

•   Freedom  of  assembly  is  overly  restricted,  in  law  and  practice,  in  particular  through 
disproportionate  use  of  force  in  policing  demonstrations  and  a  lack  of  sanctions  for  law 
enforcement officers. 

•   Non-discrimination is not sufficiently enforced, in law and in practice, and the rights of the 
most vulnerable groups and of persons belonging to minorities are not sufficiently upheld. 
Gender-based violence, discrimination and hate speech against minorities, and respect for 
the  rights  of  lesbian,  gay,  bisexual,  transgender  and  intersex  (LGBTI)  persons  are  major 
areas of concern. 

•   Criminal  and  anti-terror  legislation  is  not  yet  in  line  with  the  ECtHR  case  law  and  the 

proportionality principle needs to be observed in practice. 

In line with the new reporting methodology, a detailed analysis of freedom of expression as a 
pilot area follows below. For a detailed analysis of developments on other human rights and 
the  protection  of  minorities,  see  Chapter  23  —  Judiciary  and  fundamental  rights.  For 
developments in the areas of trade union rights, non-discrimination and equal opportunities, 
see also Chapter 19 — Social policy and employment. 

Freedom of expression 

The country has reached some level of preparation on respect for freedom of expression, the 
media  and  the  internet.  After  several  years  of  progress,  serious  backsliding  has  been  seen 
over the past two years. While in recent years it had been possible to discuss some sensitive 
and  controversial  issues  in  a  free  environment,  ongoing  and  new  criminal  cases  against 
journalists, writers or social media users are of serious concern. Changes to the internet law, 
which  are  a  significant  step  back  from  European  standards,  increased  the  government’s 
powers  to  block  content  without  court  order  on  an  unduly  wide  range  of  grounds.  In 
addressing  the  shortcomings  outlined  here,  in  the  coming  year  the  country  should  in 
particular: 

→  act  against  intimidation  of  journalists  in  all  its  forms:  notably  investigate  all  physical 
attacks and threats against journalists and actively prevent attacks on media outlets but also 
defuse the tense political climate which creates an environment curtailing freedom of speech 
in the media and on the internet; 

→ ensure that defamation law and other similar offenses are not used as a means of putting 
pressure on critics by ensuring courts are fully aware of and apply the case law of the ECtHR; 

→ ensure that existing legislation notably the internet law complies with European standards 
and is implemented in a manner which ensures proportionality and equality before the law. 

22 

 
Intimidation of journalists 

While  the  number  of  journalists  in  prison  in  Turkey  decreased  significantly  since  2011,  it 
currently still exceeds 20, many of whom face or were convicted for charges under the anti-
terror law. A high number of arrests, hearings, detentions, prosecutions as well as censorship 
cases and layoffs occurred, as the government maintained a strong pressure on media. Several 
international  journalists  were  deported.  Frequent  threats  and  various  types  of  intimidation 
from state and non-state agents against journalists and media outlets continue to be an issue of 
serious  concern.  Sporadic  physical  attacks  against  journalists  have  taken  place,  which  are 
being investigated by the authorities. In the context of the escalating violence in the east and 
south  east  and  increasing  tensions  across  the  country,  a  number  of  attacks  on  media  outlets 
took place and the authorities took actions curtailing further freedom of media. Old cases of 
killings  and  assaults  on  journalists,  including  from  the  1990s,  continue  to  be  investigated 
while some are closed due to the statute of limitations. There is a widened practice of court 
cases for alleged insult against the President being launched against journalists, writers, social 
media  users  and  other  members  of  the  public,  which  may  end  with  prison  sentences, 
suspended  sentences  or  punitive  fines.  This  intimidating  climate  leads  to  increased  self-
censorship. 

Legislative environment 

By permitting undue restrictions, the Constitution does not fully protect the right to freedom 
of  expression.  A  number  of  laws  restrict  freedom  of  expression  and  are  not  in  line  with 
European  standards.  The  legislation  on  the  internet  was  again  changed  in  March  2015, 
increasing the government’s prerogatives to block content without a court order on an unduly 
wide  range  of  grounds.  Under  the  Criminal  Code,  prosecution  for  insulting  high-level 
politicians,  including  the  President,  can  result  in  a  jail  sentence  of  one  to  four  years,  which 
can  be  increased  if  the  offence  is  committed  publicly  through  media  or  social  media.  Such 
legislation is not in line with ECtHR case law. Insulting religion and blasphemy are criminal 
offences  carrying  penal  sentences.  In  addition  to  prison  terms,  high  fines  have  a  deterrent 
effect on free media reporting. The legislation on hate speech is not in line with ECtHR case 
law.  Legislation  on  the  registration  and  accreditation  of  journalists  as  well  as  legislation  on 
access to information are not entirely in line with international standards. 

Implementation/institutions 

Media  blackouts  about  information  considered  as  sensitive,  including  reporting  on  the 
terrorist attacks in Ankara and Suruç, are a recurrent trend. Criminal legislation on defamation 
against the state, its institutions, employees or other symbols of statehood is extensively used 
against  journalists,  lawyers  and  users  of  social  media  critical  of  the  government  and 
government  officials.  Blocking  of  websites  with  or  without  a  court  order  continues.  Turkey 
has  made  more  requests  to  Twitter  to  delete  content  or  suspend  accounts  than  any  other 
country in the world. 

The  distinction  between  freedom  of  expression  and  hate  speech  is  not  clearly  delineated. 
Divisions  in  the  media  prevent  the  profession  from  regulating  itself  and  drawing  up  and 
implementing common rules on professional ethics. 

Public Service Broadcasters 

There  are  concerns  about  the  editorial  independence  of  the  public  service  broadcaster, 
including  its  election  coverage,  which  displayed  a  significant  bias  towards  the  ruling  AKP 
party. Regulation of the public service broadcaster is not in line with European standards. The 
independence and neutrality of the Radio and Television Supreme Council (RTÜK) remain a 
matter  of  concern  as  its  members  are  elected  by  the  parliament  without  civil  society  and 

23 

 
professional  and  other  relevant  organisations  being  involved  or  represented  in  the  Council. 
The  Council’s  work  is  fairly  transparent  as  its  decisions  are  published  together  with  the 
supporting  expert  reports.  RTÜK  is  also  responsible  for  licensing.  The  lack  of  precise 
licensing rules can make the tender process vulnerable to undue political pressure. 

Economic factors 

The  media  market  in  Turkey  is  diverse.  However,  the  lack  of  transparency  on  media 
ownership casts doubts on the independence of editorial policies. A small  number  of  media 
groups  dominate  the  media  market  which  affiliated  businesses  have  interests  in  energy, 
construction,  real  estate,  trade,  finance  and  tourism.  Through  these  related  interests,  media 
outlets  may  be  vulnerable  to  economic  pressure  from  major  customers,  including  the  state. 
State-sponsored  advertising  is  not  fairly  distributed  across  the  media  organs,  distorting  the 
market  and  adding  to  the  economic  pressures  on  some  media  outlets.  Independent  and 
sustainable financing of the public service broadcaster is not ensured. The broadcasting law 
does not ensure fair competition as it does not prevent monopolisation. 

Professional organisations, Professional conditions 

The representation of journalists continues to be divided between the professional journalists 
associations  and  the  pro-government  union.  Journalism  is  an  increasingly  precarious 
profession  with  low  wages  and  job  security.  Working  conditions,  insufficient  trade  union 
rights  and  application  of  labour  legislation,  the  difficulty  of  obtaining  a  press  card  and 
arbitrary accreditation decisions are major concerns.  

Situation in the east and south-east 

After initial positive developments in settling the Kurdish issue, the peace process effectively 
came  to  a  complete  halt  in  July,  in  the  wake  of  a  resurgence  of  violence  by  the  Kurdistan 
Workers’  Party  (PKK)  and  the  government's  extensive  response  that  followed.  There  were 
numerous casualties among civilians and members of the security forces. It is imperative that 
the Kurdish peace process resumes. It remains the best opportunity in a generation to solve a 
conflict  that  has  claimed  far  too  many  lives.  The  new  government  needs  to  give  priority  to 
making  progress  towards  democratisation  and  reconciliation.  Regional  disparities  affecting 
the eastern and south-eastern regions, which are also shouldering a great number of refugees 
from the conflicts in Syria and Iraq, should also be gradually addressed. 

The year was marked by escalating violence, resulting in the halt of the settlement process of 
the Kurdish issue.  

Some initial positive developments had given reasons for hope of a new impetus. In February, 
a joint press conference by the Government and the pro-Kurdish party HDP was held and the 
call of the imprisoned PKK leader Abdullah Öcalan to discuss the organisation's disarmament 
was  announced.  Options  for  a solution  were  widely  and  freely  discussed,  including  the 
positions  of  the  PKK,  which  remains  on  the  EU  list  of  terrorist  organisations.  However, 
already in October 2014 violent incidents took place, with some 50 casualties, in the context 
of the events in Syria and Kobane. The pre-election and election period were also tense, with 
a number of incidents, including a bomb attack on a HDP rally.  

The  security  situation  deteriorated  dramatically  in  July,  shortly  after  the  PKK  announced 
considering ending the ceasefire, introduced in March 2013. A spiral of violence followed a 
Da'esh attributed terrorist attack in Suruç on 20 July. PKK conducted repeated terrorist attacks 
targeting  Turkish  police  and  military,  which  grew  in  scale  in  September.  The  EU  firmly 
condemned these terrorist acts. In response, the government undertook extensive security and 

24 

 
 
military operations against the PKK, including many air strikes on PKK bases in both Turkey 
and Iraq. Between July and September, dozens of civilians including 20 children and over 120 
security  forces  were  killed.  A  large  number  of  PKK  members  were  reportedly  killed  in 
Turkey,  and  many  more  in  the  air  strikes  in  Iraq.  There  were  disquieting  reports  of  alleged 
severe  human  rights  violations  committed  by  security  forces.  More  than  20  civilians  were 
reportedly  killed  during  a  9-day  curfew  imposed  on  the  town  of  Cizre.    Tensions  also 
increased across the country, with several attacks on media outlets and HDP party headquarter 
and offices. The authorities took actions curtailing the free exercise of media freedom during 
the period.  

As a result, the settlement effectively came to a halt. The government also blamed HDP for its 
relations with PKK, whilst HDP leadership made several calls on PKK and the government to 
stop the violence. 

Criminal cases related to the Kurdish issue continued at a very slow pace. No steps were taken 
to  abolish  the  village  guard  system,  a  paramilitary  force  of  around  50 000  people  paid  and 
armed  by  the  state.  No  comprehensive  plan  was  developed  to  address  the  issue  of  missing 
persons,  including  thorough  and  independent  investigations  into  alleged  past  cases  of 
extrajudicial  killing  by  security  and  law  enforcement  officers  or  the  PKK.  Mass  graves 
discovered  in  the  south-east  were  not  adequately  investigated.  The  recommendations  of  the 
UN  Special  Rapporteur  about  lack  of  prosecutions  over  extrajudicial,  summary  or  arbitrary 
executions  were  not  addressed.  The  statute  of  limitations  for  cases  of  missing  persons  and 
extrajudicial killings dating from the 1990s remained in force. As a result, several cases were 
dropped  in  2014  and  2015.  Only  12  cases  involving  past  crimes  continued.  Turkey  should 
consider  ratifying  the  International  Convention  for  the  Protection  of  All  Persons  from 
Enforced Disappearance and the Rome Statute. 

The  South-East  Anatolia  Project  to  improve  the  socioeconomic  development  of  the  region 
continued,  with  notable  improvements  in  infrastructure.  However,  socioeconomic  and 
educational indicators show strong disparities with the rest of the country. The east and south 
east received a huge influx of refugees from Syria and Iraq, putting local communities under 
additional strain.   

Refugees and internally displaced persons 

Turkey continued to make considerable efforts to give shelter to Syrian refugees. Turkey is 
the  country  hosting  the  largest  refugee  population  in  the  world,  with  about  2.2  million,  of 
which  close  to  2  million  from  Syria.  Sheltering  and  integrating  such  a  large  population  of 
refugees is a major challenge for the country which has already spent about EUR 6.7 billion in 
this  endeavour.  The  regulation  on  temporary  protection  issued  in  October  2014  should 
improve  their  integration.  Syrians  under  temporary  protection  can  benefit  from  health, 
translation and education services. However, some legislative loopholes exist. Turkey should 
still adopt legislation giving Syrians under temporary protection access to the labour market. 
This involves in particular drawing up detailed rules and procedures for labour market access, 
including  a  list  of  sectors  and  provinces  where  Syrians  under  temporary  protection  can  be 
employed. Turkey should also adopt secondary legislation to implement the law on foreigners 
and  international  protection,  notably  as  obtaining  residence  permits  and  health  insurance 
remains  difficult.  Further  progress  on  these  issues  would  help  Syrians  in  Turkey  to  become 
more self-subsistent (see Chapter 24). 

There are close to one million internally displaced persons (IDPs) in Turkey, most of whom 
fled  their  homes  between  1986  and  1995  due  to  the  armed  conflict  in  the  south-east  of  the 
country.  The  process  of  compensating  IDPs  continued.  Damage  assessment  commissions 
processed over 340 000 applications and granted compensation in half of them totalling over 

25 

 
EUR 1.1 billion. There is no comprehensive national action plan and strategy to address all 
challenges faced by IDPs such as security zones, village guards, lack of infrastructure and the 
presence of landmines in some places hamper their return to their villages. 

2.5. 

Regional issues and international obligations 

Cyprus 

Turkey  welcomed  the  resumption  of  the  talks  on  a  comprehensive  settlement  between  the 
leaders  of  the  two  communities  in  May  2015,  expressing  its  support  for  the  UNSG  Special 
Advisor’s efforts and for the newly elected leader of the Turkish Cypriot Community. 

Turkey had however previously,  from October to April, issued statements and  engaged into 
actions  challenging  the  Republic  of  Cyprus’s  right  to  exploit  hydrocarbon  resources  in 
Cyprus’s  Exclusive  Economic  Zone  for  the  benefit  of  all  Cypriots.  The  EU  has  repeatedly 
stressed  the  sovereign  rights  of  EU  Member  States  which  include  entering  into  bilateral 
agreements,  and  exploring  and  exploiting  their  natural  resources  in  accordance  with  the  EU 
acquis and international  law, including the UN  Convention on the Law of the Sea. The EU 
also  stressed  the  need  to  respect  the  sovereignty  of  Member  States  over  their  territorial  sea 
and airspace. 

As emphasised in the Negotiating Framework and Council Declarations, Turkey is expected 
to  actively  support  the  negotiations  for  a  fair,  comprehensive  and  viable  settlement  of  the 
Cyprus issue within the UN framework, in accordance with the relevant UN Security Council 
resolutions and in line with the principles on which the EU is founded. Turkey’s commitment 
and  contribution  in  concrete  terms  to  this  comprehensive  settlement  remains  crucial.  The 
process of granting the Committee on Missing Persons full access to all relevant archives and 
military areas needs to be expedited. 

Despite repeated calls by the Council and the Commission, Turkey has still not complied with 
its  obligations  as  outlined  in  the  declaration  of  the  European  Community  and  its  Member 
States of 21 September 2005 and in Council conclusions, including those of December 2006 
and  December  2014.  Turkey  has  not  fulfilled  its  obligation  to  ensure  full  and  non-
discriminatory implementation of the Additional Protocol to the Association Agreement and 
has not removed all obstacles to the free movement of goods, including restrictions on direct 
transport links with the Republic of Cyprus. There was no progress on normalising bilateral 
relations with the Republic of Cyprus. 

Turkey continued to veto the Republic of Cyprus joining several international organisations, 
such as the OECD. 

Peaceful settlement of border disputes 

No bilateral exploratory talks were held between Greece and Turkey to find common ground 
for the start of negotiations on the delimitation of the continental shelf.  

Greece continued to object to Turkey’s launch of a tender for offshore oil and gas exploration 
including part of the continental shelf off the Greek island of Castellorizo.  

The  threat  of  casus  belli  in  relation  to  the  possible  extension  of  Greek  territorial  waters,  as 
made in a Turkish Grand National Assembly resolution in 1995, still stands. In line with the 
Negotiating Framework and previous European Council and Council conclusions, the Council 
has reiterated that ‘Turkey needs to commit itself 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 EU has 

26 

 
 
again  expressed  serious  concern,  and  urged  Turkey  to  avoid  any  kind  of  threat  or  action 
directed  against  a  Member  State,  or  source  of  friction  or  actions  that  damage  good 
neighbourly relations and the peaceful settlement of disputes. Greece and Cyprus made formal 
complaints about repeated and increased violations of their territorial waters and airspace by 
Turkey, including flights over Greek islands. 

Regional cooperation 

Good neighbourly relations form an essential part of Turkey’s process of moving towards the 
EU. Bilateral relations with other enlargement countries and neighbouring EU Member 
States have been good. The Turkish Prime Minister visited Greece in December 2014, to co-
chair the third Turkey-Greece High-Level Cooperation Council. The Greek Foreign Minister 
visited Turkey in May 2015. Turkey has continued its policy of engagement in the Western 
Balkans.  Turkey  maintained  strong  ties  with  countries  in  the  region  and  supported  their 
respective  efforts  to  join  NATO  and  the  EU.  President  Erdoğan  visited  Albania  and  Bosnia 
and  Herzegovina  in  May  2015.  Prime  Minister  Davutoğlu  visited  the  former  Yugoslav 
Republic of Macedonia in December 2014 and met with the Serbian Prime Minister in Davos. 
Under the common security and defence policy, Turkey is continuing to contribute to the EU-
led military mission in Bosnia and Herzegovina and to the EULEX mission in Kosovo*.  

3. 

ECONOMIC CRITERIA 

Key economic figures 

2013 

2014 

Gross domestic product per capita (% of EU28 in 
PPS) 

GDP growth (%) 

53 

4.2 

53 

2.9 

Unemployment rate (female; male) (%) 

8.8 (10.6; 8.0) 

9.9 (11.9; 9.1) 

Economic  activity  rate  for  persons  aged  20–64: 
proportion  of  the  population  aged  20–64  that  is 
economically active (female; male) (%) 

58.4 (35.6*; 81.6*) 

58.9 

Current account balance (% of GDP) 

Foreign direct investment (FDI) (% of GDP) 

Source: Eurostat, *National Statistics Agency 

-7.9* 

1.5* 

-5.8* 

1.6* 

In  line  with  the  conclusions  of  the  European  Council  in  Copenhagen  in  June  1993,  EU 
accession  requires  the  existence  of  a  functioning  market  economy  and  the  capacity  to  cope 
with competitive pressure and market forces within the Union. 

The  monitoring  of  these  economic  criteria  should  be  seen  in  the  context  of  the  increased 
importance  of  economic  governance  in  the  enlargement  process.  In  order  to  improve  their 
economic  governance,  in  2015  the  enlargement  countries  were  asked  to  prepare  Economic 
Reform  Programmes  (ERPs),  which  set  out  a  medium-term  macro-fiscal  policy  framework 
together with key structural reforms aimed at supporting the framework. The ERPs were the 

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/99 and the ICJ 
Opinion on the Kosovo declaration of independence. 

27 

 
 
                                                            
basis  for  country-specific  recommendations  jointly  adopted  by  the  EU  and  the  Western 
Balkans and Turkey in the Economic and Financial Dialogue meeting on 12 May 2015. 

3.1. 

The existence of a functioning market economy 

The  Turkish  economy  is  well  advanced  and  can  be  considered  a  functioning  market 
economy.  Economic  growth  was  moderate  in  2014.  There  was,  however,  no  progress  in 
reducing  the  underlying  macroeconomic  imbalances.  The  large  external  deficit  continued  to 
make  the  Turkish  economy  vulnerable  to  financial  uncertainty  and  changes  in  global  risk 
sentiment.  Inflation  was  running  at  a  relatively  high  rate  and  exceeded  the  official  target 
again; nevertheless the central bank cut interest rates. 

Monetary  and  fiscal  policy  should  be  adjusted  to  lower  macroeconomic  imbalances.  At  the 
same time, structural reforms should be accelerated to improve the functioning of the markets 
for goods, services and labour. In line with the ERP recommendations and in order to support 
long-term growth, in the coming year Turkey should pay particular attention to: 

→  promoting  domestic  saving,  including  through  a  sufficiently  restrictive  fiscal  policy,  in 
view of the persistently large current account deficit; 

→ making monetary policy more focused on the pursuit of price stability; 

→ improving the business environment by strengthening the rule of law, making it easier to 
start a business and strengthening competition. 

Economic policy essentials 

Turkey’s resolve to address its underlying macroeconomic imbalances has been uneven. 
The government’s Economic Reform Programme for 2015-17, submitted to the Commission 
in  March  2015,  projects  an  optimistic  macroeconomic  scenario  in  which  GDP  growth 
strengthens while unemployment, inflation and the current account deficit decrease. Under the 
programme,  structural  reforms  will  be  implemented  as  part  of  Turkey’s  10th  Development 
Plan, covering the period 2014-2018. However, the fragmentation of responsibilities between 
government bodies continued to complicate the coordination of budgeting and medium-term 
economic  policy-making.  Uncertainty  increased  over  the  central  bank’s  independence  in 
carrying out monetary policy to the detriment of macroeconomic stability. 

Macroeconomic stability 

The  Turkish  economy  has  grown  at  an  average 
annual  rate  of  3 %  over  the  past  three  years.  In 
2014, GDP growth started strongly, but slowed down 
after  the  introduction  of  targeted  policy  measures  to 
rein  in  consumer  borrowing  and  a  hike  in  interest 
rates.  Annual  GDP  growth  of  2.9 %  was  mainly 
driven  by  net  exports,  which  benefited  from  a 
temporarily  more  competitive  exchange  rate  and  a 
sharp  fall  in  gold  imports.  Domestic  demand  was 
relatively  subdued,  particularly  investment.  In  the 
first  half  of  2015,  GDP  growth  remained  relatively 
constant  (3.1 %  year-on-year),  but  now  with  consumer  spending  as  the  main  driver  in  the 
wake  of  the  lower  oil  price  while  exports  declined.  GDP  per  capita  was  53%  of  the  EU 
average in 2014, based on purchasing power parity. 

28 

 
 
Turkey’s  long-standing  current  account  deficit 
has  remained  very  high.  The  deficit  has  averaged 
6.6 % of GDP over the past three years, the largest of 
all  G20  countries.  It  narrowed  somewhat  in  2014  in 
the  context  of  lower  domestic  demand  growth,  a 
temporary surge in exports and a sharp fall in imports 
of  non-monetary  gold.  With  Turkey  being  a  large 
energy  importer,  the  lower  dollar  price  for  crude  oil 
has also been favourable. 

Turkey’s  current  account  deficit  reflects  a  persistent 
shortfall  of  domestic  savings,  which  needs  to  be 
offset with capital inflows. Most capital inflows are portfolio investments by foreign investors 
and  foreign  borrowing  by  Turkish  banks.  In  recent  years,  only  a  small  proportion  of  the 
required capital inflow has been in the form of relatively stable foreign direct investment. The 
dependence on volatile types of capital inflows has made the Turkish currency and economy 
vulnerable  to  a  sudden  loss  of  investor  confidence.  This  was  most  recently  seen  before  the 
general  elections  on  7 June and  1 November  2015  when  uncertainties  about  the  future 
direction  of  Turkey’s  economic  policies  put  the  lira  under  strong  downward  pressure  and 
again during the unrest in global financial markets starting in July 2015. 

Gross external debt as a percentage of GDP has edged higher, reaching 57.5 % of GDP at the 
end  of  March  2015.  A  particular  concern  relates  to  the  foreign  currency  debt  of  private 
companies that receive most of their revenues in domestic currency: when the lira depreciates, 
their debt-servicing capability deteriorates. 

The  number  of  jobs  increased  at  a  rate  commensurate  with  output  growth,  but 
markedly  below  the  growth  rate  of  the  labour  force.  In  2014,  the  unemployment  rate 
increased  by  1.1  percentage  points  to  an  annual  average  of  9.9 %  as  the  labour  force 
continued  to  grow  faster  than  available  jobs.  Labour  force  growth  is  mainly  driven  by  a 
growing number of people of working age, but also by some rise in the economic activity rate. 

The  employment  rate  of  women  has  remained  at  a  very  low  level.  The  overall  employment 
rate  fell  to  53.2 %  in  2014,  with  a  large  difference  between  men  (75.0 %)  and  women 
(31.6 %).  Despite  the  low  proportion  of  women  actively  looking  for  work,  their 
unemployment  rate  remains  significantly  higher  than  the  unemployment  rate  for  men.  In 
addition,  about  one  third  of  women  who  are  considered  to  be  employed  are  in  fact  unpaid 
family  workers  in  the  agricultural  sector.  One  quarter  of  young  people  were  not  in 
employment, education or training. 

The  efficient  functioning  of  the  labour  market  continued  to  be  impeded  by  a  lack  of 
flexibility,  for  example  on  labour  contracts,  while  undeclared  work  remained  widespread. 
This calls for a deepening and widening of labour market reforms, which also need to be more 
inclusive. 

Despite declining oil prices, inflation remained in high single digits. This has significant 
costs in terms of macroeconomic stability, resource allocation and redistributive effects. 
Fuelled  by  a  depreciating  currency  and  accelerating  food  prices,  consumer  price  inflation 
increased from 7.4 % year-on-year at the end of 2013 to 8.2 % in December 2014, i.e. clearly 
above the official target of 5 %. In 2015, headline inflation has fallen only slightly despite a 
much  lower  oil  price  year-on-year.  The  Turkish  lira  depreciated  by  12.9 %  against  the  euro 
and by 8.2 % in real effective terms over the twelve months to August 2015. 

29 

 
 
to 

ERP  recommendation  2:  ‘Continue 
take 
consistent steps to reinforce the focus of monetary 
policy  on  the  pursuit  of  price  stability,  with  other 
policy  objectives  being  pursued  with  separate 
measures, and thereby contribute to improving both 
the  functioning  and  the  credibility  of  the  inflation 
targeting regime.’ 

The  central  bank  continued  to  pursue 
multiple  objectives  as  part  of  an  overly 
complex  monetary  policy  framework  that 
hampered  transparency  and  predictability. 
Although  price  stability  is  the  primary 
objective, the central bank is also pursuing 
macro-financial  stability  and 
to 
dampen  exchange  rate  fluctuations.  The 
central bank lowered its key interest rate from 10 % to 8.25 % between May and July 2014 
and to 7.5 % in January-February 2015, i.e. to below the inflation rate. These interest rate cuts 
were inconsistent with the inflation target and took place against the background of repeated 
strong  calls  for  lower  interest  rates  from  the  President  and  parts  of  the  government. 
Furthermore,  negative  real  interest  rates  are  contrary  to  the  need  to  raise  the  low  private 
saving rate. 

trying 

Turkey  has  reversed  the  limited  simplification  it  made  to  its  complex  monetary  policy 
framework in January 2014. Monetary policy should be focused more on its primary objective 
of price stability to attain the official inflation target (ERP recommendation 2). 

On  public  finances,  the  budget  deficit  remained 
moderate  and  public  debt  continued  on  a 
sustainable  path.  The  2014  central  government 
budget deficit is estimated at 1.3 % of GDP, which is 
marginally higher than in the preceding year (1.2 %) 
but lower than the revised target of 1.4 %. Revenues 
increased  by  9.3 %  year-on-year  while  expenditures 
rose by 9.8 %, which is below nominal GDP growth 
for the first time in many years. General government 
debt  increased  by  3.5 %  in  absolute  terms  in  2014, 
but declined by 0.6 percentage points as a percentage 
of  GDP  to  33.5 %,  i.e.  it  is  clearly  at  a  sustainable 

level. 

There  was  no  progress  on  increasing  the 
the  fiscal  framework, 
transparency  of 
which continued to suffer from the lack of 
timely  information  in  accordance  with 
international  standards.  Adopting  a  fiscal 
rule would increase credibility and support 
the  envisaged  reduction  of  the  structural 
fiscal deficit (ERP recommendation 1). 

Interplay of market forces 

ERP  recommendation  1:  ‘Promote  domestic 
saving  in  view  of  the  persistently  large  current 
account deficit. Fiscal policy has an important role 
to  play  in  this  regard  by  following  a  sufficiently 
restrictive  stance.  Reducing  the  rigidity  of  public 
expenditures  would  help  to  make  the  fiscal  policy 
stance  more  responsive  to  macroeconomic  needs. 
The adoption of a fiscal rule would enhance budget 
transparency,  provide  an  important  fiscal  anchor 
and enhance credibility.’ 

Privatisation slowed down and there was 
no further progress on price liberalisation as the government continued to intervene in 
the price-setting mechanism in key sectors. Following a surge in 2013, privatisation activity 
has decelerated recently, with the total volume of completed deals decreasing from EUR 9.4 
billion (1.5 % of GDP) in 2013 to EUR 4.8 billion (0.8 % of GDP) in 2014. The share of the 
energy  sector  in  privatisation  tenders  remained  high.  Competition  could  be  increased  by 
continued liberalisation of product and services markets. 

The proportion of directly administered prices in the consumer price index (CPI) basket has 
remained below 5 %. However, food and alcohol prices, which together make up more than 

30 

 
25 % of the consumer basket, are highly sensitive to policy decisions. For energy (natural gas 
and  electricity),  automatic  pricing  mechanisms  were  applied  in  principle.  In  practice, 
however,  the  government  continued  to  set  end-user  prices,  effectively  suspending  the 
automatic pricing mechanisms. There was no progress on eliminating the charging of higher 
prices to one group of consumers in order to subsidise lower prices for another group in the 
wholesale and retail electricity markets. 

Market entry and exit 

Starting a business became more cumbersome and expensive. Market exit also remained 
costly and long and insolvency proceedings were still heavy and inefficient. The number 
of  newly  established  businesses  increased  by  16.3 %  in  2014  even  though  the  costs  and 
difficulties of  starting  a new business increased. Starting a business required seven separate 
procedures and took 6.5 days on average. The average cost of starting a business increased to 
16.7 %  of  per  capita  income  in  2014  from  12.7 %  in  the  preceding  year.  Obtaining  a 
construction permit is still very burdensome and time-consuming.  

The  number  of  businesses  closing  down  or 
being liquidated fell by 3.3 % compared with 
2013.  Closing  a  business  also  remained 
expensive  and  time-consuming.  Insolvency 
procedures  lasted  an  average  of  3.3  years 
and  recovery  rates  —  at  27.9 %  on  average 
—  remained  very  low  in  2014  although 
somewhat better than in the preceding year. 
Making it easier to start a business should be 
part of a more wide-ranging improvement of 
the  business  environment,  as  outlined  in 
ERP recommendation 3. 

Legal system 

improve 

as 
attractiveness 
least 
for 
in  view  of 

ERP recommendation 3: ‘Take sustained efforts 
the  business  environment  and 
to 
investment 
Turkey’s 
an 
foreign  direct 
destination,  not 
investments, 
continuing 
the 
dependence on large capital inflows. This requires 
wide-ranging reforms, including strengthening the 
rule  of  law,  making  it  easier  to  start  businesses, 
and  strengthening  competition  through  continued 
liberalisation of product and service markets.’ 

The legal system continued to function relatively well in the area of property rights, but 
in general no further progress was observed. The legal appeal by the dispossessed owners 
of  Bank  Asya  should  reassure  investors  about  the  strength  and  independence  of  the  legal 
system. A reasonably well-functioning legal system has been in place for several years in the 
area  of  property  rights.  Enforcement  of  commercial  contracts  was  still  a  rather  lengthy 
process,  partly  because  commercial  court  judges  were  insufficiently  specialised.  The  expert 
witness system still operated as a parallel judicial system, without improving overall quality. 

Out-of-court dispute settlement mechanisms are seldom used, except in the insurance sector, 
tax  and  customs.  The  judicial  system  and  its  administrative  capacity  could  be  further 
improved. A proposal for a new amnesty on interest payments related to tax arrears has been 
submitted  to  parliament.  Recurrent  amnesties  and  restructuring  mechanisms  of  this  kind 
discriminate  against  regular  taxpayers  and  harm  the  tax  and  social  security  administrations’ 
collection capacity in the long term. Taxpayers and other citizens subject to fines had a clear 
advantage in delaying their payments, especially in the current inflationary environment. 

Financial sector development 

Despite declining profitability in banking, the financial sector generally performed well 
and continued to demonstrate resilience. Banks continued to dominate the financial sector, 
with  their  share  of  the  sector’s  total  assets  remaining  stable  at  around  87 %.  The  value  of 
banking sector assets as a ratio of GDP continued to increase, rising from 111 % in 2013 to 
114 %  in  2014.  State-owned  banks’  share  of  total  banking  sector  assets  increased  slightly, 

31 

 
while the share of foreign banks also increased slightly to 14.6 % in February 2015. The share 
of the relatively small insurance sector (including private pensions) remained around 5 %. 

Macro-prudential  measures  to  rein  in  lending  growth,  combined  with  the  central  bank’s 
January  2014  interest  rate  hike,  led  to  a  decline  in  the  growth  rate  in  bank  lending. 
Nevertheless,  total  bank  lending  still  increased  by  18.5 %  in  2014.  The  net  profit  of  the 
banking  sector  was  flat  in  2014.  The  sector’s  capital  adequacy  ratio  remained  significantly 
above  the  regulatory  target  of  12 %,  with  the  figure  standing  at  15.1 %  in  July  2015.  The 
proportion of  non-performing  loans in total banking sector loans remained broadly stable at 
just below 3 %. 

3.2. 

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

Union 

Turkey  has  a  good  level  of  preparation  in  achieving  the  capacity  to  cope  with  the 
competitive  pressure  and  market  forces  within  the  EU.  Some  progress  was  made, 
particularly  on  improving  educational  attainment  and  schooling  rates  and  on  further 
liberalising  the  energy  sector.  However,  significant  problems  remained  over  the  quality  of 
education and gender equality in education. Moreover, there was no progress in improving the 
transparency of state aid and further constraints and exceptions were introduced in the area of 
public procurement. The depreciation of the lira improved overall price competitiveness. 

In  line  with  the  ERP  recommendations  and  in  order  to  support  long-term  growth,  in  the 
coming year Turkey should pay particular attention to: 

→  improving  the  functioning  of  the  markets  for  goods,  services  and  labour,  which  would 
increase potential growth and competitiveness on a sustainable basis; 

→ improving qualifications of low-skilled workers through training and increasing women’s 
labour force participation through more flexible working conditions. 

Human and physical capital 

Reforms  and  increased  spending  on  education  have  so  far  generated  a  positive  impact 
on  educational  attainment  and  schooling  rates.  However,  significant  problems  remain 
over gender equality and the quality of education. Schooling rates continued to increase at 
all levels of education, reaching 99.6 % for the first four years and 94.5 % for the second four 
years of primary school and 76.7 % for secondary school in 2013/14. However, sizeable gaps 
persist  in  schooling  rates  for  girls,  especially  in  secondary  school.  Participation  in  higher 
education  remained  low  by  international 
standards,  although  the  percentage  of  the 
tertiary 
population 
education  qualifications 
from 
19.5 % in 2013 to 20.5 % in 2014. 

aged  30-34  with 

increased 

ERP  recommendation  4:  ‘In  particular,  Turkey 
should upgrade and make better use of its human 
capital  through  the  pursuit  of  the  education 
agenda and the deepening and widening of labour 
market reforms. Specifically, the qualifications of 
low-skilled  workers  should  be  improved  through 
training  and  female  labour  force  participation 
should  be  stimulated  through  flexible  working 
conditions.’ 

of 
15-year-old 

assessments 
for 

According to the most recent of the OECD’s 
educational 
regular 
performance 
students 
(PISA),  the  mean  score  of  Turkish  students 
improved in the three categories of science, 
mathematics  and  reading  between  2009  and  2012.  However,  the  improvement  was  less 
pronounced than in the preceding three-year period and Turkey remained 48 points below the 
OECD average. 

32 

 
Turkey  needs  to  make  better  use  of  its  human  capital  in  order  to  stimulate  sustainable  and 
inclusive  growth  and  competitiveness,  both  through  raising  qualifications  of  the  workforce 
and labour market reforms stimulating female employment, in line with ERP recommendation 
4. 

Improvements  in  the  country’s  physical  capital  were  modest.  Total  investment  declined 
by  0.2  percentage  points  to  20.1 %  of  GDP  in  2014,  while  private  investment  increased  its 
share of GDP by 0.3 percentage points to 15.9 %. Public investment, however, was cut back 
significantly following a surge in 2013 and its share of GDP was 4.2 %. Gross foreign direct 
investment (FDI) inflows to Turkey increased slightly to 1.6 % of GDP and the FDI stock as a 
proportion of GDP increased from 19.3 % to 22.3 % in the course of 2014. R&D expenditure 
(both public and private) is continuing to edge higher but was still low at 0.95 % of GDP in 
2013, far below the government’s current target of 1.8 % of GDP by 2018. 

Little  progress  was  made  in  upgrading  Turkey’s  transport  infrastructure  in  2013:  the 
motorway  network  remained  unchanged  while  the  total  length  of  other  roads  and  of  the 
railway network was only extended slightly. In telecommunications, there was a switch from 
fixed line subscribers  to  mobile  phone subscribers and a rise in the internet penetration rate 
for  households  from  49 %  in  2013  to  54 %  in  2014.  No  progress  was  made  on  aligning 
telecommunications  legislation  with  the  EU  framework.  The  regulator  launched  a  call  for 
tenders  over  the  operating  rights  for  4G  licences  in  five  frequencies,  but  interrupted  the 
procedure after the President intervened. 

Progress continued in the liberalisation of the energy sector. Following the entry into force of 
a new electricity market law in March 2013, the proportion of the market open to competition 
was  increased  further  in  2014  with  the  aim  of  achieving  100 %  by  2016.  Progress  also 
continued  in  the  privatisation  of  electricity-generating  assets.  Further  progress  is  needed  to 
open  the  natural  gas  market  so  that  there  is  competition  for  the  state-owned  corporation 
BOTAŞ. A transparent and cost-based pricing mechanism for  electricity  and gas remains to 
be  properly  implemented.  The  Turkish  Energy  Stock  Company  (EPIAS)  was  established  in 
April  2015  to  carry  out  the  financial  reconciliation  transactions  on  organised  wholesale 
electricity markets. 

Sectoral and enterprise structure 

In  2014,  GDP  grew  by  2.9 %,  while  employment  increased  only  by  1.6 %,  indicating  an 
increase  in  labour  productivity  in  the  overall  economy.  The  sectoral  breakdown  of 
employment growth shows only a small shift towards the services sector, which accounts for 
51 %  of  total  employment.  Industry  accounts  for  20.5 %  of  employment,  while  construction 
and  agriculture  employ  7.4 %  and  21.1 %  respectively.  The  share  of  agriculture  in  GDP 
continued its long-standing downward trend. 

The private sector’s share of GDP declined from 86.4 % in 2013 to 84.6 % in 2014, but is still 
quite large by EU standards. 

State influence on competitiveness 

There was no progress in improving the transparency of state aid and there was some 
backsliding  in  the  alignment  of  public  procurement  rules.  Legislation  to  implement  the 
state  aid  law,  originally  scheduled  to  be  passed  into  law  by  September  2011,  has  been 
postponed  for  yet  another  year  until  the  end  of  2015.  The  State  Aid  Authority  has  still  not 
formally set up a comprehensive state aid inventory or adopted an action plan to align all state 
aid schemes, including the 2012 incentives package, with the acquis. New amendments to the 
legal framework for public procurement (see Chapter 5 below) moved the legislation further 
away from the EU acquis. 

33 

 
Economic integration with the EU 

Turkey’s  trade  and economic integration with the EU is high and increased further in 
2014.  Moreover,  Turkey  recently  gained  some  international  price  competitiveness  as  a 
result  of  currency  depreciation.  The  openness  of  the  economy,  measured  by  the  value  of 
exports  and  imports  of  goods  and  services  as  a  percentage  of  GDP,  increased  in  2014.  The 
proportion of trade with the EU out of Turkey’s total trade increased from 38.5 % to 39.3 %. 
The EU proportion of Turkey’s exports increased from 41.5 % to 43.5 %, while its proportion 
of Turkish imports remained stable at 36.7 %. 

The  EU  remained  the  largest  source  of  FDI  flows  into  Turkey  and  its  share  of  the  total 
increased from 51.7 % to 55.9 %. Close to three quarters of the FDI stock in Turkey originates 
in  the  EU.  The  depreciation  of  the  Turkish  lira  between  June  2014  and  June  2015  has 
improved Turkey’s international price competitiveness. 

4. 

4.1. 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

Chapter 1: Free movement of goods 

The free movement of goods ensures that many products can be traded freely across the EU 
based on common rules and procedures. Where products are governed by national rules the 
principle of the free movement of goods prevents these creating unjustified barriers to trade. 

Turkey has achieved a good level of preparation in this chapter. There was some progress 
in  the  past  year  towards  further  aligning  legislation  with  the  acquis,  notably  in  eco-design 
requirements, medical devices and improving market surveillance for certain goods. However, 
some technical barriers to trade delay or prevent the free movement of goods in violation of 
Turkey’s  obligations  under  the  Customs  Union.  These  include  additional  testing  and 
conformity assessment requirements applied at the border. In the coming year, Turkey should 
in particular: 

→ improve the free movement of goods in the ‘old approach’ area of the harmonised acquis 
by abolishing prior approval and licensing; 

→ abolish export restrictions. 

On the general principles applying to the free movement of goods, the risk-based electronic 
import control system, ‘TAREKS’, is operational and grants free circulation to goods coming 
from the EU unless a specific risk profile is attributed to them. However, additional tests and 
conformity  assessment  checks  are  carried  out  for  imports  of  goods  such  as  toys  and  shoes, 
against the established product safety legislation and the rules of the Customs Union. Products 
in the ‘old approach’ area, particularly textiles, chemicals and foodstuffs, are subject to prior 
approval and licensing, while EU type approvals are accepted in the area of motor vehicles. 
The mutual recognition principle for the non-harmonised area continues to apply. Technical 
barriers to trade persist in areas such as textiles, second-hand goods and alcoholic beverages. 
Registration  requirements  for 
textiles,  footwear,  and  clothing  continue. 
Surveillance  measures  for  imports  have  continued  to  hamper  trade  flows.  Licences  are  still 
required  for  second-hand  goods.  Licensing  requirements  for  alcoholic  beverages  have  been 
reduced  but  labelling  requirements  continue  to  create  barriers.  Exports  of  aluminium,  paper 
and  copper  scrap,  chrome  and  leather  are  subject  to  restrictions  which  constitute  a  de  facto 
ban, contrary to Customs Union provisions. 

importing 

The  alignment  of  horizontal  measures  is  advanced.  Adoption  of  a  new  Consumer  Product 
Safety  Regulation,  which  was  to  achieve  full  alignment  with  the  General  Product  Safety 

34 

 
 
Directive, is still pending. In the area of standardisation, Turkey has to date adopted 18 981 
standards  set  by  the  European  Committee  for  Standardisation  (CEN)  and  the  European 
Committee  for  Electro-technical  Standardisation  (CENELEC)  and  427  standards  set  by  the 
European  Telecommunication  Standards  Institute  (ETSI).  The  overall  rate  of  harmonisation 
with  European  standards  stands  at  97  %.  Turkey  has  continued  to  adopt  new  mandatory 
specifications and to replace existing ones, mostly in the non-harmonised area. It has started 
to  abide  by  its  notification  obligation  in  this  field.  On  conformity  assessment,  there  are 
currently  36  notified  bodies  and  1  technical  approval  body.  In  2015,  the  number  of 
accreditations increased by 13 %. As for legal metrology, Turkey adopted new or amending 
legislation on pre-packed products, bottles used as measuring containers, taximeters, measures 
and measuring instruments and on the inspection of the latter. A national metrology strategy 
was also prepared and adopted in 2015 with an implementation period of 3 years.  

A  market  surveillance  strategy  was  adopted  setting  out  strategic  objectives  for  2015-2017 
based  on  an  assessment  of  the  strengths  and  weaknesses  of  the  current  system.  Legislation 
was  amended  to  introduce  or  improve  market  surveillance  of  radio  telecommunication 
terminal equipment, fertilisers, waste batteries and accumulators. Market surveillance has yet 
to  be  implemented  effectively.  This  could  be  done  by  expanding  the  scope  of  surveillance, 
based on risk analysis, and by developing awareness-raising on product safety. 

On  ‘Old  Approach’  product  legislation  under  the  harmonised  acquis,  new  and  amending 
legislation was adopted on motor vehicles, some of which postponed the entry into force of 
legislation aligned with the acquis. Amending regulations on cosmetics and textile fibre were 
issued  in  order  to  align  the  Turkish  legislation  with  the  latest  EU  acquis  in  this  field.  A 
Cabinet decree revised the exchange rate between the Euro and the Turkish lira used for the 
pricing of pharmaceuticals; however, the amended rate is still far from the market exchange 
rate  and  thus  excessive  price  controls  continue  in  the  sector  to  the  detriment  of  imported 
products.  The  legislation  on  chemicals  aiming  at  alignment  with  REACH  still  needs  to  be 
adopted although some steps were taken in order to harmonise some aspects related to certain 
dangerous substances. 

In  the  already  advanced  area  of  ‘New  and  Global  Approach’  product  legislation,  Turkey 
adopted  amending  legislation  aimed  at  aligning  itself  with  the  latest  acquis  on  machinery 
safety and construction products. New legislation was issued on the eco-design requirements 
of a range of domestic appliances and of electric motors. New and amending regulations were 
adopted in the area of medical devices as related to clinical trials, to electronic instructions for 
use,  to  sales,  promotion  and  advertising,  as  well  as  to  testing,  control  and  calibration. 
Administrative  and  legislative  arrangements  were  made  on  the  operation,  maintenance  and 
periodical control of lifts and inspection bodies for lifts. Turkey has lifted, only for equipment 
already  in  use  on  mining  sites  and  effectively  until  2017,  the  implementation  of  the  EU 
Directive  on  equipment  and  protective  systems  intended  for  use  in  potentially  explosive 
atmospheres  (ATEX).  This  legislation  had  already  been  in  force  since  2006.  The  apparent 
need for its suspension raises questions on the reliability of the market surveillance system on 
ATEX since 2006. Harmonised standards were published on personal protective equipment.  

As  regards  procedural  measures,  notifications  of  technical  legislation  under  Directive 
98/34/EC have increased since September 2014, although still not all legislation is notified. 

35 

 
 
 
4.2. 

Chapter 2: Freedom of movement for workers 

Citizens of one Member State have the right to work in another  Member State and must  be 
given the same working and social conditions as other workers. 

Preparations in the area of freedom of movement for workers are at an early stage. There has 
been no progress in the past year. So far, Turkey has concluded 13 bilateral social security 
agreements with EU Member States. 

There have been no developments on access to the labour market or EURES, the European 
employment services network. On coordination of social security systems, no new bilateral 
social security agreement has been concluded with EU Member States. 

4.3. 

Chapter 3: Right of establishment and freedom to provide services 

EU natural and legal persons have the right to establish themselves in any Member State and 
to provide cross-border services. For certain regulated professions, there are rules on mutual 
recognition of qualifications. Postal services are gradually being opened up to competition. 

Preparations  are  at  an  early  stage  on  the  right  of  establishment  and  freedom  to  provide 
services.  Turkey  made  some  progress  in  the  past  year,  particularly  in  the  area  of  work 
permits for foreigners. Substantial efforts are still needed to align further with the acquis. In 
the coming year, Turkey should in particular: 

→  align  with  the  Services  Directive  to  provide  cross-border  services  and  set  up  a  Point  of 
Single Contact. 

On the right of establishment, Turkey modified implementing legislation under the Law on 
Work  Permits  for  Foreigners.  The  changes  enable  multiple-entry  stay  up  to  three  months 
within  a  period  of  one  year  from  the  date  of  entry  in  areas  such  as  the  installation  or 
maintenance of machinery and other goods and services imported to or exported from Turkey, 
or related training. The adoption of legislation, giving people under temporary or conditional 
protection the possibility to apply for a work permit, is still pending. 

licensing  and 
Regarding  freedom  to  provide  cross-border  services,  registration, 
authorisation  requirements  continue  to  apply  for  service  providers  registered  in  the  EU.  An 
implementing  regulation  on  tourist  guides  maintains  the  nationality  requirement  contrary  to 
the  acquis.  Turkey  still  needs  to  align  with  the  Services  Directive  and  to  set  up  a  Point  of 
Single Contact in line with the expertise it is receiving to this end.  

On postal services, Turkey ratified the Seventh Additional Protocol to the Constitution of the 
Universal  Postal  Union.  It  has  not  yet  adopted  a  revised  postal  law  clarifying  the  scope  of 
licensing, the universal service fee and the extent of price regulation. 

On  mutual  recognition  of  professional  qualifications,  a  revised  law  now  allows  foreign-
trained  pharmacists  to  work  in  Turkey  if  their  diplomas  are  recognised  by  a  Turkish 
educational  institution  registered  at  the  Ministry  of  Health.  The  Vocational  Qualifications 
Authority  continued  to  issue  occupational  standards.  Some  regulated  professions  remain 
subject to reciprocal recognition and/or nationality and language requirements. Turkey needs 
to further align with the acquis in this area on the basis of the expertise it is receiving to this 
end. 

36 

 
 
4.4. 

Chapter 4: Free movement of capital 

In  the  EU,  capital  and  investments  must  be  able  to  move  without  restriction  and  there  are 
common rules for cross-border payments. Banks and other economic operators apply certain 
rules to support the fight against money laundering and terrorist financing. 

Turkey is moderately prepared in the area of free movement of capital. It has made some 
progress in the past year, in particular in setting up and implementing the legal framework to 
counter financing of terrorism. The legislation on real estate acquisition is not yet aligned with 
the  acquis  and  remains  opaque  and  restrictive  of  the  rights  of  a  number  of  Member  States’ 
nationals. In the coming year, Turkey should in particular: 

→ prepare and adopt an action plan for liberalising the purchase of real estate by foreigners; 

→  implement  effectively  the  recommendations  of  the  Financial  Action  Task  Force  on 
combating money laundering through closer inter-institutional coordination. 

Regarding capital movements and payments, Turkey’s legislation on real estate acquisition 
by foreigners lacks transparency and does not apply to all EU citizens in a non-discriminatory 
way.    Turkey  needs  to  adopt  and  implement  an  action  plan  for  gradually  liberalising  the 
purchase of real estate by foreigners, in line with the acquis. Sectoral restrictions are also in 
place  on  foreign  ownership  in  radio  and  TV  broadcasting,  transport,  education  and  the 
electricity market. 

Turkey  has  already  reached  a  good  standard  on  payment  systems  and  there  has  been  no 
further progress in this area. 

Turkey has made significant progress in the fight against money laundering and terrorism 
financing.  The  Financial  Action  Task  Force  stopped  monitoring  Turkey  under  its  global 
compliance  programme.  However,  Turkey  still  needs  to  address  issues  identified  in  its  last 
mutual  evaluation  report.  The  Financial  Crimes  Investigation  Board  has  continued  to 
strengthen  its  capacity  and  has  investigated  a  greater  number  of  suspicious  transactions. 
However,  the  number  of  convictions,  confiscations,  seizures  and  freezing  of  assets  remains 
limited  and  better  cooperation  with  law  enforcement  agencies  is  needed.  Turkey  is 
encouraged to ratify the Council of Europe’s Convention on Laundering, Search, Seizure and 
Confiscation of the Proceeds from Crime and on the Financing of Terrorism. 

4.5. 

Chapter 5: Public procurement 

EU  rules  ensure  public  sector  procurement  of  goods  and  services  in  any  Member  State  is 
open to all EU companies on the basis of non-discrimination. 

Turkey  is  moderately  prepared  on  public  procurement,  an  area  that  could  potentially  be 
included  in  a  modernised  and  extended  Customs  Union.  Important  gaps  remain  in  its 
alignment  with  the  acquis,  and  public  procurement  is  particularly  vulnerable  to  corruption. 
Some progress was achieved in the past year, especially in strengthening Turkey’s capacity 
to  implement  and  enforce  the  rules.  However,  new  amendments  to  the  legal  framework  for 
public procurement moved the legislation further away from the EU acquis.. 

In the coming year, Turkey should in particular: 

→  revise  its  public  procurement  legislation  to  bring  it  in  line  with  the  2014  EU  public 
procurement  directives,  addressing  in  particular  utilities  and  concessions,  and  to  increase 
transparency; 

→  start  repealing  exceptions  which  contradict  the  acquis  as  envisaged  in  the  harmonisation 
schedule  of  the  national  action  plan  for  EU  accession  and  eliminating  restrictive  measures 

37 

 
such as domestic price advantages and civilian offsets. 

Institutional setup and legal alignment 

The  legal  framework  provided  by  Turkey’s  public  procurement  legislation  broadly  reflects 
the principles of the Treaty on the Functioning of the European Union (TFEU), such as value 
for  money,  free  competition  and  transparency.  However,  on  non-discrimination,  Turkey 
applies a compulsory domestic price advantage to certain goods. 

The  Law  on  Public  Procurement,  which  is  broadly  aligned  with  the  2004  EU  public 
procurement directives, applies to tenders both above and below the threshold. The legislation 
is  harmonised  with  and  supported  by  budget  and  expenditure  regulations,  so  that  public 
contracts  can  be  prepared,  awarded  and  managed  in  line  with  sound  project  management 
principles.  However,  the  law  has  several  inconsistencies  with  the  acquis  and  needs  to  be 
aligned with  the 2014 EU public procurement directives. Its scope is reduced by a range of 
sector-specific  laws  which  limit  transparency  for  economic  agents  and  establish  different 
strands of legal remedy (administrative or judicial), depending on the sector. The legislation 
for the utilities sector is more restrictive than allowed under the EU Utilities Directive. The 
thresholds remain higher than those in the EU directives. Regulations governing defence and 
security  procurement  are  largely  in  line  with  the  acquis  but  Turkey  does  not  have  a 
comprehensive legislative framework for concessions. 

to  non-pecuniary  deliverables 

Amendments adopted in February 2014 and implementing legislation from 2015 have made 
the previously optional domestic price advantage of up to 15 % compulsory for ‘medium and 
high-technology industrial products’. This applies only to Turkish companies and not to joint 
ventures or consortia involving EU companies.  Amendments have also introduced an offset 
option  in  public  tenders,  by  which  the  buyer  (the  government)  can  require  the  supplier  to 
typically  favouring  domestic  production.  Such 
agree 
acquisitions have been exempted from the public procurement law. These restrictive measures 
contradict the acquis. On the basis of 2014 statistics, which do not yet reflect these measures, 
the  domestic  price  advantage  was  applied  for  29  %  of  the  overall  contract  value  (38  %  in 
2013) and in 9 % of the number of contracts above the minimum threshold (10 % in 2013). 
The  average  number  of  bidders  in  public  tenders  was  4.49.  Turkey  should  eliminate  all 
restrictive  measures  and  consider  applying  the  new  means  provided  for  under  the  2014  EU 
directives for promoting innovation. 

Turkey does not have a specific public procurement strategy. The national action plan for EU 
accession of November 2014 includes a harmonisation schedule aiming at revising legislation 
in  line  with  the  2014  EU  public  procurement  directives,  as  well  as  amending  legislation  on 
utilities and public-private partnerships. 

The  Public  Procurement  Authority  (PPA)  is  responsible  for  implementing  the  public 
procurement law and monitoring the public procurement system. The Ministry of Finance is 
in  charge  of  coordinating  policy  formulation  and  implementation.  However,  amendments  to 
the  public  procurement  legislation  via  sector-specific  laws  undermine  this  structure.  The 
February  2014  amendments  gave  competence  to  the  Ministry  of  Science,  Industry  and 
Technology  to  determine  the  list  of  items  for  which  a  domestic  price  advantage  is 
compulsory. 

Implementation and enforcement capacity 

Turkey’s public procurement market remained stable at 6.4 % of GDP in 2014. Procedures 
generally  respect  the  principles  of  transparency  and  efficiency.  There  is  a  well-functioning 
central  public  procurement  portal  (EKAP).  Turkey’s  capacity  to  implement  and  enforce  its 
rules is well developed. The Ministry of Finance, the PPA and the Ministry of Development 

38 

 
have  sufficient  resources  to  do  their  job.  The  market  and  competition  work  satisfactorily  in 
most  sectors.  Framework  agreements  are  used  effectively  in  accordance  with  EU 
requirements. Centralised purchasing is used effectively in a limited number of areas, such as 
the health sector. However, Turkey does not have a single authority in charge of coordinating, 
supervising  and  monitoring  the  operation  of  public-private  partnerships,  despite  their 
significant  increase  in  volume.  The  public-private  partnership  unit  in  the  Ministry  of 
Development provides an early-stage review of some projects along with the Treasury and the 
Ministry  of  Finance.  Allegations  of  political  interference  in  some  public  tenders  have  been 
reported,  in  particular  regarding  large  partnerships  which  are  exempt  from  the  public 
procurement law. 

Monitoring  of  the  award  and  implementation  of  contracts  is  satisfactory.  The  PPA  issues 
quarterly statistics which provide the basis for measuring performance and results as well as 
for improving the public procurement system. 

Contracting  authorities’  capacities  to  manage  public  procurement  processes  continues  to 
improve. The authorities have well-defined procurement functions and the necessary capacity 
to  implement  them  effectively.  Turkey  uses  e-procurement  as  an  important  tool  to  improve 
competition  and  transparency  and  to  reduce  costs.  The  PPA  provides  sufficient  regulatory, 
advisory and operational support to the contracting authorities. It should target its training and 
operational  support  at  institutions  with  less  capacity,  such  as  municipalities.  In  2014, 
municipalities  contracted  out  32  %  of  the  total  value  of  tenders  and  received  28  %  of  all 
complaints. 

Mechanisms  to  identify  and  address  corrupt  and  fraudulent  practices  are  in  place,  including 
rules on integrity and conflict of interest. However, Turkey should develop a risk indicator 
system that flags up potential integrity problems in the procurement process. 

Efficient remedies system 

The  right  to  legal  remedy  is  stipulated  in  the  Constitution  and  in  the  Law  on  Public 
Procurement.  The  legislation  on  review  procedures  has  a  good  level  of  alignment  with  the 
2007 EU Remedies Directive and general EU Treaty principles. Any decision on complaints 
by a contracting authority can be appealed against to the Public Procurement Board within the 
PPA. Fewer than 20 % of the board’s decisions are challenged in administrative courts. But 
the PPA’s review function does not include areas exempted from the public procurement law, 
such  as  utilities  or  concessions.  In  concessions,  the  tenderer  may  submit  a  complaint  to  the 
granting  authority  and  then  directly  appeal  in  administrative  courts;  decisions  under  public-
private  partnerships  can  be  challenged  in  ordinary  first  instance  courts.  The  delineation 
between these areas and their different appeal procedures is often not clear. 

Regarding  implementation  capacity,  the  PPA  review  and  remedies  system  provides  for 
speedy, effective and competent handling and resolution of complaints and sanctions. In 2014, 
the Public Procurement Board, which acts as a separate body within the PPA, examined 3 942 
complaints, some 4 % of the overall number of tenders. To avoid possible conflicts of interest 
the  PP  Board’s  integration  into  the  PPA  needs  to  be  reconsidered.  The  fees  for  complaints, 
which have doubled in one year, seem to be excessive. Court decisions may take two to three 
years. 

39 

 
 
4.6. 

Chapter 6: Company law 

The  EU  has  common  rules  on  the  formation,  registration,  and  disclosure  requirements  of  a 
company,  with  complementary  rules  for  accounting  and  financial  reporting,  and  statutory 
audit. 

Turkey is well advanced in the area of company law. Some progress was made in particular 
by extending the scope of compulsory independent audit. Furthermore, the Public Oversight, 
Accounting  and  Auditing  Standards  Authority  improved  its  capacity  and  online  services.  In 
the coming year, Turkey should in particular: 

→ finalise the technical alignment with a few pieces of legislation including on mergers and 
divisions. 

On company law, Turkey’s level of alignment is already high. To implement the Commercial 
Code,  Turkey  continued  adopting  secondary  legislation  on  commercial  registries  and  to 
extend  online  company  registration.  Implementing  regulations  on  mergers  and  divestitures, 
material  events and  stock  buybacks  were  revised.  A  small  number  of  issues  concerning  the 
alignment of legislation on mergers and divisions remain open. 

Turkey continued to adopt new corporate accounting and financial reporting standards and 
amendments to the existing ones, based on International Financial Reporting Standards. The 
Turkish Public Oversight, Accounting and Auditing Standards Authority further improved its 
administrative capacity through training and further development of its online services. 

The scope of compulsory independent auditing has been extended further by reducing capital 
thresholds. The number of approved independent auditors and audit firms further increased. 

4.7. 

Chapter 7: Intellectual property law 

The  EU  has  harmonised  rules  for  the  legal  protection  of  copyright  and  related  rights.  This 
covers, 
trademarks,  designs, 
biotechnological inventions and pharmaceuticals.  

instance,  computer  programs,  broadcasting  and 

for 

Turkey  has  a  good  level  of  preparation  in  this  area.  There  was  some  progress  in  the  past 
year but counterfeiting and piracy remain widespread. In the coming year, Turkey should in 
particular: 

→ adopt pending industrial property and copyright legislation; 

→  improve enforcement measures in the fight against piracy and counterfeiting; 

→ further increase awareness of intellectual property protection beyond current initiatives. 

In  the  area  of  copyright  and  neighbouring  rights,  collective  management  of  rights  is  still 
problematic,  particularly  with  the  treatment  of  foreign  producers,  as  much  as  on  public 
performance  rights  and  the  licensing  of  reproduction  rights.  The  draft  copyright  law  is  still 
pending in the Ministry of Culture. 

The law on industrial property rights has yet to be adopted, perpetuating an unpredictable 
legal environment for right holders. Turkish patent law is still not in line with EU acquis and 
with  the  European  Patent  Office’s  standards  on  pharmaceutical  inventions.  The  Turkish 
Patent  Institute  improved  its  online  services  by  giving  access  to  the  design  database  of  the 
Office  for  Harmonization  in  the  Internal  Market,  as  well  as  its  administrative  capacity.  The 
quality of the institute’s decisions on bad faith trademarks and industrial designs improved. It 
increased  awareness-raising  and  cooperation  activities  with  domestic  and  international 
institutions. In March 2015, the EU-Turkey Intellectual Property Rights (IPR) working group 
witnessed  participation  of  many  IPR-related  industry  representatives.  A  structured  and 

40 

 
comprehensive dialogue with IPR holders on systemic IPR problems is yet to be established. 
The national strategy on IPR and geographical indications was published in July 2015 along 
with  an  action  document  for  2015-2018.  However,  further  work  is  needed  on  geographical 
indications, plant variety and regulatory data protection for pharmaceuticals. 

On  judicial  enforcement,  one  additional  specialised  court  was  established.  However,  the 
permanent expertise of the 25 IP courts should be strengthened by developing training on IPR 
issues.  Patentability  criteria  should  be  drawn  up  in  cooperation  with  judges  and  expert 
witnesses  to  ensure  consistency.  The  professionalism  and  impartiality  of  expert  witnesses 
should  be  strengthened  in  patent  cases,  among  other  things  with  guidelines  on  their 
qualifications  and  liabilities.  Alignment  with  the  Enforcement  Directive  is  still  needed,  in 
particular on returning counterfeit goods to offenders, storage by right holders of confiscated 
goods and inconsistencies in obtaining preliminary injunctions. Customs enforcement against 
counterfeit  goods  improved  further  and  the  number  of  customs  applications  for  seizures 
increased. The fight against piracy was strengthened through an encrypted laser code system 
which  enabled  more  seizures.  Yet,  despite  large-scale  ex  officio  and  complaint-based  police 
raids,  counterfeiting  and  piracy  remain  widespread,  posing  risks  to  public  health  and 
consumer  protection  and  causing  damage  to  the  registered  economy.  Customs  enforcement 
legislation needs to be further aligned with the acquis. Stronger political will is needed on IPR 
enforcement. 

4.8. 

Chapter 8: Competition policy 

EU rules protect free competition. They include anti-trust rules against restrictive agreements 
between companies and abuse of dominant position. EU rules also prevent governments from 
granting state aid which distorts competition.  

Turkey is moderately prepared in the area of competition policy. Some progress was made, 
particularly  on  antitrust  and  mergers  policy  where  the  legislation  is  largely  aligned  and  the 
competition authority continues to fulfil its tasks effectively. However, there was no progress 
on state aid policy. The entry into force of the legislation implementing the state aid law was 
postponed for a third time. In the coming year, Turkey should in particular: 

→  implement  the  state  aid  law  without  further  delay  to  ensure  effective  monitoring  of  aid 
schemes and proper alignment with the acquis. It should also finalise an updated inventory 

The Competition Authority built up its enforcement record on antitrust and mergers policy 
further,  in  line  with  the  2014-2018  strategic  plan.  It  issued  332  decisions  in  the  reporting 
period,  as  well  as  a  guidebook  to  help  authorities  understand  Turkey’s  national  legislation 
from a competition perspective. It issued a report identifying 215 pieces of legislation which 
may  restrict  competition.  The  authority  maintains  a  satisfactory  level  of  administrative  and 
operational independence which should be preserved. 

The entry into force of legislation implementing the state aid law was again postponed, until 
31 December 2015,  delaying  the  requirement  to  notify  state  aid  schemes  and  measures.  A 
comprehensive state aid inventory is yet to be set up and an action plan for aligning all state 
aid schemes with the acquis is yet to be adopted. The 2012 decree on the incentives package 
was amended twice, extending its scope to sectors such as chemicals, mining and technology-
intensive  products;  it  now  also  grants  additional  tax  incentives  for  large-scale,  regional  or 
strategic projects. A number of aid schemes continue to breach Turkey’s obligations under the 
Customs Union. 

41 

 
4.9. 

Chapter 9: Financial services 

EU rules aim at ensuring fair competition between and the stability of financial institutions, 
namely  banking,  insurance,  supplementary  pensions,  investment  services  and  securities 
markets. They include rules on authorisation, operation and supervision of these institutions. 

Turkey has a good level of preparation in the area of financial services. Some progress was 
made  as  the  banking  regulator  adopted  new  implementing  regulations  for  capital  adequacy 
and the capital market regulator regulated the right of squeeze-out. However, the perception 
continued that decisions in the banking sector are politically motivated, calling into question 
the independence of supervisory agencies. In the coming year, Turkey should in particular: 

→  take  measures  to  re-establish  trust  in  the  independence  of  supervisory  agencies,  in 
particular the Banking Regulatory and Supervisory Agency. 

There was some progress in the areas of banks and financial conglomerates. The Banking 
Regulatory  and  Supervisory  Agency  revised  the  rules  on  banks’  capital  and  on  measuring 
their  capital  adequacy.  Revisions  incorporated  new  developments  on  core  capital  adequacy, 
credit derivatives and hedging instruments, and on standard method and internal ratings-based 
approaches. However, the perception of politically motivated regulatory decisions continued, 
in particular when public authorities took over the management of Bank Asya. The regulator’s 
action  and  the  context  in  which  the  seizure  took  place  raised  questions  about  the 
proportionality of the decision. 

Some progress was made on insurance and occupational pensions, as the Treasury revised 
the  implementing  regulation  on  insurance  agencies,  scaling  up  the  requirements  to  establish 
agencies and open new branches. 

There  was  no  further  progress  on  financial  market  infrastructure  and  there  was  some 
progress  on  securities  markets  and  investment  services.  The  regulator  revised  the 
implementing regulation on foreign securities markets instruments to facilitate the issuing of 
different types of equity instruments. 

4.10.  Chapter 10: Information society and media 

The EU supports the good functioning of the internal market for electronic communications, 
electronic  commerce  and  audio-visual  services.  The  rules  protect  consumers  and  support 
universal availability of modern services. 

Turkey is moderately prepared in the area of information society and media. It made some 
progress  in  the  past  year,  notably  by  adopting  an  e-commerce  law  and  bringing  the 
broadcasting  law  more  closely  into  line  with  the  EU  acquis.  However,  the  insufficient 
protection  of  freedom  of  expression,  privacy  and  personal  data  and  market  access,  and  the 
overregulation  in  the  sector,  remain  issues  of  serious  concern.  In  the  coming  year,  Turkey 
should in particular: 

→  strengthen  the  institutional  independence  in  electronic  communications  in  particular  in 
terms of financing and oversight.  

→ revise the law on internet to support an environment conducive for freedom of speech on 
the internet and protection of privacy and personal rights. 

→ further align the authorisation regime in electronic communications with the EU acquis. 

→ take the necessary steps to complete the digital switchover as soon as possible. 

On electronic communications, information and communication technologies, there have 
been no major developments in aligning legislation on authorisation, spectrum management, 

42 

 
including 

market  access  and  the  universal  service  regime.  Full  independence  of  the  Information  and 
Communication  Technologies  Authority  (ICTA), 
the  Telecommunications 
Communication Presidency (TIB), needs to be secured. Further improvements are needed to 
ensure the fair allocation of spectrum bands and the effective  use of frequencies, and  to  lift 
restrictions on concession operators applying to offer multiple bundled services. Contrary to 
the  EU  acquis,  the  incumbent  fixed  telecom  operator  is  not  able  to  offer  retail  broadband 
services.  Regarding  rights  of  way,  municipalities  regularly  charge  operators  additional  fees. 
Mobile broadband (including 3G) penetration rate significantly increased to 41.7 % in 2014, 
while  remaining  stable,  at  11.5% for  fixed broadband. In August, Turkey held a  4G  license 
tender divided into 20 frequency lots. Results were announced on 26 August 2015. Total bids 
amounted to € 3.4 billion, which represents about € 4 billion (with the 18% VAT included) as 
revenue for the government. Operators will be required to launch 4G services by April 2016. 

law  on 

internet  was  amended 

The 
the 
Telecommunications  Communication  Presidency  further  extensive  and  restrictive  powers 
over internet content and usage. The legal framework raises serious concern about freedom of 
expression, freedom of internet, protection of privacy and personal rights. (See Chapter 23 — 
Judiciary and fundamental rights) 

in  March  for 

time,  granting 

third 

the 

On  information  society  services,  Turkey’s  e-commerce  law  entered  into  force  in  May.  An 
information society strategy for 2015-2018 and a related action plan were published. 

In  the  field  of  audiovisual  policy,  the  digital  switchover  process  was  delayed  by  a  lawsuit 
brought by some media service providers. Broadcasting in languages and dialects other than 
Turkish continued without restrictions. The broadcasting law, amended in 2014, is to a large 
extent  in  line  with  the  EU  acquis.  However,  the  restrictive  way  in  which  it  is  implemented 
raises concern. (see Chapter 23 — Judiciary and fundamental rights). 

As regards transparency, in the reporting period the Radio and TV Supreme Council RTÜK 
published  1365  decisions,  together  with  the  internal  experts’  report.  Council  members 
nominated  by  the  opposition  complaint  about  biased  election  coverage  favouring  the  ruling 
party.  The  Supreme  Board  of  Elections  accepted  some  of  the  media  complaints  based  on 
RTÜK reports. In total 265 violation reports have been prepared by RTÜK. As a result, 197 
sanctions  were  issued  in  the  form  of  warnings  and  programme  suspensions  to  67  out  of  77 
media  service  providers.  Nevertheless,  the  independence  and  neutrality  of  council  members 
should be strengthened by improved procedures for their election.  

4.11.  Chapter 11: Agriculture and rural development 

The  Common  Agricultural  Policy  supports  farmers  and  rural  development.  This  requires 
strong management and control systems. There are also common EU rules for quality policy 
and organic farming.  

There is some level of preparation in the area of agriculture and rural development. Some 
progress  was  made  in  the  past  year.  Preparations  have  advanced  on  general  agricultural 
issues  and  alignment  with  the  common  agricultural  policy.  Turkey’s  capacity  to  absorb 
funding  has  increased  with  implementation  of  the  pre-accession  rural  development 
programme IPARD. The farm accountancy data network now covers the entire country, but 
its integration into relevant databases and use for policy analysis are yet to be addressed. In 
the coming year, Turkey should in particular: 

→ completely eliminate any restrictions on imports of live cattle and beef; 

→ adopt a strategy for agricultural statistics. 

Regarding  general  agricultural  issues,  preparations  for  the  agricultural  census  are  ongoing 

43 

 
and  yet  to  be  completed,  and  the  strategy  for  agricultural  statistics  is  yet  to  be  adopted.  To 
improve the collection and reliability of statistical data, a statistics and evaluation department 
has  been  established  in  the  Ministry  of  Food,  Agriculture  and  Livestock.  The  farm 
accountancy  data  network,  based  on  automated  data  collection  procedures,  was  further 
expanded to cover all 81 provinces. Data from the network is currently being integrated with 
the ongoing census, agricultural land parcel database and other related databases. 

On direct support to producers Turkey has made no further steps towards preparing a strategy 
for adjusting its agricultural support policy in line with the common agricultural policy. Work 
on developing a land parcel identification system has started, with EU support, together with 
an integrated agricultural data information system for individual support decisions to farmers. 

Unjustified  restrictions  on  imports  of  live  cattle,  beef  and  derivative  products  from  the  EU 
have  continued.  Despite  the  progress  on  imports  of  live  cattle  for  further  fattening  and  the 
recent  opening  of  a  beef  quota,  Turkey  has  made  little  progress  to  fully  implement  its 
obligations  under  the  EU-Turkey  trade  agreement  for  agricultural  products,  i.e.  by  opening 
quotas for beef and live animals on a lasting basis. 

In  the  field  of  rural  development,  Turkey’s  ability  to  absorb  funding  under  the  IPARD 
programme  improved  further  thanks  to  a  constantly  increasing  number  of  applications, 
smooth contracting and rising payments. In 2014, EUR 250 million of EU funding was paid 
to beneficiaries. The IPARD programme under IPA II for 2014-2020 was adopted in January. 
Turkey  adopted  the  second  national  rural  development  strategy,  covering  2014-2020,  which 
aims to ensure that the rural development activities of different institutions are coordinated. 
The  IPARD  Managing  Authority  started  implementing  the  technical  assistance  measure  to 
manage the IPARD programme, including capacity building for the LEADER measure. The 
1 952  staff  of  the  Agriculture  and  Rural  Development  Support  Institution,  at  central  and 
provincial  level,  received  in-service  training,  while  the  institution  participated  in  the 
accreditation  process  under  IPARD  II.  Further  efforts  are  needed  to  make  information 
available and ensure IPARD programmes are publicised and made more visible. 

Preparation  of  implementing  legislation  on  the  principles  and  implementation  of  organic 
agriculture is at a final stage. 

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

EU  hygiene  rules  for  foodstuff  production  ensure  a  high  level  of  food  safety.  Animal  health 
and welfare and the safety of food of animal origin are safeguarded together with quality of 
seed, plant protection material, harmful organisms and animal nutrition. 

There is some level of preparation in the area of food safety, veterinary and phytosanitary 
policy. There has been no progress in the past year. Full implementation of the acquis in this 
area will require significant further efforts, particularly in areas such as animal by-products, 
animal welfare, identification and registration of animals and control of their movements. In 
the coming year, Turkey should in particular: 

→  upgrade  food  establishments  to  meet  EU  standards,  among  other  things  by  submitting  a 
national programme and a monitoring plan; 

→ take further steps to adapt and enforce rules on animal by-products. 

Progress  in  aligning  and  implementing  the  acquis  on  general  food  safety  issues  has  been 
limited. Efforts should be stepped up to align veterinary policy fully with the acquis. Work 
on  identifying  and  register  bovines  as  well  as  small  ruminants  has  continued.  Border 
inspection posts at land and sea borders and at Sabiha Gökçen Airport in Istanbul still do not 
function fully. 

44 

 
Turkey’s  fight  against  animal  diseases  continued.  The  number  of  foot  and  mouth  disease 
outbreaks  has  fallen  considerably  following  mass  vaccination  and  the  introduction  of  strict 
movement controls to ensure the Thrace region remained a foot and mouth disease-free zone 
with  vaccination.  Significant  efforts  are  still  needed  to  fully  align  with  and  implement  the 
acquis on transmissible spongiform encephalopathies and surveillance systems, including full 
compliance  with  Decision  1/98  (See  Chapter  11  —  Agriculture  and  Rural  Development  for 
the de facto import ban on live cattle, beef meat and derivative products). Regulations on the 
welfare  of  farm  animals  and  on  the  protection  of  laying  hens  have  been  brought  into  force. 
However,  further  structural  and  administrative  efforts  are  required  to  fully  implement  the 
acquis on animal welfare. There has been no progress on zoonoses. 

Turkey continued implementing training, inspection and monitoring programmes concerning 
placing on the market  of food,  feed and  animal by-products. Progress in developing the 
national upgrading plan for agri-food establishments has remained limited. Significant efforts 
are still needed to implement the new rules for registering and approving food establishments. 
Initial work on animal by-products has started but adapting the new rules to this sector still 
requires substantial efforts. The funding of inspections has not yet been aligned with the EU 
system. 

Progress  was  made  in  aligning  and  implementing  food  safety  legislation  on  issues  such  as 
labelling, additives and purity criteria, flavourings and food supplements. For food enzymes 
and  novel  foods  alignment  has  not  yet  been  completed.  Although  the  trade  disruption 
affecting  food  enzymes  produced  from  genetically  modified  organisms  (GMOs)  was  solved 
by  a  recommendation  from  the  Biosafety  Board,  this  is  expected  to  be  translated  into  an 
amendment to the biosafety law. On specific rules for feed, a regulation on maximum levels 
of coccidiostats or histomonostats in food has been adopted. 

Regarding  phytosanitary  policy,  a  regulation  on  recommendation,  application  and 
registration processes for plant protection products has been adopted. 

4.13.  Chapter 13: Fisheries 

The  Common  Fisheries  Policy  protects  living  resources  of  the  sea  and  limits  the 
environmental  impact  of  fisheries.  This  includes  setting  catch  quotas,  managing  fleet 
capacity, rules for aquaculture as well as support for fisheries and coastal communities. 

Preparations in this area remain at an early stage. In the past year, some progress was made 
on resources and fleet management, inspection and control, and on international agreements. 
More efforts are needed to align legislation on structural actions, state aid and market policy 
and to strengthen institutional capacity. In the coming year, Turkey should in particular: 

→ adopt the draft fisheries law. 

The  Ministry  of  Food,  Agriculture  and  Livestock  expanded  its  administrative  and 
organisational  capacity  by  establishing  fisheries  and  aquaculture  branch  offices  in  43 
provincial directorates. The draft fisheries law has not yet been adopted. 

Regarding  resources  and  fleet  management,  a  national  sea  research  strategy  aimed  at 
contributing  to  a  sustainable  development  approach  in  fisheries  management  was  adopted. 
The scheme subsidising the decommissioning of fishing vessels has made possible significant 
progress in fleet management, with a total of 820 vessels decommissioned, of which 456 were 
recalled  in  2014.  Marine  fisheries  data  started  to  be  collected  in  2014  as  part  of  a  joint 
programme between the ministry and the Turkish Statistical Institute. 

inspection  and  control,  some  progress  has  been  made 

On 
the 
recommendations  of  the  International  Commission  for  the  Conservation  of  Atlantic  Tunas 

implementing 

in 

45 

 
(ICCAT)  on  bluefin  tuna.  The  EU-Turkey  Fisheries  Dialogue  Group  is  helping  to  steer 
inspections in this area. Inspections of baby clam production sites have intensified. 

No progress can be reported on structural actions and state aid. On market policy, the EU 
supports  efforts  to  build  up  the  ministry’s  capacity.  However,  more  needs  to  be  done  to 
prepare and implement a strategy and action plan. 

Regarding international agreements, the cooperation between Turkey and the EU continued 
in  ICCAT  and  the  General  Fisheries  Commission  for  the  Mediterranean.  As  the  EU 
implements provisions of the United Nations Convention on the Law of the Sea, inter alia in 
the  common  fisheries  policy,  Turkey’s  ratification  of  the  convention  would  improve 
cooperation with the EU on fisheries and maritime policy. 

4.14.  Chapter 14: Transport policy 

The EU has common rules for technical and safety standards, security, social standards, state 
aid  and  market  liberalisation  in  road  transport,  railways,  inland  waterways,  combined 
transport, aviation and maritime transport.   

Turkey is at a moderately prepared level on transport. There was some progress in the past 
year  in  this  field,  particularly  in  civil  aviation.  Legal  and  institutional  alignment  is  lagging 
significantly in the rail sector. In the coming year, Turkey should in particular: 

→ make further efforts to implement legislation aligned with the EU acquis in the rail sector, 
particularly  ensuring  independence  of  the  infrastructure  manager  to  carry  out  essential 
functions. 

→  improve  cooperation  with  the  EU  and  in  particular  with  the  European  Aviation  Safety 
Agency on civil aviation. 

The  Directorate-General  for  Road  Transport  continued  to  increase  its  administrative 
capacity  and  inspections  of  vehicles’  roadworthiness.  The  implementing  legislation  on 
transporting  dangerous  goods  by  road  was  amended  in  April  to  further  align  it  with  the 
acquis. Capacity was increased for training truck drivers to be professionally competent and 
for  testing  and  certifying  vehicles  transporting  dangerous  goods.  The  amended  road  traffic 
legislation aligns driving licences format requirements with EU rules over a five-year period. 

On rail transport, the law on liberalisation of railways does not comply with the acquis in 
creating the conditions for a competitive and transparent market where the independence of 
essential functions is ensured. Secondary legislation on network access was published in May, 
but other secondary legislation, on issues such as licensing, rolling stock registry and safety, is 
still  lacking  and  preventing  any  effective  opening-up  to  the  private  sector.  The  incumbent 
railway operator, Turkish State Railways, has still not been unbundled as required by law. In 
its role as infrastructure manager, the company owns and finances rail operations, contrary to 
the  acquis.  The  Directorate-General  for  Rail  Regulation  still  acts  as  both  the  regulatory 
authority  and  the  safety  authority  and  does  not  enjoy  sufficient  independence  from  the 
Ministry of Transport. Further alignment efforts are required. The regulation on the transport 
of  dangerous  goods  by  rail  and  the  decree  on  the  minimum  standards  for  professional 
competence  of  the  staff  working  on  dangerous  goods  transport  operations  by  rail  were 
approved in July. 

Legislation to promote intermodal transport has not yet been adopted. The capacity of the 
Directorate-General  for  Combined  Transport  and  Dangerous  Goods  needs  further 
strengthening. 

46 

 
On  air  transport,  signature  of  the  EU  horizontal  agreement  on  air  transport  services  with 
Turkey  is  still  pending.  The  capacity  of  the  Directorate-General  for  Civil  Aviation  is  not 
keeping pace with the size and growth of the Turkish civil aviation sector. The directorate is 
working  on  aligning  technical  requirements  and  administrative  procedures  related  to  air 
operations with those of the EU and European Aviation Safety Agency (EASA). Turkey has 
reached a good degree of convergence with the EU-EASA rules on airworthiness of foreign 
aircraft but there is no progress on aircrew. Turkey adopted a national civil aviation security 
programme.  The  absence  of  a  working  arrangement  with  EASA  to  extend  the  scope  of 
inspections to air traffic management and air navigation services means that Turkey’s level of 
progress in this domain cannot be ascertained. The lack of communication between air traffic 
control  centres  in  Turkey  and  Cyprus  continues  to  seriously  compromise  air  safety  in  the 
Nicosia  flight  information  region.  An  operational  solution  needs  to  be  found  urgently  to 
resolve this safety issue. 

In  maritime  transport,  Turkey  should  continue  its  efforts  to  become  party  to  all  basic 
conventions of the International Maritime Organization. A regulation on maritime transport of 
dangerous goods was published in March and a training programme on this issue has been set 
up. Turkey has not aligned yet with the acquis on reporting formalities for ships. 

As  long  as  restrictions  remain  in  place  on  vessels  and  aircrafts  registered  in  or  related  to 
Cyprus  or  whose  last  port  of  call  was  in  Cyprus,  Turkey  will  not  be  in  a  position  to  fully 
implement the acquis relating to this chapter. 

4.15.  Chapter 15: Energy 

EU energy policy covers competition and state aids, equal access to resources, the internal 
energy market, energy efficiency, nuclear energy and nuclear safety and radiation protection. 

Turkey is moderately prepared in the field of energy. There was good progress in the past 
year,  especially  on  security  of  supply,  the  internal  market  for  electricity,  and  renewable 
energy. Liberalisation of the electricity sector and the level of alignment with the third energy 
market  package  in  electricity are  well  advanced.  Efforts  have  continued  to  foster  renewable 
energies. In the coming year, Turkey should in particular: 

→ establish a functioning competitive market in the natural gas sector in line with the acquis; 

→ implement a transparent and cost-based pricing mechanism for electricity and gas; 

→  make  urgent  progress  on  aligning  with  the  acquis  on  nuclear  energy,  to  create  the 
necessary legal framework required for planning and construction of its nuclear plants. 

Good  progress  has  been  made  on  security  of  supply.  The  Ministry  of  Energy  and  Natural 
Resources  adopted  its  new  strategic  plan  for  2015-2019  which  aims  to  improve  security  of 
energy supply, diversify supply sources and promote energy efficiency and renewable energy, 
with  incentives  to  use  domestic  sources.  Turkey  continues  to  comply  with  the  oil  stocks 
acquis. In April, the Turkish Electricity Transmission Company and the European Network of 
Transmission System Operators for Electricity signed a long-term agreement on commercial 
energy  exchanges.  Turkey’s  efforts  to  strengthen  the  electric  interconnection  with  all  its 
neighbours  have  also  continued.  A  gas  transportation  agreement  between  Turkey  and 
Turkmenistan  was  ratified  in  May.  Operations  related  to  the  trans-Anatolian  natural  gas 
pipeline project moved forward decisively. In December 2014, Russia announced a new gas 
transportation project in cooperation with Turkey to replace the South Stream pipeline project, 
but its construction remains uncertain. A fair and transparent gas transit regime in line with 
the EU energy acquis is needed to enable Turkey to play a major role as a gas transit country 
to the EU. (See Chapter 21 on Trans-European networks). 

47 

 
Important progress was made on the internal energy market, particularly on organising the 
wholesale  electricity  markets  with  the  establishment  of  the  Energy  Markets  Operation  Joint 
Stock Company. The company will facilitate the creation of a fully liberalised electricity and 
gas market in Turkey. A regulation on balancing and settlement was amended in March with a 
view to introducing an intra-day market, coordinating losses in the transmission system and 
increasing  switching  possibilities  for  eligible  consumers.  The  privatisation  of  power 
generation  facilities  assets  continued.  The  minimum  consumption  level  at  which  consumers 
can freely choose their electricity supplier was further reduced from 4500 kWh to 4000 kWh 
for  2015.  Cost-based  tariffs,  envisaged  by  the  electricity  market  law,  have  not  yet  been 
properly implemented. Existing cross-subsidies will continue until 2016. 

There was some progress in the natural gas sector. The threshold at which eligible consumers 
can choose their supplier was further reduced to 75 000 m3/year in 2015. The Energy Market 
Regulatory Authority set the gas demand forecast for 2015 to 50.86 billion m3. The tendering 
process  for  gas  distribution  continued  and  the  network  was  extended  to  70  of  Turkey’s  81 
provinces. There have been no developments on revising the natural gas market law or on a 
new gas strategy. 

Good  progress  can  be  reported  in  the  field  of  renewable  energy.  In  February  2015,  the 
Ministry of Energy and Natural Resources issued a new national renewable energy action plan 
which  aims  to  increase  the  country’s  renewable  energy  generation  capacity  to  61  GW  by 
2023, mostly in the form of hydro, wind and solar generation. Implementing regulations were 
adopted  to  set  up  a  wind-power  forecasting  centre  and  on  water  usage  rights  agreements. 
Private  sector  investment  in  renewable  energy,  particularly  in  wind  and  unlicensed  solar,  is 
growing  fast.  Development  of  renewable  energy  must  consider  the  acquis  requirements  on 
State  aid  and  on  environment.  In  2014  21%  of  electricity  generation  was  from  renewable 
sources, down from 29 % in 2013 due to reduced hydropower output as result of the draught. 

There  was  no  progress  on  energy  efficiency.  The  strategic  plan  for  2015-2019  does  not 
include  any  specific  target.  The  capacity  of  the  Directorate-General  for  Renewable  Energy 
needs strengthening. The energy efficiency law and related legislation are not aligned with the 
Energy Efficiency Directive. 

On nuclear energy, nuclear safety and radiation protection, no progress can be reported on 
alignment  with  the  acquis.  The  intergovernmental  agreement  with  Japan  to  build  Turkey’s 
second  nuclear  power  plant,  in  Sinop,  was  ratified  in  May.  Construction  of  the  marine 
structures of Turkey’s first nuclear power plant, in Akkuyu, has already started. However, the 
law on acceding to the Joint Convention on the Safety of Spent Fuel Management and on the 
Safety of Radioactive Waste Management has not been adopted. The same goes for the draft 
framework  law  on  nuclear  energy  and  radiation  and  the  establishment  of  an  independent 
regulatory authority. 

4.16.  Chapter 16: Taxation 

EU  rules  on  taxation  cover  value-added  tax  and  excise  duties  as  well  as  aspects  of  taxing 
income from savings of individuals and of corporate taxes. They also deal with cooperation 
between tax administrations, including information exchange to prevent tax evasion. 

Turkey is moderately prepared in the area of taxation. Some progress was made on excise 
duties and operational capacity. In the coming year, Turkey should in particular: 

→ comply with the 2009 action plan as regards excise duties on alcoholic beverages; 

→ align the excise legislation on energy products with the acquis. 

In the area of indirect taxation, Turkey’s value added tax (VAT) legislation does not fully 

48 

 
comply with the EU acquis. It needs to be further aligned in terms of structure, exemptions, 
special schemes and the scope of reduced rates. Regarding excise duties on tobacco products, 
in January Turkey reduced the specific duty that finances the Tobacco Fund on imported and 
blended  tobacco,  in  line  with  the  2009  taxation  action  plan.  This  is  a  positive  step  towards 
eliminating  discriminatory  practices.  There  are  still  some  discrepancies  between  Turkey’s 
legislation  on  taxing  cigarettes  and  the  acquis  regarding  the  specific  and  ad  valorem 
components  of  the  tax.  However,  the  overall  level  of  the  excise  duty  on  cigarettes  is  now 
close  to  EU  levels.  Regarding  excise  duties  on  alcoholic  beverages,  discriminatory 
differentials  in  taxation  between  domestic  and  imported  products  were  reduced  in  January. 
The increase in excise duties on raki was proportionally higher than on other alcoholic drinks, 
thereby  significantly  reducing  taxation  differentials.  Although  not  fully  compliant  with  the 
agreed differentials for 2015 included in the 2009 taxation action plan, this is a positive step 
towards meeting them. An across the board rise of excise duties in July 2015 increased again 
the  taxation  differentials.  Continuing  to  gradually  eliminate  discriminatory  practices  in  line 
with  the  action  plan  is  key  for  further  progress  under  this  chapter.  Discrepancies  with  the 
acquis in excise duty legislation on energy products, such as ad valorem excise duties, have 
not been corrected. 

On  operational  capacity  and  computerisation,  the  Revenue  Administration  continued 
taking  measures  to  increase  voluntary  compliance  by  simplifying  procedures,  strengthening 
enforcement  and  improving  taxpayer  services.  Procedures  for  electronic  VAT  refunds  are 
operational.  Monitoring  of  how  the  action  plan  to  combat  the  informal  economy  is  being 
implemented continued, but needs to be transparent about the results achieved. The capacity 
of the Tax Inspectors Board was further strengthened. 

4.17.  Chapter 17: Economic and monetary policy 

EU rules require the independence of central banks and prohibit them directly financing the 
public  sector.  Member  States  coordinate  their  economic  policies  and  are  subject  to  fiscal, 
economic and financial surveillance.  

Turkey  is  moderately  prepared  in  the  area  of  economic  and  monetary  policy,  though  no 
progress  was  made  in  the  past  year.  Turkey  has  a  generally  good  capacity  for  economic 
analysis  and  planning.  Increased  political  pressure  on  the  central  bank  undermined  its 
independence and credibility. In the coming year, Turkey should in particular: 

→ avoid any political interference in the independence of the central bank; 

→  submit  fiscal  notifications  and  the  Economic  Reform  Programme  (ERP)  by  the  set 
deadlines. 

On monetary policy, further progress is needed to ensure the central bank's independence, as 
its statute fails to provide sufficient guarantees in this regard. For example, the inflation target 
is  jointly  decided  by  the  government  and  the  central  bank,  which  implies  a  lack  of 
institutional independence for the latter. The executive continued to increase political pressure 
on  the  central  bank  to  lower  interest  rates.  As  regards  privileged  access  to  financial 
institutions by the public sector, full alignment with the acquis requires further steps. 

On economic policy, Turkey submitted its first ERP in March 2015, with considerable delay. 
The  programme  presents  an  optimistic  macroeconomic  scenario  for  2015-2017,  with  a 
sizeable  increase  in  growth  compared  to  the  previous  three  years.  However,  this  scenario  is 
not in line with recent trends and market developments. The ERP failed to address a number 
of  elements  in  the  Commission's  guidelines  for  such  programmes,  most  notably  the 
implementation  of  the  policy  guidance  provided  in  the  Conclusions  of  the  Ministerial 
Dialogue  between  the  Economic  and  Finance  Ministers  of  the  EU  and  the  Candidate 

49 

 
Countries on 6 May 2014. 

There is a need to improve the credibility of forecasts, an important element of the Directive 
on  requirements  for  budgetary  frameworks.  Closer  alignment  with  other  elements  of  this 
Directive also requires substantial work, such as introducing numerical fiscal rules and their 
independent monitoring.  

4.18.  Chapter 18: Statistics 

EU  rules  require  that  Member  States  are  able  to  produce  statistics  based  on  professional 
independence,  impartiality,  reliability,  transparency,  and  confidentiality.  Common  rules  are 
provided for the methodology, production and dissemination of statistical information.  

Turkey is moderately prepared in the area of statistics. Some progress was achieved in the 
past year, notably on labour statistics. 

Still,  further  efforts  are  needed  across  the  board,  especially  to  align  macroeconomic  and 
agricultural statistics with the EU acquis. In the coming year, Turkey should in particular: 

→  strengthen  coordination  between  the  National  Statistics  Office  and  some  other  data 
providers, while improving the quality and use of administrative records; 

 → submit key national accounts indicators to the Commission; 

→ improve statistics on agriculture, asylum and migration. 

As  regards  statistical  infrastructure,  the  law  on  statistics  follows  the  principles  of  the 
European  statistics  Code  of  Practice  and  ensures  the  professional  independence  of  the 
National  Statistics  Office  (NSO).  Statistical  data  are  available  following  a  public  release 
calendar that gives all users access at the same time. Most recent classifications are in place. 
However, the cooperation between the NSO and some of the main data providers, particularly 
the Ministry of Finance and the Social Security Institution, needs to be improved; cooperation 
with  the  Ministry  of  Food,  Agriculture  and  Livestock  needs  to  be  considerably  enhanced. 
Access to administrative records is difficult and the often poor quality of data in registers held 
by  different  institutions  is  problematic.  The  often  poor  quality  of  data  in  registers  held  by 
different institutions has led to more reliance on costly surveys. The priority in the short term 
is to improve cooperation between the NSO and the main data providers, improve the quality 
of registers and increase the use of administrative records. 

For macroeconomic statistics, quarterly national accounts and balance of payments data are 
in  place  but  annual  national  accounts  are  not  yet  produced  in  accordance  with  the  acquis. 
Turkey produces external trade statistics in line with the EU acquis. Tables for the excessive 
deficit procedure have not yet been submitted. Further progress is needed in foreign affiliate 
trade  statistics  and  in  the  publication  of  government  finance  statistics  on  accrual  basis. 
Regional accounts are not yet available at level III of the nomenclature for statistical regions. 
Turkey started producing the balance of payments data according to the sixth version of the 
manual, while also making available old data as from 1975 on the basis of the new manual, 
for comparability purposes. The harmonised index of consumer prices is implemented in line 
with the acquis. Submitting key national account indicators according to ESA 2010 and the 
methodology used is essential for further progress on the statistics chapter. 

In  business  statistics,  full  implement  the  regulation  on  structural  business  statistics  is 
ongoing but the availability and use of good quality administrative records would render the 
process  more  efficient.  Turkey  is  implementing  the  latest  version  of  industrial  production 
statistics  according  to  EU  standards.  Short-term  statistics  are  largely  aligned,  with  the 
exception of services. Transport statistics are produced according to the EU acquis, but a few 

50 

 
road transport data issues remain. Tourism statistics are available except for data on spending 
by Turkish tourists abroad. R&D and ICT statistics are well aligned with the EU acquis. 

As for social statistics data from the survey on income and living conditions is available and 
labour market statistics are fully aligned with the EU acquis, with the continuous labour force 
survey introduced in 2014. Turkey revised its methodology for employment data in 2014 and 
now follows EU practice. Alignment in public health statistics is very high for data relating to 
causes  of  death  and  health  surveys,  whereas  further  progress  is  needed  for  data  on  health 
expenditure  and  non-monetary  healthcare.  Social  protection  statistics  are  partially  aligned. 
Crime statistics are available, as well as education and vocational training data. The address-
based registration system does not make it easy to follow the movement of foreign nationals 
for statistics on external migration and asylum. 

In  agriculture  statistics,  no  agricultural  census  has  been  implemented  since  2001.  Animal 
production,  milk  and  dairy  statistics  are  available,  whereas  data  on  wine  and  olive  oil  are 
incomplete. Supply balance sheets are not yet available and economic accounts for agriculture 
are outdated. The coverage and availability of the farm registry, agricultural labour index and 
agricultural production data are in need for considerable improvement. Further work is needed 
to  strengthen  the  coordination  between  the  NSO  and  the  Ministry  of  Food,  Agriculture  and 
Livestock,  and  revise  the  strategy  for  improving  agricultural  statistics  to  allow  for  the 
progress made in setting up a farm register to be described in detail. 

As  for  environment  statistics,  further  progress  is  needed,  in  particular  in  agricultural  and 
taxes  by  economic  activity. 
construction  waste  and  data  on  environment-related 
Environmental  accounts  are  at  an  early  stage  of  introduction.  Energy  statistics  are  in  line 
with the EU acquis. Annual energy statistics and energy prices are available in good quality 
and sent to Eurostat. 

4.19.  Chapter 19: Social policy and employment 

EU rules in the social field include minimum standards for labour law, equality, health and 
safety at work and anti-discrimination. They also promote social dialogue at European level.  

Turkey  remains  moderately  prepared  in  this  chapter.  There  was  some  progress  over  the 
past  year,  mainly  on  health  and  safety  legislation.  In  the  coming  year,  Turkey  should  in 
particular: 

→  remove  obstacles  such  as  the  double  threshold  requirement  for  trade  unions,  which  is 
hindering effective social dialogue; 

→ better implement and enforce health and safety legislation; 

→ step up social protection, social inclusion and anti-discrimination policies, with the aim of 
ensuring equal treatment for all. 

In the field of labour law, new legislation was adopted in September 2014 to regulate sub-
contracting in the public sector. Still, subcontracted workers not covered by the law continue 
to be particularly at risk of poor working conditions, unjustified dismissals and difficulties in 
joining  trade  unions.  Workers  in  the  mining  sector  are  particularly  affected  by  sub-
contracting. Turkey has still not regulated all forms of employment, such as temporary work, 
in line with the EU acquis. The rate of unregistered workers, who are also not covered by the 
labour law and without access to trade unions, increased to 34.0 % from 33.6 % last year. The 
rate  is  lower  for  non-agricultural  work  (22.3  %)  but  more  efforts  are  needed  to  reach  the 
national target of 17 % by 2018. Child labour persists, including some of its worst forms, and 
continues  to  be  a  critical  issue.  Limited  actions  have  been  taken  to  prevent  child  labour  in 
seasonal hazelnut harvesting. 

51 

 
On health and safety at work, Turkey ratified ILO Convention No 167 on safety and health 
in construction work and ILO Convention No 176 on safety and health in mines. Legislation 
has  been  adopted  that  introduces  more  stringent  measures  against  mining  accidents,  obliges 
employers  in  very  hazardous  workplaces  to  strengthen  occupational  health  measures  and 
protects occupational health and safety experts. The law aiming to align with the acquis in the 
field of health and safety at work is still not fully applicable as central elements of the law on 
alignment with the EU Framework Directive will apply in 2016. Work-related accidents are a 
serious concern as official statistics show that 191 389 occurred in 2013, with 1 360 fatalities, 
predominantly in the construction sector. Greater transparency in reporting is needed as non-
governmental  figures  indicate  casualties  40  %  higher.  Significant  under-reporting  of 
occupational  accidents  and  diseases  and  shortcomings  in  labour  inspections  need  to  be 
addressed. 

Regarding  social  dialogue,  a  ruling  by  the  Constitutional  Court  means  workers  in  small 
companies are now legally protected against being dismissed for their trade union activities. 
Another  ruling  of  the  Court  reduced  from  3  %  to  1  %  the  sector  level  threshold  for 
independent  trade  unions  to  obtain  authorisation  to  negotiate  collective  agreements.  Trade 
union  membership  in  the  private  sector  increased  from  9.5  %  to  11.2  %  in  2015,  but  the 
proportion of workers covered by collective agreements remains significantly lower. This is 
mainly due to the continued existence of ‘double thresholds’ which limit trade unions’ ability 
to engage in collective agreements. Moreover, a large number of unregistered workers do not 
have  access  to  trade  unions.  Unlawful  dismissals  of  trade  union  members  and  long-lasting 
trials discourage workers from joining trade unions. The Constitutional Court lifted a ban on 
strikes in banking and urban transport, but the postponement by the government of strikes in 
non-essential services and forced arbitration seriously impaired the right to strike. The Court 
also  ruled  that  public  employees  should  enjoy  their  right  to  strike  as  guaranteed  by  the 
Constitution and ILO conventions, but this ruling, which does not cover civil servants, has not 
been followed up in practice yet. Turkey needs to respect civil servants’ right to strike and to 
lift  obstacles  to  collective  bargaining,  among  other  things  by  considering  changes  to  the 
Constitution.  The  Economic  and  Social  Council  has  not  convened  since  2009.  In  the  public 
sector, especially in educational institutions and civilian functions of the armed forces, there 
are reports of discriminatory practices against members of certain unions. 

In  employment  policy  the  targets  of  the  national  employment  strategy  remain  ambitious 
compared with a weakening labour market performance. Employment rates for those aged 20-
64, at 75  %  for men and  31.6 %  for women, have stagnated and remain  low, especially for 
women.  The  unemployment  rate  increased  to  9.9  %  and  is  significantly  higher  for  women. 
Youth  unemployment  rose  to  17.8  %,  and  a  quarter  of  all  young  people  are  not  in 
employment, education or training. The public employment service continued to increase its 
capacity and outreach. Work on the first employment and social reform programme continues. 

Preparations for the programming and management required for the European Social Fund 
continued.  The  IPA  sectoral  programme  for  employment,  education  and  social  affairs  for 
2014-2020  was  adopted  in  December.  Intensive  tendering  and  operations  in  employment, 
education  and  social  inclusion  continued  under  the  2007-2014  IPA  human  resources 
development programme. 

On  social  inclusion,  no  progress  was  made  towards  establishing  an  integrated  policy 
framework  for  social  policy,  assistance  and  poverty  alleviation.  However,  some  indicators 
improved,  although  they  remained  worse  than  the  EU  average.  The  national  employment 
strategy  envisages  penalties  for  institutions  that  fail  to  recruit  persons  with  disabilities,  but 
this group continued to account for fewer than 2 % of public employees. The share was even 
lower  in  the  private  sector.  The  law  discourages  persons  with  disabilities  from  entering  the 

52 

 
profession of judges or prosecutors.  Measures to encourage the employment of persons with 
disabilities  have  limited  impact  in  the  absence  of  a  comprehensive  approach.  A  national 
strategy for integrating Roma has not yet been adopted.  

Total  expenditures  for  social  protection  continued  to  increase  reaching  13.8  %  of  GDP  in 
2013. The proportion of health expenditures increased in 2013 for the first time in four years, 
to 5.4 % of GDP. Low employment rates of women and the high proportion of informal work 
remain challenges for a sustainable pension system, whose deficit further increased in 2014. 
With  the  elderly  population  and  elderly  dependency  rates  increasing,  active  ageing  policies 
need  to  be  stepped  up.  The  social  assistance  scheme  for  persons  with  disabilities  expanded, 
with an increase in the number of beneficiaries covered and in the capacity of institutional and 
semi-institutional care centres and services. 

There  were  no  developments  in  anti-discrimination  policy.  Groups  promoting  gender 
diversity and ethnic groups continued to report  cases of discrimination in employment. In a 
recent academic study, one third of LGBTI persons reported discrimination in access to work, 
working conditions and salary; and do not take legal action due to mistrust towards the legal 
system  and  anxieties  over  possible  breach  of  privacy  (See  chapter  23  –  Judiciary  and 
fundamental rights). 

In  the  field  of  equal  opportunities,  there  is  no  progress  in  increasing  women’s  low 
participation rate in the labour force. The lack of institutions to care for children, the elderly 
and  the  sick  hinders  women’s  employment  and  reinforces  their  role  as  carers.  Only  partial 
measures have been taken to create more flexible working conditions in the public sector. The 
social security coverage of domestic workers requires attention. The legislation and policies 
on balance of work and private life need take into account gender equality. The gender pay-
gap  remains  problematic.  The  equality  body  required  by  the  acquis  has  still  not  been 
established. (See chapter 23 – Judiciary and fundamental rights) 

4.20.  Chapter 20: Enterprise and industrial policy 

EU industrial policy enhances competitiveness, facilitates structural change and encourages 
an enterprise friendly environment that stimulates small and medium sized enterprises.  

Turkey has a good level of preparation in the area of enterprise and industrial policy. Some 
progress  in  developing  policy  was  made  in  the  past  year  with  the  adoption  of  the  new 
industrial strategy, SME strategy, a strategy on entrepreneurship and several sector strategies. 
However, restrictive instruments not in line with EU industrial policy principles are in place. 
In the coming year, Turkey should in particular: 

→ improve policy compliance following the Small Business Act process results and the 
review of recently adopted strategies and action plans 

On  the  enterprise  and  industrial  policy  principles,  the  Ministry  of  Science,  Industry  and 
Technology  adopted  an  updated  industrial  strategy  for  2015-2018.  The  small  and  medium-
sized  enterprise  strategy  and  action  plan  were  also  revised  for  the  same  period.  In  addition, 
horizontal strategies were issued on entrepreneurship, public-industry-university cooperation 
and productivity. 

Regarding  enterprise  and  industrial  policy  instruments,  a  new  ‘industry  cooperation 
programme’  provides  for  an  offset  possibility  in  public  procurements  exceeding  EUR  7.5 
million involving innovation, technology transfer and delocalisation to the domestic market. 
This  obliges  foreign  bidders  to  cooperate  with  Turkish  companies  in  joint  production, 
investment and/or integration of Turkish companies into their supply chain. Such restrictive 
instruments  are  not  in  line  with  EU  industrial  policy  principles.  Turkey  continued  to 

53 

 
comprehensively support industrial and technology development zones. 

Turkey has several public funding schemes for industrial development, from the Ministry of 
Science, Industry and Technology and its affiliated bodies TUBITAK (R&D and technology) 
and KOSGEB (SME development) as well as from the Ministries of Economy, Development, 
and Finance. However, these schemes are not part of a comprehensive framework. SMEs use 
about  39  %  of  available  business  loans,  which  is  still  below  their  share  in  the  economy. 
Reliance  on  venture  capital  is  low  but  increasing.  Turkey  participates  in  the  COSME 
programme and established its new European Enterprise Network. It is currently participating 
in  the  assessment  exercise  on  the  Small  Business  Act  (SBA).  Initial  results  confirm  that 
Turkey is performing well in a number of dimensions. Strategies were adopted on industrial 
design,  intellectual  property  rights,  geographical  indications,  biotechnology,  textile,  ready-
wear  and  leather  products,  pharmaceuticals,  information  society  and  recycling,  and  are 
expected to give industry a boost once implemented. 

4.21.  Chapter 21: Trans-European networks 

The EU promotes trans-European networks in the areas of transport, telecommunications and 
energy to strengthen the internal market and contribute to growth and employment. 

Preparations on Trans-European networks remain well advanced. Good progress continued 
in the past year, in particular decisive progress in gas transportation and in the full integration 
and  interoperability  with  the  European  Network  of  Transmission  Systems  Operators  for 
Electricity. In the coming year, Turkey should in particular: 

→ step up efforts to establish a fair and transparent gas transit regime in line with the acquis; 

→ take steps towards establishing a new core network, and conclude and start implementing 
the national transport master plan. 

On  transport  networks, studies  for a national  transport master plan  and a logistical master 
plan are under way. Turkey has taken preparatory steps and contributed to establishing a core 
network in line with the revised TEN-T methodology and guidelines. 

Regarding  energy  networks,  Turkey  has  continued  its  efforts  to  diversify  both  sources  and 
routes and has strengthened its role as a gas transit country. Major efforts have been made to 
move  forward  the  trans-Anatolian  pipeline  project  and  construction  work  was  launched  in 
March  2015.  In  December  2014,  Russia  announced  a  new  gas  transportation  project  in 
cooperation with Turkey, to replace the South Stream pipeline project, but its construction is 
uncertain.  A  fair  and  transparent  gas  transit  regime  in  line  with  the  EU  energy  acquis  is 
necessary for Turkey to play a major role as a gas transit country to the EU. 

On  electricity  networks,  in  April  the  Turkish  Transmission  Electricity  Corporation  and  the 
European  Network  of  Transmission  System  Operators  for  Electricity  signed  a  long-term 
agreement  on  commercial  energy  exchanges.  The  corporation  revised  in  May  the  electricity 
network  regulation  in  line  with  EU's  and  committed  to  the  standards  of  the  Continental 
Europe  Operation  Handbook  and  to  carrying  out  market  transactions  in  line  with  the  EU’s 
Third Energy Package. 

54 

 
 
 
4.22.  Chapter 22: Regional policy and the coordination of structural instruments 

The  EU  funds  regional  development  in  the  Member  States.  Implementation  is  the 
responsibility of the Member States that must have adequate administrative capacity to ensure 
the good handling and sound financial management of the projects.  

Turkey  is  moderately  prepared  in  the  area  of  regional  policy  and  the  coordination  of 
structural instruments. Some progress was made in the past year. In the coming year, Turkey 
should in particular: 

→ focus on activities that reduce the risks of not using the IPA funds on time; 

→ strengthen its ability to implement programmes and deliver quality. 

A  national  strategy  for  regional  development  and  regional  development  plans  at  NUTS  II 
level (Nomenclature of Units for Territorial Statistics) have been adopted for the period 2014-
2023. 

The Ministry of Development is taking only limited initiatives in exercising its coordination 
role regarding the institutional framework. 

Technical assistance projects and training programmes continued building the administrative 
capacity  of  IPA  institutions  and  development  agencies.  However,  these  efforts  are 
undermined  by  staff  turnover.  The  transfer  of  responsibility  to  the  new  metropolitan 
municipalities had a temporary negative impact on the IPA programme in environment. 

Regarding  programming,  in  December  2014  operational  programmes  covering  the  period 
2014-2016 were adopted for transport, environment and climate action, competitiveness and 
innovation, and employment, education and social policies. 

On  monitoring  and  evaluation,  there  has  been  no  progress  in  developing  the  integrated 
monitoring information system which is not currently used by the operating structures. 

In the area of financial management, control and audit, little progress has been registered 
in the absorption of IPA funds under components III ‘Regional Development’ and IV ‘Human 
Resources Development’. The high risk of not using the available IPA funds on time emerged 
in  2014  and  has  increased  in  2015.  The  operating  structures  continued  to  strengthen  their 
capacity but this has been offset, though to different degrees amongst the components, by a 
lack of political commitment to managing IPA funds, high staff turnover, insufficient staffing 
in the quality control and audit units and the insufficient quality of tender documents. This is 
being assessed in the context of the entrustment of budget implementation tasks for IPA II to 
the national authorities. 

4.23.  Chapter 23: Judiciary and fundamental rights 

The  EU's  founding  values  include  the  rule  of  law  and  respect  for  human  rights.  A  proper 
functioning  judicial  system  and  effective  fight  against  corruption  are  of  paramount 
importance, as is the respect for fundamental rights in law and in practice.  

Turkey  reached  some  level  of  preparation  to  implement  the  acquis  and  the  European 
standards  in  this  area.  However,  there  has  been  no  progress  in  the  past  year.  The  Turkish 
judicial  system,  which  had  significantly  improved  between  2007  and  2013  in  terms  of 
independence, efficiency, and the protection of human rights and fundamental freedoms, has 
seen  respect  for  the  principle  of  separation  of  powers  seriously  undermined.  Judges  and 
prosecutors  have  been  under  strong  political  pressure.  In  the  fight  against  corruption,  the 
number  of  investigations,  prosecutions  and  convictions  declined.  In  particular,  investigation 
and prosecution of high-level corruption cases remained limited. Prevention measures need to 

55 

 
be improved. Corruption remains prevalent in many areas and continues to be a serious cause 
of concern. On fundamental rights, some developments were at odds with the action plan for 
the  prevention  of  violations  of  the  European  Convention  on  Human  Rights  (ECHR),  in 
particular the legislation adopted on internal security. Freedom of expression is of particular 
concern, with arrests, hearings, detentions, judicial prosecutions, censorship cases and layoffs 
of  journalists  increasing  as  the  authorities  maintained  their  pressure  on  the  media  and  free 
speech. 

In the coming year, Turkey should in particular: 

→ restore all legal guarantees to ensure full respect for the independence of the judiciary in 
practice; 

→ establish a track record of  investigations, prosecution and final convictions in corruption 
cases, in particular high-level cases; 

→  ensure  full  respect  for  fundamental  rights  and  freedoms,  in  particular  freedom  of 
expression, the fight against impunity,  freedom  of  assembly  and  protection of personal data 
and of persons belonging to minorities.  

(See  also  the  specific  recommendations  on  the  judicial  system,  the  fight  against  corruption 
and freedom of expression in sections 2.3 and 2.4.) 

Functioning of the judiciary 

Strategic documents 

A revised strategy for 2015-2019 was adopted in April 2015 to address the main shortcomings 
in the justice system. The strategy contains 10 goals targeting the key issues that need to be 
addressed. However, it does not provide a detailed assessment of the  implementation  of  the 
previous strategy and of remaining gaps. It is a very general planning document, specifying 
lead institutions and broad timelines, but including only limited detail on envisaged steps and 
actions  and  no  assessment  of  budgetary  implications.  It  is  crucial  that  the  strategy  be 
implemented with the involvement of all relevant stakeholders, including the civil society. 

Management bodies 

No action has been taken to strengthen the independence of the High Council of Judges and 
Prosecutors (HSYK) from the executive following the legislative changes in 2014. Over the 
reporting  period  the  Minister  of  Justice,  in  his  capacity  as  ex  officio  President  of  HSYK, 
participated in two meetings. No official record of votes of HSYK decisions on investigations 
against judges and prosecutor is made public. The minister's veto right, as ex officio President 
of HSYK, over decisions to initiate or not disciplinary proceedings against judges and public 
prosecutors, is another issue of concern.  

In September 2014, the Court of Cassation and the Council of State appointed five members 
to  HSYK.  Elections  for  the  10  members  elected  by  judges  and  prosecutors  held  in  October 
2014  were  marred  by  allegations  of  political  influence  over  the  process.  Bar  associations, 
academics,  jurists  and  civil  society  raised  concerns  over  government  support  to  successful 
candidates, including the use of public resources for their campaigns. The remaining members 
of HSYK were subsequently appointed by the President and one by the Justice Academy.  

Independence and impartiality 

Judges and prosecutors have remained under strong political pressure. As in the previous year, 
a high number of judges have been transferred against their will. Representatives of both the 
executive  and  legislative  branches  have  continued  to  make  comments  on  ongoing  judicial 

56 

 
cases.  The  then  President  of  the  Constitutional  Court  publicly  expressed  concern  over 
pressure  faced  by  the  judges  of  high  courts.  Representatives  of  the  executive  have  at  times 
undermined  the  credibility  of  the  judiciary  by  discrediting  judges  and  prosecutors  and 
accusing  them  of  conspiracy  and  membership  of  an  alleged  ‘parallel  structure’  under  the 
influence of the Gülenist movement or lately also of a terrorist organisation. In the context of 
direct public criticism from the executive, HSYK launched several cases against prosecutors 
and  judges  dealing  with  high-profile  cases,  including  allegations  of  corruption  and  alleged 
transfer of weapons to Syria. These cases led to their suspension or dismissal, as well as to 
several detentions. 

The Venice Commission expressed strong concerns over the removal, dismissal and transfer 
of  judges  and  prosecutors.  Such  decisions,  especially  those  on  judges  and  prosecutors 
involved  in  high-profile  cases,  irrespective  of  whether  they  committed  any  disciplinary 
offence, bring a suspicion of interference by HSYK in their judicial tasks. Further safeguards 
need to be introduced to avoid any interference by the HSYK in judicial proceedings. Legal 
and  constitutional  guarantees  are  also  needed  to  prevent  judges  and  prosecutors  from  being 
transferred against their will, except in cases of reorganisation of the courts. 

The  law  on  HSYK  also  needs  to  be  revised  to  reduce  the  executive’s  influence  within  the 
Council.  The  legislative  package  of  December  2014  made  a  substantial  change  to  the 
composition of the high courts by significantly increasing the number of judge members and 
by reducing their seniority requirement. 

In March, a prosecutor of the Istanbul Court House was taken hostage by activists of a leftist 
terrorist  group  and  killed,  together  with  the  hostage-takers,  during  a  rescue  operation  by 
security forces.  

Accountability 

Nearly  all  judges  have  declared  their  assets  as  required  by  law.  Since  October  2014,  out  of 
256 complaints to the HSYK about lack of independence and impartiality, investigations were 
initiated against 28 judges and prosecutors. Most cases were part of the crackdown instigated 
by the executive against the alleged ‘parallel structure’. HSYK approved launching criminal 
investigations against 54 judges on charges related to their alleged membership of a terrorist 
organisation.  Due  process  and  procedural  standards  need  to  be  applied  objectively  and 
independently to both disciplinary and criminal cases against judges and prosecutors.  

Professionalism and competence 

The Ministry of Justice continued to play a decisive role in the selection of the candidates to 
become judges and public prosecutors, while the HSYK continued to process appointments of 
large numbers of new judges in haste. The full responsibility for recruiting the candidates for 
the  position  of  judges  and  public  prosecutors  needs  to  be  transferred  to  the  HSYK.  The 
influence of the Ministry of Justice on the boards of interview needs to be reduced. Measures 
should  be  taken  to  ensure  that  ordinary  movements  of  judges  and  prosecutors  are  better 
planned and prepared in terms of accompanying measures such as training. 

Quality of justice 

Pre-service  training  of  candidate  judges  and  prosecutors  as  well  as  on-the-job  training  is 
carried out by the Justice Academy. One fifth of on-the-job training sessions are dedicated to 
European Court of Human Rights (ECtHR) case law but no continuous on-the-job training in 
EU law was planned for 2015. The dramatic increase in the number of candidate judges and 
prosecutors  in  the  past  couple  of  years  and  the  frequent  changes  in  the  duration  of  the  pre-
service training – now less than 6 months – reduces the academy’s capacity to deliver high-

57 

 
quality  training.  Common  training  courses  for  judges,  prosecutors  and  lawyers  need  to  be 
developed.   

The budget of the judiciary is EUR 3.2 billion in 2015, representing 0.5% of GDP and 42 € 
per inhabitant. 

Quality surveys were carried out for the first time, involving the public, stakeholders and bar 
associations. Particularly for statistical reporting, the function of the IT system for allocating 
cases to judges needs to be improved. Courts do not issue annual reports. Measures should be 
taken to improve the quality of judicial decisions. The decisions of the Constitutional Court, 
Court of Cassation and Council of State are accessible  through  a  dedicated  system  but  they 
are  not  classified  according  to  indexes  or  research  keys,  nor  are  they  summarised.  This 
hampers the harmonisation of case law across the country. The poor quality of indictments, 
without appropriate selection and assessment of the relevance of the evidence supporting the 
case,  has  been  a  recurrent  source  of  serious  concern.  The  application  of  the  anti-terror 
legislation,  which  scope  and  application  is  not  in  line  with  ECHR  and  ECtHR  case  law,  as 
well  as  the  extensive  use  of  protected  anonymous  witnesses,  particularly  in  cases  related  to 
state security, remained a problem. Bar associations reported that in such cases, courts often 
force  defence  attorneys  to  submit  questions  for  the  court  to  ask,  rather  than  being  able  to 
conduct direct questioning themselves. No data was available regarding the number of court 
decisions with a confidentiality clause. 

Efficiency 

The number of individual applications made to the Constitutional Court since its introduction 
in 2012 exceeded 43 000 in July of which close to 21 000 had been filed in 2014 alone. The 
court took decisions on the merits of some 800 cases and rejected 72 cases. Over 10 000 cases 
were declared inadmissible.  Decisions were taken on 93 % of over 7 000 complaints about 
the  length  of  judicial  proceedings  lodged  since  October  2014  with  the  Human  Rights 
Compensation Commission within the Ministry of Justice. 

In  2012,  the  clearance  rate  of  civil  and  commercial  litigious  and  non-litigious  cases  at  first 
instance had stood at 116 % and 111 % respectively. The disposition time for litigious cases 
was 134 days, which is below average. The clearance rate for administrative cases was 127 %. 
For criminal cases at first instance, the clearance rate was 108 % with a disposition time of 
226  days,  which  is  above  average.  No  comparable  data  for  2013  and  2014  has  been  made 
available. 

No action has been taken to introduce a reliable registration system or draw up indicators to 
measure the justice system’s efficiency. Lengthy trials, especially those lasting more than five 
years,  often  result  in  the  suspects  being  released  without  conviction,  even  in  serious  crimes 
cases.  Systemic  solutions  are  needed  to  address  trials’  excessive  length.  Decisions  on 
detention or continued detention frequently lacked proper reasoning based on specific facts, 
evidence  and  grounds  to  justify  the  deprivation  of  liberty,  as  required  by  law.  The  court 
experts system should be revised. Excessive recourse to court experts by judges, low quality 
of expert reports and low fees remain as problems.  A draft law to overcome the issues is yet 
to be adopted. Court experts should be subject to cross-examination in practice. 

The number of high-profile cases referred from a city court to another remote court increased 
to  reach  a  total  of  20  cases  in  2014,  the  highest  since  1992.  Such  referrals  complicate  the 
exercise of the right to defence. 

58 

 
 
 
Anti-corruption policy 

Track record 

The  2013  and  2014  judicial  years  saw  the  number  of  investigations,  prosecutions  and 
convictions in corruption cases fall. The prosecution of high-level corruption cases, including 
most cases involving the corruption allegations of December 2013 and the Deniz Feneri case, 
did  not  result  in  convictions.  In  October  2014,  the  Istanbul  Court  decided  for  reasons  of 
procedural  infringements  not  to  prosecute  the  53  suspects  in  the  December  2013  corruption 
allegations. In December the prosecutors leading the corruption investigation were dismissed 
by  the  High  Council  of  Judges  and  Prosecutors  (HSYK)  and  subsequently  prosecuted  on 
charges of illegal use of special investigative measures. The prosecution of only one of these 
cases — ‘the Fatih municipality case’ –continued and 21 suspects were charged on grounds of 
bribery, tender-rigging and abuse of power. 

Turkey’s track record on lifting immunities to effectively investigate and prosecute high-level 
public  officials  remained  limited.  The  parliament  decided  against  lifting  the  immunity  from 
prosecution  of  four  former  ministers  implicated  in  the  December  2013  cases.  Several 
investigations  were  launched,  including  some  against  mayors  and  other  public  officials; 
however,  legal  privileges  granted  to  public  officials,  notably  the  requirement  for  prior 
authorisation  from  their  administrative  hierarchy,  continue  to  protect  public  officials  from 
criminal and administrative investigations.   

The  perceived  interference  of  the  executive  in  the  high-level  corruption  investigations 
significantly  increased  the  perception  of  corruption.  Turkey  registered  a  sharp  drop  in 
Transparency  International’s  Annual  Corruption  Perception  Index  by  5  points,  falling  from 
53rd to 64th least corrupt country. 

As  regards  checks  on  asset  declarations,  the  number  of  public  officials  tried  in  court  for 
failing to file asset declarations increased to 287 in 2014 from 257 in 2013. Complaints to the 
Council of Ethics over conflicts of interest dropped to 218 in 2014 from 358 in 2011. 

Institutional framework 

Prevention measures  

In the absence of an independent anti-corruption body, the cooperation between the inspection 
boards,  the  Turkish  Court  of  Accounts  and  the  public  prosecution  office  needs  to  be 
strengthened. The limited number of cases referred by the Court of Accounts and inspection 
boards  for  prosecution  points  to  the  lack  of  a  proactive  attitude  in  the  units  responsible  for 
checks and inspections: the Court has referred only 28 cases to the Public Prosecutor’s office 
in  the  past  10  years.  A  standardised  administrative  investigation  guide  needs  to  be  adopted 
and  enforced  by  bodies  responsible  for  checks  and  inspections.  This  should  be  done  in  line 
with  modern  investigation  and  reporting  techniques,  inter-agency  cooperation  practices  and 
methodologies on data collection and analysis. 

The  Constitutional  Court’s  supervision  of  political  party  financing  warrants  further 
improvement,  in  line  with  previous  recommendations  from  the  Group  of  States  against 
Corruption  (GRECO),  on  undeclared  funding,  in  particular  in  the  form  of  in-kind 
financial  audits  were 
donations. The  Constitutional  Court’s  decisions  on  external 
systematically  late:  the  Court  did  not  publish  its  financial  audit  decisions  on  the AKP  and 
CHP  2010  accounts  until  December  2014.  Whether  belonging  to  a  political  party  or 
independent, candidates continue to be exempt from any financial transparency regulation or 
oversight. The  ‘Guidebook  to  Financial Audit  of  Political  Parties’  has  not  been  finalised  by 
the Court of Accounts. Most parties do not publish their accounts on their websites. Further 

59 

 
legal and administrative regulations are needed to ensure transparency and timely review and 
disclosure of audit reports. 

Regarding prevention of conflicts of interest, the enforcement of ethics regulations has been 
ineffective.  Ethics  boards  have  been  established  in  almost  all  ministries  but  the  Council  of 
Ethics for Public Service lacks the capacity to coordinate and monitor their work. The existing 
system of asset declarations has been ineffective due to their limited scope, the arrangements 
for  checking  them  and  transparency  measures  preventing  their  disclosure.  Turkey  uses  e-
procurement as an important tool to improve competition and transparency and reduce costs 
(See  also  Chapter  5  —  Public  procurement).  Protection  of  whistle-blowers  needs  to  be 
strengthened in law and in practice to facilitate reporting of corrupt acts. 

As regards the public’s right to free access to information, the Board of Review of Access to 
Information continued to review applicants’ appeals in an effective way and publish decisions 
online.  However,  there  is  no  quality  assurance  in  the  responses  provided  to  applicants.  The 
failure to adopt pending legislation on state and trade secrets is preventing the right balance 
being struck between confidentiality and transparency of the work of public institutions and 
officials. 

Law enforcement  

The  lack  of  specialisation  within  the  judiciary  to  investigate  corruption  cases  limits  their 
effective prosecution. This was exacerbated by frequent moves of staff between departments 
at prosecution and law enforcement agencies. Frequent changes to the legal basis of protective 
measures (i.e. interception of communication, confiscation, technical surveillance, etc.) in the 
Code of Criminal Procedure continue to prevent an effective standard procedure in corruption 
investigations from being established. 

The  Special  Prosecutor’s  office  still  lacks  a  multi-disciplinary  team  with  financial  and 
economic experts. Further legal empowerment and specialised training is needed to carry out 
systematic and effective financial and legal investigations in corruption cases. 

Publicly  available  judicial  statistics  on  corruption  are  limited  and  there  are  no  regular 
corruption perception and detection surveys. 

Inter-agency  cooperation  needs  to  be  further  developed.  The  same  goes  for  cooperation 
between  prosecutors  and  police  in  the  area  of  pre-trial  investigations,  which  is  not  yet 
effective. 

Legal framework 

Turkey did not fully align its legislation with GRECO recommendations on transparency of 
political  party  financing  and  incriminations.  Shortcomings  remain  in  the  corruption-related 
provisions  of  the  Penal  Code,  as  compared  with  the  standards  created  by  the  Criminal  Law 
Convention on Corruption. The shortcomings concern in particular the provisions on private 
sector  bribery,  the  criminalisation  of  unilateral  acts  of  bribery  and  the  special  defence  of 
effective  regret.  On  the  transparency  of  political  financing,  independent  candidates  and 
elected  representatives  should  also  be  subject  to  the  financial  checks  and  transparency 
regulations that apply to political parties during their campaigns. 

Public procurement legislation is not in line with the acquis in a number of respects. Public 
tenders  remained  corruption-prone,  largely  due  to  various  exemptions  inserted  into  the 
framework law, particularly for tenders at municipal level. 

Turkey has not yet amended key legislation in a number of areas as envisaged in the 2010-
2014  anti-corruption  strategy.  Pending  legislative  amendments  include  the  code  on  general 

60 

 
administrative procedures, the law on public procurement, the code of ethics for members 
of  parliament  and  the  law  to  protect  whistle-blowers.  The  legal  framework  regulating 
conflicts  of  interest  involving  public  officials  remains  fragmented.  Whistle-blowers  are 
obliged  to  rely  on  ad  hoc  provisions  of  the  witness  protection  law  as  there  is  no 
comprehensive law in either the public or private sector.   

Strategic framework 

The  2010-2014  anti-corruption  strategy  and  action  plan  have  expired  without  their  initial 
objectives  being  met.  Renewed  political  commitment  is  needed  under  a  new  strategy  and 
action  plan  to  address  the  outstanding  aspects.  Plans  announced  to  increase  transparency 
should  be  pursued.  Given  the  many  preventive  institutions  and  law  enforcement  bodies 
involved  in  the  fight  against  corruption,  Turkey  needs  to  strengthen  its  overall  capacity  to 
coordinate, implement and monitor all the anti-corruption measures planned.  

Fundamental rights 

Turkey  is  party  to  a  number  of  international  human  rights  instruments,  including  the 
European Convention on Human Rights (ECHR), and continues its efforts to implement them. 
It still needs to ratify the Optional Protocol to the Convention on the Rights of the Child and 
Additional Protocols 4, 7, 12 and 16 to the ECHR. Turkey’s Universal Periodic Review took 
place in January 2015 and The Human Rights Council adopted its outcome on 26 June 2015. 
Out of 278 recommendations, 215 gained the country´s support while 63 were noted. 

Since September 2014, the European Court of Human Rights (ECtHR) has found that the 
country  violated  the  European  Convention  on  Human  Rights  (ECHR)  in  92  cases  relating 
mainly to the right to life, prohibition of torture, right to a fair trial, right to respect for family 
life, freedom of expression, freedom of thought, conscience and religion and right to liberty 
and security. A total of 1997 new applications have been allocated to a decision-making body, 
bringing  the  number  of  pending  applications  to  9224.  The  EU  has  called  on  Turkey  to 
enhance its efforts to implement all the judgments of the ECtHR. 

In  the  Cyprus  v.  Turkey  case,  the  issues  of  missing  persons  and  restrictions  on  the  property 
rights  of  Greek  Cypriots  displaced  or  living  permanently  in  the  northern  part  of  Cyprus  are 
still  pending,  as  is  the  question  of  ‘just  satisfaction’  (Grand  Chamber  decision  of 
12 May 2014).  Following  the  Demopoulos  v.  Turkey  decision  of  5 March 2010,  6 216 
applications  from  Greek  Cypriot  owners  have  been  lodged  with  the  Immovable  Property 
Commission (IPC), 321 of them between June 2014 and August 2015. In the same period, the 
IPC has ruled for compensation in 140 cases. As of 15 September 2015, 700 applications have 
been concluded through amicable settlements and 18 through formal hearings. The IPC has so 
far paid out the equivalent of EUR 283 million in compensation. In a number of other cases, 
including Xenides-Arestis v. Turkey, Demades v. Turkey, and Varnava and others v. Turkey, 
Turkey has yet to fully execute the decisions. 

On promotion and enforcement of human rights, in March 2015 the parliament’s Human 
Rights  Inquiry  Committee  set  up  a  mechanism  to  follow  the  implementation  of  ECtHR 
judgments.  This  will  become  functional  in  the  next  parliamentary  term.  The  Constitutional 
Court  and  other  higher  courts  have  continued  to  follow  the  case  law  of  the  ECtHR  in  their 
rulings  in  areas  such  as  freedom  of  assembly,  freedom  of  thought  or  trade  union  rights. 
However,  there  has  been  limited  progress  in  implementing  the  2014  action  plan  for  the 
prevention  of  violations  of  the  ECHR.  In  general,  the  action  plan  needs  to  be  revised  and 
extended to cover all the areas identified as violating the ECHR, including the protection of 
human rights in the field of counter-terrorism. In March, legislation on internal security was 
adopted  which  contradicts  the  measures  outlined  in  the  action  plan  by  granting  broad 

61 

 
discretionary powers to the law enforcement agencies, such as the power to seize, search and 
detain and to use arms. Together with implementing legislation passed in July, it also further 
curtailed the freedom of expression and freedom of assembly of peaceful demonstrators. The 
Anti-Terror  law  is  not  yet  in  line  with  the  ECHR  and  ECtHR  case-law,  nor  does  it  comply 
with  the  EU's  Council  Framework  Decision  on  combating  terrorism.  Specifically,  it  has  not 
yet  been  amended  to  ensure  that  its  application  is  limited  to  offences  that  are  indisputably 
terrorist  offences.  Judges  and  prosecutors  dealing  with  terrorism  cases  should  undergo 
relevant judicial training on the European Convention of Human rights.  

The National Human Rights Institution (NHRI) released several reports. The one on the Gezi 
protests  includes  recommendations  on  torture  and  ill-treatment,  freedom  of  expression, 
freedom  of  assembly,  right  to  life,  effective investigation and recommendations for security 
forces. The functional independence of NHRI needs to be strengthened by amending the law, 
and its capacity needs to be built further. There is no legal basis for institutions or individuals 
to respond to the parliament's Human Rights Inquiry Committee's inquiries or to inform it of 
the  follow-up  of  its  recommendations.  The  committee  should  be  consulted  on  relevant 
legislation such as the internal security package. 

The situation regarding prevention of torture and ill-treatment has improved over the past 
several years  but  a number of problems remain. There  have  been  frequent  reports  of  use  of 
excessive force against demonstrators and cases of ill-treatment in prisons. This is an issue of 
serious  concern  give  the  lack  of  clear  and  binding  rules  on  the  proportionate  use  of  force, 
especially  in  demonstrations.  The  NHRI’s  national  preventive  mechanism  is  not  yet 
functional.  There  are  no  effective  civilian  arrangements  to  investigate  alleged  violations  of 
conscripts’ rights and cases of ill-treatment. 

Significant obstacles remain to securing justice for victims of serious human rights abuses by 
law enforcement officials. The legislation on compensation for damages or loss of life caused 
by public authorities also needs to be revised. When launching proceedings for ill-treatment 
by law enforcement bodies, protestors continue to face counter-claims, which receive priority 
from the judiciary. The internal security package of March 2015 granted broad discretionary 
powers  to  the  law  enforcement  agencies  without  adequate  judicial  or  independent 
parliamentary  oversight.  An  independent  civilian  law  enforcement  complaints  procedure 
needs  to  be  established  to  investigate  allegations  of  human  rights  violations  effectively, 
recommend  disciplinary sanctions  and  refer  cases  for  criminal  prosecution.  This  would  also 
help to address the issue of the impunity of law enforcement officials. 

There  is  no  comprehensive  approach to  missing  persons or  the  exhumation  of  mass  graves. 
Independent  investigation  of  all  alleged cases  of  extrajudicial killing  by  security  and  law- 
enforcement officers is also lacking. 

As regards the prison system, 2 045 prison staff members have received training on Council 
of Europe and human rights mechanisms. Despite an increase in the number of phycologists, 
social workers, and sociologists, the low number hinders successful rehabilitation of 173 000 
inmates. Concerns over the situation in prisons continue. Alternatives to imprisonment should 
be  developed  to  curb  overcrowding.  Ill-treatment  in  juvenile  prisons  has  continued  to  be 
reported.  Suspended  sentence  measures  are  granted  restrictively  to  terminally  ill  prisoners. 
Allegations of ill-treatment are not properly investigated or sanctioned. Only a small number 
of  judicial  cases  against  prison  staff  have  been  concluded  with  overly  lenient  sanctions. 
Turkey  still  fails  to  implement  ECtHR  case  law  on  mistreatment,  conditions  in  prisons  and 
protection of the right to life. This also includes violation of the right to vote.  

A  comprehensive  framework  law  on  personal  data  protection  and  the  establishment  of  an 
independent data protection supervisory authority in line with European standards are yet to 

62 

 
be  taken  forward.  The  relevant  Council  of  Europe  Convention  and  Protocol  are  not  yet 
ratified. Adoption of a law on personal data protection in line with the acquis is a requirement 
within  the  visa  liberalisation  dialogue,  as  well  as  for  concluding  operational  cooperation 
agreements with Eurojust and Europol and strengthening judicial and police cooperation with 
EU  Member  States,  including  on  counter-terrorism.  In  the  absence  of  progress  in  this  field, 
the  existing  legislation  on  the  National  Intelligence  Service  and  the  amended  internet  law, 
which  grant  wide  powers  to  the  National  Intelligence  Service  and  the  Telecommunications 
Communication Presidency, continue to raise concerns. 

Regarding  freedom  of  thought,  conscience  and  religion,  freedom  of  worship  continued  to 
be  generally  respected.  Court  judgements  on  Cem  houses  and  on  compulsory  religious  and 
ethics classes contributed to creating the enabling environment for the respect of this freedom. 
There  is  however  a  need  to  amend  and  implement  the  legal  framework  in  line  with  ECtHR 
rulings, Council of Europe recommendations and EU standards. Particular attention should be 
given  to  the  implementation  of  judgement  on  the  exemption  from  compulsory  religion  and 
ethics classes, indication of religious affiliation on identity cards, legal personality of religious 
bodies  and  institutions,  rules  on  participation  in  religious  elections,  places  of  worship  and 
work  and  residence  permits  for  foreign  clergy.  Pending  issues  concerning  the  Alevi 
community  also  need  to  be  tackled,  including  the  implementation  of  the  recent  Court  of 
Cassation  judgement  on  the  recognition  of  Cem  houses  as  places  of  worship  and  effective 
judicial  follow-up  of  attacks  against  Alevis.  Turkey  is  the  only  member  of  the  Council  of 
Europe that does not recognise the right to conscientious objection for conscripts.  

The  Ecumenical  Patriarchate  received  no  indication  from  the  authorities  that  it  may  use  the 
‘ecumenical’  title  freely.  The  relevant  2010  recommendations  of  the  Council  of  Europe’s 
Venice Commission on these issues are yet to be implemented. Restrictions on the training of 
clergy continued. No steps have been taken to open the Halki (Heybeliada) Greek Orthodox 
Seminary,  closed  since  1971.  The  Armenian  Patriarchate’s  proposal  to  open  a university 
department  for  the  Armenian  language  and  Armenian  clergy  has  been  pending  for  several 
years.  The  Syriac  Orthodox  community  was  only  able  to  provide  informal  training  outside 
official  schools.  Hate  speech  and  hate  crimes  against  Christians  and  Jews  continued  to  be 
reported (see below — minorities). References to the possible transformation of Hagia Sophia 
in Istanbul into a mosque raised controversy. 

Concerning  freedom  of  expression,  at  least  four  physical  assaults  against  journalists  took 
place,  one  of  whom  was  seriously  injured  by  a  firearm.  All  these  cases  are  under  police 
investigation.  The  reduction  of  pre-trial  detention  from  ten  to  five  years  has  for  a  certain 
period led to the release of several journalists and media workers. According to the OSCE, the 
number of journalists in prison in Turkey exceeds 20, many of whom face or were convicted 
for  charges  under  the  anti-terror  law.  The  number  of  detentions,  judicial  prosecutions, 
censorship cases and layoffs has soared as the authorities maintained strong pressure on the 
media. This applies not only to journalists but also to writers and users of social media. High-
level politicians continue strongly condemning journalists for their critical reporting. This has 
a  negative  impact  on  freedom  of  expression  and  helps  create  a  climate  of  self-censorship 
among members of the media and outlets. 

The internet law, as again amended in March 2015, increased the government’s prerogatives 
to  initiate  the  blocking  of  media  content  without  court  order  on  an  unduly  wide  range  of 
grounds: protection of life and safety of property, national security, public order, prevention 
of  crime  and  protection  of  general  health.  This  change  did  not  fully  reflect  European 
standards. No revision of the relevant provisions limiting freedom of expression of the anti-
terror law or of the Criminal Code has taken place. A number of provisions still need to be 
amended, such as on defamation or Article 314 of the Criminal Code on membership of an 

63 

 
armed organisation used to prosecute journalists. The broadcasting legislation also needs to be 
reviewed to anchor the broadcasting council’s independence more firmly. 

Domestic  and  international  journalist  associations  continued  to  record  a  deterioration  in 
freedom  of  expression  and  free  media  in  Turkey.  The  Şener  vs  Turkey  judgement  of  the 
ECtHR confirmed in October that the pre-trial detention of investigative journalists accused 
of  aiding  and  abetting  the  criminal  organisation  Ergenekon  violated  the  ECHR  in  several 
ways. 

Criminal  cases  against  journalists  have  continued.  In  June,  a  criminal  investigation  was 
launched against a critical newspaper and its editor-in-chief over publication of documents on 
arms deliveries allegedly conducted by the National Intelligence Service in Syria. Following 
the crackdown in December on another newspaper, as part of the government’s fight against 
the ‘parallel structure’ under the influence of the Gülen Movement, a journalist and a director 
of the media group are still detained. They face charges of ‘affiliation to the Fethullah Terror 
Organisation’.  TV  channels  of  that  media  group  were  also  lately  removed  from  digital 
platforms.  Two  TV  channels  critical  of  the  government  were  shut  down  by  the  police  and 
printing of two dailies was stopped just before the repeat election in an operation targeting a 
holding  due  to  its  links  with  the  Gülen  Movement  and  under  accusations  of  support  to  a 
‘terror organisation’. The legality and proportionality of this operation raise serious concern. 
In January a case was also launched against two columnists on charges of inciting hatred in 
relation to the re-print of Charlie Hebdo caricatures. Several cases have been brought against 
journalists  for  reporting  about  the  alleged  corruption  cases  of  December  2013.  Opposition 
papers faced repeated refusals of accreditation for government events.  

Several  journalists  and  editors-in-chief  were  dismissed.  Files  submitted  to  the  Ministry  of 
Justice for permission to launch investigation on insult to the President increased from 397 in 
2014 to 962 in the first six months of 2015 alone. In the first six months of 2015 the Ministry 
of  Justice  authorised  judicial  investigation  in  486  files,  against  107  in  2014.  In  some  cases, 
minors were prosecuted on defamation charges, and some of them endured  short periods of 
pre-trial detention. Several international journalists were deported in relation to their activities 
in the south east.  In recent weeks, two columnists received prison sentences and the editor in 
chief of a leading newspaper was detained on charges related to views they had expressed in 
their paper or via twitter.  

Media  blackouts  were  imposed  in  several  cases  considered  as  sensitive  such  as  the  arms 
deliveries  allegedly  conducted  by  the  National Intelligence  Service  in  Syria,  the  kidnapping 
and killing of a prosecutor and the statements given to the parliamentary inquiry committee 
on corruption charges against former ministers. Such media blackouts were also applied to the 
terror attacks of October in Ankara and of July in Suruç.  

In  the  context  of  the  escalating  violence  in  the  east  and  south  east  and  increasing  tensions 
across  the  country,  the  authorities  took  actions  curtailing  further  freedom  of  media.  There 
were as well a number of attacks on media outlets.  

The  Telecommunications  Communication  Presidency  has  continued  to  apply  widely  its 
extensive prerogatives, further increased in March (see section on legislation). However, no 
official  statistics  on  banned  sites  are  published.  Monitoring  by  civil  society  organisations 
indicate that close to 80 000 websites have been banned, of which only 5 % following a court 
decision.  In  July  2015,  the  Telecommunications  Communication  Presidency  banned  briefly 
access to Twitter and YouTube on grounds of relaying propaganda of terrorist organisations. 

The Radio and TV Supreme Council (RTÜK) submitted reports on detected violations to the 
Supreme  Board  of  Elections  (SBE)  but  no  comprehensive  reports  on  its  meda  monitoring 

64 

 
findings. The SBE issued over 150 warnings to 39 television channels. International observers 
found  that  three  out  of  five  monitored  national  broadcasters  provided  disproportionate 
coverage  to  the  ruling  party.  Before  the  election,  RTÜK  issued  warnings  to  and  fined  a 
number  of  television  stations  (both  pro-government  and  pro-opposition),  claiming  that  they 
violated  the  principle  of  objective  broadcasting.  RTÜK  also  kept  fining  channels  for 
broadcasting  content  that  is  ‘contrary  to  the  national  and  moral  values  of  society,  general 
morality and the principle of family protection’.  

Turkish  Radio  and  Television  Corporation  (TRT)  is  increasingly  politicised,  as  its  board  of 
directors is appointed by the government, either directly or with the involvement of RTÜK. 
The Corporation’s financial autonomy and editorial independence need to be protected by law 
to enable it to act as a true public broadcaster, reflecting all segments of society. Its reporting 
ahead of the election focused to a very large extent on the governing party and the President's 
activities and speeches.  

In December, several journalists, many working for government-critical media, were denied 
permanent press cards. Legislation on the right to association and on trade unions needs to be 
improved  to  allow  freelance  journalists  and  media  workers  to  join  any  association  or  trade 
union  organisation  of  their  choice.  The  right  to  organise  and  to  enter  into  collective 
bargaining, and the right to strike, should be extended to freelance / part-time journalists and 
brought into line with EU standards. 

Freedom  of  assembly  has  been  generally  exercised  across  Turkey.  However,  the  outgoing 
government  showed  a  growing  intolerance  of  public  protests  and  maintained  a  restrictive 
interpretation  of  the  right  of  assembly.  It  regularly  prevented  demonstrations  without 
compelling reasons, thus failing to meet European standards. The police used excessive force 
on  many  occasions,  such  as  the  1 May  celebrations  and  the  pride  parade  in  Istanbul  on 
28 June.  The  1 May  Taksim  Square  marches  were  not  authorised.  Demonstrations on issues 
such as the situation in Kobane or the corruption allegations have continued to be judged on 
the  basis  of  the  anti-terror  law.  As  authorities  started  to  put  into  application  the  extended 
powers granted by the internal security package and related implementing legislation, further 
restrictions were imposed in practice, also in the context of the surge of violence in the east 
and south east. At the same time, authorities were not able to contain aggressive groups from 
attacking a number of media outlets and HDP party offices. The relevant ECtHR case law in 
the  area  of  freedom  of  assembly  needs  to  be  observed,  in  line  with  a  ruling  of  the 
Constitutional Court in June, and the law on meetings and demonstration marches needs to be 
urgently  revised  accordingly.  Concerns  over  possible  restrictions  on  providing  medical 
assistance in emergencies remain.  

The  Constitution  guarantees  freedom  of  association.  Claims  relating  to  national  security, 
morality and the Turkish family structure continued to be applied by courts to restrict freedom 
of association in practice. At least seven associations dealing with human rights and Kurdish 
issues  are  facing  court  cases  intended  to  close  them  down.  Legal  proceedings  have  been 
started against other such associations. The legislation and implementation of the freedom of 
association  for  national  and  foreign  organisations  should  be  brought  in  line  with  European 
standards  and  best  practices.  Provisions  restricting  registrations,  procedures  for  permissions 
and the functioning of associations need to be revised with clear criteria for implementation. 

On property rights, work continued to implement the 2008 Law on Foundations, revised in 
2011.  The  Foundations  Council  continued  to  approve  the  return  of  properties  and  to  pay 
compensation.  Further  efforts  are  needed  to  implement  the  law.  The  scope  of  the  current 
legislation  needs  to  be  broadened  to  cover  foundations  currently  managed  by  the  state  and 
properties of foundations transferred to third persons. 

65 

 
In January, the Foundations Council restored the legal personality (foundation status) of the 
patriarchal church of the Armenian Catholics in Istanbul A significant number of court cases 
related  to  property  restitution  continued,  including  cases  on  land  ownership  of  the  Syriac 
Orthodox Mor Gabriel Monastery. Syriacs and Yazidis faced difficulties to register property, 
especially in the south east. Latin Catholic churches have no legal personality nor a minority 
foundation status, making it impossible for them to register property and seek the return of, or 
compensation  for,  property  confiscated  in  the  past.  Problems  were  reported  for  Greek 
nationals in inheriting and registering property, in particular following the Turkish authorities’ 
implementation  of  the  amended  land  registry  law  of  2012,  which  limits  the  acquisition  of 
property  by  Greek  nationals,  among  others.  The  relevant  2010  recommendations  of  the 
Venice  Commission  on  protecting  property  rights  and  education  rights  need  to  be 
implemented. 

Regarding non-discrimination, there is an urgent need to adopt a comprehensive framework 
law on combating discrimination in line with European standards. The legislative framework 
on non-discrimination does not explicitly prohibit discrimination on the basis of ethnic origin, 
sexual  orientation  and/or  gender  identity.  The  Penal  Code  does  not  include  hate  offences 
based  on  ethnic  origin.    There  is  no  database  on  hate  crimes.  No  specialised  body  was 
established  to  promote  equality,  combat  racism,  xenophobia,  anti-Semitism  and  intolerance 
and  to  deal  with  complaints  from  victims  of  discrimination.  Ethnic,  religious  groups  and 
groups  promoting  gender  diversity  continued  to  report  cases  of  discrimination  in  social  life 
and in employment. Substantial efforts are needed to enforce anti-discrimination in practice.  

The legislative and institutional framework on equality between women and men is in place. 
The  gendarmerie  has  started  to  strengthen  its  capacity  to  combat  violence  against  women. 
However,  promotion  of  the  traditional  role  of  women,  ineffective  implementation  of  the 
legislation  and  the  low  quality  of  services  make  discrimination  against  women  and  gender-
based  violence  major  areas  of  concern.  Politicians  and  government  officials  have  a  duty  to 
uphold  gender  equality  principles  enshrined  in  law  and  to  refrain  from  making  derogatory 
statements against women. Efforts to implement the existing law and national action plan on 
the protection of family and prevention of violence against women need to be stepped up and 
brought  into  line  with  the  Council  of  Europe  Convention  on  preventing  and  combating 
violence against women and domestic violence. Protection of women from violence and legal 
redress  in  cases  when  victims  pursue  judicial  proceedings  is  insufficient.  The  situation  has 
seriously  worsened  as  regards  trafficking  of  women,  forced  prostitution  and  sexual 
exploitation,  especially  among  refugees  from  Syria.  The  legislative  framework  needs  to  be 
amended to strengthen the preventive and deterring effect of judicial decisions. The number 
of women who seek formal help or report to the justice system increased slightly but is still 
very low. ‘Consent’, ‘undue provocation’ and ‘appearing older’ continued to be used to justify 
milder  sentences  for  sex  crimes.  No  system  for  collecting  comprehensive  data  on  gender-
based  violence  exists.  There  are  excessive  delays  in  preparing  forensic  reports.  The  budget 
does  not  include  any  spending  dedicated  to  preventive  measures.  Shelters  for  victims  of 
domestic violence increased their capacity, but they still need to be developed further in line 
with international standards. Training of law enforcement personnel needs to be expanded and 
coordination between institutions further improved. 

Gender  disparity  in  education  remains  substantial,  particularly  as  regards  drop-outs  due  to 
early marriage or child labour. The number of women members of parliament increased as a 
result  of  the  June  general  election  from  79  to  98.  However,  this  number  decreased  in  the 
1 November election to 82, constituting currently 15 % in the 550-seat parliament. As for the 
local authorities, only 3 out of 81 provincial governors and 3 out of 30 mayors of metropolitan 
areas are women. Women also remain under-represented in managerial positions in the public 

66 

 
and private sectors. More involvement and participation by women is needed in employment, 
policy-making and politics. 

On  the  rights  of  the  child  there  was  limited  progress  in  overall  policy,  legislation, 
coordination  and  monitoring.  The  2013  national  children’s  rights  strategy  and  action  plan 
were  not  implemented  and  the  Children’s  Rights  Monitoring  and  Evaluation  Board  did  not 
meet.  The  special  Ombudsperson  designated  for  children’s  and  women’s  rights  made 
substantial efforts to improve the situation. However, the arrangements for making complaints 
about children’s rights and reporting on them are limited in their scope and effectiveness. 

Child  labour  persisted,  including  in  its  worst  forms,  and  needs  to  be  tackled  as  a  matter  of 
priority.  The  2014  national  employment  strategy  committed  to  prevent  the  phenomenon  but 
its implementation is very limited. Child workers continued to be victims of fatal accidents. 
Despite  existence  of  social  protection  measures,  including  cash  transfers,  around  30 %  of 
children (7.4 million) live in relative poverty, compared with 23 % of adults. Infant and child 
mortality  continued  to  fall.  No  national  strategy  is  in  place  to  prevent  violence  against 
children. Nor is there an effective system of monitoring rehabilitation centres and institutions. 
Research on sexual abuse and ill-treatment of children is insufficient. The average marrying 
age continued to rise but child and forced marriage persists, mainly in the eastern provinces. 

As regards juvenile justice, juvenile courts have not been set up in all provinces. Where they 
do not exist, children continued to be tried in adult courts. Almost 300 children were arrested, 
taken  into  custody  or  detained  during  protests  in  2014-2015.  Juveniles  are  exposed,  like 
adults, to arrest and detention on charges of membership of a terrorist organisation and to long 
pre-trial  detention.  Prison  conditions  for  juvenile  offenders  varied;  there  continued  to  be 
complaints  of  overcrowding,  inadequate  hygiene,  ill-treatment,  staff  shortages  and  violence 
and  abuse  by  inmates.  Attention  also  needs  to  be  paid  to  children  victims,  witnesses  and 
interested parties in judicial or administrative proceedings. 

Concerning the integration of persons with disabilities, the parliament adopted the Optional 
Protocol  to  the  UN  Convention  on  the  Rights  of  Persons  with  Disabilities  setting  up  an 
individual  complaints  mechanism.  The  number of  disabled  pupils  in  primary  and  secondary 
education  continued  to  increase  but  access  to  higher  education  remains  a problem  and 
‘lifelong  learning’  opportunities  are  limited.  The  illiteracy  rate  among  disabled  persons  is 
high.  The  extension  of  the  transitional  period  for  adapting  public  buildings  for  increased 
accessibility  for  persons  with  disabilities  goes  counter  to  their  integration.  Inaccessibility 
remains a widespread problem, including in transport services.  

The number of people receiving financial incentives for home-based care also increased. The 
transition  to  community-based  services  has  continued,  underlining  the  need  to  offer  care 
providers enhanced guidance and training. Significant shortcomings persist on integration and 
empowerment of persons with  disabilities with  respect to their environment, social attitudes 
and  quality  of  services.    Lack  of  early  and  suitable  diagnosis  hinders  many  children  with 
disabilities or developmental delays from early access to appropriate services. Turkey still has 
no mental health law. There is no independent body to monitor mental health institutions. 

Respect  for  the  fundamental  rights  of  lesbian,  gay,  bisexual,  transgender  and  intersex 
(LGBTI) persons remains a matter of serious concern. In November 2014 the Council of State 
annulled  the  dismissal  of  a  teacher  on  sexual  orientation  grounds.  In  December,  a  judicial 
decision  approved  the  inclusion  of  rights  of  LGBTI  persons  in  the  statute  of  non-
governmental  organisations.  However,  hate  crimes,  attacks  and  murders  of  transgender 
persons  are  a  cause  of  deep  concern.  There  is  no  specific  legislation  affording  protection 
against  such  hate  crimes.  Transgender  persons  continued  to  be  subject  of  arbitrary  fines, 
house  raids  and  police  violence.  In  March  2015  the  ECtHR  ruled  on  Turkey’s  excessive 

67 

 
domestic  requirements  for  the  recognition  of  the  preferred  gender.  Istanbul’s  LGBTI  pride 
parade  in  June  was  forbidden  on  weak  grounds  and  was  broken  up  by  the  police  with 
disproportionate  use  of  force.  The  armed  forces’  disciplinary  system  that  defines 
homosexuality as a ‘psychosexual disorder’ and the military’s medical regulation that refers 
to it as illnesses need significant revision. In April 2015, the Constitutional Court decided not 
to  repeal  part  of  a  criminal  provision  that  criminalises  the  depiction  of  sexual  behaviour  in 
'unnatural  ways'.  These  developments  are  not  conducive  to  an  atmosphere  of  tolerance 
towards LGBTI persons and their human rights. 

On labour and trade union rights, Constitutional Court rulings improved trade union rights 
by legally protecting workers in small companies against dismissal based on their trade union 
activities, and by lifting the ban on striking for private sector employees in banking services 
and urban public transport services. However, continued limitations on the right to organise, 
collectively bargain and strike both for workers and civil servants need to be addressed in line 
with International Labour Organisation (ILO) conventions and EU standards. The sector level 
threshold  for  the  independent  trade  unions  to  receive  authorisation  for  the  collective 
agreements  has  been  reduced  from  3%  to  1  %  by  a  constitutional  court  decision.  Civil 
servants still have no right to strike. No steps have been taken to reduce the broad scope of the 
categories of civil servants prohibited from organising in trade unions, who are thus deprived 
of collective agreements. The right to organise in trade unions is not recognised for the retired 
and  the  unemployed.  Postponement  of  strikes  by  the  government  and  forced  arbitration  in 
non-essential services seriously impaired the right to strike. Police continued using excessive 
force  against  non-violent  trade  union  activities.  Turkey  needs  to  create  a  more  conducive 
environment for exercising trade union rights and activities. 

Some  aspects  of  the  procedural  safeguards  are  guaranteed  by  the  law,  including  legal  aid 
and  the  right  to  translation  and  interpretation,  but  challenges  remain  in  its  implementation. 
The  Ministry  of  Justice  deals  with  victims’  rights.  However,  the  legislation  on  procedural 
safeguards needs to be aligned with European standards and new legislation on victims’ rights 
needs to be adopted. 

The  dialogue  between  the  government  and  representatives  of  minorities  continued.  A 
restrictive interpretation on provoking hatred prevailed in court practice, especially in the case 
of acts against non-Muslim communities. Hate speech directed against minorities continued to 
raise serious concerns. The secondary part of the Greek School on Gökçeada (Imvros) Island 
started  functioning  as  of  September.  School  textbooks  still  need  to  be  revised  to  delete 
remnants  of  discriminatory  rhetoric.  No  measures were taken to allow children who are not 
Turkish  citizens  and  who  attended  minority  schools  as  guest  students  to  receive  official 
graduation  certificates;  such  certificates  are  restricted  by  law  to  Turkish  nationals.  The 
reciprocity  principle,  according  to  which  Turkey  recognises  only  rights  similar  to  those 
granted  to  Turkish  citizens  by  another  state,  continued  to  apply.  The  regulation  on  election 
procedures  for  non-Muslim  foundations  was  still  not  published,  which  prevented  minority 
foundations from holding elections for their board members. 
In  April  2015,  on  the  eve  of  the  100th  anniversary  of  the  1915  events,  the  Prime  Minister 
again offered deep condolences to the descendants of the victims. The Minister of EU Affairs 
attended  a  commemorative  mass  where  the  President’s  message  was  read  out.  Dedicated 
commemoration  events  organised  by  civil  society  were  held  peacefully  in  Istanbul, 
Diyarbakır,  Ankara,  Izmir  and  Van.  The  Turkish  authorities  responded  strongly  and 
systematically  whenever  the  events  were  recognised  as  genocide  abroad.  The  main  case 
launched  in  connection  with  the  assassination  of  Armenian  journalist  Hrant  Dink  in  2007 
continued at a slow pace. Several events took place to commemorate his murder. 

68 

 
A  national  strategy  and  action  plan  for  Roma  citizens  have  yet  to  be  adopted.  The  strategy 
should  establish  measures,  budget  and  timeline  for  implementation.  A  Roma  Language  and 
Culture Research Institute was established at Trakya University in March 2015. For the first 
time, one Roma candidate, from the main opposition CHP, was elected to parliament. A TV 
series using discriminatory language was taken off the air following a complaint from a Roma 
NGO. There were new attempts to lynch Roma and 30 court sentences on this are ongoing.  

There are no official statistics on the numbers of undocumented Roma. Collection of data on 
Roma  integration  should  be  increased.  Procedures  for  obtaining  civil  documentation  are 
expensive and cumbersome. The registration of births and issuing of birth certificates should 
be made easier. Access to health services improved. Medical services were largely accessible 
for  Roma  families.  Drug  addiction  is  a  growing  problem.  Roma  groups  continued  to  face 
discrimination  in  social  and  economic  life  and  in  accessing  employment  and  quality 
education. Absenteeism in school remained high and child labour is a major problem in the 
Roma  community.  Urban  development  projects  continued  to  disadvantage  the  Roma  by 
depriving them of traditional job opportunities and solidarity networks.  

As regards cultural rights, the 2013 legislation allowing campaigning in languages other than 
Turkish by political parties and candidates was implemented without impediment in the June 
and  November  general  election.  However,  despite  greater  freedom  in  practice  in  the  use  of 
languages of choice in public services, the government did not take forward its earlier plans to 
legalise the provision of public services in languages other than Turkish, and notably Kurdish. 

The number of universities offering Kurdish language and literature programmes increased to 
four. University programmes in Kurdish, Arabic, Syriac and Zaza continued.  The teaching of 
elective  courses  in  Kurdish  in  public  state  schools  continued.  The  Ministry  of  National 
Education appointed 28 teachers of the Kurdish language as permanent staff since 2013 but 
this  number  does  not  meet  the  demand  by  far.  The  first  private  children’s  channel 
broadcasting in several dialects  of Kurdish started operating in March. Legal restrictions on 
possibilities for mother tongue education in primary and secondary schools remained in place. 
Education  in  mother  tongues  other  than  Turkish  is  not  allowed  apart  from  minority  schools 
recognised under the Lausanne Treaty. A Kurdish-teaching school in Diyarbakır opened but 
could not be formally registered as a state school due to the lack of legal basis. 

4.24.  Chapter 24: Justice, freedom and security 

The EU has common rules for border control, visas, external migration and asylum. Schengen 
cooperation entails the lifting of border controls inside the EU. There is also cooperation in 
the  fight  against  organised  crime  and  terrorism,  and  judicial,  police  and  customs 
cooperation.   

Turkey is moderately prepared in the area of justice, freedom and security. There was some 
progress in the past year, in a difficult environment. Turkey continued making considerable 
efforts to provide massive and unprecedented humanitarian aid and support to a continuously 
increasing influx of refugees from Syria and Iraq of about 2.2 million. It introduced reforms 
aimed at meeting the benchmarks of the visa liberalisation roadmap. In October, the European 
Council welcomed the Joint EU-Turkey Action Plan for refugees and migration management 
as  part  of  a  comprehensive  cooperation  agenda  based  on  shared  responsibility,  mutual 
commitments and delivery. In the coming year, Turkey should in particular: 

→  complete  establishing  the  institutional  and  regulatory  structures  (e.g.  services,  bodies, 
legislation)  needed  to  effectively  implement  the  law  on  foreigners  and  international 
protection; 

69 

 
→  adopt  and  implement  legislation  on  labour  market  access  for  Syrians  under  temporary 
protection; 

→ adopt and implement a law on personal data protection aligned with European standards in 
order to facilitate judicial and police cooperation with EU Member States. 

 (See also the specific recommendations on the fight against organised crime in section 2.3.) 

Legal and irregular migration 

In  the  past  year,  events  in  Syria  and  Iraq  meant  Turkey  had  to  face  the  huge  challenge  of 
coping  with  an  unprecedented  number  of  refugees  and  displaced  people.  It  is  also  a  major 
crossroads,  as  well  as  a  source  country,  for  the  rapidly  growing  phenomenon  of  foreign 
terrorist  fighters  on  their  way  to  neighbouring  countries.  Turkey,  due  to  its  geographical 
location  and  developments  in  the  region,  continues  to  be  a  transit  country  for  irregular 
migrants from Asia and Africa heading to Europe.  

More  than  58  000  people  were  intercepted  in  2014  while  crossing  the  border  illegally,  an 
increase of 47% from 2013. The number of third country nationals crossing the Aegean Sea 
from Turkey to Greece reached 245 000 by the beginning of September, more than six-fold 
increase  compared  with  the  same  period  in  2014.  In  the  past  year,  an  increased  number  of 
cargo vessels with third country nationals sailed from Turkey’s coasts (mainly from the port 
of  Mersin)  to  the  EU  and  in  particular  to  Italy.  Turkey’s  law  enforcement  response  has 
already  yielded  results  in  reducing  this  new  form  of  organised  smuggling  of  people  and 
pushed  smugglers  to  change  their  route  from  Italy  to  Greece.  Turkey  should  consider 
substantially stepping up law enforcement and judicial action against such networks, ensuring 
deterrent sanctions and confiscating the assets of those found guilty. It should also strengthen 
its  capacity  to  prevent  irregular  departures  from  Turkey’s  Aegean  coasts  including  through 
increased cooperation with the Greek coast guard and police. 

Following the entry into force in 2013 of the Law on Foreigners and International Protection, 
the General Directorate for Migration Management concentrated its activity on regulatory and 
institutional matters. In May, it took over management responsibilities at the provincial level 
from  the  national  police.  It  also  continued  work  on  increasing  the  capacity  of  ‘removal 
centres’ to host irregular migrants by 3 000 people by the end of 2017 from 1 740 today. 

On  1  October  2014  the  EU-Turkey  readmission  agreement  entered  into  force.  Until  30 
September 2017 it applies only to nationals of the two sides and irregular migrants originating 
from  countries  with  which  Turkey  has  signed  readmission  agreements.  The  first  meeting  of 
the  EU-Turkey  Joint  Readmission  Committee  was  held  on  13  July  2015.  Full  and  effective 
implementation of the Readmission Agreement towards all Member States is crucial and one 
of the benchmarks in the visa roadmap. 

Turkey has at the same time become a major destination country for regular migration. At the 
end of 2014, 314 000 non-Turkish nationals held a temporary residence permit in Turkey and 
43 656 non-EU citizens acquired a work permit. 

Asylum 

All the provisions of the Law on Foreigners and International protection entered into force in 
April  2014.  The  law  established  an  asylum  system  largely  in  line  with  the  EU  acquis, 
although  Turkey  continues  to  implement  the  1951  Geneva  Convention  on  Refugees  with  a 
geographical limitation which limits its obligations only to refugees originating in Europe. 

Turkey  made  huge  and  continuous  efforts  to  shelter  Syrian  refugees.  Turkey  is  now  the 
country which hosts the largest refugee population in the world. Close to 2 million are Syrians 

70 

 
which have been registered and granted temporary protection. Around 270 000 of them live in 
25  camps,  managed  by  the  Disaster  and  Emergency  Management  Agency,  in  10  Turkish 
provinces  and  more  than  1.7    million  in  host  communities  across  the  country.  Civil  society 
organisations have limited access to provide services in the camps. The total number of non-
Syrian refugees, either registered or awaiting registration, continued to increase and reached 
some 230 000 in May. Iraqis are by far the largest non-Syrian refugee population in Turkey, 
while Afghans, Iranians and Somalis also comprise large groups. 

Managing  such  a  huge  influx  of  refugees  and  displaced  persons  is  a  major  challenge  for 
Turkey, which has already spent more than EUR 6.7 billion to this purpose. A regulation on 
temporary  protection  adopted  in  October  2014  focused  on  Syrian  refugees  and  made 
registering  a  pre-condition  for  access  to  basic  services  such  as  health,  education,  social  aid 
and  translation  services.  The  regulation  excludes  people  under  temporary  protection  from 
access to asylum procedures.  

Despite  commendable  efforts  by  the  authorities,  around  500 000  refugee  children  have  no 
access to education. Refugees living outside the camps still face difficult living conditions and 
considerable challenges in accessing essential services. Some 80 satellite cities across Turkey 
are  part  of  the  national  hosting  system  for  non-Syrian  refugees.  Their  reception  capacity  to 
provide  decent  living  conditions  and  access  to  basic  services  differs  from  city  to  city  but  is 
generally limited. This has put local capacity and resources under significant strain in many 
places. 

Giving Syrian refugees under temporary protection access to employment would help greatly 
to increase their self-sufficiency and allow them a dignified stay in Turkey. The adoption of 
such  legislation,  giving  people  under  temporary  or  conditional  protection  the  possibility  to 
apply for a work permit, is still pending (see also in Chapter 3: Right of establishment and 
freedom to provide services). 

Incidents where Turkey did not respect the principle of “non-refoulement” were reported and 
criticised by civil society. 

Visa policy 

Turkey introduced new visa stickers with high security features. However, it has continued to 
issue visas at its borders. Turkey has extensively used the e-visa system introduced in 2013. 
But  the  system  continues  to  discriminate  against  de  facto  applicants  from  the  Republic  of 
Cyprus by referring to the country option Greek Cypriot Administration of Southern Cyprus. 
In addition, the e-visa is not in line with the acquis and is not an effective tool to identify and 
prevent  the  entry  into  Turkey  of  irregular  migrants.  Turkey  also  still  needs  to  align  itself 
further  with  the  EU  visa  requirements  and  exemptions  and  to  harmonise  its  visa  policy 
towards EU Member States. 

The  EU-Turkey  visa  liberalisation  dialogue  continued.  The  Commission  issued  its  first  visa 
implementation  report  in  October  2014.  This  acknowledged  that  Turkey  had  made  some 
progress in fulfilling several benchmarks, but also highlighted that it needed to advance in a 
large number of important policy areas, including improving implementation of the existing 
readmission  obligations  towards  Member  States.  In  the  framework  of  the  visa  dialogue,  the 
Commission conducted experts’ missions in Turkey from April to July 2015, on the basis of 
which it will issue its second visa report in the first quarter of 2016. 

Schengen and external borders  

Turkey  did  not  make  steps  towards  the  establishment  of  an  integrated  border  management 
system  and  a  single  border  civilian  agency.  Coordination  and  cooperation  among  existing 

71 

 
border  management  agencies  needs  to  be  improved.  To  identify  potential  security  risks  the 
Ministry of Customs and Trade now obtains pre-arrival passenger information from 200 of the 
307  airlines  flying  to  Turkey.  Some  200  police  staff  were  trained  in  identifying  forged  and 
fraudulent travel documents.  Nevertheless, the police needs to strengthen checks of passports 
at  borders  and  in  the  transit  zones  of  international  airports.  Turkish  police  is  encouraged  to 
further  develop  information  exchange  and  operational  cooperation  with  Member  States’ 
immigration liaison officers deployed in Turkey.   

Turkey has improved border cooperation with Bulgaria and Greece across their common land 
border.  In  May  the  three  countries  signed  a  customs  and  police  cooperation  agreement 
establishing a joint cooperation centre at Capitan Andreevo crossing point. They now need to 
ratify  the  agreement  and  start  implementing  it.  The  EU  continues  to  help  facilitate  daily 
contacts between local border staff at land borders. 

Concerning  sea  borders,  Turkey  and  Greece  held  regular  meetings  under  their  bilateral 
readmission protocol. The exchange of information to aid search and rescue operations in the 
Aegean  Sea  intensified.  The  launches  of  the  Turkish  coastguard’s  operations  safe-Med  and 
Aegean  hope  in  the  eastern  Mediterranean  and  the  Aegean  respectively  were  positive 
developments but remain insufficient to fully address the issue.   

Some  steps  have  been  taken  to  step  up  land  border  surveillance,  notably  along  the  Syrian 
border,  with  the  aim  to  prevent  irregular  crossings.  However,  land  borders  continue  to  be 
managed  by  land  forces  detachments  composed  mainly  by  conscripts  with  limited  training 
and led by officials who are not encouraged to specialise on border management. There are no 
agreed  rules  and  operating  procedures  for  individual  border  authorities  undertaking  risk 
analysis.  Border  management  authorities  should  be  staffed  by  professionals  who  are  not 
subject to rotation. 

Judicial cooperation in civil and criminal matters  

The  draft  law  on  international  judicial  cooperation  in  criminal  matters  has  not  yet  been 
adopted. The second additional protocol to the European Convention on Mutual Assistance in 
Criminal  Matters  and  three  additional  protocols  to  the  European  Convention  on  Extradition 
remain  to  be  signed.  The  additional  protocol  to  the  European  Convention  on  Transfer  of 
Sentenced Persons has been signed but not yet ratified. Turkey signed an agreement with the 
Russian  Federation  on  mutual  judicial  assistance  in  criminal  matters  and  an  extradition 
agreement.  It  also  signed  an  agreement  with  Mongolia  on  civil  and  criminal  judicial 
cooperation.  EU  Member  States  accepted  131  extradition  requests  from  Turkey  and  Turkey 
accepted five such requests. In addition, 27 transfers of convicts to Turkey and five transfers 
to  an  EU  Member  State  were  accepted.  Turkey  participated  in  regular  meetings  of  Eurojust 
and shares information and documents. However, the lack of a personal data protection law 
aligned  with  European  standards  continues  to  hamper  the  start  of  negotiations  for  a 
cooperation agreement with Eurojust.  

On  judicial  cooperation  in  civil  matters,  Turkey  is  not  yet  party  to  the  1996  Hague 
Convention on Parental Responsibility and Measures for the Protection of Children. Turkey 
has  not  yet  ratified  the  European  Convention  on  the  Compensation  of  Victims.  Turkey 
appointed a judge as contact point to the international network of judges in The Hague. 

On  police  cooperation  Turkey  signed  cooperation  agreements  with  most  Member  States 
allowing for information sharing and joint operations in the fight against crime and terrorism. 
They are, however, implemented unevenly. The absence of a data protection law in line with 
European  standards  is  hampering  cooperation  with  Member  States’  police  services  and  the 

72 

 
conclusion  of  an  operational  cooperation  agreement  with  Europol,  although  a  strategic 
cooperation agreement is in place.  

Fight against organised crime 

Track record 

Turkey remains a transit country on the drug routes between Asia and Western Europe, with 
Turkish  criminal  groups  playing  a  key  role  in  trafficking  and  distributing  drugs  in  Europe. 
Successful operations by the Turkish law enforcement bodies in the reporting period resulted 
in the seizure of 123 115 kg of cannabis, 393 kg of cocaine, 12 756 kg of heroin and 3 600 831 
ecstasy  tablets.  Twelve  operations  were  carried  out  with  seven  countries  (Germany,  France, 
Austria,  Sweden,  United  Kingdom,  Canada  and  Georgia).  A  total  of  340  new  psychoactive 
substances have been included in the scope of the Law on Supervision of Drugs as a result of 
the activities of the early warning system working group. The national police has 159 sniffer 
dogs to fight drugs. 

Fourteen victims of trafficking have been identified and 71 criminal files were opened against 
749  suspect  traffickers  in  2014.  Twenty-five  defendants  received  sentences.  Sanctions  were 
applied to 44 traffickers. The 157 helpline for victims of trafficking operates on a 24/7 basis 
and is available in different languages, including for international calls. At least 180 victims 
were rescued through the 157 helpline. Investigations in EU Member States continue to point 
to Turkey as being a country of origin for producing and trafficking counterfeit cigarettes. 

Institutional and operational capacity 

The General Directorate for Migration Management, responsible for coordinating all aspects 
of the fight against human trafficking and the protection of victims, has set up a department 
for the protection of trafficking victims. The national referral mechanism is being reviewed. 
However, Turkey has neither adopted anti-trafficking legislation nor ratified   the Council of 
Europe anti-trafficking convention. Turkey’s capacity to detect victims of trafficking remains 
limited as is also Turkey’s capacity to receive victims of trafficking. Shelters for victims — 
all  of  them  run  by  NGOs  —  exist  in  Istanbul,  Ankara  and  Antalya.  They  provide  judicial, 
psychological and medical assistance. 

The judiciary and law enforcement authorities have signed a memorandum of understanding 
on cooperation in the field of witness protection. Witness protection units have been set up in 
nearly all 81 provinces. 

‘Narco-teams’  were  established  in  December 2014 in  11 provinces. They comprise staff for 
public order and security, as well as psychologists. Narco-teams have been formed as part of 
the  government’s  anti-drug  action  plan  and  are  set  to  play  a  significant  role  near  places 
deemed  to  be  at  high  risk,  such  as  schools.  An  anti-drug  council  will  convene  at  least  once 
every three years and a new monitoring committee chaired by the Prime Minister will meet 
annually  to  discuss  the  implementation  and  results  of  the  decisions  taken  by  the  council.  A 
supreme  anti-drug  board  has  started  to  meet  twice  a  year  to  coordinate  the  monitoring 
committee’s decisions. 

The  agreement  on  Turkey’s  participation  in  the  European  Monitoring  Centre  for  Drugs  and 
Drug Addiction has entered into force. A balanced approach to combating drugs needs to be 
followed by establishing better treatment and rehabilitation facilities. A nationwide survey of 
the population and schools needs to be carried out. The capacity to collect and analyse data 
needs to be improved. 

73 

 
 
Legal framework 

Turkey will need to improve its legislation in the fields of cybercrime and witness protection, 
in  particular,  by  adopting  a  comprehensive  law  on  personal  data  protection  in  line  with 
European  standards.  Turkey  is  party  to  the  main  international  conventions  (e.g.  the  UN 
International Drug Control Conventions of 1961, 1971 and 1988). 

Strategic framework 

Turkey has a national strategy against organised crime covering 2010-2015 which is currently 
being  implemented  by  the  second  action  plan,  for  2013-2015.  The  Ministry  of  Interior 
coordinates implementation. Some progress has been achieved on investigation capacity. 

The 2013-2014 strategy and action plan on cyber security is currently being updated for 2015-
2017 under the coordination of the Ministry of Transport. The strategy’s overall purpose is to 
identify and address emerging cyber threats. 

Turkey has adopted a national strategy against drugs covering 2013-2018 and an action plan 
for 2013-2015. These are coordinated by the Turkish national monitoring centre for drugs and 
drug addiction under the national police. The strategy and action plan encompass topics such 
as  coordination,  supply  reduction,  prevention,  treatment,  rehabilitation,  harm  reduction, 
international cooperation, data collection, research and assessment.  

Fighting  organised  crime  and  corruption  remains  fundamental  to  countering  the  illicit 
influence of criminal groups on the political, legal and economic systems. 

Fight against terrorism  

Turkey has improved its regime for countering the financing of terrorism. As a consequence, 
the Financial Action Task Force removed Turkey from its permanent monitoring process (see 
Chapter 4 — Free movement of capital). However, Turkey has 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. 

Turkey’s  counter-terrorism  dialogue  with  the  EU  has  continued  actively  with  specific 
attention  being  paid  to  foreign  terrorist  fighters.  Turkey  has  developed  cooperation  with 
Member  States  in  view  of  detecting  foreign  fighters  willing  to  reach  Syria  or  Iraq  across 
Turkey.  However,  Turkey’s  assessment  of  the  terrorist  threat  differs  from  that  of  the  EU. 
Turkish  police  needs  to  strengthen  its  capacity  to  identify  suspicious  travellers  inter  alia 
through improved profiling. Police and judicial cooperation with EU Member States and EU 
agencies in combating terrorism is limited by the absence of a personal data protection law in 
line with EU standards and differences over the definition of, and penalties for, terrorism. 

For more information on customs cooperation, see also Chapter 29- Customs union. 

For measures against counterfeiting of the euro, see Chapter 32- Financial control. 

4.25.  Chapter 25: Science and research 

The  EU  provides  significant  support  to  research  and  innovation.  All  Member  States  can 
benefit from the EU’s research programmes, the more so where there is scientific excellence 
and solid investment in research. 

Turkey’s preparations in the area of science and research are well advanced. Some progress 
was made in the past year, notably to strengthen Turkey’s research and innovation capability 
at  national  level  and  to  facilitate  integration  into  the  European  Research  Area  (ERA). 
However, substantial financial resources will be necessary to reach Turkey’s own 2023 targets 
and to improve its ranking in the Innovation Union Scoreboard. In the coming year, Turkey 

74 

 
should in particular: 

→ strengthen the role of Universities in the organisation of research and innovation, in 
particular through stepping up the cooperation with the Industry and SMEs; 

→ increase national funding and allocate it in line with ERA actions and principles.  

Turkey  participates  in  the  EU  Research  and  Innovation  Programme  Horizon  2020  as 
associated country. It nominated good Network of Contact Points (NCPs) and representatives 
in  all  Horizon  2020  Programme  Committees.  Based  on  first  statistics,  participation  is  good 
but there is room for improvement notably to increase participation in research and innovation 
actions  on  societal  challenges,  involve  SMEs  more  systematically,  and  be  successful  in  the 
first pillar of Horizon 2020 on Scientific Excellence. 

As  regards  further  integration  into  the  European  Research  Area,  Turkey  nominated  its 
representative in the European Research Area Committee (ERAC) and related ERA advisory 
bodies  and  ensured  regular  participation.  Turkey  has  taken  actions  to  stimulate  and  support 
transfer of technology (ERA action 4) but overall the policy actions are not sufficiently in line 
with the ERA principles and actions. The level of investment in research is about 0.95 % of 
GDP,  compared with the EU average  of  2.07  %.  With  respect to  Innovation Union, Turkey 
has  taken  several  actions  to  stimulate  innovation  and  cooperation  between  Academia  and 
Industry.  According  to  the  Innovation  Union  Scoreboard  for  2015,  Turkey  remains  a 
modest innovator well below the EU average on almost all indicators. 

4.26.  Chapter 26: Education and culture 

The  EU  supports  cooperation  in  education  and  culture  through  funding  programmes  and 
through  the  open  method  of  coordination.  Member  States  must  also  prevent  discrimination 
and facilitate education of children of EU migrant workers. 

Turkey is moderately prepared on education and culture. There was some progress in the 
past year in this chapter. In the coming year, Turkey should in particular: 

→  further  increase  participation  in  education  at  all  levels,  especially  for  girls,  and  draw  up 
effective strategies to reduce school drop-out; 

→ improve the quality of education at all levels and the acquisition of basic and transversal 
skills of students. 

→ ratify the UNESCO Convention, the main legal reference in the area of culture. 

In  the  area  of  education,  training  and  youth,  Turkey  participates  fully  in  the  Erasmus+ 
programme. As applications for projects for the Erasmus+ programme continued to grow, the 
country increased its contribution to EUR 135 million in 2015. Turkey made progress on the 
EU’s ‘Education and Training 2020’ strategic framework. It slightly increased its PISA score 
in the 2012 evaluation but dropped from its ranking of 41st place in 2009 to 44th place out of 
the 65 participating countries. Turkey is at an advanced stage of implementing the Bologna 
process  but  differences  in  quality  persist  among  Turkey’s  186  higher  education  institutions. 
The  Turkish  Qualifications  Framework  is  expected  to  be  adopted  in  2015.  Recognition  of 
non-formal and informal learning remains low. 

In 2014, 19.6 % of young people with tertiary education were unemployed, half the 38.3 % 
rate for early school leavers. Five per cent of adults participated in lifelong learning. Spending 
on  education  is  somewhat  stable  at  3.19  %  of  GDP  in  2015.  The  transition  to  12-year 
compulsory  education  has  led  to  further  progress  in  schooling  rates.  In  2014-15,  96  %  of 
children  were  enrolled  in  primary  education  and  94  %  in  lower  secondary  education.  Pre-
school enrolment rates rose to 54 %. The enrolment rates for secondary stood at 79 % and for 

75 

 
higher  education  at  40  %.  Absenteeism  is  high  and  not  monitored  consistently.  Progress  is 
still  needed  to  make  education  more  inclusive,  among  others  for  Roma  and  children  with 
disabilities. Gender disparity, notably for drop-outs, remains substantial. 

Turkey contributed to the new EU Youth Report. It participates very actively in the Erasmus+ 
Youth in Action strand. Against the backdrop of the high youth unemployment rate it is all the 
more  important  that  Turkey  uses  the  Erasmus+  youth  strand  to  foster  young  people's  non-
formal  learning  at  international  level  so  as  to  enhance  their  competences,  skills  and 
employability. 

Turkey is participating in the new culture sub-programme and the cross-sectoral strand of the 
Creative Europe programme. Cooperation in the MEDIA sub-programme is limited to some 
of the measures available. To improve participation, the Creative Europe desk needs to focus 
both  on  building  up  the  capacity  of  the  cultural  and  creative  sectors  and  on  raising  their 
awareness  of  the  programmes.  Implementation  of  state  funding  rules  for  cultural  projects, 
especially film and theatres, is often disputed. The legal requirement to have a certificate for 
screening a film appears to be a means of exercising a certain control. Some rating and film 
classification  committees  raise  concerns  about  freedom  of  expression  and  artistic  rights. 
Turkey has not yet ratified the 2005 UNESCO Convention on the Protection and Promotion 
of the Diversity of Cultural Expressions, which is the EU's main legal reference in the area of 
culture. 

4.27.  Chapter 27: Environment and climate change 

The  EU  promotes  strong  climate  action,  sustainable  development  and  protection  of  the 
environment. EU law contains provisions addressing climate change, water and air quality, 
waste  management,  nature  protection,  industrial  pollution,  chemicals,  noise  and  civil 
protection.  

Turkey is moderately prepared in the area of environment and climate change. In the past 
year,  there  was  some  progress,  mainly  in  aligning  environmental  legislation,  whereas 
enforcement remains weak, especially on waste management and industrial pollution. There is 
considerable  room  to  improve  the  way  horizontal  legislation  is  implemented.  Poor 
implementation  of  court  rulings  on  environmental  issues  is  causing  public  concern.  More 
ambitious and better coordinated environment and climate policies still need to be established 
and  implemented.  Strategic  planning,  substantial  investment  and  stronger  administrative 
capacity are required as well. In the coming year, Turkey should in particular: 

→  further  build  up  its  strategic  planning  on  climate  action,  and  start  implementing  its 
contribution to the expected 2015 Paris climate agreement; 

→ ensure correct implementation of the environmental impact assessment legislation; 

→ ensure its alignment with EU legislation on public participation and the public’s right to 
environmental  information,  as  well  as  on  the  monitoring  and  reporting  of  greenhouse  gas 
emissions. 

Turkey  amended  its  environment  horizontal  legislation  in  November  2014  by  introducing 
environmental  impact  assessment  requirements  for  projects  started  after  May  2013.  Civil 
society  remains  critical  of  the  inadequate  level  of  public  consultations  and  of  procedural 
requirements.  Several  cases  are  being  challenged  in  court,  including  the  Akkuyu  nuclear 
power plant and micro-hydro power plants. Procedures for transboundary consultations have 
not been aligned with the acquis. Turkey has not yet sent to the relevant Member States its 
draft  for  general  bilateral  agreements  on  environmental  impact  assessment  cooperation  in  a 
transboundary context. Alignment with the Strategic Environmental Assessments Directive is 

76 

 
still pending. Provisions on access to information, public participation and access to justice in 
environmental  matters  established  in  the  UN  Economic  Commission  for  Europe  Aarhus 
Convention  also  have  yet  to  be  aligned  with.  This  would  in  particular  provide  a  clear 
framework for solving ongoing disputes on investment decisions with substantial impacts on 
the environment and climate change. 

National air quality legislation still needs to be adopted in line with the current directives on 
ambient  air  quality,  national  emissions  ceilings  and  volatile  organic  compounds.  Severe  air 
pollution in some cities has been reported. Local clean air action plans have to be prepared. 

Waste management implementing legislation aimed at aligning with the Waste Framework 
Directive  was  adopted  in  April.  Implementing  legislation  aligning  with  the  Mining  Waste 
Directive was also adopted in July. Work has continued to bring waste treatment facilities up 
to  EU  standards.  Sorting,  recycling,  medical  waste  treatment  capacity  and  hazardous  waste 
recycling have increased. Further work is needed on separate collection of different types of 
waste  and  on  reducing  biodegradables.  The  requirement  to  prepare  and  implement  waste 
management plans, stemming from the EU Waste Framework Directive, has not yet been met. 
A national recycling strategy and action plan were adopted by the Higher Planning Council in 
December 2014. 

In the area of water quality, the preparation of river basin management plans is under way. 
Transboundary consultations on water issues with neighbouring countries are still at an early 
stage.  Wastewater  treatment  capacity  has  increased  as  a  result  of  continuous  investment. 
Institutional restructuring under the 2014 metropolitan municipality law, which is expected to 
improve implementation of environmental legislation such as the urban waste water directive, 
poses organisational, financial, and coordination challenges. 

Framework  legislation  on  nature  protection,  the  national  biodiversity  strategy  and  action 
plan  have  not  yet  been  adopted.  The  regulations  allowing  development  in  wetlands,  forests 
and natural site areas are still not in line with the acquis. The draft nature protection law needs 
to  be  made  compliant  with  the  acquis.  It  is  crucial  that  implementing  legislation  also  be 
adopted  on  time  to  avoid  any  legal  vacuum,  as  the  draft  currently  envisages  repeal  of  the 
national parks law. The potential Natura 2000 sites have not yet been identified. Investments 
in hydropower need to ensure compliance with environment legislation, especially in areas of 
high natural value.  

As regards industrial pollution control and risk management, legislation implementing the 
Industrial Emissions Directive still needs to be adopted. Investigations into the causes of the 
two major mining accidents in Soma and Ermenek in 2014 revealed serious risk management 
shortfalls  regarding  both  delivery  of  initial  permits  given  to  the  mining  companies  and  the 
inspection and monitoring of the mining operations by the relevant authorities. Several court 
cases are under way. 

On chemicals, alignment with the EU's Regulation on Registration, Evaluation, Authorisation 
and  Restriction  of  Chemicals  is  still  pending,  although  minor  parts  of  it  have  been 
implemented.  

Legislative alignment in the field of noise is well advanced. 

On  the  EU  Civil  Protection  Mechanism  Turkey  will  become  a  participating  state  once 
ratification  is  completed.  It  needs  to  establish  a  disaster  management  strategy  focused  on 
reducing  and  managing  the  risks  of  man-made  and  natural  disasters  and  to  set  up  an 
emergency  system,  linked  to  the  EU’s,  to  communicate  on  and  share  information  about 
disasters. Stepping up action and capacity to reduce disaster risks could cut accident losses. 

77 

 
On climate change, Turkey submitted in September 2015 its intended nationally determined 
contribution to the expected 2015 Paris climate agreement. Regarding alignment with the EU 
climate  acquis,  Turkey  is  preparing  to  set  up  and  implement  a  monitoring,  reporting  and 
verification  system,  and  build  up  its  capacity  on  land  use,  forestry  and  fluorinated  gases. 
Turkey  has  to  develop  a  comprehensive  policy  and  strategy  consistent  with  the  EU  2030 
framework. It needs to become consistent with the EU 2030 framework and it should be well-
integrated into all relevant sectoral policies. The country needs to further develop its carbon 
market mechanisms. As priority, Turkey needs to align with the EU Monitoring Mechanism 
Regulation  and  ensure  that  it  improves  the  capacity  to  implement  the  expected  2015  Paris 
climate agreement.  Awareness-raising of the need for climate action needs to be considerably 
improved. 

4.28.  Chapter 28: Health and consumer protection 

EU rules protect consumers in relation to product safety, dangerous imitations and liability 
for  defective  products.  The  EU  also  ensures  high  common  standards  for  tobacco  control, 
blood, tissues, cells and organs, patients’ rights and communicable diseases.  

Good level of preparation in the area of health and consumer protection. There has been some 
progress in the past year as Turkey continued the legislative alignment process and set up the 
structures needed to implement the EU acquis. It needs to build up its administrative capacity 
to  carry  out  the  duties  related  to  health  threats.  In  the  coming  year,  Turkey  should  in 
particular: 

→  fine-tune  alignment  with  the  EU  acquis  on  communicable  diseases  and  strengthen  the 
administration’s capacity to recognise, report and control outbreaks; 

→  ensure  the  confidentiality  and  security  of  data  held  in  the  national  health  information 
system; 

→ ensure that arbitration committees on consumer complaints function properly. 

Turkey  continued  to  adopt  and  implement  secondary  legislation  related  to  the  recently 
adopted consumer protection law. Twelve pieces of implementing legislation were adopted 
on  non-safety-related  issues,  such  as  commercial  advertising  and  unfair  commercial 
practices.  A  horizontal  market  surveillance  strategy  for  2015-2017  sets  sound  strategic 
objectives  to  address  existing  weaknesses,  such  as  increasing  the  scope  and  extent  of 
surveillance  activities  based  on  risk  analysis  of  product  safety.  The  number  of  inspectors 
increased by 15 % in 2014. 

For  the  arbitration  committees  to  run  efficiently,  more  needs  to  be  done  in  terms  of  legal 
capabilities and impartiality of the assigned experts. 

Public  health  in  Turkey  has  generally  improved.  Quantitative  capacity  of  health  services 
improved,  including  the  number  of  doctors  per  capita.  Life  expectancy  at  birth  has  risen  to 
76.9 years from 72.4 years in ten years. Total health spending held at 5.4 % of GDP during 
the reporting period. However, Turkey’s total health expenditure per capita amounts to only 
one third of the EU average. 

In the area of tobacco control, an action plan for 2015-2018 became effective. 

Regarding  health  inequalities,  further  progress  is  needed  to  give  everyone  equal  access  to 
health services. Few quality indicators have been included in the national health information 
system, whereas the confidentiality and security of personal data therein remains a sensitive 
issue to be resolved. 

An assessment of health governance, surveillance, preparedness and response in the field of 

78 

 
communicable diseases was undertaken in June 2015 by the European Commission and the 
European Centre for Disease Prevention and Control. Implementing the recommendations of 
that assessment will contribute to further alignment and implementation of the communicable 
diseases acquis and development of related administrative capacity.  

Capacity  building  and  awareness  raising  continued  in  the  field  of  blood,  tissues,  cells  and 
organs. There was an increase in the diagnosis of brain deaths, the cadaveric organ donation 
rate and the volume of blood donated. A comprehensive analysis of legislation in the field has 
been  completed  and  legal  gaps  have  been  identified.  Turkey  became  one  of  the  first 
signatories of the Council of Europe Convention against Trafficking in Human Organs. 

In  the  area  of  mental  health,  training  for  the  provision  of  community-based  mental  health 
services is ongoing in parallel with the increase in the number of specialised centres. 

No progress can be reported on pharmaceuticals. 

4.29.  Chapter 29: Customs union 

All Member States are part of the EU customs union and follow the same customs rules and 
procedures.  This  requires  legislative  alignment  as  well  as  adequate  implementing  and 
enforcement capacity and access to the common computerised customs systems. 

Turkey  has  reached  a  good  level  of  preparation  in  the  area  of  the  Customs  Union  (CU), 
though  no  further  progress  was  made  in  the  reporting  period.  Duty  relief,  free  zones, 
surveillance  measures  and  management  of  tariff  quotas  are  not  fully  in  line  with  the  acquis 
and/or  with  Turkey’s  obligations  under  the  CU.  Additional  duties  and  designation  of 
specialised  customs  offices  for  goods  in  free  circulation  in  the  EU  violate  the  CU.  In  the 
coming year, Turkey should in particular: 

→  make  additional  efforts  to  improve  risk-based  controls  and  simplified  procedures  to 
facilitate legitimate trade, while ensuring security and safety. 

→ remove import and export restrictions preventing the effective free movement of goods. 

There was uneven progress in the area of customs legislation. The customs law has yet to be 
harmonised  with  the  Union  customs  code.  There  was  no  progress  on  implementing  local 
clearance or the authorised economic operator concept. 

Positive  developments  were  Turkey’s  alignment  of  its  rules  of  origin  in  the  context  of  the 
Generalised Scheme of Preferences (GSP) to the EU´s GSP rules of origin and the abolition of 
the  special  charge  on  numerous  imported  products  with  term  payment.  On  the  other  hand, 
rules on surveillance and management of tariff quotas are not fully in line with the acquis. In 
particular, the implementation of surveillance based on minimum cost, insurance and freight 
(CIF)  or  customs  value  is  a  cause  for  concern,  given  that  import  licences  are  not  granted 
automatically. The rules on free zones and duty relief have yet to be aligned with the acquis. 
In particular, the existence of duty free shops at entry points is not in line with the acquis or 
the  CU  provisions.  The  designation  of  specialised  customs  offices  for  completing  import 
formalities is contrary to the provisions of the  CU,  especially  when  the  nature  of  the  goods 
does not require special expertise. 

As well as additional customs duties on certain textile goods and footwear, Turkey introduced 
new  duties  on  imports  of  a  wide  range  of  goods  in  breach  of  CU  principles.  These  goods 
include  carpets,  rugs,  various  hand  tools,  some  household  appliances,  lamps  and  some 
furniture.  Even  though  the  measure  is  limited  to  goods  originating  from  third  countries,  it 
applies to goods in free circulation in the EU and is thus in violation of the CU. 

The  suspension  of  customs  duties  by  Turkey  on  certain  aluminium  products  applied  until  4 

79 

 
August 2015 was in breach of the CU. 

On  administrative  and  operational  capacity,  efforts  to  strengthen  Turkey’s  customs 
enforcement capacity focused particularly on anti-smuggling and security-related operations. 
The  number  of  common  transit  movements  increased.  However,  the  general  increase  in  the 
number  of  customs  declarations  sent  for  further  scrutiny  and  to  customs  laboratories  for 
analysis  caused  delays  in  customs  clearance,  conflicting  with  the  objectives  of  conducting 
risk-based controls and facilitating trade. In the area of intellectual property rights (see also in 
Chapter  7),  the  system  of  online  applications  continued  to  operate  satisfactorily.  However, 
further  alignment  with  the  acquis  is  needed,  in  particular  with  the  2014  Regulation  on 
customs enforcement of intellectual property rights and its implementing regulation. 

Unlike  the  new  computerised  transit  system,  tariff  IT  systems  (TARIC,  Quota  and 
Surveillance) are not yet in place. A strategy for bringing together IT activities with business 
initiatives has yet to be prepared and adopted. 

Regarding the possible extension and modernisation of the customs union, see chapter 30. 

4.30.  Chapter 30: External relations 

The  EU  has  a  common  trade  and  commercial  policy  towards  third  countries,  based  on 
multilateral and bilateral agreements and autonomous measures. There are also EU rules in 
the field of humanitarian aid and development policy.  

Turkey  maintains  a  good  level  of  preparation  in  the  area  of  external  relations  thanks  in 
particular  to  the  Customs  Union.  There  was  some  progress  in  the  reporting  period.  Further 
alignment with the EU acquis was achieved on the Generalised System of Preferences (GSP) 
with the adoption of EU rules of origin (except product and geographical coverage). However, 
a growing number of Turkish import duties deviate from the Common Customs Tariff (CCT), 
in breach of the Customs Union. In the coming year, Turkey should in particular: 

→ complete its alignment with the GSP and dual-use export control. 

→ align its import tariff with the CCT 

Some  progress  can  be  reported  in  the  area  of  the  common  commercial  policy.  Turkey 
aligned its GSP-related rules of origin with the EU GSP rules of origin, except provisions on 
registered  exporters.  Further  alignment  is  needed  regarding  product  and  geographical 
coverage.  Prolonged  and  intensive  use  of  safeguard  measures  remains  a  cause  of  concern. 
During  the  reporting  period,  Turkey  extended  the  safeguard  measure  on  imports  of 
polyethylene terephthalate, adopted new measure on imports of wallpapers and launched new 
investigations on imports of mobile phones, paper and ceramic and porcelain  tableware and 
kitchenware.  Turkey  is  a  very  active  user  of  the  WTO  safeguard  instrument,  systematically 
extending measures in force, opening new investigations based on weak evidence and using 
safeguards where other types of trade defence measures would be more targeted, such as the 
anti-dumping instrument. 

Within the WTO, in particular on the Doha Development Agenda, the OECD and in the G-20, 
the  level  of  coordination  between  the  EU  and  Turkey  should  be  enhanced.  Thanks  to  the 
Customs  Union,  Turkey’s  level  of  alignment  with  the  EU  common  commercial  policy 
continues to be high. Turkey does not respect the CCT as it applies additional duties to a large 
number of products. However, on dual-use export controls Turkey has not updated its control 
regulations in line with the EU acquis and does not align with the EU position on membership 
of  certain  multilateral  export  control  arrangements,  such  as  the  Wassenaar  Arrangement  on 
Export  Controls  for  Conventional  Arms  and  Dual-Use  Goods  and  Technologies.  It  has  also 
not  aligned  with  the  EU  position  on  medium  and  long-term  export  credits  to  companies. 

80 

 
Turkey’s General Agreement on Trade in Services commitments are not entirely aligned with 
those of the EU. 

The European Commission and Turkey agreed a possible extension and modernisation of the 
customs union in the context of prospective negotiations. 

Regarding bilateral agreements with third countries, Turkey signed a free trade agreement 
with  Moldova  and  continued  free trade  negotiations  with  several  other  countries  in  order  to 
align with the EU. However, Turkey also decided to implement the free trade agreement with 
Malaysia ahead of the conclusion of the EU-Malaysia FTA negotiations, resulting in another 
breach of the Customs Union. Furthermore, Turkey signed an agreement on trade in services 
and  investment  with  South  Korea,  deepening  the  free  trade  agreement  in  place  since  May 
2013. 

In  the  fields  of  development  policy  and  humanitarian  aid,  the  total  amount  of  official 
development aid granted by Turkey reached EUR 2.8 billion or 0.46% of ODA/GNI in 2014. 
Most of this was for Syria related action. 

4.31.  Chapter 31: Foreign, security and defence policy 

Member  States  must  be  able  to  conduct  political  dialogue  in  the  framework  of  the  foreign, 
security  and defence  policy,  to  align with EU  statements, to take  part  in EU  actions and to 
apply agreed sanctions and restrictive measures. 

Turkey is moderately prepared as regards the alignment with the EU in the area of foreign, 
security and defence policy. Some progress was made as the political dialogue between the 
EU and Turkey on foreign and security policy continued to intensify. Turkey maintained its 
policy  on  Syria,  supporting  the  opposition  and  providing  vital  humanitarian  assistance  to 
Syrian  refugees.  It  has  continued  to  participate  actively  in  civil  and  military  crisis 
management  missions.  An  importing  development  was  the  development  of  the  dialogue  on 
counter-terrorism,  with  Turkey  joining  the  international  coalition  against  Da'esh.  In  the 
coming year, Turkey should in particular: 

→ align itself more closely with EU declarations and Council decisions. 

The  political  dialogue  between  the  EU  and  Turkey  continued,  covering  developments  in 
North  Africa,  the  Middle  East  and  the  Gulf,  Afghanistan,  Pakistan,  Russia,  Ukraine,  South 
Caucasus,  Central  Asia,  counter-terrorism,  foreign  fighters  and  non-proliferation  issues. 
Informal  EU-Turkey  consultations  also  took  place  on  closer  common  security  and  defence 
policy cooperation, Africa, the Middle East, and the Western Balkans. (For more information 
on relations with other enlargement countries and EU Member States, see Political criteria— 
Regional issues and international obligations). The EU counter-terrorism coordinator visited 
Turkey in October 2014 and June 2015. 

Regarding  the  common  foreign  and  security  policy,  Turkey  aligned  itself,  when  invited, 
with  16  out  of  40  EU  declarations  and  Council  decisions  (40  %  alignment,  against  29  % 
during  the  reference  period  of  the  2014  Progress  Report).  Turkey  did  not  recognise  and 
condemned the illegal annexation of Crimea by Russia and expressed concern for the Crimean 
Tatar minority. However, on Crimea and events in eastern Ukraine Turkey did not align with 
Council decisions, including EU restrictive measures in that field. Turkey has not yet signed 
the statute of the International Criminal Court. Turkey continued to be vocal on the crisis in 
Syria  and  its  spill-over  effects,  strongly  and  repeatedly  condemning  the  Syrian  regime’s 
violence  against  civilians.  It  maintained  its  support  for  the  Syrian  Opposition  Coalition  and 
provided massive and unprecedented humanitarian assistance to close to 2 million refugees. 
Restrictive measures against Syria remained in place. Relations with the new government in 

81 

 
Iraq improved significantly. In parallel, relations with the Kurdistan Regional Government in 
northern Iraq continued to develop. Turkey joined the international coalition against Da’esh, 
co-chairing  the  working  group  on  foreign  terrorist  fighters.  It  consulted  regularly  with  the 
United States on  security and counter-terrorism issues. In September 2014, Turkey and the 
US  co-chaired  the  Fifth  Ministerial  Plenary  of  the  Global  Counterterrorism  Forum,  which 
adopted  internationally  agreed  best  practices  on  countering  the  threat  of  foreign  terrorist 
fighters. It engaged with the US in a ‘train and equip’ programme for the Syrian opposition, 
and  in  the  same  context  with  Iraq  and  Kurdistan  Regional  Government  Peshmergas. 
Following  the  Da'esh  terrorist  attack  in  Suruç  in  July,  Turkey  strengthened  its  engagement 
and launched several air-strikes against Da'esh positions in Syria. It also struck a deal with the 
US on the use of Incirlik base for the coalition forces.  

Relations  with  Israel  remained  strained,  with  no  significant  steps  taken  to  conclude  the 
normalisation  process  initiated  in  March  2013.  Turkey  continued  to  provide  humanitarian 
assistance  to  Gaza  and  kept  open  communication  channels  with  both  Fatah  and  Hamas. 
Relations  with  Egypt  did  not  improve.  Egypt  decided  to  terminate  the  bilateral  Ro-Ro 
transport agreement as of April 2015. Relations with the internationally recognised authorities 
of  Libya  did  not  improve,  either.  However,  Turkey  officially  supported  the  UN’s  efforts  in 
the  country.  Turkey  maintained  good  relations  with  the  countries  of  the  Gulf  Cooperation 
Council.  Relations  with  Iran  improved  despite  diverging  policies  on  Syria  and  Yemen. 
Turkey supported the Saudi Arabia-led coalition against the Houthi rebels in Yemen and also 
sought  to  mediate  in  the  conflict.  It  continued  to  improve  cooperation  with  and  between 
Afghanistan  and  Pakistan.  Turkey  also  continued  to  develop  and  strengthen  its  relations 
with  countries  in  Asia,  Africa  and  Central/Latin  America.  It  became  a  non-regional 
observer in the Central American Integration System. 

A series of high-level exchanges with Russia took place, including a visit by President Putin 
to  Ankara  in  December  2014,  during  which  a  new  gas  pipeline  project,  ‘Turk  Stream’,  was 
proposed  as  a  possible  substitute  for  the  ‘South  Stream’  project.  Turkey  maintained  good 
relations  with  Ukraine.  After  the  meeting  of  the  Turkey-Ukraine  High  Level  Strategic 
Cooperation  Council  in  March  2015,  the  two  countries  declared  they  would  improve  their 
relationship  further,  with  Turkey  announcing  support  for  Ukraine’s  efforts  to  deepen  its 
partnership with the EU. 

Turkey  maintained  its  policy  of  engagement  in  South  Caucasus  and  Central  Asia.  The 
inauguration  of  the  trans-Anatolian  natural  gas  pipeline  in  March  was  an  important  step  in 
strengthening  energy  cooperation  with  the  region  and  the  EU.  In  April  2015,  the  Prime 
Minister again offered deep condolences to the descendants of the 1915 events. However, the 
Turkish  authorities  responded  systematically  and  strongly  whenever  the  events  were 
recognised  as  genocide  abroad.  The  2009  protocols  on  normalisation  of  relations  with 
Armenia are not yet ratified. Turkey continued to maintain close relations with the countries 
of the Western Balkans. 

Turkey  is  party  to  all  international  arrangements  on  the  non-proliferation  of  weapons  of 
mass  destruction.  It  has  not  yet  aligned  itself  with  the  EU  position  on  membership  of  the 
Wassenaar Arrangement (see Chapter 30 — External relations) and the Missile Technology 
Control Regime. 

Turkey continued to participate in civil and military crisis management operations under the 
common  security  and  defence  policy  (CSDP),  in  particular  EUFOR  ALTHEA  Bosnia 
Herzegovina  and  EULEX  Kosovo.  It  has  offered  to  contribute  to  EUFOR  RCA,  EUBAM 
Libya, EUTM Mali and EUAM Ukraine. The issue of EU-NATO cooperation, going beyond 
the ‘Berlin plus’ arrangements, involving all EU Member States, has not yet been resolved. 

82 

 
4.32.  Chapter 32: Financial control 

Based  on  international  standards,  EU  financial  control  rules  promote  sound  financial 
management  of  national  income  and  expenditure.  They  also  protect  the  EU's  financial 
interests against fraud in the management of EU funds and the euro against counterfeiting. 

Turkey  has  achieved  a  good  level  of  preparation  in  the  area  of  financial  control.  Some 
progress  was  achieved  in  the  past  year,  thanks  especially  to  the  adoption  of  the  national 
alignment strategy and action plan on financial control. External audit also saw progress. 

However, further significant efforts are needed to implement public internal financial control 
(PIFC) at all levels of the administration and in state-owned companies. In the coming year, 
Turkey should in particular: 

→ update the PIFC policy paper and start implementing a new action plan, preferably as part 
of a public financial management reform programme; 

→  amend  internal  control  and  internal  audit  arrangements  in  the  public  sector  to  improve 
implementation of the Law on Public Financial Management and Control; 

→ ensure full implementation of the legislation on external audit. 

Public internal financial control (PIFC) 

Turkey  adopted  its  PIFC  strategy  and  an  action  plan  in  2002.  The  government  has 
committed  to  updating  them.  No  mechanism  is  currently  in  place  to  provide  regular 
monitoring and reporting on the strategy’s implementation. 

in 

Two  central  harmonisation  units  (CHU) 
the  Ministry  of  Finance  supervise 
implementation  of  PIFC.  The  CHU  for  FMC  provides  methodological  guidance  and 
coordinates  FMC  implementation  in  line  ministries.  It  prepares  an  annual  general 
accountability  report  to  the  government  based  on  an  annual  survey  to  budget  users.  The 
government  does not,  however, adopt  conclusions on the basis of the  report.  The CHU for 
internal  audit  coordinates  implementation  of  internal  audit  in  line  ministries.  During  the 
reporting  period it published regulations  and  handbooks  and carried out  the external quality 
review of some units. It also issues an annual general government internal audit report. The 
administrative capacity of the CHUs needs to be strengthened gradually.  

The  PIFC  law  regulates  financial  management  and  control  mostly  in  line  with  the 
Committee  of  Sponsoring  Organisations  (COSO)  model  and  the  guidelines  of  the 
International  Organisation  of  Supreme  Audit  Institutions  (INTOSAI).  Central  government 
institutions broadly follow the PIFC manual, which was revised in early 2014. However, there 
is  a  need  to  refocus  on  FMC  as  a  management  system  rather  than  a  purely  financial  one. 
Ensuring a systematic approach to risk management in Turkey is a key challenge. Turkey has 
an  extensive  budget  inspection  function  within  individual  ministries.  There  are  potential 
overlaps with internal audit, as both functions are focused especially on legal compliance. 

Internal audit is regulated in the PIFC law generally in line with the international standards. 
An  internal  audit  manual  and  a  code  of  ethics  are  in  place.  More  than  246  out  of  the  386 
institutions requested to do so have set up internal audit units. To date, 46 % of internal audit 
posts in the general government institutions have been filled. Some key institutions, such as 
the Prime Minister’s Office, have yet to appoint internal auditors. 941 internal auditors have 
been  certified  by  the  CHU.  9  %  of  auditors  hold  an  international  certification.  Most 
institutions  have  an  audit  charter  and  perform  audits  according  to  audit  plans.  In  2014, 
internal audit software was introduced in 65 public institutions. 

83 

 
 
External audit 

On  the  constitutional  and  legal  framework,  the  independence  of  the  Turkish  Court  of 
Accounts  (TCA)  is  anchored  in  the  Constitution.  The  current  TCA  law  is  in  line  with  the 
INTOSAI  standards.  It  provides  for  an  exhaustive  audit  mandate  and  gives  the  TCA  full 
discretion in discharging its responsibilities.  

The TCA, which has also judicial functions, has a well-established structure with a presidency 
and governing boards. The board members of the TCA are elected by parliament. Concerning 
institutional capacity, from a total of 891 staff, 654 are auditors. To develop its institutional 
capacity  the  TCA  has  adopted  a  strategic  development  plan  for  the  period  2014-2018, 
including a training strategy. In December 2014, the TCA adopted an action plan for aligning 
with the internal control standards by 2016. 

In 2014, the TCA improved the quality of audit work by adopting assessment manuals for 
performance  audit  and  activity  reports  as  well  as  by  strengthening  the  external  audit 
improvement  and  training  centre.  Planning  of  audit  work  is  mostly  risk-based.  The  TCA 
submits  to  parliament  four  audit  reports  (on  general  evaluation,  accountability,  financial 
statistics and state enterprises) in addition to the statement of general conformity. The TCA 
has a dedicated quality control unit to ensure auditors’ adherence to professional and ethical 
standards and quality of reporting. However, the TCA should ensure that performance audits 
are not only audits about performance indicators but would also focus on economy, efficiency 
and effectiveness of public institutions.  

Regarding the impact of audit work, the TCA assesses the internal control environment of 
audited entities as part of its audit work. Its annual audit report to parliament is analysed in 
the Plan and Budget Committee and discussed in the plenary. However, despite the existence 
of a parliamentary follow-up mechanism, this process is neither systematic nor does it work 
well.  The  working  group  between  the  TCA  and  the  Ministry  of  Finance  is  operational.  A 
similar working group is needed with parliament. The TCA frequently updates its website and 
communicates well with the media. 

Protection of the EU’s financial interests 

As  regards  acquis  alignment,  the  national  legislation  incorporates  the  main  components  of 
the convention on the protection of the EU’s financial interests and regulates the obligation to 
safeguard  evidence.  The  national  anti-fraud  coordination  service  (AFCOS)  —  an 
independent  unit  under  the  Prime  Minister’s  Office  —  continues  to  work  well  with  the 
Commission. An anti-fraud network, involving other relevant authorities, is in place. Turkey 
continued to implement the national anti-corruption and enhancing transparency strategy and 
action plan for 2010-2014. It will need to update its anti-corruption strategy and action plan. 
Turkey ensured cooperation with the European Commission investigators in various cases 
in 2014. It has established the main procedures for reporting irregularities and suspected fraud 
cases and an irregularity management system. Turkey regularly reports to the Commission. A 
solid track record on investigation activities and reporting still needs to be established. 

Protection of the euro against counterfeiting 

Turkey  has  reached  a  high  level  of  acquis  alignment.  Turkey  is  also  a  party  to  the  1929 
International Convention for the Suppression of Counterfeiting Currency. Technical analysis 
of  counterfeit  money,  including  euro  banknotes  and  coins,  is  performed  by  a  dedicated 
department in the central bank. Employees are trained regularly and participate actively in the 
Pericles  2020  programme.  The  police  serves  as  the  national  central  office  for  ensuring 
cooperation  with  the  EU  institutions  as  part  of  the  counterfeit  tracking  system.  Turkish 
legislation  imposes  financial  penalties  on  credit  institutions  which  do  not  withdraw 

84 

 
counterfeits from circulation. Turkey has not signed formal cooperation agreements with the 
Commission  or  the  European  Central  Bank,  but  in  practice  there  is  close  cooperation.  In 
addition, Turkey has prepared a roadmap for strengthening cooperation with Europol. 

4.33.  Chapter 33 — Financial and budgetary provisions 

Rules for funding the EU budget provide for contributions based mainly on the gross national 
income of each Member State as well as from value-added tax and customs duties. 

Preparations are at an early stage in this area. No progress was made in the past year. Solid 
coordination  structures,  administrative  capacity  and  implementing  rules  will  need  to  be 
established in due course. 

Basic principles and institutions in the underlying policy areas linked to the application of the 
own  resources  system  are  already  in  place.  (For  developments  in  these  areas,  see  Chapters 
16; — Taxation, 18 — Statistics, 29 — Customs Union and 32 — Financial Control) 

In the area of traditional own resources, Turkey’s customs legislation is largely aligned with 
the acquis. Please see Chapter 29 — Customs Union for developments in this area. 

Preparations  for  the  value  added  tax-based  resource  so  as  to  calculate  the  statistical  VAT 
base have yet to start. Turkey will need to take solid measures to combat fraud in VAT and 
customs  duties  to  ensure  appropriate  contributions  to  the  EU  own  resources  system  upon 
accession. Regarding the gross national income-based resource, Turkey continues to align 
the compilation of its financial and statistical data with the European System of Accounts. 

By  the  time  of  accession  Turkey  will  need  to  take  several  measures  in  the  field  of 
administrative 
to  establish  coordination  structures  and 
implementing  rules  for  accurately  collecting,  accounting  for,  monitoring,  paying  and 
controlling own resources, as well as for reporting to the EU. 

infrastructure. 

It  needs 

85 

 
Annex I – Relations between the EU and Turkey  

Within  the  framework  of  accession  negotiations,  14  chapters  have  been  opened  so  far  and 
one of these was provisionally closed. The Commission has tabled a proposal to open Chapter 
17 - economic and monetary affairs, in order to underpin the envisaged high level economic 
dialogue  with  Turkey.  Opening  benchmarks  for  Chapters  23  and  24  on  the  rule  of  law  still 
need to be defined so as to provide Turkey with a roadmap for reforms in this essential area. 
Progress on the priorities for reform is encouraged and monitored by the bodies set up under 
the Association Agreement. The Association Committee met in April 2015 after a new cycle 
of sub-committees was launched in February 2015, following a nearly three-year break. Sub-
committees play a useful role in supporting Turkey's efforts of alignment with the acquis and 
of compliance with the opening and closing benchmarks of the negotiation chapters, without 
prejudice to the Council Conclusions of 11 December 2006. The Association Council met in 
May 2015. The Joint Parliamentary Committee met in November 2014 and March 2015. 

This  Commission  has  maintained  a  policy  of  broad  strategic  engagement  with  Turkey, 
exemplified  by  the  December  2014  visit  by  the  High  Representative/Vice  President  and 
Commissioners  Hahn  and  Stylianides.  Turkey  itself  continued  to  express  its  commitment  to 
EU  accession:  the  Prime  Minister  visited  Brussels  in  January  2015  and  met  with  the 
Presidents  of  the  European  Council  and  of  the  European  Commission.  The  President  of  the 
European Parliament visited Turkey in April 2015 and the President of the European Council 
in September 2015. The enhanced political dialogue between the EU and Turkey continued. 
A  political  dialogue  meeting  at  political  directors'  level  took  place  in  November  2014. 
Regular discussions on foreign and security policy were held, including on counter-terrorism, 
against  the  background  of  Turkey  joining  the  international  coalition  against  Da'esh. 
Discussions were held on a wide range of topics and regions, inter alia, Syria, North Africa, 
the Horn of Africa, the Middle East and the Gulf, Afghanistan, Pakistan, Russia, Ukraine, the 
South Caucasus, Central Asia.  
In  the  area  of  visa  migration  and  asylum,  the  first  implementation  report3  on  the  visa 
roadmap  was  issued  in  October  2014  as  part  of  the  visa  liberalisation  dialogue  launched  in 
December 2013 and after the EU-Turkey Readmission agreement had entered into force on 1 
October 2014. The  report  was  prepared on the basis  of  several  peer  assessment  missions.  It 
welcomed  the  progress  achieved  by  Turkey  in  the  fields  of  migration  and  international 
protection, as well as in document security. At the same time, work was still needed in many 
areas, in particular border management, and police and judicial cooperation. Full and effective 
implementation  of  the  Readmission  Agreement  towards  all  Member  States  is  one  of  the 
benchmarks in the visa roadmap. As a follow up to the Special European Council in April, the 
EU  and  Turkey  agreed  to  step  up  plans  on  reinforced  cooperation  in  the  area  of  migration, 
including on the fight against smuggling of migrants. Turkey continued making considerable 
efforts to provide massive and unprecedented humanitarian aid and support to a continuously 
increasing influx of refugees from Syria and Iraq. 

Developing  further  close  economic  ties  was  another  shared  priority.  Turkey  participates  in 
multilateral  economic  dialogue  with  the  Commission  and  Member  States  to  prepare  the 
country for participation in multilateral surveillance and economic policy coordination as part 
of  the  EU’s  Economic  and  Monetary  Union.  The  most  recent  meeting  was  held  on  12  May 
2015,  where  joint  recommendations  were  adopted.  The  EU  and  Turkey  have  also  closely 

3 COM(2014) 646 of 20.10.2014 

86 

 
 
                                                            
 
worked  together  in  the  framework  of  the  G-20,  which  Turkey  has  been  chairing  in  2015. 
Turkey and the EU continued to improve their cooperation on energy, and a high level energy 
dialogue  was  launched  in  March  2015.  The  dialogue  covers  the  gas  sector  and  security  of 
supplies,  including  the  Southern  Gas  Corridor;  the  electricity  sector;  the  nuclear  sector; 
energy efficiency and renewable energy sources. In May 2015, the Commission and Turkey 
agreed to initiate procedures in view of a modernisation and extension of the Customs Union. 
This  followed  an  evaluation  of  the  World  Bank  issued  in  May  2014.  The  Commission 
launched  an  Impact  Assessment4  in  August  2015,  with  a  view  to  prepare  negotiating 
directives in the course of 2016. Turkey is the EU’s fifth largest trading partner, while the EU 
is Turkey’s largest. Two out of five goods traded by Turkey come from or go to the EU and 
over 70 % of foreign direct investment in Turkey originates in the EU. Regarding cooperation 
in disaster management, Turkey became a member of the EU Civil Protection Mechanism in 
May 2015.  

Regarding  financial  assistance  Turkey  is  an  important  recipient  of  EU  funds.  The 
Commission and Turkey continued preparations under the new Instrument for Pre-accession 
Assistance (IPA II), in line with the Indicative Strategy Paper for Turkey for the period 2014-
2020  which  earmarked  EUR  4.45  billion  of  funding.  In  December  2014,  the  Commission 
adopted  the  annual  programme  for  2014,  with  a  budget  of  EUR  366  million  focusing 
primarily on democracy and governance, rule of law and fundamental rights. It also adopted 
four sectoral multi-annual programmes for the period 2014-2016, for an amount of EUR 793 
million,  in  the  areas  of  environment  and  climate  change,  transport,  competitiveness, 
employment  and  social  inclusion.  The  Framework  Agreement  covering  IPA  II  entered  into 
force in June 2015. The preparations for the annual programme 2015 are well under way. The 
EU also acknowledged the considerable pressure the Syrian refugee crisis imposes on Turkey 
and has so far set aside EUR 176 million under different EU instruments.  

Turkey  participates  in  the  following  EU  programmes:  the  Seventh  Research  Framework 
Programme, Customs, Fiscalis, the Competitiveness and Innovation Framework Programme, 
Progress,  Culture,  Lifelong  Learning  and  Youth  in  Action.  Turkey  has  also  recently 
concluded  or  is  in  the  process  of  concluding  new  agreements  for  a  number  of  programmes, 
including: Horizon 2020, Erasmus+, Competitiveness of Enterprises and Small and Medium-
sized  Enterprises,  Creative  Europe  and  Employment  and  Social  Innovation.  Turkey 
participates in the European Environmental Agency and in the European Monitoring Centre 
for Drugs and Drug Addiction. 

4 http://ec.europa.eu/smart-regulation/roadmaps/docs/2015_trade_035_turkey_en.pdf 

87 

 
                                                            
 
Annex II – Statistical Annex 

STATISTICAL DATA (as of 18.09.2015) 
Turkey 

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

National accounts 
Gross domestic product (GDP) (million national 
currency) 
Gross domestic product (GDP) (million euro) 
GDP (euro per capita) 
GDP (in Purchasing Power Standards (PPS) per 
capita) 
GDP (in Purchasing Power Standards (PPS) per 
capita), relative to the EU average (EU-28 = 100) 
Real GDP growth rate: change on previous year of 
GDP volume (%) 
Gross value added by main sectors 
Agriculture, forestry and fisheries (%) 
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 (%) 

Note 
1) 

Note 

2) 

3) 

4) 
4) 
4) 
4) 

Business 
Industrial production volume index (2010 = 100) 
Number of active enterprises (number) 

Note 
5) 

Birth rate: number of enterprise births in the 
reference period (t) divided by the number of 
enterprises active in t (%) 
Death rate: number of enterprise deaths in the 
reference period (t) divided by the number of 
enterprises active in t (%) 
People employed in SMEs as a share of all persons 
employed (within the non-financial business 
economy) (%) 
Value added by SMEs (in the non-financial business 
economy) (EUR million) 
Total value added (in the non-financial business 
economy) (EUR million) 

Inflation rate 
Harmonised consumer price index (HICP), change 
relative to the previous year (%) 

2002 
65 603e 
785 347 

2010 
72 561b 
785 347 

2011 
73 723 
785 347 

2012 
74 724 
785 347 

2013 
75 627 
785 347 

2014 
76 668 
785 347 

2002 
350 476 

243 569 
3 690 
7 400e 

2010 
1 098 79
9 
547 347 
7 483 
12 200b 

2011 
1 297 71
3 
556 278 
7 494 
13 400 

2012 
1 416 79
8 
611 909 
8 139 
13 800 

2013 
1 567 28
9 
620 682 
8 161 
14 100 

2014 
1 749 78
2 
601 298 
7 819 
14 400 

35 

6.2 

10.3 
21.0 
4.2 
55.0 
80.7 

16.7 
0.9 
25.2 
23.6 

2002 
: 
: 

: 

: 

: 

: 

: 

49b 

9.2 

8.4 
19.4 
4.2 
57.2 
86.0 

18.9 
0.6 
21.2 
26.8 

51 

8.8 

8.0 
19.9 
4.5 
56.3 
85.1 

21.8 
1.7 
24.0 
32.6 

52 

2.1 

7.9 
19.4 
4.4 
57.5 
85.0 

20.3 
-0.1 
26.3 
31.5 

53 

4.2 

7.4 
19.1 
4.4 
57.6 
85.9 

20.3 
0.3 
25.6 
32.2 

53 

2.9 

7.1 
19.5 
4.6 
57.7 
84.1 

20.1 
0.2 
27.7 
32.1 

2010 
100.0 
3 003 11
6 
4.2 

2011 
110.1 
3 422 16
3 
23.2 

2012 
112.9 
3 474 99
2 
12.8 

2013 
116.3 
3 529 54
1 
12.4 

2014 
120.5 
3 525 43
1 
12.2 

12.5 

12.0 

12.1 

76.3 

76.0 

75.8 

80 088 

81 593 

91 208 

: 

: 

: 

146 841 

153 201 

170 420 

184 376 

: 

: 

: 

: 

Note 

2002 
47.0 

2010 
8.6 

2011 
6.5 

2012 
9.0 

2013 
7.5 

2014 
8.9 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance of payments 
Balance of payments: current account total (million 
euro) 
Balance of payments current account: trade balance 
(million euro) 
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) 
**3 year backward moving average of the current 
account balance relative to GDP (%) 
Net inward foreign direct investment (FDI) (million 
euro) 
Foreign direct investment (FDI) abroad (million euro) 
of which FDI of the reporting economy in the EU-28 
countries (million euro) 
Foreign direct investment (FDI) in the reporting 
economy (million euro) 
of which FDI of the EU-28 countries in the reporting 
economy (million euro) 
**Net international investment position, relative to 
GDP (%) 
Year on year rate of change in gross inflow of 
remittances (in national currency) from migrant 
workers (%) 

Public finance 
***General government deficit / surplus, relative to 
GDP (%) 
***General government gross debt relative to GDP 
(%) 
Total government revenues, as a percentage of GDP 
(%) 
Total government expenditure, as a percentage of 
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) 
Trade-weighted effective exchange rate index (2005 
= 100) 
Value of reserve assets (including gold) (million euro) 

Note 

2002 
-662 

2010 
-34 282 

2011 
-53 945 

2012 
-36 400 

2013 
: 

2014 
: 

-6 758 

-42 553 

-64 037 

-51 115 

-60 200s 

8 339 

12 565 

14 461 

18 845 

17 679s 

-4 816 

-5 442 

-5 633 

-5 196 

2 573 

1 149 

1 263 

1 067 

526 
: 

993 

151 
: 

425 
: 

570 
: 

430 
: 

5 712 

9 840 

6 573 

1 104 
447 

1 688 
1 004 

3 171 
2 256 

1 144 

6 816 

11 528 

9 744 

: 

: 

4 075 

6 795 

6 140 

: 

: 

: 

5.0 

: 

: 

: 
: 

: 

: 
: 

: 

: 

: 

-33.7e 

0.7 

1.1 

-12.9e 

: 

: 

: 

: 

: 
: 

: 

: 
: 

: 

: 

: 

: 

Note 

2002 
-10.1 

2010 
-2.9 

2011 
-0.8f 

2012 
-0.2 

2013 
0.2 

2014 
: 

73.5 

42.7 

39.3f 

36.2 

36.0 

: 

: 

35.6 

35.0 

36.5 

37.8 

38.4 

35.8 

36.7 

37.6 

: 

: 

: 

Note 

2002 
50.7 

2010 
39.5 

2011 
: 

2012 
: 

2013 
: 

2014 
: 

359.3 

254.0 

: 

: 

9 291 

65 976b 

65 555 

72 816 

6) 

7) 

8) 

9) 
10) 

36 325 

38 041 

20 035 

49.59 
53.65 
53.88 
1.430 

286 595
b 
300 348
b 
231 862 

6.59 
14.83 
14.99 
1.989 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

274 239 

300 693 

288 210 

317 047 

255 706 

303 509 

7.28 
12.27 
14.19 
2.322 

7.59 
9.00 
5.00 
2.314 

: 
: 
: 
2.534 

: 
: 
: 
2.906 

11) 

116.2 

86.8 

74.4 

74.5 

26 949 

64 874 

68 391 

90 332 

: 

: 

89 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External trade in goods 
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 * 100) (number) 
Share of exports to EU-28 countries in value of total 
exports (%) 
Share of imports from EU-28 countries in value of 
total imports (%) 

Demography 
Crude rate of natural change of population (natural 
growth rate): number of births minus deaths (per 
thousand inhabitants) 
Infant mortality rate deaths of children under one 
year of age (per thousand live births) 
Life expectancy at birth: male (years) 
Life expectancy at birth: female (years) 

Labour market 
Economic activity rate for persons aged 20–64: 
proportion of the population aged 20–64 that is 
economically active (%) 
*Employment rate for persons aged 20–64: 
proportion of the population aged 20–64 that are in 
employment (%) 
Male employment rate for persons aged 20–64 (%) 
Female employment rate for persons aged 20–64 
(%) 
Employment rate for persons aged 55–64: proportion 
of the population aged 55–64 that are in employment 
(%) 
Employment by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
People employed in the public sector as a share of 
total employment, persons aged 20–64 (%) 
People employed in the private sector as a share of 
total employment, persons aged 20–64 (%) 
Unemployment rate: proportion of the labour force 
that is unemployed (%) 
Male unemployment rate (%) 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour 
force aged 15–24 that is unemployed (%) 
Long-term unemployment rate: proportion of the 
labour force that has been unemployed for 12 
months or more (%) 
Unemployment rate for persons (aged 25–64) having 
completed at most lower secondary education 
(ISCED 0–2) (%) 
Unemployment rate for persons (aged 25–64) having 
completed tertiary education (ISCED 5 & 6) (%) 

Note 

12) 

2002 
54 478 
38 137 
-16 341 
95 

2010 
138 720 
85 298 
-53 422 
96 

2011 
173 099 
96 973 
-76 126 
93 

2012 
184 087 
118 644 
-65 443 
96 

2013 
189 783 
114 533 
-75 250 
98 

2014 
182 364 
118 736 
-63 628 
98 

56.7 

46.4 

46.4 

38.9 

41.5 

43.5 

49.8 

39.1 

37.9 

37.0 

36.7 

36.7 

Note 
13) 

2002 
12.1e 

2010 
12.2b 

2011 
11.7 

2012 
12.2 

2013 
12.1 

2014 
12.2 

13) 

14) 
14) 

Note 

25.4e 

12.0b 

11.7 

11.6 

10.8 

11.1 

70.5e 
74.7e 

2002 
: 

74.2e 
78.7e 

2010 
55.9 

74.4e 
78.9e 

2011 
57.2 

74.6e 
79.1e 

2012 
57.4 

74.7e 
79.2e 

2013 
58.4 

74.8e 
79.3e 

2014 
58.9b 

50.2 

50.0 

52.2 

52.8 

53.4 

53.2b 

72.9 
27.7 

72.7 
28.0 

75.1 
29.8 

75.0 
30.9 

75.3 
31.8 

75b 
31.6b 

35.3 

29.6 

31.4 

31.9 

31.5 

31.4b 

: 
: 
: 
: 
16.9 

25.2 
19.9 
6.3 
48.6 
13.5 

25.5 
19.5 
7.0 
48.1 
13.3 

24.6 
19.1 
6.9 
49.4 
13.8 

23.6 
19.4 
7.0 
50.0 
13.5 

21.1b 
20.5b 
7.4b 
51.0b 
13.1b 

83.1 

86.5 

86.7 

86.2 

86.5 

86.9b 

: 

: 
: 
: 

: 

: 

: 

10.8 

10.5 
11.6 
19.9 

8.8 

8.2 

8.8 

9.9b 

8.3 
10.1 
16.7 

7.7 
9.4 
15.7 

8.0 
10.6 
16.9 

9.1b 
11.9b 
17.8b 

3.0 

2.3 

2.0 

2.1 

2.4b 

9.6 

7.6 

7.0 

7.5 

8.5b 

7.2 

6.8 

6.7 

6.9 

8.1b 

15) 

16) 

16) 
16) 
16) 

17) 

18) 

18) 

90 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 inflation index) 
(2000 = 100) 
GINI coefficient — see definitions 
Poverty gap 
*Early leavers from education and training: proportion 
of the population aged 18–24 with at most lower 
secondary education who are not in further education 
or training (%) 

Standard of living 
Number of passenger cars relative to population size 
(number per thousand population) 
Number of mobile phone subscriptions relative to 
population size (number per thousand population) 

Note 
19) 

2002 
419 

2010 
1 142 

2011 
1 242 

2012 
1 327 

2013 
: 

2014 
: 

: 

: 

: 

: 

: 

: 

20) 
20) 
21) 

46.0 
32.0 
55.1 

40.2 
28.7 
43.1b 

40.4 
29.2 
41.9 

40.2 
29.2 
39.6 

40.0 
26.7 
37.6p 

: 
: 
38.3b 

Note 

2002 
70.2e 

2010 
104.0b 

2011 
110.0 

2012 
115.7 

2013 
122.8 

2014 
126.9 

356e 

837b 

874 

895 

909 

: 

Infrastructure 
Density of railway network (lines in operation per 
thousand km²) 
Length of motorways (kilometres) 

Note 

2002 
11.1 

2010 
12.2 

2011 
12.3 

2012 
12.3 

2013 
12.4 

2014 
12.8 

1 714 

2 080 

2 119 

2 127 

2 127 

2 155 

Innovation and research 
Public expenditure on education relative to GDP (%) 
*Gross domestic expenditure on R&D relative to 
GDP (%) 
Percentage of households who have internet access 
at home (%) 

Environment 
Energy intensity of the economy (kg of oil equivalent 
per 1 000 euro GDP at 2005 constant prices) 
Electricity generated from renewable sources relative 
to gross electricity consumption (%) 
Road share of inland freight transport (based on 
tonne-km) (%) 

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) 

Note 

22) 

2002 
4.8 
0.52 

2010 
: 
0.84b 

2011 
4.1 
0.86 

2012 
: 
0.92 

2013 
: 
0.95 

2014 
: 
: 

: 

41.6 

42.9 

47.2 

49.1 

60.2 

Note 

2002 
259.1 

2010 
252.5 

2011 
: 

2012 
: 

2013 
: 

2014 
: 

25.7 

26.5 

25.3 

27.0 

28.9 

: 

95.4 

94.6 

94.3 

94.5 

95.4s 

94.9 

Note 

2002 
24 281 

2 564 
11 360 

344 
55 467 
78 331 
129.4 

2010 
32 487 

2 671 
17 523 

2011 
32 229 

2 555 
17 869 

2012 
31 964 

2 440 
17 018 

2013 
31 944 

2 485 
15 451 

625 
79 400 
109 260 
211.2 

652 
84 087 
114 480 
229.4 

533 
91 827 
120 093 
239.5 

443 
90 784 
120 290 
240.2 

2014 
: 

: 
: 

: 
: 
: 
252.0 

91 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agriculture 
Agricultural production volume index of goods and 
services (at producer prices) (previous year = 100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand 
heads, end of period) 
Livestock numbers: live swine (thousand heads, end 
of period) 
Livestock numbers: live sheep and live goats 
(thousand heads, end of period) 
Production and utilisation of milk on the farm (total 
whole milk) (thousand tonnes) 
Harvested crop production: cereals (including rice) 
(thousand tonnes) 
Harvested crop production: sugar beet (thousand 
tonnes) 
Harvested crop production: vegetables (thousand 
tonnes) 

Note 

2002 
108.5 

2010 
: 

2011 
: 

2012 
: 

2013 
: 

2014 
: 

41 196 
9 803 

39 012 
11 370 

38 231 
12 386 

38 399 
13 915 

38 423 
14 415 

38 560 
14 123 

23) 

4 

2 

2 

3 

3 

3 

31 954 

29 383 

32 310 

35 783 

38 510 

41 462 

8 409 

13 544 

15 056 

17 401 

18 224 

18 499 

30 831 

32 773 

35 202 

33 377 

37 489 

32 714 

16 523 

17 942 

16 126 

14 920 

16 489 

16 573 

25 824 

25 997 

27 547 

27 820 

28 448 

28 570 

: = not available 
b = break in series 
e = estimated value 
f = forecast 
p = provisional 
s = Eurostat estimate 

* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator 
*** = The government deficit and debt data of enlargement countries are published on an "as is" basis and without any 
assurance as regards their quality and adherence to ESA rules. 

Footnotes: 

1)  Values are derived from 2000–06 Population Estimates and 2007–14 Results of Address Based Population Registration 

System. 

2)  2013 and 2014: source, Eurostat. 
3)  Source: Eurostat. 
4)  Calculated as a share of value added plus taxes and subsidies minus FISIM; shares therefore do not sum to 100% but show 

the relative size of the sectors. 

5)  Gross index, not calendar adjusted. 
6)  Break in series. From December 2005 onwards, M1 also includes currency in circulation and demand deposits in foreign 

currencies, not just in national currency. Furthermore, from December 2005 monetary liabilities of Participation Banks, 
Investment and Development Banks and the amount of Money Market Funds were added to money supply data. 

7)  Break in series. From December 2005 onwards, M2 includes M1 and time deposits in foreign currencies, not just in national 

currency. See also break in series for M1. 

8)  Break in series. From December 2005 onwards, M3 includes (in addition to M2 and official deposits (time/demand) which 

were already included previously) funds received from repo transactions and money market funds (B type liquid funds). See 
also break in series for M1 and M2. 

9)  Average of monthly data. Lending to enterprises more than one year. 

10)  Average of monthly data. Up to one year or longer. 
11)  Source: Eurostat. 
12)  Expressed as an index with 2000 = 100. Time series were originally based on different reference years (2002, 1994 = 100; 

since 2010, 2010 = 100). 

13)  2002: for detailed information, see the relevant metadata file of "Demographic Indicators" table on TurkStat Web site. 
14)  For detailed information, see the relevant metadata file of "Demographic Indicators" table on TurkStat Web site. 
15)  2010–13: includes NACE Rev. 2 Group 98.1 (undifferentiated goods-producing activities of private households for own use). 

16)  2013–14: unemployment based on 4 weeks criterion + using only active jobs search methods. 
17)  2012–14: unemployment based on 4 weeks criterion + using only active jobs search methods. 
18)  Unemployment based on 4 weeks criterion + using only active jobs search methods. 
19)  2002: data from the income and living conditions survey.  
20)  2010–13: data from the income and living conditions survey.  
21)  Annual LFS results. Break in series caused by the addition of 'participation in non formal education or training' from 2004. 
22)  Break in series due to the use of revised GDP series since 2007. 
23)  Excluding buffaloes. 

92