Erdogan gains greater powers as Turkey's new era begins

Agencies
July 9, 2018

Ankara, Jul 9: President Recep Tayyip Erdogan is to be sworn in for his second term as head of state on Monday, taking on greater powers than any Turkish leader for decades under a new system condemned by opponents as autocratic.

Erdogan, who has transformed Turkey by allowing Islam to play a greater role in public life and boosting the country's international stature, will take his oath almost two years after defeating a bloody attempted coup.

The inauguration in parliament after Erdogan's June election victory will be followed by a lavish ceremony at his palace attended by dozens of world leaders marking the transition to the new executive presidency system.

Erdogan will face immediate and major challenges in his second term, posed by an imbalanced if fast-growing economy and foreign policy tensions between the West and Turkey, a NATO member.

He has also pledged to end the state of emergency that has been in place since the failed July 2016 coup and has seen the biggest purge in the history of modern Turkey.

In what appeared to be the final emergency decree issued just one day before the inauguration, 18,632 public sector employees were ordered dismissed including thousands of soldiers and police officers.

After the inauguration, Erdogan will immediately turn to foreign policy, visiting northern Cyprus and Azerbaijan, both traditional first ports of call for a newly elected Turkish leader.

He will then head to more challenging encounters at a NATO summit in Brussels where he will meet with US counterpart Donald Trump.

The new system was agreed in a bitterly fought 2017 referendum, but the changes have been vehemently denounced by the opposition.

The president will sit at the top of a vertical power structure marked by a slimmed-down government with 16 ministries instead of 26 and multiple bodies reporting to him.

Emre Erdogan, professor of political science at Istanbul's Bilgi University, said the parliament's powers were "highly restricted" under the new system.

In one of the most significant changes, the EU affairs ministry, set up in 2011 to oversee Turkey's faltering bid to join the bloc, will be subsumed into the foreign ministry.

Prime Minister Binali Yildirim will on Monday go down in history as the 27th and final holder of a post that has existed since Mustafa Kemal Ataturk founded modern Turkey, and whose origins date back to the Ottoman Empire.

Erdogan's ruling Justice and Development Party (AKP) on Saturday nominated Yildirim as parliament speaker, an appointment likely to be rubber-stamped by the chamber on Thursday.

Those attending the ceremony at the presidential palace Monday evening will include Russian Prime Minister Dmitry Medvedev, in a new sign of the warm ties between Ankara and Moscow.

Among 22 heads of state attending will be Venezuelan President Nicolas Maduro, regarded with disdain by Washington but an ally of Erdogan, and Ukrainian President Petro Poroshenko.

The new cabinet, due to be announced at 1800 GMT, is expected to have a different look, especially after Erdogan said the government would include non-AKP figures.

The most intense attention will focus on who will be responsible for foreign policy and the economy.

Current Foreign Minister Mevlut Cavusoglu could, in theory, continue in his job but reports have said Erdogan may choose his spokesman, Ibrahim Kalin, or even spy chief Hakan Fidan to succeed him.

The markets will keep a close eye on economic appointments, keen to see a steady hand at the helm in a fast-growing economy dogged by double-digit inflation and a widening current account deficit.

Erdogan, who first came to power as premier in 2003, won 52.6 percent of ballots cast in June, higher than the 51.79 percent he garnered in the 2014 polls.

His closest rival, Muharrem Ince of the main opposition Republican People's Party (CHP), managed 30.6 percent, but the party is now locked in internal battles over its future leadership and direction.

The AKP failed to win a majority in parliament, taking 294 of the 600 seats, meaning it will need its allies in the Nationalist Movement Party (MHP), which has 49 seats, to ensure a majority.

Analysts have said that the partnership with nationalists could push the AKP into more hardline policies, notably on Kurdish issues and relations with the West.

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News Network
February 5,2020

New Delhi, Feb 5: Union Home Minister Amit Shah on Tuesday announced that the Shri Ram Janmabhoomi Teertha Kshetra, set up by the government for construction of a temple in Ayodhya, will have 15 trustees and one of them will be from the Dalit community.

The statement comes a little over an hour after Prime Minister Narendra Modi announced in Lok Sabha about the constitution of the trust.

"There will be 15 trustees in the Shri Ram Janmabhoomi Teertha Kshetra Trust out of which one trustee will always be from the Dalit society," he tweeted.

Shah congratulated Modi "for such an unprecedented decision" that strengthens social harmony.

The home minister said the trust will be independent to take every decision related to the temple and 67 acres of land will be transferred to it.

"I fully believe that the waiting of millions of people for centuries will be over soon and they will be able to pay obeisance to Lord Shri Ram in his grand temple at his birthplace," he said.

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News Network
January 1,2020

New Delhi, Jan 1: The new Army chief Lieutenant General MM Naravane on Wednesday said that India needs to pay more attention to its border along China and asserted that the force is capable of dealing with any security challenge.

"We have been giving attention to our western front in the past. The northern front now also requires an equal amount of attention... The Army is capable of tackling any dangers to the country," General Naravane told reporters after receiving the first Guard of Honour as the Army chief.

"In that context, we are now going in for capability development and enhancement of our capacities even in our northern borders which includes the northeastern part of our country," he said.

On the border dispute with China, the Army chief said that continuing peace along the border will pave the way for a solution.

He said: "We have been able to maintain peace and tranquility along borders and I'm sure that situation will prevail. By maintaining this, we will be able to set the stage for the eventual solution."

General Naravane said that operational readiness and modernisation will be among the top priorities of the Army under his leadership.

"Our priority will be to be ready to meet any challenge and to be operationally prepared at all times. This will happen as a result of modernisation. We will continue to build our capability especially in the North and Northeast region of our country," he said.

He said that the Indian Army will pay special attention to respect human rights. "We will also pay special emphasis on raising security awareness among ranks and file and pay special attention to respect human rights," the Army chief said.

Assuring the country on security, he said, "All three services — the Army, the Navy and the Air Force — are ready to defend the country."

He extended wishes to people in the new year and hoped that the country will make huge progress in this decade.

General Naravane took over as the 28th Chief of the Army Staff (COAS) on Tuesday, succeeding General Bipin Rawat who has become India's first Chief of Defence Staff (CDS).

General Naravane was previously the Vice Chief of Army Staff.

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News Network
May 4,2020

Munbai/New Delhi, May 4: India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers said.

Indian banks are already grappling with 9.35 trillion rupees ($123 billion) of soured loans, which was equivalent to about 9.1% of their total assets at the end of September 2019.

"There is a considered view in the government that bank non-performing assets (NPAs) could double to 18-20% by the end of the fiscal year, as 20-25% of outstanding loans face a risk of default," the official with direct knowledge of the matter said.

A fresh surge in bad debt could hit credit growth and delay India's recovery from the coronavirus pandemic.

"These are unprecedented times and the way it's going we can expect banks to report double the amount of NPAs from what we've seen in earlier quarters," the finance head of a top public sector bank told Reuters.

The official and bankers declined to be named as they were not officially authorized to discuss the matter with media.

India's finance ministry declined to comment, while the Reserve Bank of India and Indian Banks' Association, the main industry body, did not immediately respond to emails seeking comment.

The Indian economy has ground to a standstill amid a 40-day nationwide lockdown to rein in the spread of coronavirus cases.

The lockdown has now been extended by a further two weeks, but the government has begun to ease some restrictions in districts that are relatively unscathed by the virus.

India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from COVID-19, the respiratory disease caused by the coronavirus.

'RIDING THE TIGER'

Bankers fear it is unlikely that the economy will fully open up before June or July, and loans, especially those to small- and medium-sized businesses which constitute nearly 20% of overall credit, may be among the worst affected.

This is because all 10 of India's largest cities fall in high-risk red zones, where restrictions will remain stringent.

A report by Axis Bank said that these red zones, which contribute significantly to India's economy, account for roughly 83% of the overall loans made by its banks as of December.

One of the sources, an executive director of a public sector bank, said that economic growth had been sluggish and risks had been heightened, even ahead of the coronavirus crisis.

"Now we have this Black Swan event which means without any meaningful government stimulus, the economy will be in tatters for several more quarters," he said.

McKinsey & Co last month forecast India's economy could contract by around 20% in the three months through June, if the lockdown was extended to mid-May, and growth in the fiscal year was likely to fall 2% to 3%.

Bankers say the only way to stem the steep rise in bad loans is if the RBI significantly relaxes bad asset recognition rules.

Banks have asked the central bank to allow all loans to be categorized as NPAs only after 180 days, which is double the current 90-day window.

"The lockdown is like riding the tiger, once we get off it we'll be in a difficult position," a senior private sector banker said.

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