The Inflation Puzzle in the AK Party

AK Party Deputy Chairman Vedat Demiröz said, "Turkey will achieve its goals as macro values by the end of 2024. We will also bring down inflation to desired levels in 2025 and our country will reach a turning point again after 2026."

Demiröz, who went to Bartın as part of the "Turkey Meetings" program, met with members of his party's organization.

Demiröz told journalists that they have conducted their own assessments after the March 31 elections and learned the necessary lessons.

Stating that they are responsible for governing the country, Demiröz said, "No matter what other parties say about 'successful, unsuccessful', none of them have a single project. They don't have a single project related to any event. You can see this in Istanbul, Ankara, and Izmir. Even the fish in Izmir cannot breathe. Is Istanbul even being governed? It's not clear who is in charge. Therefore, we will continue to govern this country. We owe gratitude to this nation that has put us forward in all elections."

MEHMET ŞİMŞEK SAID 2025, BUT...

Minister of Treasury and Finance Mehmet Şimşek stated on September 17 that there is no increase in VAT, corporate tax, and income tax on their agenda, and announced that they can reduce inflation below 20% by the end of 2025.

However, Demiröz made a new claim after Mehmet Şimşek's prediction. Indicating that the pandemic, war, earthquake, and some developments have brought imbalance to the economy, Demiröz said, "We are all watching and we know this. Price stability has been disrupted and unfortunately inflation has risen in our country. Now all our efforts, all our economic efforts, are to bring down this inflation, to ensure price balance stability. In the meantime, to increase production and employment. Turkey is a country that grows even in the worst times, no matter how you look at it. We have been maintaining this growth trend for years. You can see the ratings given by credit rating agencies in favor of Turkey in recent developments. Always rising. Our risk premium has decreased from 600 basis points to 270 basis points."

Demiröz, stating that Turkey will achieve its goals in terms of macro values by the end of 2024, said, "We will also bring down inflation to desired levels in 2025 and our country will reach a turning point after 2026. Prices are already moving towards stability in basic commodities."

IS A NEW SYSTEM COMING FOR RETIREMENT?

Demiröz, stating that they are aware of the situation of retirees, continued as follows:

"We need to review the retirement system of retirees. After EYT was removed, the social security system became a bit more complex. Turkey needs to return to a normal, international level social security system as soon as possible, maybe even by making a new regulation in the 657 State Employees Law, we need to highlight and make the private sector attractive. When it is not like that, everyone burdens the state, and we currently have more than 5 million employees in the state. This is very high. For example, even though we switched to e-Government, which has its advantages, this number of more than 5 million state employees is a high figure in terms of the country's salary payments and budget payments."

Demiröz, stating that the private sector needs to be supported, shared his views on what can be done in this regard.

AK Party Deputy Chairman Demiröz, after the program attended by Bartın Deputy Yusuf Ziya Aldatmaz, Zonguldak Deputy Muammer Avcı, Adıyaman Deputy Mustafa Alkayış, and Düzce Deputy Ercan Öztürk, visited the tradesmen.