Recep Tayyip Erdogan, Turkey's prime minster, has been criticised for dragging his feet on reforms.
Recep Tayyip Erdogan, Turkey's prime minster, has been criticised for dragging his feet on reforms.

EU's patience with Turkey wears thin



ISTANBUL // The European Union has called for more political reforms in the candidate country Turkey, but despite signs that patience with the Turks is wearing thin in Brussels, European as well as Turkish observers wonder if Ankara is in the mood to listen to the EU.

"Looking back at the developments in Turkey in the last year, I wonder whether the Turkish government is still willing to continue with the reform process," Ria Oomen-Ruijten, the European Parliament's rapporteur on Turkey, said in a statement after the EU Commission released a major report on the state of affairs in Ankara this week. "Impatience in the European Parliament is growing. We need a clear signal from Turkey that it wishes to continue with the integration process to which it committed itself in 2005" when membership negotiations started, said Ms Oomen-Ruijten, a Dutch member of the European Parliament.

In its so-called progress report, the EU Commission criticised the government of Recep Tayyip Erdogan, the prime minister, for stalling on the reform front even after it received the backing of almost 47 per cent of voters in last year's general election. "Despite its strong political mandate, the government did not put forward a consistent and comprehensive programme of political reforms," the EU said. An increase of reported cases of torture and ill-treatment is a "matter of concern", the report added.

"Progress on reforms was limited," the EU said in a statement coinciding with the publication of the report. The Erdogan government has spent much of its time since last year's election trying to push through an end to the ban on the Islamic headscarf at universities and fighting a court case that sought to shut down Mr Erdogan's ruling party. But that should not be an excuse for slowing down the reform process, the EU said.

"Now that Turkey has averted a political crisis linked to the Constitutional Court case against the governing party, it needs to reinvigorate the process of political reform," the statement said. "The lack of dialogue and a spirit of compromise between the main political parties had a negative impact on the functioning of the political institutions and on political reforms." Touching upon another sensitive subject, the European Union said in its report that Turkey's military continued to meddle in politics although European rules call for generals to keep out of non-military affairs.

"The armed forces have continued to exercise significant political influence via formal and informal mechanisms," the report said. "Senior members of the armed forces have expressed their opinion on domestic and foreign policy issues going beyond their remit, including on Cyprus, the south-east, secularism, political parties and other non-military developments." The European Commission, the executive body of the EU's 27 member nations, issues progress reports for all candidate countries in the autumn of every year, listing successes and failings on the way to membership, which is tied to political and economic criteria.

As a candidate wanting to join the EU, Turkey is required to take over tens of thousands of pages of EU legislation into its own laws and implement European rules that cover everything from hygienic standards in food production to the right of a citizen to criticise the government. Ankara has not made much progress since membership talks started in 2005. Despite three years of negotiations, Turkey has been able to open talks in only eight out of 33 chapters that have to be worked through.

Echoing Ms Oomen-Ruijten's pessimistic assessment, some analysts in Turkey think Brussels can do little to speed things up because the government in Ankara has come to the conclusion that the country is doing fine. "The European Commission has lost all leverage on Turkey," said Cengiz Aktar, a political scientist at Istanbul's Bahcesehir University. As Brussels glossed over a lack of reforms instead of putting pressure on Turkey in recent years, Ankara had felt free to pursue other issues, he said. There have been some promises of reform, such as a new television channel for the Kurdish minority, but few concrete actions.

Mr Erdogan's government denies it has put political reforms on the back burner, but even Abdullah Gul, the president, a former member of Mr Erdogan's governing party and a personal friend of the prime minister, has publicly demanded that political reforms be stepped up. The lack of any serious reform push by Ankara since 2005 has led officials and observers at the EU headquarters in Brussels to think that the Turkish government was never serious about membership in the first place, a commentary in the pro-government newspaper Zaman said. "The number of those who think that Erdogan never believed in the EU process, that he never internalised it and that he sees it merely as a means to an end is growing."

Mr Aktar agreed. "The Erdogan government is not interested in the EU matter at all," he said. "They don't understand the importance of the EU for Turkey. They think that Turkey doesn't need the EU." But if Mr Erdogan's government is accused of dragging its feet by some, others think it is doing too much already to fulfil the EU's every demand. Oktay Eksi, a top columnist of the Hurriyet newspaper, criticised the EU's call for more rights for Turkey's estimated 12 million Kurds.

"What is the aim of the EU in creating new minorities in Turkey?" Eksi said. He said the 1923 Treaty of Lausanne, which became the international birth certificate of modern Turkey, said that only Greeks, Armenians and Jews were minorities in Turkey and accused the EU of inciting separatist feelings among different ethnic and religious groups. "Nobody asks them, 'Is that really your business?'" Eksi wrote.

Turkey would have to obey the EU's rules to become a member, he admitted. "But there is no reason to be so stupid or so weak to say yes if EU authorities get up and want us to accept 'club rules' that reflect their own whims." tseibert@thenational.ae

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

The specs: 2018 Ford Mustang GT

Price, base / as tested: Dh204,750 / Dh241,500
Engine: 5.0-litre V8
Gearbox: 10-speed automatic
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Hunger and Fury: The Crisis of Democracy in the Balkans
Jasmin Mujanović, Hurst Publishers

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Arrived in the UAE: 2007

Favourite place in Abu Dhabi: NYUAD campus

Favourite photography style: Street photography

Favourite book: Harry Potter

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Founder: Arjun Mohan

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Kill

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Company profile

Company name: Fasset
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Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
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Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices

LA LIGA FIXTURES

Thursday (All UAE kick-off times)

Sevilla v Real Betis (midnight)

Friday

Granada v Real Betis (9.30pm)

Valencia v Levante (midnight)

Saturday

Espanyol v Alaves (4pm)

Celta Vigo v Villarreal (7pm)

Leganes v Real Valladolid (9.30pm)

Mallorca v Barcelona (midnight)

Sunday

Atletic Bilbao v Atletico Madrid (4pm)

Real Madrid v Eibar (9.30pm)

Real Sociedad v Osasuna (midnight)

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Five ways to get fit like Craig David (we tried for seven but ran out of time)

Start the week as you mean to go on. So get your training on strong on a Monday.

Train hard, but don’t take it all so seriously that it gets to the point where you’re not having fun and enjoying your friends and your family and going out for nice meals and doing that stuff.

Think about what you’re training or eating a certain way for — don’t, for example, get a six-pack to impress somebody else or lose weight to conform to society’s norms. It’s all nonsense.

Get your priorities right.

And last but not least, you should always, always chill on Sundays.


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