By Barış Soydan

September 8, 2023

Hailed by markets as the “savior” of the Turkish economy, Mehmet Şimşek has in fact launched policies whose price will be borne by large segments of the public. Tax hikes, although narrowing the budget deficit, will further fuel inflation, increasing poverty. In this respect, the new fiscal policy resurrects the paradigm that guided the IMF program in 2001. However, staying true to the spirit of the IMF program is a recipe for political troubles ahead for the Erdoğan regime. With municipal elections due in March 2024, President Recep Tayyip Erdoğan may therefore well conclude that “heterodox” economic policies will have to be resurrected.