ECONOMICS > Turkey must adopt euro if accepted as EU member

ISTANBUL - Hürriyet Daily News

Turkey must accept the euro as its national currency if it joins the European Union, European Commissioner Stefan Füle says. PM Erdoğan said in October Turkey might establish a lira zone

A secene from European Commissioner for Enlargement and European Neighbourhood Policy Stefan Fule’s speaking during a news conference in Brussels last year. Füle says Turkey will adopt the euro as its national currency after joining the European Union. EPA photo

Turkey will adopt the euro as its national currency if it becomes a member of the European Union after fulfilling the required conditions, European Commissioner Stefan Füle said Feb. 11.

Füle's comments came in the wake of a written question from EU Parliament member Mario Borgezio following Turkish Prime Minister Recep Tayyip Erdoğan’s recent statement that Turkey planned to create a Turkish Lira-based monetary zone instead of accepting the euro as a national currency after joining the European Union.

Füle, the European commissioner for Enlargement and European Neighborhood Policy, noted in his answer Turkey’s obligation to accept the euro as part of the negotiations framework.

“After the EU Council approves the membership of Turkey [subject to its fulfilling the required conditions], Turkey will join the economic and monetary union and adopt the euro as its national currency,” he said.

British example

Füle also said the EU Council had never invited Turkey to present its own position in terms of economy and monetary policy negotiations – a chapter that has not yet been opened.

Erdoğan said some EU members had advised Turkey to stay out of the eurozone and establish a “Turkish Lira zone” instead amid the continuing accession talks.

“Securing political stability in Europe is critically important to maintain the confidence of European societies in the union and the euro,” Erdoğan said in October in Germany.

“I know that there are some EU member countries which say, ‘I am against the euro, I do not want to take part in the eurozone.’ For instance Britain… It is quite satisfied. They even say ‘You should stay away from the eurozone, you can establish a Turkish Lira zone.’ And I said I think the same way, too. The EU should check up on itself regarding the monetary system,” he said.

February/13/2013

PRINTER FRIENDLY

Send to friend »

READER COMMENTS

Click for Hürriyet Daily News comment guidelines

Suhail Shafi

2/19/2013 6:45:09 PM

This sounds like another reason why Turkey is better off outside the Euro. Why does anyone advocate importing a failed common currency into one of the world's fastest growing economies ? In the past decade alone, Turkey's economy has trebled in size. It is difficult to see how that kind of growth could have been sustained if it was part of the imploding Eurozone.

DORUS LIVIS

2/14/2013 8:20:20 AM

Baris I talk about the rescue loans which are huge and have very strict pay back terms.The other financial aid that is given is such a present for the countries. Roughly the following happens: "Contributors" as you name them, pay others in order not to produce, so they produce only and the others have no choice but to consume their product. That way, their economy shrinks and production decreases. Sooner or later they turn to loans etc etc. This policy has done much damage to industry & agrikult

Fr Grey

2/14/2013 6:30:05 AM

Guys, it is wrong to say Turkey will pay for the Euro debt if Turkey joins Euro. Actually, the whole world pays! We pay for US, and Europe, unless you cut off any financial contact with them. E.g. US and Europe is printing $ and euro, and TL is devalued with it. So, the point is not to pay or not, the point is Turkey must have its own path which is fiscally and politically free. Such freedom is important for an emerging country.

DutchTurk JANICAR

2/13/2013 6:47:40 PM

Turkey must nothing, Turkey will do if they like. My opinion is that Turkey shouldn't accept Euro as currency since in the Netherlands, Germany etc. everyone wishes the old currency was back. But after all who wants to be in a union where you pay billions of Euro's for the brankrupt nations.

Baris

2/13/2013 6:21:06 PM

Dutchman, I take your point regarding Denmark and the UK's exemptions. It seems, however, that even if there is an obligation for all new members to join the Eurozone, there are workarounds to avoid it. Because a country cannot adopt the Euro until all the convergence criteria are met, all they have to do is not meet the ERM II membership criteria, which is voluntary. Sweden is under obligation but has no intention of joining the Euro, so it is deliberately choosing not to meet the criteria.

Baris

2/13/2013 5:13:17 PM

DORUS, they are not loans, they don’t have to be paid back. Each member makes a contribution to the EU budget according to their ability and receives funds from the budget according to their needs. As a result, some countries are net contributors into the EU kitty, others are, and have been, net recipients. I personally believe Turkey should be in the EU, if ever she is allowed to get that far, but not in the Euro.

Dutchman

2/13/2013 5:11:12 PM

@ Baris Negotiating a euro opt-out as a new EU member is not possible, the British and Danish opt-outs were negotiated as a part of the introduction of the Maastricht Treaty. As the structure has been in place since then, new or future members of the EU cannot legally get such an opt-out.

mara mcglothin

2/13/2013 4:42:59 PM

Hey guys. The Euro is already in full force in Turkey in case you missed it. If you rent a shop in any of the mega-malls, your rent is in Euros, you make lira, but everything is centered around the Euro. So regardless of membership the Euro is fast becoming the official business currency.

cezer skonore

2/13/2013 4:29:55 PM

At this point, the EU would be a drag for Turkey, and I cannot see how the EU is growing faster than Turkey in next two decades.

DORUS LIVIS

2/13/2013 4:04:35 PM

Baris the countries that you mention pay "the hard way" the loans that take, and payment back requires struggling their citizens and giving away part of their sovereignity. These are the prerequisites, do you want them? that is the real question you have to ask yourselves. Turkish economy is in a good shape but this will change dramatically if Turkey adopts the euro. At least that is what recent history proves...

< >