Amir attends inauguration ceremony of Turkish President

Andrew Cummings
July 10, 2018

President Tayyip Erdogan appointed his son-in-law as Turkey's finance minister on Monday hours after he was sworn in with sweeping new executive powers, promising a "strong government and a strong Turkey".

Erdogan appointed his son-in-law, Berat Albayrak, as the new minister of treasury and finance. Albayrak served as energy minister since 2015.

Turkish President Recep Tayyip Erdogan takes oath of office at Grand National Assembly of Turkey in Ankara, yesterday.

Mr Erdogan has largely ruled by fiat since 2016, when he imposed a state of emergency on the country in response to a failed coup attempt against him.


Turkish President Recep Tayyip Erdogan makes a speech during a ceremony at the Presidential Palace in Ankara, Turkey, on July 9. Erdogan has been often criticized by investors for weakening the power of the central bank and interfering in its decisions. Investors are keen to see Mehmet Simsek, now deputy prime minister, continue at the helm of the economy.

Investors are also keen for details on Erdogan's new economic team, which is expected to be announced later on Monday.

Erdogan will face immediate and major challenges in his second term, posed by an imbalanced fast-growing economy and foreign policy tensions between the West and Turkey, a North Atlantic Treaty Organisation member. Investors, who have warned that the credit-fueled economy is overheating, want to see decisive interest rate increases to tame double-digit inflation.

"Albayrak will have to move very quickly to reassure financial markets - and will need to send a signal that he will listen", said Timothy Ash, senior emerging markets sovereign strategist at Bluebay Asset Management, in a Twitter post. "Obviously it is going to be a step down in capacity compared to Simsek".


After taking the oath, Erdogan plans to visit the mausoleum of Mustafa Kemal Ataturk, the founder of the modern, secular, Turkish Republic. Erdoĝan has repeatedly clashed with strategic allies such as the USA and the European Union in recent years over the war in Syria, Turkey's accession to the EU, human rights abuses by Ankara, Europe's failure to support Turkey during the coup attempt, and rising Islamophobia in Europe.

He says the changes, the biggest overhaul of governance since the modern Turkish republic was founded from the ruins of the Ottoman Empire nearly a century ago, are needed to drive economic growth and guarantee security. "There is no stopping for us until we bring Turkey - which we saved from plotters, coupists and political and economic hitmen, street gangs and terrorist organisations - to among the top 10 economies in the world", he said. The inauguration ceremony, which was held in the Presidential Compound Monday evening, was attended by a number of heads of states and governments, representatives of heads of states, ministers, heads of parliaments of some countries and representatives of worldwide organisations.

His supporters see them as just reward for a leader who has put Islamist values at the core of public life, championed the pious working classes and built airports, hospitals and schools. Armed forces chief of staff Hulusi Akar was named defence minister.


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