The proposal launched in recent days by the Akp to strengthen “deterrence capabilities” in a regional framework of growing conflict. Speaking of Israel, the president called it a “danger approaching our country.” By 2025, a record increase in defense spending of 165% compared to the previous year is expected.
Istanbul () – Taxing credit cards to finance the internal arms race and support investments in the defense industry, a priority in this turbulent phase of the Middle East in which the winds blow incessantly – and with increasing vigor – of war. This is the proposal launched in recent days by the Turkish government, which thus seeks to recover resources and money to invest in weapons with the aim of “reinforcing” the “deterrence capabilities” especially in the face of what is now considered the “threat.” Israeli. It was President Recep Tayyip Erdogan himself who, at a conference on the “future of Palestine” held on October 15 in Ankara, spoke, referring to the Jewish State, of a “danger approaching our country.”
According to Afp, the Justice and Development Party (Akp) has prepared a bill that would contemplate the application of a tax of 750 Turkish pounds (about 20 euros) to cards with a maximum credit line of up to 100,000 Try (almost 2,700 euros). It would apply regardless of the amount actually spent and has already sparked fears and protests from consumers, who are turning to banks to reduce their credit. The Minister of Finance, Mehmet Simsek, intervened in the matter, announcing that Parliament could review the text and establish new application criteria.
However, the minister firmly defended the principle of this new tax, stressing that “the objective” behind it is “clear and evident: our country has no choice but to strengthen its deterrence capacity,” he stressed. «Right now there is fire and war in our region. “We live in a dangerous environment,” he added, despite the fact that consumers continue to be critical of the new tax at a time of economic crisis. In other words,” Simsek explained in an interview with the private network NTV, “this is not an effort to reduce the budget deficit.”
In the first eight months of 2024, Defense Industries export income reached $3.7 billion, an increase of 9.8% compared to the same period in 2023, according to President Haluk Gorgun. The sector, which includes the famous drones Bayraktar produced by the company linked to the “Erdogan clan”, represents almost 80% of the country’s export income and reached 9.3 billion euros in 2023. These 20 years have represented enormous evolution, as confirmed by the Minister of Finance himself: «In the early 2000s, Turkey imported 80% of its needs. Today it is the other way around: Türkiye,” says Simsek, “produces more than 80% of its needs (thanks to) 3,500 companies.”
Official figures published in recent days confirm record funding for weapons and defense: in fact, Ankara is preparing for a significant increase in 2025, according to an announcement by Vice President Cevdet Yılmaz. The Government plans to allocate some 1.6 trillion Turkish lira (about $46 billion) to defense and security. Of this sum, 913.9 billion lire will be allocated to defense expenses and 694.5 billion lire to internal security. The country’s combined budget for defense and internal security was 971 billion lira in 2024 and 524 billion for 2023. These figures show that the defense budget for 2025 is expected to increase by 165% compared to the previous year. Taking into account the Central Bank’s inflation forecast of 44.1% by the end of 2024, the defense and security budget continues to reflect a significant real increase of more than 120%.
The Defense Industries Group, which reports directly to the presidency, plans to build a missile defense system based on the Israeli “Iron Dome” model. Meanwhile, President Erdogan has confirmed in recent days that “although there are people who do not see the danger approaching our country, we perceive the risk and are taking all our precautions.” However, for the opposition it is propaganda in an attempt to “mask the economic crisis” that Türkiye is going through. For Deniz Yucel, spokesperson for the Republican People’s Party (Chp), the largest opposition movement in Parliament, “the defense of the homeland (…) has become a political tool for the AKP, which is preparing a new proposal of looting exploiting national sentiments. Turkey’s double-digit inflation rate fell below 50% year-on-year last month, but exceeded 85% in October 2022.
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