A snap election became unavoidable with the president’s statement the previous day. While, as the president briefly stated, the foreign-axis conjuncture, in particular, has a role in pulling forward the election– a matter that was not on the table before and was set on the previously determined date – the actual aim can be identified as overcoming the ambiguities to which these developments contributed. The motive to overcome the ambiguities in question, which was effective in Nationalist Movement Party (MHP) leader Devlet Bahçeli’s call being accepted, aims to offer clarity by eliminating the discussions aimed at the election leading to 2019 amid the regional activity in which we are involved.
Hence, we know that while geopolitical risks are discussed quite a lot in the developments we closely observed in markets in the recent period, for example, one of the questions investors are constantly pondering and asking is the timing of the election. Even though it was repeated many times that it was planned to take place in 2019, an election haste has long gone out of hand not only among investors but also in the public opinion. Hence, an election atmosphere, whose talk has prevailed the election itself, has contributed to ambiguities, and has been dominant over our country and economy. It is to overcome this blurred period and reveal a clearer picture of Turkey that we pulled the future forward with the president’s final decision.
Eventually, when you look at it from the perspective of the economy, we see and know that there has been a strange gap for sometime between the reality of Turkey and its perception. While the gap in question is caused on one hand, unfortunately, by twisted and subjective flows of information, on the other hand, question marks regarding the future also have a share in this. Thus, the decision made is going to be able to create a more foreseeable atmosphere that will confirm the continuation of stability and reformist policies by eliminating election questions way before time.
Of course, the restructuring that will happen within the frame of the new system, which we will be switching to, is going to be one of the main factors that will clarify the situation in this scope.
Thus, a cluster of questions will also be answered in no time. Also, with the more effective and efficient administration mechanism it aims to achieve, the presidential government system is going to bring along an order that is going to have a quicker influence on other fields, primarily economy. Frankly, we have been hearing in the last two days that the statements from the business world on the elections touch mostly on these points. Because it is quite clear that the primary expectation of sectors is to take a quicker step into a more foreseeable atmosphere and feel the benefits of the new system that will smooth out bureaucratic obstacles.
And, if we are to look at the first reflections on the market, it is possible to interpret that the snap election was welcomed due to the announcement of the obvious positive pricing. If we try to understand why such a first positive reaction emerged, the primary reason is that, essentially, a very short-term election atmosphere is interpreted as “minimum uncertainty”: The faster the better. Hence, our president’s 66-day term surprise decision is quite a successful move in this context.
One other factor in this is that the populist policies claims assumed by certain circles/institutions in the process that was initially planned to continue until 2019 were negated. Of course, it should be added that one other reason the business world and markets largely welcomed June 24 is, as stated by some analysts, the strong expectation that President Recep Tayyip Erdoğan will continue to remain in office and the atmosphere of political stability that will continue in light of this. Because this way, the economic reforms, which were focused on in the recent period, are going to be able to continue with a much stronger mechanic in an atmosphere that is cleared after a very short break.
In short, I have full confidence that the June 24 decision, which I view with an economy-focused perspective from my own view, is going to be a historic opportunity to escape the election atmosphere as soon as possible and give Turkey a new story and momentum. I hope that the election decision, which, in this context, has sagaciously brought the future forward, will be good for our country and nation.
