The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Turkey treads water

Over-reliant on foreign investment to balance its books, Turkey is facing an investor retreat in the face of political instability. The long-term solution is a big expansion of domestic investment of untapped savings, but the instability is slowing this too.

Turkey’s worst-ever mining disaster, which last month killed over 300 people trapped underground by an explosion, has shaken more than the community in the western city of Soma where it happened. 

Followed by street protests in large cities, it has served as a stark reminder that the government, generally praised for its stellar performance over the past decade, still has a lot of work to do to put the country on a solid development path. 

Faced first with local elections in March, then with a presidential vote in August and, next year, with parliamentary polls, prime minister Recep Tayyip Erdogan has become more and more populist, to the rising concern of foreign investors.

It started a year ago with the brutal crackdown on protesters in Istanbul’s Gezi Park, in which five people were killed and around 8,000 injured. Then, following a corruption investigation into members of Erdogan’s ruling Justice and Development Party (AKP) late last year, the government moved from their posts thousands of police officers and hundreds of prosecutors. 

Mining Turkey Soma envelope
A relative of a miner who was killed or injured in a mine explosion reacts as rescuers work in Soma

In February, the Turkish parliament passed legislation enabling the blocking of any website without the need for a court order and forcing internet providers to store data on users for two years and share it with the government upon request.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree