Rule-based, predictable Turkish economy key for prosperity, says new finance minister

A rule-based, predictable Turkish economy will be the key to achieving the desired prosperity, the new minister pledged on Sunday as he assumed his duty in a handover ceremony.

"Türkiye has no choice but to return to a rational ground," Mehmet Şimşek, who was named the finance and treasury minister on Saturday by President Recep Tayyip Erdoğan in a renewed Cabinet lineup, said in the ceremony in the capital Ankara.

The main goal of the government is to develop social wealth, Şimşek said. "Transparency, consistency, predictability, and compliance with international norms will be our basic principles in achieving this goal in the upcoming period," he promised.

Türkiye will prioritize macro-financial stability by strengthening its institutional quality and capacity amid increasing global challenges and geopolitical tensions, Şimşek said.

He also said the ministry will start its work for a medium-term program without wasting time.

"Establishing fiscal discipline and ensuring price stability for sustainable high growth will be our main goals," he added.

Şimşek, 56, has a bachelor's degree in economy from Türkiye's Ankara University as well as a post-graduate degree in finance and economy from the University of Exeter in the UK.

He worked in leading finance institutions in Türkiye, the U.S. and the UK, and was elected as a lawmaker in 2007.

In previous AK Party governments, he assumed different positions such as state minister in charge of treasury, finance minister, and deputy prime minister in charge of economy.

On the inflation issue, Şimşek said it is vital for Türkiye to reduce inflation to single digits again in the medium term, to increase predictability in all areas, and to accelerate the structural transformation that will reduce the current account deficit.

"Our main policy will be to support our Central Bank in the fight against inflation through the fiscal policy and structural reforms to be implemented," he stressed.

Nureddin Nebati, the former finance and treasury minister, also addressed the ceremony. "In the last five years, we have struggled to overcome the challenges faced as a result of global and regional developments, and to ensure that a domestic and indigenous production economy is gradually strengthened in Türkiye."

Nebati, who was deputy finance and treasury minister before, was appointed in December 2021 as the head of the office.

"I fully believe that our minister (Şimşek) will be successful in the new era," Nebati said.