The Turkish Industry and Business Association (TUSIAD) said on Monday the Austrian government's approach to Turkey harmed bilateral relations and European values.
In a written statement issued over a call by Austria's new government for a halt to Turkey's EU accession negotiations, TUSIAD said the move was "extremely negative".
"It is inconsistent with economic and security interests of all the European people, including Turkey," said the leading business group, adding the decision was a new step by a populist political movement that harmed Europe's global role and democratic values.
"Our priority is Turkey's democratic reform agenda and [Turkey's] return to the EU process. The EU must also adopt a constructive and positive policy that avoids excessive populist rhetoric," the group said.
Last Friday, Austria's center-right OVP (People's Party) reached a deal with the far-right FPO (Freedom Party) to form a coalition government, after eight weeks of intense negotiations.
On Saturday, they pledged a tougher approach to migration and stronger domestic security measures.
