EU’s Dombrovskis says Türkiye’s reforms, disinflation key for resilience

Türkiye's economic reform agenda and disinflation process are important for the country's economic resilience, European Commissioner for the Economy Valdis Dombrovskis said Friday.

Speaking at a press roundtable in Istanbul hosted by the Turkish Industry and Business Association (TUSIAD), Dombrovskis said their talks focused on the economic outlook, geopolitical turbulence, and steps to strengthen resilience and competitiveness.

"Looking at the economic situation and current geopolitical turbulence we are experiencing, we discussed policy responses to strengthen the resilience and competitiveness of our respective economies," he said.

"In this regard, the Turkish government's economic reform agenda and disinflation process are certainly important for the resilience of the Turkish economy," he added.

Dombrovskis said the EU's competitiveness agenda, including simplification and reducing administrative burdens, was also discussed.

He said the two sides reviewed ways to deepen EU-Türkiye economic cooperation and welcomed Türkiye's application to join the Single Euro Payments Area, or SEPA.

"The Customs Union is forming the basis for our economic engagement," he said.

On Customs Union modernization, Dombrovskis said the European Commission needs a mandate from EU member states to begin negotiations, which requires unanimity.

"That is not the case at the current stage," he said, adding that the commission had requested such a mandate.

He noted that the Customs Union's legal basis was last updated in 1997.

"The world has moved on since then," he said, adding that current work focuses on a more limited and targeted technical update rather than broad-based modernization.

Dombrovskis also said Turkish goods' access to industrial accelerator activities, public support, and public procurement were discussed, underlining the importance of reciprocity.

Referring to Türkiye's public procurement steps, he said Treasury and Finance Minister Mehmet Şimşek had submitted draft legislation to parliament to ensure reciprocal access.

"They are on track," he said.

The EU is Türkiye's largest trade partner and biggest investor.

As of 2025, 42.8% of Türkiye's exports went to EU countries, while 31.7% of its imports came from the bloc.

Total trade volume between Türkiye and the EU reached a record €218 billion ($249.7 billion) in 2025, while Türkiye remained the EU's fifth-largest trading partner outside the bloc.

EU countries provided €5.34 billion in foreign direct investment to Türkiye in 2025, accounting for 66% of total foreign investment inflows.