Economy Minister Ali Babacan upped the ante in the government’s pressure ahead of the Sept. 12 referendum, claiming that if the nation says “no” to the proposed constitutional changes, Turkey may “see a traumatic outcome.”
Babacan, also the deputy prime minister, said the markets were pricing in a “yes” vote, whose “positive results would be seen in the medium- and the long-term in the economy.”
Speaking on a TV program, Babacan said per capita income in Turkey was around $9,000.
“If we wish to raise this figure to $20,000 or even $30,000, we have to make sure Turkey has the rule of law in the true sense,” he said. “Turkey has engaged in many economic reforms, but it still has not realized a reform of the judiciary.”
If the constitutional reforms pass the referendum hurdle, Turkey would become “a country that people would trust more,” the minister said.
“The economy of such a country would undoubtedly become much better. On the other hand, a ‘no’ in the referendum would [give the message] that Turkish citizens do not want a better-quality, more civilian democracy. This would create question marks and could have traumatic results,” he said.
A “no” vote would mean Turkey would miss a big opportunity, the minister said. “Turkey would pay a price.”
“International institutions that engage in scientific and objective analysis of the economy say a ‘yes’ vote would mean improvement in the economy, while a ‘no’ would create negative results,” the deputy leader said.
He also said the stock market broke a new record on Friday while interest rates are at record lows.
“The markets are operating on forward-looking expectations,” he said. “As there is an expectations of a ‘yes,’ we are seeing the beauty of such a vote.”
Istanbul Stock Exchange’s benchmark ISE-100 index closed at 60,998 points on Friday, its record high. The annual compound yield of ‘on-the-run’ zero coupon benchmark Turkish Lira bond was at 8.11 percent on Friday, according to an ABN Amro index.
