2.7 European Union Harmonization Activities

Turkey’s screening process, which is the first phase of EU accession negotiations, began on 3 October 2005 and ended on 13 October 2006. The EU-harmonization process of Turkey continues.

Table 2.7.1 shows developments in chapters, in which the CBRT participated in the screening and negotiations.

The current situation in EU Chapters that directly concerns the CBRT is as follows: negotiations on chapters 18. Statistics and 32. Financial Control were opened on 26 June 2007; while chapters 4. Free Movement of Capital and 17. Economic and Monetary Policy were opened to negotiations on 19 December 2008 and 14 December 2015 respectively. Chapter 9. Financial Services is one of the eight chapters that were suspended by a resolution passed at the EU summit of 14‑15 December 2006, mandating that their negotiations be blocked until the EU Commission verifies that Turkey fulfills its commitments with respect to Southern Cyprus. Nevertheless, in the framework of harmonization with  EU acquis in chapter 9, Turkey put into force the Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions on 27 June 2013. This Law also provides harmonization with the relevant EU legislation in Chapter 4. Free Movement of Capital. Chapter 33. Financial and Budgetary Provisions was opened to negotiations on 30 June 2016. However one more technical criterion has been introduced for the provisional closure of these negotiations in addition to the full implementation of the Annex Protocol.

Since the onset of technical negotiations with the European Commission, three of six closing benchmarks for “Chapter 32. Financial Control” have been satisfied. Of these three benchmarks, the CBRT has contributed to the closing criterion of “legal and administrative alignment with the Council Regulation (EC) 1338/2001 laying down measures necessary for the protection of the euro against counterfeiting”. Among the chapters with which the bank is indirectly involved, Chapter 28. Consumer and Health Protection was opened to negotiations on 19 December 2007, Chapter 6. Company Law on 17 June 2008, and Chapter 16. Taxation on 30 June 2009. Opening benchmarks have been established for Chapter 19. Social Policy and Employment, while Chapter 2. Free Movement of Workers is still under review by the European Council.

The CBRT continues to provide the Turkish Ministry of EU Affairs with information concerning developments in the chapters for which it is responsible so that the Ministry may monitor the progress being made in Turkey’s harmonization with the EU Acquis and can forward this information to the European Commission.

Table 2.7.1: The Status of the Chapters in which the CBRT Participated in the Screening Process and Accession Negotiations

Economic and Financial Dialogue with the EU 

On 3 May 2017, an “Economic and Financial Dialogue” meeting of experts was held in Brussels. At the meeting, participants discussed assessments of the progress that Western Balkan countries and Turkey had made in the first phase of their Economic Reform Programs and the countries’ responses to the assessments and corrections they requested be made in the European Commission’s final declaration.

On 16 May 2017, a meeting of high-level officials was held in Brussels as part of the Economic and Financial Dialogue between the EU and the Western Balkans and Turkey. During this meeting, participants debated a Draft Joint Resolution prepared by the Economic & Financial Committee (EFC) secretariat concerning candidate countries (Albania, Macedonia, Montenegro, Serbia, Bosnia-Herzegovina, Kosovo, and Turkey) that had been drawn up at the 3 May 2017 meeting of EFC experts. As a result of this meeting, the text of the joint resolution was finalized for submission and approval at the Economic & Financial Affairs Council - EU Candidate Countries Ministerial Dialogue Meeting.

On 23 May 2017, a meeting of Economic and Financial Dialogue between the EU and the Western Balkans and Turkey meeting was held in Brussels. This meeting, which is the highest level meeting with respect to economic dialogue between the EU and candidate countries, was attended by economy/ finance ministers of member and candidate states and the text of the joint conclusion prepared at the EFC International Ministerial Meeting that took place on 16 May 2017 was approved.

The spring and fall “Candidate Country Economic Forecast Meetings” that are held twice a year by the European Commission took place on 24 April and 19 October 2017, respectively. During these meetings, EU Commission economists and other participants discussed economic and financial forecasts, data and information on related matters.

EU Acquis Harmonization Meetings

On 7 November 2017, the fifteenth meeting in the series of the Subcommittee IV on Economic & Monetary Issues, Capital Movements, and Statistics was held in Ankara. During this meeting, the importance of this meeting was underlined from the standpoint of keeping track of developments taking place both in the EU and in Turkey. Participants were also briefed on a new system for scheduling and reporting committee meetings.

On 28 November 2017, the Turkey-EU Association Committee set up under the Ankara Agreement between Turkey and the EU held its 125th meeting in Brussels. In addition to the progress of negotiations, the meeting’s agenda included “Political and Economic Criteria”, “High-Level Economic Dialogue”, “Justice and Home Affairs”, “Environment and Climate Change”, “EU- Turkey Energy Dialogue”, “Transportation”, “Customs Union, Trade, and Internal Market Issues”, “Taxation”, and “Instrument for Pre-Accession Assistance”.

EU Projects

In 2017, the first “Pre‑Accession Assistance” project submissions were solicited by the CBRT. Of the thirteen projects that were submitted to the EU, two projects submitted by the CBRT under the coordination of the Communications and Foreign Relations Department were selected without any requests of revision.

Accordingly, the “Economic Modelling and Forecast Capacity Development”, a project proposal by the CBRT Markets Department was fully approved by the EU Delegation in 2015 and was awarded an EUR 295,000 budget to carry it out.