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Turkey delays power grid sales to after election

9 January 2007 - Turkey will delay the sale of electricity distribution grids until after parliamentary elections that must be held by November, according to Energy Minister Hilmi Guler.

Turkey told the International Monetary Fund in November that the sale of the power grids would head the 2007 program of asset sales planned under a $10 bn loan accord. Turkey is seeking to reduce the role of the state in the power sector and draw in foreign investment to narrow a widening current account deficit.

"It wasn't seen as suitable to hold such an important distribution tender before the election," Guler told a news conference in the capital Ankara.

"This could complicate relations with the IMF,'' Tim Ash, an economist at Bearn Stearns in London, said in a note to investors. "It will also raise something of a concern over balance of payment financing in 2007, given the wide current account deficit.''

Turkey is scheduled to accept initial bids for the sale of three power grids on 19 January. The government also plans to sell a further 17 grids.

"A statement will be made by the privatization administration later today on whether the three tenders will be delayed or cancelled,'' Guler said.

Enel of Italy is bidding on the power distribution grids together with Turkish construction company Enka Holding Yatirim AS. Germany's Eon and Bilbao and Spainish-based Iberdrola have also expressed interest in the sales.

The sale of power companies may lead to an increase in electricity prices and voters would blame the government, the Referans newspaper reported on 5 January, citing Prime Minister Recep Tayyip Erdogan.

Turkey is seeking to attract foreign investment to help finance a current account gap that widened to $28 bn in the first ten months of last year, surpassing a record $23.2 bn in 2005. The lira lost 15 per cent against the euro last year, partly on concern that the current account was becoming unsustainable.

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After a period when our readers felt a little neglected we can announce that our period of silence is over!

We have acheived a lot on the ground since our last blog post including moving to new offices and setting up a new web site for global property for sale all over the world in addition to our listings for the Turkish riviera.

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EU issues stern warning to Turkey on progress

ISTANBUL: The European Commission on Wednesday issued its strongest warning yet to Turkey to open its ports to Cyprus and make more progress on human rights or face a possible suspension of its membership talks.

Speaking after the release of a report highly critical of Turkey's efforts to make reforms requested by the European Union, Olli Rehn, the EU's expansion commissioner, delivered what appeared to be an ultimatum to Turkey: to soften its intransigence over Cyprus or risk seeing its EU bid collapse.

"Failure to implement obligations will affect the overall progress of negotiations," Rehn warned. "This is likely to be the last opportunity to make real, serious progress for some years to come on the issue of Cyprus."

Ankara has refused to meet an end- of-year deadline set by the EU to open its ports and airports to the Greek- speaking part of Cyprus, which belongs to the EU. It insists it will not compromise on Cyprus unless the EU lifts a trade embargo against the northern Turkish side of the divided island, which Ankara alone recognizes.

For complete article CLICK HERE

Chirac says sorry to Turkey for bill: Erdogan

By Paul de Bendern

ANKARA (Reuters) - French leader Jacques Chirac has told Turkish Prime Minister Tayyip Erdogan he is sorry French lawmakers approved a bill making it a crime to deny Armenians were victims of genocide at the hands of Ottoman Turks.

"Chirac called me and told me he was sorry and he said that he is listening to our statements and he thinks we are right and he will do what he can in the upcoming process," he told his AK Party, in broadcast comments, during a dinner on Saturday.

France is home to Europe's largest Armenian diaspora.

Turkey denies any genocide, saying the Armenians were victims of a partisan war that also claimed many Muslim Turkish lives. Turkey accuses Armenians of carrying out massacres while siding with invading Russian troops during World War One.

The French president's office did not comment when contacted about Chirac's call to Erdogan on Saturday morning.

Erdogan, facing a rise in nationalism ahead of next year's parliamentary elections, warned on Friday that Ankara was considering retaliatory measures against France.

Foreign Minister Abdullah Gul repeated the government's call for France to scrap the bill, which has complicated Turkey's European Union accession bid.

"We are worried. Turkish-French relations have been very deeply wounded. I hope that French politicians and statesmen will see this and will take the necessary measure to prevent further damage to France's credibility," Gul told reporters.

FEAR BACKLASH

French businesses fear the bill will have repercussions for their business in Turkey, a fast-growing market which imported 4.7 billion euros' worth of French goods in 2005.

About 100 people protested outside the French consulate in Istanbul on Sunday, throwing eggs at the building.

Immediately after Thursday's vote, the French Foreign Ministry said it did not support the lower house bill, calling it "unnecessary and untimely" and indicating it might never become law as it still needed to be ratified by both the upper house Senate and French president.

France is believed to be home to the largest Armenian immigrant community in western Europe, with up to half a million people of Armenian descent living there.

They make up a powerful political lobby which cannot be overlooked just seven months ahead of a presidential election.

However, some Turks think French politicians have a broader agenda and are using the bill to try to block Ankara's EU bid.

Chirac and the two leading candidates to replace him in polls due next May -- Nicolas Sarkozy and Segolene Royal -- all say Ankara must accept the genocide before joining the bloc.

The European Commission has said that recognition of the genocide was not a precondition for Turkey entering the EU.

(Additional reporting by Selcuk Gokoluk in Ankara)

Copyright © 2006 Reuters, All Rights Reserved.

Merkel to deliver firm EU message to Turkey

BERLIN (Reuters) - Chancellor Angela Merkel will highlight the robust economic and human ties between Germany and Turkey on a visit this week, but also deliver a firm message to Ankara on its troubled bid to join the European Union.

Since taking power nearly a year ago, Merkel has tempered her public statements on Turkey's bid to placate her Social Democrat (SPD) coalition partners who support the largely Muslim country's effort to join the bloc.

But Merkel and leading members of her conservative party still prefer a "privileged partnership" solution for Turkey that stops short of full membership and she has vowed to ensure that Turkish entry talks are tough.

German officials said on Wednesday that Turkey's failure to open up Turkish ports to traffic from EU member Cyprus was of particular concern to the government ahead of Merkel's first trip to Turkey as chancellor.

"If the Turkish side does not send a clear signal about its willingness to deliver on its commitments, an accident will be impossible to avoid," said a senior official close to Merkel who requested anonymity.

Merkel will arrive in Ankara on Thursday afternoon and hold talks with Prime Minister Tayyip Erdogan, where topics of discussion are likely to include Iran's nuclear program, Iraq and the Middle East.

On Friday morning in Istanbul she will meet Turkish businessmen. Before returning to Berlin, both she and Erdogan will meet with Islamic, Christian and Jewish leaders in a show of religious tolerance and dialogue.

TIES AND TENSIONS

Ties between Germany and Turkey run deep and both sides will be keen to highlight areas of agreement.

Thousands of "Gastarbeiter", or guest workers, from Turkey helped fuel Germany's postwar economic miracle and about 2.5 million people of Turkish origin live in Germany today.

Bilateral trade reached a record 21.1 billion euros ($26.77 billion) in 2005 and Germany is the biggest foreign investor in Turkey and its biggest trade partner.

Alongside the areas of cooperation, however, lie tensions.

Erdogan has accused Germany of making mistakes in integrating immigrants, calling its treatment of Turks and Muslims unacceptable.

The Turkish prime minister also annoyed German conservatives with his strong public condemnations of the Pope's comments in August linking the Muslim faith to violence.

In response, allies of Merkel have openly questioned whether Turkey is fit to join the Christian-dominated EU.

"If we don't see significant advances in reforms, I think the talks between Ankara and the European Union should be suspended from January," said Juergen Ruettgers, deputy leader of Merkel's Christian Democrats.

Government officials say Merkel's message will be more subtle, echoing the one delivered by EU enlargement commissioner Olli Rehn on Tuesday -- that Turkey must move on reforms and show a willingness to compromise on the Cyprus issue.

Copyright © 2006 Reuters, All Rights Reserved.

Bush Backs Turkey's Bid to Join EU

President Bush on Monday endorsed Turkey's drive to join the European Union, commending the nation's leader for overseeing economic reforms.

Bush and Turkey's Prime Minister Recep Tayyip Erdogan said their countries share an agenda of stability in the Middle East.

'Our desire is to help people who care about a peaceful future to reject radicalism and extremism,' Bush said with Erdogan at his side in the Oval Office, after their private meeting. The two discussed Iraq, Iran and a series of issues related to combatting terrorism.

Erdogan, speaking through an interpreter, said: 'It was important to hear the president say that support for Turkey's membership in the European Union will continue.'

A day earlier, in remarks at Georgetown University, Erdogan made a pitch for Turkey's membership, saying that 'despite all the uncertainty surrounding us, we have become a country ... that is exporting security and stability to the region.'

Including Turkey in the EU, he said, would add 'strategic depth' to the organization, moving it from a regional actor to a global power.

In the speech, he also said a deep cultural misunderstanding between Western and Muslim societies is fueling radical groups around the world. Erdogan said overcoming differences between the West and Muslims 'requires global cooperation.'