MELDA YÜCEL, THE PROGRAM PRESENTER – Dear Audiences, the morale of European Union has again been a reflex of markets. We have experienced that the positive atmosphere was also reached new highs at the last trading day of the week in İstanbul Stock Exchange. We would like to examine the evaluations through macroeconomic, we mean through a general view. We will ask advice of a big name, the Chairman of Erdem Holding Board, Dr.Zeynel Abidin Erdem. Welcome Mr. Erdem.

DR. ZEYNEL ABIDIN ERDEM: Good Morning Mrs.Yücel.

HABERTURK- Good morning Mr.Erdem. The atmosphere in Brussels was extremely positive yesterday. We did not expect as it was. Even at that stage, we think the fornication, which was in the item of the agenda, brought into uncertainty. However, following this; important, clear and positive commentaries were stated. After these negotiations, we notice the reflex of markets. When you examine the general view, now where are we in EU field? What do you think about this?

ZAE- In my opinion, a historical event was achieved yesterday. Mr. Erdoğan cleared course of Turkey by taking the chair as an honest-to-God Prime Minister, depending on the power of the Parliament, by using the decree of the Parliament. We could have solved this issue, which we hindered developments by ourselves, by chance at the last point. Let’s assume that Verhaugen would not have discussed the issue and would have submitted to us unsolvable view as in the past, and could have been stated to postpone the negotiation. At that time, it would not have been clear to which date it would be postponed. However, we were successful in this yesterday. Both Mr.Erdoğan and also Mr.Verhaugen were successful. Furthermore, Turkey automatically removed the two matters, which occurred unnecessarily and nobody talks in the world, from the agenda as how he put on the agenda. On the other hand, Turkish Criminal Code has missing in application as it has had in the past. Nowadays, the Criminal Code matter, which is still in force, is at the point that should not be subjected, discussed, negotiated in a country that is going to be the member of European Union. It was so pointless to cause uncertainty for Europeans, to make them think as “whether there is something hidden or not and will occur in future?” by putting these issues on the agenda. Above all, in this last event; the attitudes of the employees of Samsun Ministry, who annoys people to have order, are so wrong. The statement of the Mayor as “I did not give instructions like that, this was efficiency of them” made the situation worse. Who are you? Who is the employee there? The rights and freedom of people are under the guarantee of Constitutional Law in the Republic of Turkey. This guarantee of the Republic of Turkey has been executed by the department of police service. The province follows up the condition and solution of people with laws, defined as the guarantee of Attorney General. This guy with his motorcycle has an annoying attitude towards a boy who gives hand of a girl in a park. We do not want to have such events that break the rights and freedom of people in irrelevant, illegal attitude and even crossing the limits in Samsun in Turkey, which will be in Europe Union as terrifying the civilization; in the period, which we always utter that we are different from Iran. Besides, we should not forget that: If we make a survey today, 99.9 % of people in Turkey will criticize the event, happened in Samsun.

HABERTURK – Yes, from your speech we understand that a reform is needed in theory. This reform should be applied from the higher position to the smallest public individual for European Union and the preliminary preparation of it. Do you think this movement was hinder developements the strong marginal action about fornucation issue? In your opinion, was this the part of the strategy and the game of chess or misfortune?

ZAE- I thought it as misfortune. Turkey does not have the luxury to play the game of chess because the choices of Turkey are definite. A Belgian has hundreds of choices. Even a Greek, tomorrow a Croatian, South Cyprus have choices. Turkey does not have any choice. Turkey should go to the economical, political and social way within the specific standard. Turkey “should not hinder developments of itself by putting forward the fornication issue as stating that it is using some kind of luxury. Because, Europeans emphasize one thing: the stability of Turkey in this issue: In the past the examples of them were seen and they were discussed. Thus, there is not any game of chess here. This was a trip, and was a fact that withholds the way towards the European Union for Turkey. However, today this was solved. Now, how Turkey turn this opportunity to economy. Turkey should think that. Today our stock markets are in harmony. Dollar and other exchange marks move positively. In coming days, we should be careful and should not play with our future within 2 months by coming forth with this kind of works, failures as a game of chess till the day and date will be given.

HABERTURK – Mr. Erdem, Turkish National Assembly will have extraordinary meeting on Sunday after the decision of yesterday. I think your evaluation of today is an important message to the Assembly. On Sunday the fornication will not be on the agenda. The Prime Minister told us this at Brussels and promised to do. But, may there be any other diffusiveness? That’s; I understand from your statements this: Turkey has no choice like that, any other tolerance will not be given to us.

ZAE- Mrs.Yücel, Turkish National Assembly has great power today. We are in a single party period. If it had been happened in the coalition period, they could lay with each other by heels because of stage whispers and the jealousy among the parties. However, do not forget that there is a powerful prime minister that can get the approval of the assembly for a law. Distinguish Prime Minister called Turkey from the European Union meeting and left the table as stating that he solved this matter. Nowadays, all members of Parliament from AKP in Turkish National Assembly come under this statement. If there is an action similar to the fornication issue at the party which has the majority in the Turkish National Assembly by making a mistake, the Assembly will lose its trust even they can take a decision with 500 + 500 votes. European will never trust us any more. Distinguish Prime Minister promised in front of 15 European States and Mr. Verheugen. Today, he achieved great predestination as a Trustworthy and Successful statesman. All members of the Turkish National Assembly should stand by with fidelity to what the Prime Minister told there. He should achieve the approval of this issue, on which CHP shows trust, from the Turkish National Assembly, and should end it. This is also an opportunity for CHP. That’s why; I suppose there will not be any problem on Sunday.

HABERTURK – We hope it will happen like that. We never want to lose our hopes with new surprises. Now I am evaluating your statements as a foreigner investor. We know your good relationship with foreigners. We follow-up Your Presidency in Spain Work Council and Turkish American Businessman Association. How do they evaluate? Did the Investors misdoubt about Turkey’s last action?

ZAE- Now I am going to draw you a plan. Even Turkey has moved towards European Union, for the time being the outside capital should not be waited in the Country because Turkey achieved 182 million dollars outside capital in spite of its all efforts last year. This was 510 million dollars two years before. This amount was received from Italy. If you set back 3 times an institution that Turkey privatized 3 times, if Turkey has not achieved the standards of European Union in bureaucracy and has not showed any effort to achieve, outside capital will not be received in the following 3 years as well as 30 years.

HABERTURK – At this point what do you suggest Mr. Erdem? What should Turkey do? Are we sorry about our luckless? Can it be possible to have some morale after the decisions of EU and to try to improve these policies by saying that they are not operating?

ZAE- The last decision of EU can be morale for us. But, there is a difference between a morale and an action. Morale is the hope of the future. However, action is the picture, set forth by the movements in Turkey today. If you cannot privatize an institution, you cancel 3 times the decisions even you privatize, this means that you are jealous of yourself. That’s; today if you cannot surpass your bureaucracy and still you have had several obstacles, this is wrong. Countries such as Bulgaria, Romania, Czechoslovakia and Poland started privatization in 1991 and they handed over these institutions completely to the private sector in 1994 thus they disburdened and they started to gain. If you imagine everything belonged to the government and they did not know private sector in Czechoslovakia and Poland, you can see the difference between them is only understanding and stability. If Turkey has still not kept the promise about privatization, this issue will not be more than a dream. However, I have hopes. Why? I have hopes because of Equity and Development Party’s power which can use willpower in Turkey today. If today this power desires and solves this the privatization of Turkish Airways, Demir Çelik Plants, Petkim and Tüpraş within a month by in fact changing and simplifying the law, even by legislating, executing and setting regulations that will guarantee the foreign investor and Turkish investor, you experience more smaller and privatized government in Turkey 6 month later. Thus, the outside capital will come to hand ambitiously in Turkey. But, if you will not give these guarantees, as I above mentioned if you will get back the institutions that are privatized 3 times and if you will put similar such half-baked issues on the agenda, do not wait for the results of the privatization and outside capital.

HABERTURK – Mr.Erdem you say, “We are a nation that lives with morale. But, it cannot be only with moral there should be some operations, we should move truthful”. This is also a clear and an influential message. I dare say the Authorities hear this.

ZAE- I would like to thank you for this nice program.

HABERTURK – I would like to thank you as well Mr. Erdem, thank you for sharing your distinguish opinions with us.