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President Erdoğan announced the composition of his new government and surprised with two unexpected designations in the economic and foreign policy blocs

© AP Photo / Ali Unal

The Ministry of Foreign Affairs was headed by the long-time head of the Turkish special services, Hakan Fidan, replacing Mevlüd Çavuşoğlu. And the Ministry of Treasury and Finance was headed by Mehmet Şimşek, who left Erdoğan in 2018 when Türkiye changed the Constitution and chose the path of a presidential republic.

Hakan Fidan

Mehmet Şimşek was close to Erdoğan for 11 years. In 2013, European colleagues named him the best minister of finance in Europe.

Şimşek was born in a large Kurdish family in Batman. After his bachelor's degree in Ankara, he studied in Britain and the USA. He worked as an economist at the American Embassy in Ankara for 4 years.

  Mehmet Şimşek

Şimşek is a supporter of strict budgetary discipline and an enemy of deficits. He is trusted by international investors, and he is personally familiar with the leaders of the financial world because he worked in the largest banks in the USA and Switzerland.

Before the elections, Şimşek twice refused Erdoğan's invitation to return to the government. However, after the elections, he agreed. Immediately after counting the votes in the second round, Erdoğan promised "a return to a financial model that will command world respect."

The opposition says that Mehmet Şimşek will inherit an economic ruin from which it is difficult to get out.

Everyone is waiting for Şimşek's first designations. At least three positions will determine whether the new minister has been given carte blanche by Erdoğan. It will be about the chairman of the Central Bank, the head of the Statistics Office, and the head of the Commission for Control of Financial Markets.

Şimşek is currently not commenting on his appointment. However, its success or failure depends not only on stabilization steps in the economy but also on Erdoğan's political decisions, which the West will trust.

The USA and European countries will at least insist on the quick unblocking of Sweden's accession to NATO. Erdoğan will demand the cancellation of short-term visas for Turks to EU countries and the resumption of Washington's supply of F-16 warplanes to Türkiye.

At least one other name being floated among the likely list of Erdoğan's new economic team has strong ties to the United States. It is about Hafiz Gaye Erkan, who headed Goldman Sachs, Tiffany & Co. for many years. Erkan headed the American First Republic Bank after nationalization and increased its assets 10 times.

  Hafize Gaye Erkan

Thus, Erdoğan's favorite phrase about "milli and yerli" (domestic and local) does not refer to the personnel shortage. Both of the likely key players of his new team - Şimşek and Erkan - have American citizenship in addition to Turkish citizenship.

Apparently, Erdoğan prefers to bring Western investors back to Türkiye. Two-thirds of Turkish exports go to EU countries. And the stability of the lira for many years depends on Ankara's cooperation with Washington. Therefore, after the elections, all of Erdoğan's threatening statements against Western countries were replaced by the appointment of people who will be able to restore the confidence of Western financial circles in the Turkish economy.