A return to more “orthodox” free-market economic policies promises Justice and Development Party (AKP) draft election program Recep Tayyip Erdogan. This was reported to Reuters by four sources close to the AKP.

Presidential and parliamentary elections are scheduled for May 14, and opinion polls show Erdogan faces his biggest election challenge in his 20 years in power.

The popularity of the Turkish president has declined mainly due to the decline in living standards as a result of the devaluation of the Turkish lira. The reason is that Ankara has adopted a controversial economic model based on low interest rates.

In 2021, against the backdrop of high inflationthe process of lowering interest rates began, challenging the traditional monetary policy and the global trend of rising borrowing costs.

Turkey’s central bank cut its benchmark interest rate by 500 basis points in 2021 and 2022 in response to Erdogan’s calls for rate cuts.

Combined with rising energy and food prices following the Russian invasion of Ukraine, inflation in Turkey last year it exceeded 85%. The financial situation also worsened due to a strong earthquake in southeastern Turkey on 6 February.

According to sources familiar with the project, the AKP’s election manifesto will not contain any reference to the economic policies pursued by Ankara until recently, but will take a more orthodox approach.

The sources, who asked not to be named because they are not authorized to speak on the matter, also said Erdogan wants to give the country’s highly respected former deputy prime minister and finance minister Mehmet Simsek the lead role in running the economy. international circles.

According to the AKP’s election program, a more “orthodox” policy will be adopted, the main goal of which is to reduce inflation.

Inflation hit a 24-year high, surpassing 85% in October, also helped by a succession of “unorthodox” interest rate cuts that caused the pound to collapse in late 2021. Since August, the currency has stabilized thanks to the intervention of the Principles. in the foreign exchange market.

“The approach to the economy is similar to that adopted by the AKP in its 2002 election manifesto. In other words, the AKP is returning to its roots,” a government official said. The manifesto does not mention a new economic model, but highlights the principles that the party has previously adhered to, such as fighting inflation, public sector accountability and transparency in tenders. The official added that Erdogan himself, who has not objected yet, will have to approve the manifesto. “If he finally accepts this, it will lead to a radical change in both government and economic management.”

One of Erdogan’s goals is to exploit Mehmet Simsek. “The whole of Turkey knows Simsek’s approach and success,” emphasizes the representative of the ruling party. As he comments, “if Simsek takes office, a radical change in economic policy is inevitable, with bureaucrats and cabinet ministers working in harmony with him.”

Another source with knowledge of the matter said that in addition to the AKP, three more opposition coalition parties want to work with Simsek, who was deputy prime minister until 2018, when the post was abolished.

Four sources in the opposition alliance previously told Reuters they plan to appoint former Deputy Prime Minister Ali Babacan as vice president for economics if they win the presidential election. Babajan, like Simsek, is respected by foreign investors.