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Turkey seeks to cool row with Germany

Friday, July 21, 2017 - 01:56

Germany tells its citizens to exercise caution if travelling to Turkey and threatens measures that could hinder German investment there, in a sign of growing impatience with a NATO ally after the detention of rights activists. Ciara Lee reports.

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A growing dispute... With mounting economic pressure. Turkey's finance minister though aiming to calm the rising tension with Germany. Speaking with Reuters he insisted German investments in Turkey are fully guaranteed by Turkish law. Denying reports Ankara gave Berlin a list of companies, including Daimler and BASF, that it was targeting for suspected links to last year's coup attempt. (SOUNDBITE) (Turkish) TURKISH ECONOMY MINISTER, NIHAT ZEYBEKCI, SAYING: "In these situations between governments, which is I think definitely temporary, one needs to be careful when making statements on economy that may cause permanent damage." Turkish President Tayyip Erdogan wasn't quite on the same page though, telling Germany on Friday to "pull itself together". There is potential for big economic impact - Germany is Turkey's biggest export partner. SOUNDBITE CITY INDEX, MARKET ANALYST, KEN ODELUGA, SAYING: " I don't necessarily think we will see a significant deterioration in the medium term. But if there were I would definitely expect Germany and its trade links, its holdings, many large German companies - DAX companies - are deeply invested in Istanbul. We could expect some impact on the stock market if we do see that significant deterioration." Germany has told its citizens to exercise caution if traveling to Turkey and threatened measures that could hinder German investment there. That after Turkey arrested six human rights activists including a German national on accusations of terrorism. (SOUNDBITE) (English) DIHK FOREIGN TRADE CHIEF, VOLKER TREIER, SAYING: " Our export is decreasing but we have a better overall, better environment for our export but not with Turkey. And with this new damage we are forecasting that our export will go down by ten percent and that there will be almost no new investment stemming from German companies in Turkey." Scores of companies have been seized since the coup attempt last year. Turkey has accused Berlin of supporting a U.S. based Muslim cleric it charges with engineering the coup.

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Turkey seeks to cool row with Germany

Friday, July 21, 2017 - 01:56