Turkey Plans ‘Mini-Cabinet’ for Economy With Davutoglu at Helm

Updated on

Turkey will set up a “mini-cabinet” to run economic policy with Prime Minister Ahmet Davutoglu in charge, according to an official who asked not to be identified because details of the plan aren’t yet public.

The measure, which follows a decisive election victory for Davutoglu’s Ak Party on Nov. 1, may address concerns about who’ll steer the Middle East’s biggest economy in the new administration. It will be announced after the formation of a cabinet, expected later this month, the official said.

Turkish authorities have sent out mixed messages on economic policy, and investors have sometimes struggled to figure out who holds sway. Market-friendly ministers such as Ali Babacan and Mehmet Simsek have held the portfolio for most of the Ak Party’s 13 years in office, while the powerful President Recep Tayyip Erdogan and some of his advisers have expressed more unorthodox views.

The economic policy setup will be modeled on a semi-official security cabinet that’s been operating since last year, and which will also be formalized to include foreign policy, the official said. The government will introduce a third mini-cabinet responsible for political reforms, the official said.

Davutoglu will decide on who becomes a member of the economy cabinet, the official said. Its structure will be “flexible,” allowing the premier to invite various officials to participate depending on the subjects at hand. Davutoglu will act as a mediator and will take final decisions, while Erdogan will also be part of the system, the official said.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE