Babacan says Turkey will maintain its fical discipline

Speaking at the 4th Ambassadors Conference at the Foreign Ministry in Ankara yesterday, Deputy Prime Minister Ali Babacan said that the government would maintain its fiscal discipline and continue to be very careful about monetary policies in 2012 and introduce structural reforms as from next month. Babacan said that the economic crisis suffered by Europe in 2008 entered a process of recovery in 2010, but that it has not lasted for a long period of time. Stating that the economic crisis in Europe mainly derives from inability to get to the bottom of problems and display a determined will from the very beginning, Babacan said that confidence indicators in the EU had started to turn backwards. Babacan said that the same situation also prevails in the US, where the American companies avoid spending their resources totaling $3 trillion due to lack of confidence and thus economy becomes inoperable. Babacan reiterated that central banks both in EU and the US coined and introduced lots of money into the market, saying that Turkey is one of the rare countries without any noninterest surplus and that budget deficit will be decreased in the upcoming period.