The President of the European Investment Bank (EIB), Mr. Phillip Maystadt visited Istanbul today to underline the EIB's role in support of investment flows into Turkey at the Second Investment Advisory Council Meeting in Istanbul. The Council is a consultative and advisory body established in 2004, providing recommendations to Government with the aim of bolstering the flow of investment into the region and preparing the country for accession to the European Union.
President Maystadt spoke during a session chaired by the Prime Minister, Mr Erdogan, and Minister of State, Mr Ali Babacan, commenting on the nature of the change in the investment climate in Turkey since the last Council meeting and outlining the challenges that lie ahead for the country.
Mr Maystadt drew a number of parallels between the investment situation in Turkey and the current challenge for the EU to build a competitive entrepreneurial and knowledge based society - the Lisbon Strategy. The President focused on the unique situation in the region with its young and vibrant population and on the intense rate of change at the moment to bring about economic reform and political stability, paving the way for EU membership.
Recommendations to government included the enhancing of Financial standing of Municipalities and the development of Private-Public Partnerships in the country. The President also suggested Turkey should take full advantage of the expertise and aid offered by the EU and the EIB in particular.
EIB activity in Turkey has significantly increased in the past year, total lending in the region standing at close to EUR 4 bn. Priority areas include infrastructure, with projects of European interest such as the strategic Bosphorous Tunnel project; the municipal sector, in particular investment in water and waste water networks aimed at improving environmental conditions; and widespread support for SME's, vital for the country's economic growth prospects.