Merz Calls for Cabinet Reform: Charting a New Path for Growth and Employment

Merz’s call for cabinet reform reshapes Turkey’s growth and employment agenda.

Winds of Reform in the Cabinet

■The “Growth and Employment Plan” spearheaded by Merz targets a 3.5 % GDP increase in 2024.

■The core of the reform package, the “High-Tech Investment Strategy,” aims to attract $12 billion in investment by 2025.

■To reduce unemployment from 5.1 % to 4.0 %, the “Multi-Purpose Employment Program” has been launched.

Political Stability’s Financial Ripples

■Merz’s proposals send a positive signal to the BIST 100 index, which is expected to rise 12 % in the first quarter of 2024.

■Uncertainty in foreign exchange markets has eased; the TL/USD rate oscillated between 1.35‑1.37, while TL/EUR stayed within 1.50‑1.52.

■The Central Bank’s “Rapid Credit Facility” program offers a 15 % interest rate cut to support SMEs.

Investor Perspective

■Sectoral distribution: Technology, Energy, and Healthcare are projected to grow by 30 %, 25 %, and 20 % respectively.

■Small‑cap shares enjoy a 18 % profit margin, 2.5 times higher than that of large companies.

■The “Open Market Exit” plan for institutional investors foresees a 40 % liquidity increase by 2025.

Future Vision

■In employment, the “Talent Development Center” aims to create 150,000 new jobs by 2026.

■Renewable energy projects are set to expand total capacity to 35 GW by 2027.

■ESG criteria focused on sustainability will see companies comply with 70 % of the standards by 2024.

Merz’s cabinet reform package will strengthen Turkey’s macro‑economic stability and boost investor confidence. Especially in high‑tech and renewable energy sectors, the support will play a critical role for long‑term growth. While the move creates a positive market expectation, short‑term volatility must remain under control.