ON THE BRINK OF A NEW ERA: A STRATEGIC ROADMAP FOR GERMANY AND TÜRKİYE

DEİK/Türkiye-Germany Business Council aims to make the most of the potential of both countries with new projects aimed at strengthening economic ties between Türkiye and Germany. This strong partnership creates growth and innovative opportunities in the global market

As the world economy reshapes itself in the post-pandemic era, countries are looking for new ways out. In this process where global trade balances are changing and production models are being transformed, can the economic relations between Germany and Türkiye move to a new dimension? Based on this question, our cooperation with the German Turkish Business Council as DEİK/Türkiye- Germany Business Council aims to further the commercial integration between the two countries. This cooperation should be seen as a strategic move that will increase our competitiveness not only economically but also globally.

THE NEED FOR A NEW STORY IN THE GLOBAL ECONOMY

After the COVID-19 pandemic, the world economy faced an inflationary order. The rapid rise in interest rates, followed by a gradual reduction, led economic actors to search for a new story. In this period of intensifying economic uncertainty, it is vital for countries to create sustainable growth models. Türkiye and Germany have to put forward a new vision in this transformation process. At this point, we, as representatives of the business world, have analyzed how the deepening cooperation between the two countries can be made more efficient.

There is no denying that Germany has been experiencing economic difficulties in recent years. The slowdown in industrial production, the problems faced by SMEs, and labor shortages are among the main problems of the German economy. Critical analyses of Germany’s economic model have recently increased in the Western media. However, the important thing is not only to diagnose, but also to develop solutions. At this point, the studies we have developed as DEİK/Türkiye-Germany Business Council aim to provide sustainable solutions to the problems facing Germany and contribute to the welfare of our countries.

TÜRKİYE-GERMANY ECONOMIC INTEGRATION: A WIN-WIN MODEL

Despite being the manufacturing center of Europe, Germany is in need of a serious industrial transformation. Many industrial facilities in Germany are in a difficult situation due to the increase in production costs and the lack of labor force. At this point, Türkiye can step in. In order to prevent the closure of factories in Germany and to make production processes more efficient, moving some of these facilities to Türkiye and developing joint production models could be a critical solution.

In this way, Germany can overcome its high-cost problem, while Türkiye can assume a value-added role in industrial production. In addition, 3.5 million Turks live in Germany and contribute 500 billion dollars to the economy. On the other hand, 7 million German tourists visit Türkiye every year. This shows how economically and culturally integrated the two countries actually are. Now it is time to fully institutionalize this. The total economic size of Türkiye and Germany is around 6 trillion dollars and the trade volume between the two countries approached 50 billion dollars. But the potential is much greater.

JOINT INVESTMENTS IN THIRD COUNTRIES

Türkiye and Germany could not only increase trade between themselves, but also develop joint projects in third countries. It is known that Turkish companies will play a major role in the reconstruction of Syria. By acting together with Germany in this process, it is possible to take advantage of investment opportunities and contribute to regional development. Africa and the Turkic Republics are also among the potential regions for cooperation. The combination of Germany’s technological and financial strength and Türkiye’s experience in construction and industry can realize major projects on a global scale.

DIGITAL TRANSFORMATION AND GREEN ENERGY COLLABORATION

Digital transformation and green energy will be one of the most important areas of cooperation between Türkiye and Germany. SMEs are the backbone of the Turkish and German economies. We see the experience sharing and development of Turkish and German SMEs in the digital transformation process as an important area for cooperation. This can especially increase industrial production and logistics efficiency. Energy also offers great opportunities for cooperation. Germany is one of the leading countries in Europe in terms of renewable energy sources, while Türkiye ranks 11th in the world and 5th in Europe in terms of renewable energy installed capacity statistics. Türkiye has made significant investments in solar and wind energy in recent years. Joint projects to be developed in this field will both increase Türkiye’s energy supply security and contribute to Germany’s energy policies.

NEW EXPANSIONS IN BANKING AND AVIATION

There are also important opportunities between the two countries in the banking sector. Turkish banks have branches in Germany but are not fully integrated into the German financial system. The ability of Turkish banks to offer a wider range of services in Germany and the removal of the restrictions they face in financial transactions will pave the way for the business world. The aviation sector stands out as another important area of cooperation. Turkish Airlines (THY) has become one of the world’s largest airlines. Closer cooperation between Germany’s national airline Lufthansa and Turkish Airlines could create new opportunities in the global aviation sector.

Türkiye and Germany: Complementarity, Not Competition Germany and Türkiye are two economies that complement each other, not compete with each other. Germany’s strengths are lacking in Türkiye, while Türkiye’s advantages are underdeveloped in Germany. That is why deepening the economic cooperation between the two countries will provide great gains for both sides. In line with this goal, we have put forward a strong will as DEİK/Türkiye-Germany Business Council. This idea was embraced by the 10th President of Germany, Christian Wulff, who launched the German-Turkish Business Council and assumed the presidency. While I am leading the process on the Turkish side as the President of the DEİK/Türkiye-Germany Business Council, Mr. Wulff is leading the work on the German side as the President of the German Turkish Business Council. As representatives of the business world of the two countries, we will continue to work hand in hand to move Türkiye and Germany towards closer economic integration.