Junior Financial Analyst

Total Content 46

Articles 46

Turkish migrant deal sparks EU funding issues

By Patrick Higgins  |  25/01/2018 15:25

”EUimmigration”/

EU member states want Commission to pay in full

The EU's migrant deal with Turkey, long propogated as the solution for stemming the waves of migrants trying to reach Europe, has come under heavy pressure as technocrats in Brussels argue over who will take charge of the next round of payments.

The deal, initially signed back in 2016, was originally allocated 3 billion euros by EU member states, but many EU states such as Germany and the Netherlands are pushing for the EU Commission to supply in totality the next tranche of payment. Such payment disputes highlight the continuing tensions between the international budgets of the EU technocrats in Brussels and national budgets of various EU countries. Many EU countries such as France, led by the centrist Macron, are pushing forward with further EU integration, whereas other members such as Hungary are resisting. Many of these integration issues stem directly from the migrant crisis, underlining the importance of maintaining the resettlement deal with Turkey.

Tensions with Ankara

Ankara, however, has its own set of complaints. Most of the funds under the deal are earmarked for NGOs and Turkish migrant agencies. The funds are designated for use under the umbrella of humanitarian aid, including the refurbishment of health care centres, work development programmes, and quality Arabic education. None of this money goes directly to the Turkish government, something that Ankara considers unacceptable and a violation of its sovereignty.

Contextual decline in EU-Turkish relations

Besides the issue of how the continuation of funding for the deal will move forward, further tensions between the EU and Turkey exist and make any renegotiation or further cooperation quite tricky. Turkey conducted a highly controversial political referendum last year to increase President Erdogan’s powers and has repeatedly clashed with the EU over the political course Turkey has chosen to undertake since the infamous July 2016 coup attempt. Such developments include the arrests of prominent Turkish academics, journalists, and politicians, as well as a clampdown on free speech, free assembly, and secularism. Besides the apparent declines in societal cohesion, Erdogan's government further infuriated the EU by attempting to campaign in Germany and the Netherlands in support of the referendum last year. Both Germany and the Netherlands have vast populations of expatriate and ethnic Turks. When refused permission by the German and Dutch authorities, Erdogan lashed out against them, referring to them as the "Nazis" of Western Europe. Such choice of words has contributed heavily to the dramatic decline of relations between Turkey and the EU. Thus, the intensity of the clashes between Germany and the Netherlands with the Commission over the method of tranche payments is of no surprise, as they are reluctant to supply any form of financial aid to Turkey or its environs.

Despite its opposition, the ability of Germany to successfully pressure the Commission to foot the bill while still lacking a formal government is questionable. One can, however, expect the number of migrants trying to reach Europe through Turkey to continue to decline while the terms of the deal are still maintained.

Pathway moving forward

Ankara, while quite vocal over their issues with the deal, likewise wants the flow of migrants passing through Turkey to stop. If Turkey moves to scrap the deal entirely, there would be nothing stopping the flow of migrants through Turkey to reach Europe. Since the beginning of the Syrian Civil War, Turkey has accepted over 3.5 million Syrian refugees and claims it has spent over 30 billion euros towards caring for them. Therefore, it is in the best interest of the Turkish government to stay consistent with the terms of the deal, despite disagreements with the EU over the method and speed of tranche payments. Likewise, the EU, which has experienced an influx of 2.5 million people seeking asylum within the past three years, does not want more migrants and will continue to work with Turkey despite the enormous tensions, both socially and politically.

https://www.ft.com/content/1e9aeb34-0100-11e8-9650-9c0ad2d7c5b5

https://uk.reuters.com/article/uk-eu-turkey-migrants/eu-must-step-up-funding-for-syrian-refugees-settling-in-turkey-mayor-idUKKBN1FD22L

Any information, analysis, opinion, commentary or research-based material on this page is for information purposes only and is not, in any circumstances, intended to be an offer of, or solicitation for, a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any person acting on it does so entirely at their own risk and GKFX accepts no responsibility for any adverse trading decisions. You should seek independent advice if you do not understand the associated risks.

Share

Author's Other Opinion & Analysis

Show More Articles

Sentiment

Open a Demo Account Open A Live Account

Losses can exceed deposits

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com