Turkey: Erdogan decided to double energy subsidies to save his popularity from collapsing
In an effort to save his failing popularity, Turkish President Recep Tayyip Erdogan has increased support for citizens in Turkey, with the government announcing an increase of up to 80% in energy subsidies as part of the 2023 draft budget, in a move that will allow Ankara to keep prices low before next year’s parliamentary and presidential elections.
Economy collapses
Vice President Fuat Oktay that 80% of the natural gas and 50% of the electricity used by families will be supported by the government, adding that the energy support will reach 600 billion lira ($32 billion) from next year’s budget according to the Bloomberg News Agency, which confirmed that this step came after the countdown to the elections scheduled for June next year, in light of the faltering economy, high inflation, which reached the highest level in 24 years, and rising energy costs worldwide, as opinion polls show that support for Erdogan, who has been in power for two decades, is diminishing.
It went on to say that the total energy subsidy amounted to 300 billion pounds this year, according to Erdogan’s estimate earlier this year, almost doubling by 2023; That brings him closer to 650 billion pounds. Last month, Erdogan said his country would be free of natural gas problems in Europe this winter, blaming the energy crisis in the continent’s countries on the sanctions imposed on Russia for the invasion of Ukraine.
Huge increases
In the same context, the US agency pointed out that the flare-up of the Russian-Ukrainian war aggravated the energy crisis in Europe, which was caused by the decrease of Russian gas flows, a step by Moscow in response to the sanctions imposed because of its invasion of the neighboring country. Oktay said that the draft budget of Turkey is expected to increase spending on “security of energy supply, efficiency and energy market” by 155% next year, while defense and security spending is scheduled to increase by 159%. The Turkey’s vice president says spending on social assistance in the budget is expected to rise by 73% to continue treating the country’s poor.
Earlier this month, Sözcü reported, citing the Turkish government statistics agency TÜİK, that Turkish consumer prices rose 83.45% in September on an annual basis, up from 80.2% in August. The agency said the new rate was driven by a rise in transport prices by 117.66%, a rise in food prices by more than 90%, and an increase in house prices by more than 80%.
