The government is now working on an incentive program to encourage people to own or become partners in European companies, one-third of which will change hands within the next six years according to European Union predictions.Industry and Trade Minister Zafer Çağlayan told Today’s Zaman that he will bring up the subject at the Economy Coordination Board (EKK) shortly. The acquisition and partnership models of such companies are currently being examined, Çağlayan said, adding: “Right now we are carrying out a comprehensive study to determine which companies in which European countries and which sectors will be subject to such a change. We want Turkish firms to benefit from the brand value and transportation networks of these companies. This issue has an important place in our new export strategy. We also want to raise the awareness of Turkish companies on this issue.”
Hard times in Europe
According to EU figures, it is predicted that one-third of companies operating in European countries will change hands within the next six years. A total of 354,000 firms in Germany are expected to have different owners by 2016, while this figure is around 600,000 in France.
The government will also examine models in countries such as China, India and Malaysia, all of which have great experience in company acquisition. According to sources, the introduction of incentives such as providing companies with Social Security Institution (SSK) premium exemptions and loan support are also being considered.
Çağlayan was in the US to initiate the establishment of a Turkey-US business council. Turkey has recently set a target of increasing its exports to the US, a “model partner” of the country, as agreed by US President Barack Obama and Turkish Prime Minister Recep Tayyip Erdoğan last year. “Turkey’s exports to the US amounted to $3.2 billion. With this amount, we are currently ranked 48th in countries exporting to the US, even behind Bangladesh. … Now in order to increase this figure we have made comprehensive studies and planning based on states, finding out which products might be exported to which states. Because now it is time to specialize in what you do best. And for this reason we took an X-ray of each state,” said Çağlayan. In line with the results of the study, Turkey will put more emphasis on exporting socks and home textiles, food and machine parts to the US, the minister stated.
