Within historical progress, it is possible to date Turkey’s cooperation with Europe to the political reforms made in the Ottoman Empire in 1839. Turks started to stand next to Europe and share European values with the reforms they made in 1839. This understanding, which started during the Ottoman Empire years, has continued in the Turkish Republic’s Term.  In order to stand next to developing and strengthening Europe, Turkey established the first legal grounds in 1963 by “Ankara Treaty”. The decision to start full membership negotiations between Turkey and Europe on October 3rd, 2005 was taken in Brussels Summit on 17th December, 2006. Thus Turkey has left behind another significant milestone during its journey of 41 years in the Turkish Republic’s Term and 165 years since Ottoman Empire’s Term. Having done many reforms in economic, politic, legal, human rights and freedom areas, a challenging long negotiation period is expecting Turkey. Either for the completion of Copenhagen Political Criteria or Maastricht Economic Criteria it seems an obligation to establish a high level management approach among non-governmental organizations, citizens and State. New regulations in economic understanding will facilitate the harmony. Turkey’s economic history, and its current economic structure are at a level that can easily be integrated to Europe’s economic structure. According to data, approaching Europe will accelarate harmonization and facilitate full membership. From this perspective, Turkey’s economic history and economics understanding that it will implement from now on demonstrate importance.  

Key Words: Economics, Economic Understanding, , Economic Administration, Economic Structure, European Union, Historical Process.
 
Title: THE ANALYSIS OF CONTRIBUTIONS OF THE FULL MEMBERSHIP OF TURKEY IN THE CONTEXT OF TRANSFORMATIONS IN THE EUROPEAN UNION DEVELOPMENT PROCESS

INTRODUCTION 
The concept of forming a union in Europe dates bact to years before. Although, the concept attracted too many people in the beginning, it began to flourish after the IInd world war. Thi distance run became possible through a challenging and long process. The first significant progress that started this process is the establishment of European Council as an international organization in 1949 in Strazburg. After the establishment of the first council, the process continued with slow but confident steps. 

At first movement for uniting Europe occured as two different poles. Some European Countries (Sweden, Switzerland, Portugal, Norway, Denmark and Austria) led by England established European Free Trade Zone while Germany, France, the Netherlands, Luksemburg, Italy and Belgium established European Coal and Steell Community. This movement of two poles for uniting Europe was reduced to a single formation. Most of the countries in EFTA joined the other group. Today, only countries, Switzerland, Norway, Iceland and Liechtenstein are stil EFTA members. European Economiz zone between member countries of EFTA and EU have been formed. Even by evaluating from this point of view, it is not difficult to understand the greatness of the distance run. 

     The first movement for uniting Europe started in the aim of preventing internal conflicts and opposition. In the later periods, this integration gained pace in order to introduce Europe to the world as it is sequeezed to Continental Europe. Establishment of European Coal and Steel Community in order to prevent opposition between Germany and France is one of the significant steps towards Europe’s integration. Another reason that led Europe to integration is economy. When compared to restricted trade, as an understanding of a more unrestricted trade deblocks Europe’s way to economic integrity was seen necessary. Moreover, Europe is a large community of common geographical zone, common values and common past. Integration will multiply Europe’s power. In the light of these considerations, Europe’s integration seems a must. Paralel to these ideas, economic and political integration in Europe has been established mostly. With the approval of new European Constitution, it is beyond doubt that this integration can become a super power. 

     Turks also have been in Europe’s integration movement since Ottoman Empire. Turks has an essential fame for Europe for being a bridge between Europe, Near –East and the Middle East. The integration movement that gained pace in Republic’s Term has reached to a level that it deserves at last. Turkey has an essential importance for Europe which will become a super power.  

1. HISTORICAL PROCESS TOWARDS UNITING EUROPE

Integration movement in Europe was based on sports(Olympics) and political unity in Roman Times while it was handled in the light of economic considerations in the Middle Ages¹. However Europe’s real desire for integration dates back to 1900s. First concrete steps were taken by the signed treaty between Germany, England and Italy on May 7, 1903 that ended the oppositions for the customs affairs. 

     Starting from 1946 when the IInd World War ended, the attempts gained pace. Another progress that shaped Europe after war was the American assistance. 16 European Countries* that accepted the Marshall Plan established OECE in order to implement the plan. The agreement that established European Coal and Steell Community was signed on April 18, 1951. In the beginning the agreement was sined between Republic of Federal Germany, France, Italy, Belgium, the Netherlands and Luksemburg.² ECSC’s aims were issues such as providing a free setting in coal and steell production, free movement of workers, improvement of member countries’ economies, elimination of privileges and restrictions, interference of high authority in some special cases.  Free trade agreement between Turkey and ECSC was signed on 25 July, 1996 and came into effect on 1 August 1996³. By the end of ECSC agreements effective term in July 2002, its authorities were transfered to European Community. 

     Fundemental reason in the establishment of the European Atomic Energy Community is to provide peaceful use of atomic energy among energy and industrial areas by the member countries of the community. Troubles, encountered in energy sector after 1955, directed member countries to meet their needs through atomic energy. By 25 March 1957 Rome Agreement, Euratom was established officially. It came to effect together with EEC on 28 January 1958. EAEC institutions united with EEC AND ECSC in 1967. Despite uncommitted attitude of the French and petrol crises in 1970s, EAEC always remained as a second plan due to environmental and security concerns towards atomic energy⁴.  

     It required a more extensive integration necessities because of European Coal and Stell Community’s new economic dimension. As a result of this, two new community named as European Economic Community and European Atomic Energy Community were established on 25 March 1957⁵. By Rome Agreement new communities (EEC and EAEC) did not eliminate ECSC’s validity. On 1 November 1993 new European Union Agreement came into force. By this agreement European Economic Community (EEC) was renamed as European Community. soon after that Austria, Sweden and Finland became members of European Community so the number of member countries to EU reached to 15.⁶ In May 2004 17 new members joined the EU. In 2004 the number of member countries to EU reached to 25. Bulgaria, Turkey, Romania, and Croatia are candidate countries to EU membership. 

     2. EUROPEAN UNION (EU) 

     Today the integration process of Europe that started with ECSC, EAEC and EEC has transformed into European Union formation. European Union Agreement was signed on 7 November 1992 in Maastrich and the agreement came into force on 1 November 1993 and established the European Union officially⁷. Maastricht Agreement gathered all European Communities (ECSC, EAEC, EEC) within its scope. 

     After the signing of the agreement in 1992 that established European Union, European Common Market was formed on 1 January 1993  in order to provide economic union and on 1 January 1999 eleven countries in Europe began to use the Euro.⁸  In addition to responsibility of the money policy, defined and implemented as Euro, has been transferred to European Central Bank. In June 1993, Copenhagen Summit a new dimension was added to Europe’s integration. It was accepted that EU would expand in a way that can cover Central and East European countries on condition thtat the countries meet certain criteria. Therefore, for the first time criteria were presented to candidate countries regarding the harmonization to political, economic and acquis communautaire. Use of Euro was also confirmed. Amsterdam Agreement which included amendments regarding common foreign affairs, common security, common defence and common jurisdiction policies was signed and came into force in May 1999⁹. Another important step has also been taken starting from 2002 towards European integration- In February 2002, activities were started to form European Union Constitution. 

3. HISTORICAL PROCESS TOWARDS TURKEY’S INTEGRATION TO EUROPE AND THE ROLE OF ECONOMY IN THIS PROCESS 

     The desire to become a part of Europe that dates back to Ottomans, has also continued after the IInd World War. Turkey joined European Council on 8 August 1949 together with Greece. Then Turkey has been a member of NATO since 1952¹⁰ After the establishment of EEC by Rome Agreement in 1957, Turkey applied for membership to the Community. Through this partnership an agreement named as “Ankara Agreement” was signed between Turkey and EEC on 12 September 1963. This Agreement came into effect starting from 1 December 1964 and partnership relations between EEC and Turkey have started¹¹. Withing the framework of added protocol which came into force in January 1973, EEC unilaterally eliminated the quotas and customs tax over industrial goods that it imported from Turkey except for some textile and petrolium goods¹². In the period after the execution added protocol (after 1973) issues regarding industrial and agricultural goods and free movement of people have been tried to be resolved between Turkey and the EEC. In addition completion of customs integration was seen as final target. Turkey agreed to attempt to provide obeidence for common customs tarif and eliminating customs tax for the goods that it imported from EEC members.  

     Customs integration was completed on 1 January 1996 and by this agreement it became possible to provide financial source (loan, donation, project assistance) to Turkey. Through customs integration last discounts in the 12 and 22 years’ lists and customs tax and similar implementations were ended. Turkey entered the same customs tariffs with EU against third countries. EU was held responsible for eliminating quotas and tariffs that it applied against Turkish industrial goods. Customs integrity does not cover the products subject to ECSC and EAEC aggreements and agricultural products. Because free trade agreement related to the trade of products that are encompassed by the authority of agreement that established ECSC was initialled in December 1995. This initialled agreement already eliminated the customs tax between Turkey and Europe for the ECSC products.  

     Through the integration process of Europe and Turkey, a historical step was taken in Helsinki Summit, on 10-11 December 1999. In the Summit, the decision for the confirmance of Turkey’s membership status to European Union and within EU’s new expansion policy and like the other candidate countries Turkey should attend in equal status to the system that is formed was taken. According to this decision turkey’s use of strategy like the other candidate countries was assured. Progression reports for Turkey has started to be issued after that historical summit.¹³ The first accession partnership document related to Turkey’s harmonization with the Kopenhagen criteria was prepared in 2000. The first national program which Turkey prepared in 2000 in the direction of harmonization Works with EU was revised in 2001, and came into effect after being published in the official gazete on July 24th in 2003.¹⁴

     Seeing concrete progressions in reforms and stating that Turkey met the Kopenhagen criteria at a sufficient level, proposals were made to start accession talks. The accession talks were adjudicated to be started on October 3rd 2005 in paralel with this proposal. After talks started, Turkey’s membership date will be directly proportional at a speed of meeting economic criteria and harmonization process of acquis communautaire. The Maastricht criteria regarded as great barrier before membership are conditions to be carried out after full EU membership not before it.* 

     The ten new members joined EU in 2004, some of which are Baltic states, find it hard to provide the Maastricht criteria. Lithuania, Esonia, and Slovenia predict that they will accept euro on January 1st 2007, Latvia on January 1st 2008, Slovakia on January 1st 2009, Czech Republic and Hungary in 2010. Poland has not settled a certain date yet.¹⁵ It will not be democratic to expect from Turkey before its membership to provide the Maastricht criteria that consist of economic and monetary union provided after membership. However, if Turkey fulfils these conditions before membership, it will be a pleasing situation. 

     It is possible to see where Turkey has come from and how has shown development by way of some basic macro economic indicators in historical process. 
 
 
 Table 1 : Some Of The Past Five Annual Macro Economic Indicators Of Turkey

Source : Almanak 2005 Ekonomi,Kayseri Ticaret Odası, Kayseri, 2005, s.121 ve DİE, Çeşitli Yıllara Ait Veriler.  

     As it is recognized from the table, turkey with its population of 70 million and area of 780.000 km² is a huge country. Such a huge power’s integration with Europe will be an advantage for Europe rather than for Turkey. Particularly, over the past three or four years, stability that is observed in Turkish economy inspires confidence. İnflation has decreased to one-digit number fort he first time after years. 

     In European integration the wideness of geographical area should not cause anxiety. Because if we imagined such applicant countries as Turkey, Croatia, Romania and Bulgaria in EU, EU’s total area would become 5.078 km². However, Russia’s area is 16.889 km², China’s 9.327 and USA’s 9.159 km².¹⁶ 

     Turkey is already ecomically integrated with Europe de facto. 

Table 2 : EU’s Share in Turkey’s Foreign Trade in Selected Years

Source : http://www.dtm.gov.tr/AB/rakamlar/ditcaret.htm. 
 

      As it can be seen from table 2, Turkey has economically been integrated with Europe. It has been carrying out half of its foreign trade with EU countries. Accordingly, Turkey which has completed the Kopenhagen criteria has capacity to come to the required level economically in a short time. Moreover, the faster harmonization with acquis communautaire will be, the faster membership will be.  

CONCLUSION 

     In our globalized world EU should be regarded as international and regional union. This union has two great bases. One of them is political union, and the other is economic one. The permanence of EU’s powerful and economic union will be possible together with being a political union which harbours a wide range of possessions. This situation turned out to be understood since such a country as Turkey was actively inserted into this process after 200s.   

     EU process which develops with stages of economic cooperation, free trade zone concept, customs union, common market and economic integration should progress towards union in terms of policy at an international level as well. 

     From the beginning to 1957 development and integration process was realized in a scattered and complicated order without being dependent on a system. The integration process which became more systematic with Treaty of Rome got the state of great integration in an economic and political dimension. The integration picked up speed with abolition of all customs duty in 1968 among six member countries of European Economic Community. This big attempt led to participation of England, Denmark and Ireland for the community which abstained from integration until 1973. 

     After 1980 European integration expanded towards a little more different cultures southwards. The European integration turned into a different dimension when Eastern Bloc started to be disintegrated as of 1989. This disintegration led to steps towards abolition of hostility in Europe. Then an understanding of acting commonly took place instead of using power for conflicts and differences. When cold war period came to end, political and economic unification took place instead of West-East conflict in Europe. In Europe economic and monetary integration were importantly obtained with ECSC, EAEC and EEC. However, the huge integration were realized after foundation of EU with the Treaty of Maastrich in 1992. The Treaty of Maastrich brought common security, formation of foreign policy, justice and internal affairs togetherness in the foreground. 

     Turkey’s desire for integration with Europe extends to the Otoman Empire era. The desire for integration went on in the early years of republic and picked up speed after the second world war. Because Turkey has demographic, economic, geographical and military power in terms of adding value after enrolling as a member of EU. Turkey’s membership will extend the market of EU and give member countries direct investment opportunity. Moreover, it will cause EU firms to gain more strenth in middle east. Turkey’s young population will play a role in maintaining EU’s economic dynamism. EU is a system of principles, assets, and rules. At this point in historical process the relationships between Turkey and EU depends on legal basis. If EU is to be a global power, Turkey’s membership will be a factor which will importantly develop this power.   
 

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Prof. Akdemir is the dean of the Faculty.

June 2006