Two Way Risks For TRY As Referendum Approaches

Two Way Risks For TRY As Referendum Approaches


Focus Shifts Away from Europe & US

While focus over the last year has mainly been on political events happening in Europe and America, there are important political events happening elsewhere that also require investor attention. One such event is the upcoming constitutional reform referendum being held in Turkey this coming Sunday.

The referendum will ask the nation to decide whether to convert the ceremonial presidential role into an office with full executive power with limited oversight from parliament. This change would make the president the head of this executive branch, suppressing the prime minister’s role. As head of the executive, the president would be able to issue decrees, call general elections and appoint or dismiss high-level officials – including deputy presidents and prime ministers. The president would also be able to directly assign 12 of the 15 constitutional court judges.

Risks Posed By This Change

In its March 1th report, the Venice Commission warned that such a change risks the “danger of degenerating into an authoritarian rule.” Previously, the Council of Europe’s Assembly had called for Turkey to be placed under “formal scrutiny” by a monitoring committee that keeps watch over respect for fundamental freedoms as well as the rule of law and democracy.

Read more: https://www.orbex.com/blog/2017/04/two-way-risks-try-referendum-approaches/

Orbex Review