By Andrew Jay Rosenbaum
ANKARA
The Conservative Party's general election victory bodes well for both the Turkish and European economies, experts said on Friday.
The previous Conservative-Liberal Democrat coalition government had strongly supported Turkey's bid for EU accession and the Conservatives are also committed to increasing trade with Turkey and boosting imports and exports, while reducing barriers and regulations.
The U.K. and Turkey are both NATO members and Prime Minister David Cameron has committed his government to a significant role in the alliance.
Economist Atilla Yesilada, of Global Source Partners in Istanbul, said: "The previous Conservative-led government had good relations with Turkey and vigorously supported Turkey’s bid for EU membership."
"Moreover, there is a good chance that the new government will soften its stance on European Union membership.”
Such support would grant Ankara more flexibility in its negotiations with the European Commission, he said.
The Conservatives are committed to supporting exports and boosting manufacturing, Hanover, a London-based consulting firm, noted on its website.
It stated: "An active industrial policy has been a prominent feature of this government and the Conservative manifesto re-asserts this, promising to continue to invest in science, back our industrial strategies and make Britain the technology center of Europe.”
In a statement issued in March, Jeremy Clayton, a director in the Department of Business Innovation & Skills, said: "There is plenty of scope for U.K. exports to, and investment in, Turkey to grow significantly over the next decade."
“Turkey is already quite open for a large economy, with exports of goods and services totaling 20 percent of GDP and imports totaling 28 percent of GDP… This degree of openness is only just below that of the U.K. and France."
"There are also promises to conduct a major review into business rates, keep corporation tax at its current level, boost British exports, increase support for SMEs through procurement contracts and cut £10 billion worth of red tape over the next five years."
According to Carley Willis, an executive at U.K. Trade and Investment in Turkey, the possibilities for both countries to expand trade are considerable.
“Building a trusting relationship is a vital element,” Willis said in March. The new government can be expected to develop that relationship.
Active role
The most challenging issue for the new government will be the country’s membership of the EU.
Cameron promised voters that, if re-elected, he would hold a referendum on the U.K.'s continued EU membership by 2017.
Philippe Legrain, a senior fellow at the London School of Economics, wrote in a blogpost published on Thursday: "If Britons voted to leave the EU, this would give the SNP an opportunity to call another referendum on whether Scotland should become independent — and remain part of Europe."
"Independence supporters would have a better chance of winning such a plebiscite, since the status quo wouldn’t be an option."
He added: "Faced with taking a leap into the unknown with the rest of Britain by leaving the EU or taking the plunge for independence within the EU, the latter may seem less risky."
Given the SNP’s electoral success, winning 56 seats at Westminister, the party will have considerable influence.
Legrain noted this could lead the Conservatives to relax their anti-EU stance.
But Cameron will have trouble controlling his backbenchers should the government ease back on demands for large-scale EU reform and will have a tough job reconciling demands by the SNP with his party’s traditional unionist stance.
