Levent Gürses
The opposition’s proposal to raise pensions to 25,000 lira was rejected by Parliament, with funding issues cited as the reason. However, social security expert Prof. Dr. Aziz Çelik states that this is untrue, saying, ‘The funds needed for pensioners are more than sufficient in the GDP (the pie).’ On the other hand, according to a very interesting statistic, while Turkey is the country that allocates the least share of its national income among OECD countries, Greece, which experienced a sharp crisis within 10 years and reduced its pension payments, allocates the largest share.
Meanwhile, history was made in Davos. Divisions in the Western world reached breaking point. Country and company leaders made some striking statements. For example, Belgium’s conservative Prime Minister Bart De Wever said we are living in ‘monstrous times’.
Here are the week’s key developments:
Pension payments remain at 20,000 lira, proposal for 25,000 TL rejected
Proposals by opposition MPs to raise the minimum pension to 25,000 lira were rejected by the Grand National Assembly in a tumultuous and heated session, with votes cast by AKP and MHP MPs.
The increase in the minimum pension to 20,000 TL, as previously proposed by the government, with an increase of 1,060 TL, was accepted.
The most significant problem with pensions appears to be that millions of pensioners are forced to accept the minimum pension, which disregards the contributions they made during their working lives. AKP member Özlem Zengin said, ‘Pension payments will be reviewed when conditions in Turkey allow.’ However, last year’s interest expenditure of 2 trillion lira could have raised pension payments to 25,000 TL with just 19 days’ worth of that expenditure, or 110 billion lira.
The Monetary Policy Committee of the Central Bank of the Republic of Turkey lowered the policy interest rate by 100 basis points from 38 per cent to 37 per cent at its first meeting of the year. The Committee also lowered the overnight lending rate from 41 per cent to 40 per cent and the overnight borrowing rate from 36.5 per cent to 35.5 per cent.
Turkey ranks last in pensioner poverty, Greece first in pensioner welfare
Turkey ranked last among OECD countries in terms of the share of pension expenditure in gross domestic product (GDP). By the end of 2024, the average share of pensions in GDP among OECD member countries was 8.1 per cent, while the share in Turkey was 6.1 per cent, placing us last.
Greece, which entered a dramatic economic crisis about 10 years ago and reduced pension payments, ranked first in pension welfare with a 16.2 per cent share, followed by Italy with 16.1 per cent. In Turkey, the share of national income received by pensioners has decreased by 18 per cent since 2020.
Aziz Çelik: Don’t believe the ‘no resources’ myth for pensioners!
Prof. Dr. Aziz Çelik stated that there are more than enough resources for pensioners in the GDP, saying, ‘It’s not a matter of resources, it’s a matter of distribution.’
Prof. Dr. Çelik’s views are as follows:
‘It is possible to increase all pension payments by at least 50 per cent by allocating only 1.3 percentage points more of the pie to approximately 16 million pensioners, who make up 19 per cent of the population, by 2026. Don’t believe the “no resources” fallacy; ask “where are the resources going?”’
Gold sets its sights on $5,000
Gold prices hit new records again last week. US President Donald Trump’s harsh remarks on Greenland, his tough statements on the European Union (EU) on this issue, and new tariff threats pushed spot gold prices to $4,922 per ounce as of Thursday, 22 January. Spot gold, which exceeded $4,600 per ounce on the first day of the week, rose above $4,750 on Tuesday and reached $4,888 on Wednesday, setting a new record. Experts emphasise that gold has its sights set on $5,000, with increasing geopolitical uncertainties driving it higher. Renowned investor Mark Mobius, however, stated that gold prices are currently overvalued, saying, ‘I wouldn’t buy gold at this level.’
The value of gold held under mattresses has reached 740 billion lira
It is stated that the amount of gold held under mattresses by households is between 5,000 and 6,000 tonnes and that, with rising gold prices, the current value of this accumulation is around 740 billion dollars. Furthermore, as of 9 January, 39 per cent of the total foreign currency deposits, amounting to 219.7 billion dollars, are in precious metal accounts, and the total size of these accounts, which are predominantly gold, is estimated to have reached 86.3 billion dollars.
Textiles and ready-to-wear clothing are fighting for survival
News regarding the textile and ready-to-wear clothing sector is increasingly negative. Due to high inflation, rising costs and exchange rate policy, the sector is in a tight spot, with reports that more than 4,500 companies closed last year and 380,000 people lost their jobs in the last three years. The sector’s exports fell by 6.3 per cent last year to 16.8 billion dollars. It is noted that net profit margins have fallen below 1 per cent and companies have switched to survival mode. It is emphasised that the sector’s credit debt reached 714.1 billion lira in the first 11 months of 2025.
While Trump wanted Greenland in Davos, signs of division in the Western alliance increased significantly
The World Economic Forum summit, where global political and business elites gather to share forecasts, strategies and predictions for the coming year, was very different this year. The summit in Davos, Switzerland, was dominated by the crises in Greenland, Palestine, Venezuela and Ukraine, as well as the divisions within the Western alliance, which have reached a breaking point. US President Donald Trump attended Davos for the first time in six years and reiterated his demand for Greenland.
Stating that he wanted negotiations for Greenland, Trump said, ‘All the US wants is Greenland… We want a piece of ice to protect the world,’ arguing that the island is critical for global security rather than for its rare elements.
Trump is truly incomprehensible, engaging in actions that are incompatible with statesmanlike rhetoric… Using images generated by artificial intelligence, Trump posted a picture showing Greenland and Venezuela as part of the United States in an Oval Office photo featuring European leaders, and a visual depicting the American flag planted in Greenland. He also threatened France with a 200% tariff on its champagne and wine.
Trump threatened to impose a 10% tariff on eight NATO countries (Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland) that did not support his request to purchase Greenland.
However, he later announced that he had reached an agreement with NATO Secretary General Rutte on ‘Greenland’ and suspended the tariffs, which were due to come into effect on 1 February.
Claims that the EU could sell its US bonds
It is alleged that the EU will use its financial power against the US and, if Trump continues his moves on Greenland, will consider gradually selling the US bonds held by central banks, worth over $10 trillion, as retaliation.
‘The old is dying, the new cannot yet be born, and now is the time of monsters…’
Strange statements are being made in Davos, and perhaps history is being made. It is observed that the Western alliance is entering a period of fierce conflict and rupture, a moment of breaking point. According to a report on the Serbestiyet website, Belgium’s conservative Prime Minister Bart De Wever criticised Trump with a quote from the Italian communist thinker Gramsci: “On Wednesday, we will meet with Trump, together with King Philippe of Belgium. But this will be different in character from what we had planned. The message we will probably have to convey is this: you are crossing red lines here. Either we stand together or we stand divided; if we are divided, it will be the end of 80 years of Atlanticism, truly the end of an era. And you know, as Gramsci said: “When the old is dying and the new cannot be born, monstrous things happen.”
Carney: We are in the midst of a rupture; mutual benefit is a lie
Speaking at the World Economic Forum in Davos, Canadian Prime Minister Mark Carney made remarks that sounded like an admission that the globalisation order is not working.
Stating that the world is in the midst of a rupture rather than a transition, Carney emphasised the need to stop talking as if the rules-based international order still functions as described, saying: “A series of crises in finance, health, energy and geopolitics over the past 20 years have exposed the risks of excessive global integration. If the process of global integration becomes one that makes countries dependent, the countries concerned will not be able to continue living with the “mutual benefit lie”.”
Fink: Artificial Intelligence is coming to swallow white-collar workers
Larry Fink, CEO of BlackRock, one of the world’s most powerful bosses, spoke openly to the global elite at the opening of Davos: ‘The system has given nothing to the public for 30 years. Now Artificial Intelligence is coming to swallow white-collar workers.’
According to Fink, capitalism is facing its biggest test since the Cold War and is on the verge of failing.
Fink said:
“Since the fall of the Berlin Wall, the greatest wealth in history has been created, but this money has ended up in the pockets of a tiny minority, enough to undermine social peace. No society can endure such an unjust distribution for long; eventually, the system will collapse.
‘Just as globalisation hit factory workers, Artificial Intelligence will now do the same to office workers, lawyers, and analysts. I am talking about today, not the future.’
Fink offered only one way to prevent the system from collapsing completely: ‘We must stop making the public merely the “victims” or “spectators” of growth and make them partners in this new wealth. Otherwise, the anger created by injustice will engulf the entire world.’
The wealth of 30 billionaires in Turkey equals that of 38.5 million people
According to the Inequality Report released by the international aid organisation Oxfam in Davos, the total wealth of 30 dollar billionaires in Turkey in 2025 will be $73.8 billion. This amount is more than the total assets of 44 per cent of the country’s population (38.5 million people). The personal wealth of billionaires increased by an average of $496 million per person last year. In Turkey, a billionaire earns a worker’s annual income in 19 minutes.
Globally, the personal wealth of billionaires increased by $2.5 trillion last year, reaching a record high of $18.3 trillion. This $2.5 trillion could end global poverty 26 times over. The wealth of the world’s 12 richest people is equal to the total wealth of more than four billion people. There are over 3,000 dollar billionaires in the world, and the total wealth of billionaires has increased by 82 per cent since 2020. The world’s richest person, Elon Musk, became the first individual to surpass the half-trillion-dollar mark last year.
10.3 billion dollar guarantee payment for Osmangazi: 7 bridge fees
The way in which Treasury-guaranteed projects implemented under the build-operate-transfer model have eroded budget revenues generated by citizens’ taxes has once again come to light. CHP Deputy Chairman Deniz Yavuzyılmaz stated that the Treasury would pay the company a guaranteed amount of $10.329 billion for the Osmangazi Bridge, one of these projects, between 2016 and 2035, saying, ‘One bridge for the price of seven bridges.’ As Yavuzyılmaz pointed out on X, the Treasury will make this guaranteed payment to the company regardless of whether the number of vehicles crossing the bridge meets the target or not.
Instead of city hospitals, 260 hospitals could have been built without making payments
Another black hole is city hospitals… It was calculated that with the 428.5 billion lira transferred as rent and service fees for 18 city hospitals with 28,000 beds between 2017 and 2026, approximately 260 state hospitals with 130,000 beds could have been built. According to a report by Sözcü, CHP 27th Term MP Dr Fikret Şahin calculated the scale of the blow and said that, moreover, hospital rent and service fees would not be paid for another 16 years and that this money could be transferred to pensioners and low-income earners. Dr. Şahin noted that the cost per bed for city hospitals to the state is 15 million 71 thousand lira, while the state’s own hospitals built under the investment programme cost 3 million 297 thousand lira.
Metal workers have drawn their strike swords; 135,000 workers may go on strike
153,500 metal workers have decided to strike. No agreement has been reached between the workers’ side and the Metal Industries Employers’ Association (MESS) in collective bargaining negotiations that have been ongoing for three months. MESS offered an 18 per cent pay rise for the first six months, while the unions demanded a 39 per cent increase. With no compromise reached, the unions decided to strike. If the strike is not postponed, it will be the largest strike in history. Previously, in 1991, 100,000 workers participated in a strike and march by miners in Zonguldak; 35 years later, this will be the highest-participation labour action. Özkan Atar, President of the United Metal Workers’ Union, emphasised that MESS’s offers were ‘imposing misery’ and that there would be no retreat from the actual strike despite the bans.
Black Sea gas production still far from target
The Black Sea gas project, which was carried out with the claim that sufficient natural gas would be produced for consumption and dependence on foreign energy would decrease, has not reached its production target. According to a special report by Birgün Newspaper, the first phase of the Sakarya Natural Gas Field was completed in 2025. Phase 2 is expected to be completed in 2027 and phase 3 in 2028. Daily gas production in the first phase is targeted at 10 million cubic metres. However, according to the latest data from the Energy Market Regulatory Authority (EMRA), production reached 7.7 million cubic metres in the January-November 2025 period. Production in Phase 2 is planned to reach 40 million cubic metres per day, and 60 million cubic metres per day in Phase 3. In the January-November 2025 period, an average of 55.9 million cubic metres of natural gas was produced per day for households.
Interest rates are high, bad loans are increasing, credit cards are the only support
Despite the Central Bank’s interest rate payments and its recent decision to lower the policy rate to 37%, interest rates on consumer loans stood at 63.5% as of 9 January.
Low-income individuals are struggling to repay their loans due to high interest rates. In the first nine days of the year, non-performing loans that banks were unable to collect on time and had to pursue through enforcement proceedings increased by another 7.7 billion lira, reaching a total of 603 billion lira. Non-performing loans have increased by 102.5 per cent over the past year. On the other hand, citizens have turned to card payments for shopping and other expenses; by 2025, the volume of purchases made with credit cards and other cards is projected to increase by 48 per cent, reaching 2 trillion 511 billion lira.