Türkiye joins 'Digital Europe', looks ahead to EU negotiations

On September 1, the European Commission announced that Türkiye would be part of the 2021-27 Digital Europe Programme, after the two sides signed an association agreement.

"DIGITAL" is a new EU funding programme that aims to bring digital technologies to public administration, businesses, other eligible organisations and the people.

The programme has a budget of €7.5 billion, which Türkiye will be able to dig into once it becomes accessible.

It also envisions the setting up of Digital Innovation Hubs in Türkiye, and invites small and medium-sized enterprises as well as public organisations to apply for grants for their projects advancing digital technologies. The ambit of these projects ranges from AI (artificial intelligence) to other digital skills, and is believed to forge closer cooperation between the EU and Türkiye.

A press release by the EU commission, says: "Türkiye will foster closer links to the EU economy and society, cooperate more on developing our technological capabilities with the help of the Digital Europe Programme."

Further cooperation

At the Turkish end, the programme will be implemented by Türkiye’s Digital Transformation Office and the Ministry of Industry and Technology.

Digital transition is on the top of the agenda of both the EU and Türkiye. Both look forward to the modernisation of the EU Customs Union by adding a digital chapter. The project offers a ground for further cooperation in this field, and between Türkiye and the EU.

Following the inclusion of Türkiye into the programme, the Commissioner for Neighbourhood and Enlargement, Oliver Varhelyi, on September 6, began his first official visit to Türkiye since its Presidential elections earlier this year. During the ongoing two-day visit, all dimensions of Türkiye-EU relations are being discussed, according to a statement released by the Turkish foreign ministry.

The visit comes after the European Council concluded in June by resolving to submit a report on EU-Türkiye relations. Following that, in October, the EU will publish its next Enlargement Report.

Having applied for full membership status in 1987, Türkiye has had a 'candidate member' position in the group since 1999. Accession talks started in 2005. However, negotiations for full membership were suspended in July 2017.

In July this year, President Recep Tayyip Erdogan called the EU to revive accession talks and greenlighted Ankara's commitment towards full membership.

One of the main areas of thrust is the project to update the Customs Union that had entered into force in 1995. There are problems related to the agreement, as it is designed only as a transitional agreement for Türkiye, a candidate country.

Türkiye still needs to sign Free Trade Agreements (FTAs) with ‘third’ countries with which the EU has already signed FTAs. These third countries can access the Turkish markets through their FTAs with the EU. But as of now, their EU agreements also discourage them from forming FTAs with Türkiye.

The agreement is limited to processed agricultural products and industrial goods. It does not cover services, right of establishment, public procurement and unprocessed agricultural products.

Updating the 1995 agreement would be more productive, considering the significant changes in global trade since then.

The EU had expanded through its enlargement processes, involving more countries in its Customs Union.

Since 2015, modernisation of the agreement has been on the agenda, as the two sides had already agreed to carry out official negotiations over it. In fact, the European Commision had declared it would launch the talks on December 21, 2016. However, the process was halted by the EU’s General Affairs Council on June 26, 2018.

After many ups and downs, the process finally looks to have evolved into a more positive one, with the expected meeting between the EU and the Turkish government slated next week set to focus on modernising the Customs Union, revealed Turkish Foreign Minister Hakan Fidan on Wednesday. With both Fidan and Varhelyi having expressed their intent to restart the talks over the Customs Union on the same day, it is expected that providing unhindered access to goods will be on the agenda.

"It will be in the interests of both parties to renew the Customs Union in accordance with the needs of today and tomorrow," Fidan said at a joint press conference with Varhelyi in Ankara.

Other emerging areas of discussion next week are visa liberalisation and the facilitation of visa processes for Turkish businesspeople.