PROJECTLESS TURKEY LOSES EU FUNDS
By Abdulhamit Yildiz

Zaman Online, Turkey
Nov 1 2006

While the European Union supports research and technology investments,
Turkey feels it has been left behind.

Funds the European Union created to support research and technological
development investments did not find their way into Turkey as
expected. Despite news reports, behind the scenes a number of
projects did not meet a number of quality requirements to benefit
from EU funding.

Ankara wanted ~@248 million but could get only ~@44 million for 370
projects. Disappointment struck in Ankara as Small and Medium-Size
Enterprises (KOBI) presented imperfect or bad projects to the
European Union.

Eighty-five percent of 2,500 projects were rejected. Turkey could
not take advantage of the ~@17.5 billion program and, as expected,
the government did not sign on to the new program.

Chairman of the Istanbul Chamber of Industry (ISO) Tanil Kucuk said
industrialists in Turkey were caught unprepared.

Kucuk said that the Scientific Technical Research Council of Turkey
(TUBITAK) was right when it said there were no projects even if the
financial source was ready for them.

The European Union uses such programs as a tool to direct and support
research and technology development. The program was implemented in
1984; Turkey participated only during the fourth and fifth programs
but did not put money in the pool.

However, Turkey did invest ~@248 million in the 6th frame program
specifically because Turkish KOBIs were interested in it.

The new program’s first steps will be taken in January 2007.

Consequently, ~@73 billion will be invested in approved projects.

The package designated ~@4.2 billion to KOBIs and ~@2.6 billion of
this will be given to new groundbreaking projects.

Small-sized enterprises will be supported for industrial competition
and innovation. The information technology and energy industries will
be included. If Turkey is included into the new project it will have
to contribute ~@100 million annually.

As a country that has begun negotiations, Turkey’s current political
debates are focused on secondary issues, CPS consultant Turkish General
Manager Tulu Gumustekin said. While emphasizing the importance of
innovation for small and medium-sized enterprises (SME), Gumustekin
reckoned that Turkey has not shown its commitment to participation,
thus denying SME’s new opportunities. She also believes the sooner the
7th framework is signed the better. Critical of the hesitant approach
companies have toward research and development studies, Gumustekin
said, "We refrain when it comes to the difficult part of the job."

TUSIAD Board Member Ayca Dinckok believes one of the most important
novelties of the 7th framework program is ensuring Turkey’s
participation in the European Technology Platform, Joint Technology
Initiatives, Competition and Innovation Framework Program.

Istanbul Chamber of Commerce Board Member Erhan Erken believes Turkey
was late in joining the previous framework program and could not enjoy
its benefits because of its shortcomings caused by inexperience. Noting
the 7th framework program had gained significant value with the 2005
revised Treaty of Lisbon, Erken said, "Every year is more successful
than the last and more industrial enterprises are participating
in projects."

French Bill a Failure

Referring to the new bill passed in the French parliament criminalizing
the denial of the alleged Armenian genocide, Gumustekin asserted it
went against human rights and the freedom of speech, adding that most
likely the bill would be a failure from the beginning.

Gumustekin said the Turkish public was tired and disappointed by
the EU negotiation process, but demands regarding Cyprus and France’s
attitude worsened the situation: "This is a very dangerous period… If
politicians gain the support of public opinion, than reforms will be
implemented sooner or later… Since there is no support in Europe,
politicians are forced to lift the curtains on opinions that are
not founded on truths. Turkey was an important country for those who
truly cared for the future of the EU, we need to keep such person’s
influence strong," Gumustekin noted.

While the CPS consultant approves criticism against France,
especially at the state level, she cautions the government not
to target companies that make investments in the country. If such
reactions develop, then Turkey would frighten the economy’s lifeline,
which is foreign investment, Gumustekin said. She also said that it
would cause foreign investors to think twice about investing in Turkey
due to the potential political problems that would affect investments,
causing Turkey to hurt itself.