Critical Thinking: Turkey's Currency and the European Union Turkey has made a commitment to fully join the European Union. In a critical essay, indicate the main considerations Turkey will face from a...

Running Head: Turkey accession to EU            
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Turkey accession to EU            
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Turkey accession to EU
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Introduction
The joining of Turkey as the member of European Union was considered to have potential impact over the currency and other macroeconomic parameters of Turkey. The name given to the agreement which was to be signed between Turkey and EU was called as “Ankara Agreement” during the year 1963. In effect, the country had actually become the member country of EU since 2005. Also, the country was being granted the accession to Customs Union at the same time. Again, the country was readmitted in EU during the year 2013 on 16 December as it left EU and Customs Union due to some issues for some period of time. At present, there are still few negotiations going on between the two in order to settle for the trade terms and other currency value parameters. The visa liberalisation launching process is an important dialogue which happens to be an important cause of concern for Turkey to assess the EU membership. The ratification to implement the policy procedures to change the status of Turkey and to launch important changes in the roadmap of the country the implementation of assess started from 1 October 2014.
Negotiations over few important areas and concerns
    The negotiation between EU and that of Turkey took an important turn to change the accession rights of the country over the energy sector to provide it wider scope of rights in nuclear as well as sustainable form of energy. It leads to large scale flow of investment in countries belonging to EU which will attract more capital from outside countries. Hence, Turkey is an important source of capital investment into these countries which is a win-win situation for both the parties (Turkey progress report, 2014).
As can be seen from the highlights of the World Bank reports which have been published during 2016 to recognise the after effects of EU and Turkey union, the result is positive for both of them. The functioning of EU is associated with the smooth conduct of trading relations and to further enhance the movement of currency from one country to another in the form of investment and to develop the movement of goods and services in same lines of trading activities. As a result, there have been several changes in the trade policies which includes relaxation in the trade barriers and removal of quota systems so that there is rise in volume of exports and imports between Turkey and other EU countries. Consequently, there is large scale inflow of foreign capital leading to rise in inflow of foreign reserves as it is the sixth largest partner of trade with rest of the EU members. It is evident from the fact that the total share of the two goods which are only traded between Turkey and EU makes it to be 70% of the total value of foreign direct investment in custom unions for the period 2004-2008. After becoming the partner with EU, Turkey benefitted a lot because of the process of technology transfer as industrialization become the core focus of the business policies. The secondary sector and manufacturing capabilities have improved a lot because of introduction of new learning processes as well as experimentation with the new technology in the existing production potential of the economic units (Should Turkey join the European Union?,...