“New yet familiar” faces in Turkish President Erdogan’s Cabinet

Newly re-elected Turkish President Recep Tayyip Erdogan on June 3 announced a new Cabinet with many changes, especially notable in the areas of foreign and security policy, and signaling a shift in economic policies that have pushed the Eurasian transcontinental country to the brink of financial instability.

Erdogan, 69, who was sworn in for his third term as president on June 3, has reshuffled almost all of his cabinet except for the health and culture ministers. He said the new cabinet would help him shape a new century in Türkiye's history.

World - — Turkish President Erdogan and the new Cabinet, June 3, 2023. Photo: Rudaw

Shift in economic management

In a televised speech hours after being sworn in, Türkiye's longtime leader said he would reinstate Mehmet Simsek as finance minister.

Mr Simsek, 56, is highly regarded by investors as Türkiye's finance minister from 2009 to 2015 and deputy prime minister in charge of economy until 2018.

A former economist at Merrill Lynch in London, Mr Simsek was known for his opposition to Mr Erdogan's unconventional policies, and resigned after months of speculation that the two clashed over economic policy.

Mr Simsek's reappointment could be seen as a shift away from years of unorthodox economic policies under Erdogan, including maintaining low interest rates despite soaring inflation and tight state control over markets.

Türkiye is grappling with a severe cost-of-living crisis and inflation soared to 85% in October last year before falling to 44% in May this year. The country’s lira has lost more than 10% of its value against the dollar since the start of the year.

Meanwhile, Türkiye's benchmark stock index has risen 12% over the past week and government bonds have rallied on hopes that Mr Simsek's return will usher in a transition to more attractive economic policy for investors.

The creation of a new group to run Türkiye's economy could usher in wide-ranging changes for the country – a member of NATO and the G20 and a leader among emerging markets that have been mired in currency crises in recent years.

“But for Mr Simsek, it will be difficult to make a sudden shift from unorthodox policies to orthodox policies,” said Tugberk Citilci, an economist at Nisantasi University in Istanbul who has been briefed on economic policies by the government in recent years.

Vision for the new century

Mr Erdogan also reshuffled the leadership of his security and foreign policy team, moving some of his key loyalists into new roles.

Accordingly, Hakan Fidan, intelligence director and a former soldier, was appointed as the new Foreign Minister to replace Mr. Mevlut Cavusoglu, who has held this role since 2014.

One of Mr Erdogan's closest aides, Mr Fidan has headed the National Intelligence Organization (MIT) since 2010 and was previously an adviser to Mr Erdogan in the Turkish Prime Minister's Office.

Yasar Guler, chief of the general staff of the Turkish armed forces, was appointed defense minister, replacing Hulusi Akar. Guler, 69, was the military commander during Turkey's military incursions into Syria in 2019 and 2020, and oversaw subsequent military operations there and in Iraq.

Mr. Cevdet Yilmaz was appointed Vice President of Türkiye.

Mr. Yilmaz previously served as Minister of Development and Vice Chairman in charge of economic affairs of the ruling Justice and Development Party (AKP).

Messrs. Fidan, Guler and Yilmaz are “people Erdogan can trust,” according to Ziya Meral, a senior fellow at the European Leadership Network.

“The message of all this over the next 10 months, and even the next few years, will be that Erdogan is focused on consolidating his power against the political opposition, addressing some of the concerns that nearly toppled him and his team in this year’s general election, and pursuing a vision for the new century of the Turkish Republic,” Meral told Al Jazeera.

“And he is delegating these important positions to people he trusts.”

While the new officials are overseeing Türkiye’s foreign and security policy, the Cabinet reshuffle is not expected to have a major impact on Ankara’s approach to a series of crises abroad, including the Russia-Ukraine conflict and the NATO expansion stalemate over Erdogan’s refusal to accept Sweden’s membership in the military alliance.

Turkish President Recep Tayyip Erdogan's new cabinet:

Vice President: Cevdet Yilmaz

Foreign Minister: Hakan Fidan

Minister of Treasury and Finance: Mehmet Simsek

Minister of Defense: Yasar Guler

Minister of Interior: Ali Yerlikaya

Minister of Education: Yusuf Tekin

Minister of Justice: Yilmaz Tunc

Minister of Family and Social Services: Mahinur Ozdemir Goktas

Minister of Labor and Social Security: Vedat Isikhan

Minister of Environment, Urbanization and Climate Change: Mehmet Ozhaseki

Minister of Energy and Natural Resources: Alparslan Bayraktar