Challenged by US and market crisis, Turkey turns to Europe

Beset by a shaky currency and tension with the United States, Turkey is reaching out to Europe to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership.

The engagement by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, is part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes around the world. Also this week, Qatar pledged $15 billion in investments in Turkey and Russia's foreign minister talked about using national currencies instead of the dollar in trade with Turkey.

Even so, many commentators believe the path to Turkey's long-term recovery lies in bold economic steps, such as an interest rate increase to curb inflation after years of debt-fueled growth, as well as a resolution to a bitter rift with the United States over an American pastor on trial in a Turkish court. They wonder to what extent Erdogan, who has intensified his control over Turkey as leader for nearly 16 years, can modify his positions after saying the currency crisis and standoff with Washington is an "economic war."

Tourists enjoy the views from a high-rise building's observation deck in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP PhotoLefteris Pitarakis)

The dialogue with NATO allies in Europe as well as Russia, seen by many in Washington as a threat to U.S. interests, reflect Turkey's unusual status as a strategic country in a volatile region where world powers have long been deeply involved. Turkey, which has secular traditions and a mostly Muslim population, has generally taken a pragmatic course since the Cold War, staying anchored in Western institutions but also engaging Iran and other regional heavyweights.

In a fresh emphasis on Europe, Erdogan spoke by phone about stability and cooperation with German Chancellor Angela Merkel on Wednesday, and with French President Emmanuel Macron on Thursday. In addition, Turkey freed two Greek soldiers who had been held in a Turkish prison for months. And a Turkish court freed Taner Kilic, an Amnesty International representative who was jailed for 14 months, though the terror-related charges against him were not dropped.

"There is a growing reaction in Europe against the Trump administration's restrictive and punitive economic policies," Ibrahim Kalin, a spokesman for the Turkish president, said in remarks that did not address the difficulties in relations between Europe and Turkey. He said Turkey, France and Germany "are on the same page" in opposing the U.S. move to impose tariffs.

Tourists walk by the Golden Horn in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP PhotoLefteris Pitarakis)

Just last year, during a low point, Erdogan referred to what he called the "Nazi practices" of contemporary Germany.

Washington imposed sanctions on two Turkish government ministers and doubled tariffs on Turkish steel and aluminum imports over the detention of American pastor Andrew Brunson on espionage and terror-related charges. Turkey retaliated with tariffs on some U.S. imports and said it would boycott U.S. electronic goods.

The EU has likewise been subjected to new tariffs on steel and aluminum by the Trump administration, with the bloc responding in kind, though the sides agree last month to try to roll back the punitive duties.

A man checks foreign currency rates at a currency exchange shop in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP PhotoLefteris Pitarakis)

The EU, Turkey's biggest trading partner, provides billions of euros to the Turkish government to help several million Syrian refugees on its soil and prevent them from reaching Europe. But the relationship is also fraught. Turkey has accused European countries of harboring suspected terrorists, while Europe has longstanding concerns about democracy and the rule of law in Turkey.

Turkey's detention of half a dozen German citizens for what Berlin considers political reasons after a 2016 coup attempt has been a major irritant. Another German citizen was arrested Wednesday for suspected links to Kurdish rebels, German news agency dpa reported.

It would be in Turkey's own interest to come to an agreement with the United States and others on the release of foreign prisoners, said Germany's foreign minister, Heiko Maas. Merkel has also said that, while Turkey's economic stability is vital, it is important that the country's central bank be able to operate independently. Some investors are concerned that Erdogan is increasing influence over the central bank to keep it from raising interest rates, a worry that contributed to the recent plunges in the value of the Turkish lira.

A view of the financial and commercial Levent district, where many of Turkey's leading banks and companies have their headquarters, as seen from an observation deck on a nearby building, in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP PhotoLefteris Pitarakis)

Holger Schmieding, an economist for Berenberg bank, said there are limits to what the EU can do to help Turkey.

"A few extra billion euros for Turkey to cope with the Syrian refugee crisis and some small amounts from other EU funds are feasible," he wrote in an analysis. "But such sums would not make a decisive difference."

Schmieding said a bailout by the International Monetary Fund, seen as unlikely at the moment, could become a "realistic option" if Erdogan improves political ties with the EU and the United States and makes a "U-turn" on economic policies.

A man walks out of a currency exchange shop in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP PhotoLefteris Pitarakis)

The $15 billion pledge from Qatar comes as the small nation on the Arabian Peninsula faces its own geopolitical crisis. For over a year, Bahrain, Egypt, Saudi Arabia and the United Arab Emirates have boycotted Doha in a political dispute. Despite facing initial strains in its own crisis, energy-rich Qatar does have the money to spend to help Ankara.

Despite Turkey overtures to Europe this week, experts are braced for more twists and turns.

Angelos Stangos a commentator in Greece's Kathimerini newspaper, says Greek officials should be cautious because Trump and Erdogan are powerful and unpredictable. More instability in Turkey could hurt Greece's tourism industry and lead to increased refugee flows.

People walk past a street vendor offering Turkish flags for sales at a market in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP PhotoLefteris Pitarakis)

"One cannot predict where and how the tension in their relationship will end," he wrote.

Geir Moulson in Berlin and Jon Gambrell in Dubai contributed to this report.

Follow Christopher Torchia on Twitter at www.twitter.com/torchiachris

PARIS (AP) — French President Emmanuel Macron warned Thursday that Europe could “die” if it fails to build its own robust defense as Russia’s war in Ukraine rages on, or if it fails to undertake major trade and economic reforms to compete with China and the U.S.

Macron urged Europeans to become more ambitious in a fast-changing world to face the challenges of war, fierce trade competition, energy scarcity, climate change and increasing authoritarianism.

In a nearly two-hour speech at Sorbonne University in Paris, Macron said that the continent is divided and “too slow and lacks ambition” at a time when the 27-member European Union needs to become a superpower, defend its own borders and speak with one voice if it wants to survive and thrive.

“Our Europe today is mortal,” Macron said. “It can die and that depends solely on our choices,” he added. He called on people to make those choices now because, “it’s today that Europe is between war and peace.”

Russia's full-scale invasion of Ukraine, now in its third year, is an existential threat and Europe isn't armed enough to defend itself when “confronted by a power like Russia that has no inhibitions, no limits,” Macron said.

‘Our ability to ensure our security is at stake," Macron said. “Russia mustn’t be allowed to win.”

Europe now has the “good fortune” of having the Biden administration’s commitment to supporting Ukraine, Macron said. But, in a year of key elections around Europe, in the U.S. and elsewhere, support may fragment or disappear entirely, he added.

“Europe must become capable of defending its interests, with its allies by our side whenever they are willing, and alone if necessary,” Macron said.

Strong armies, a European rapid intervention program and force, tanks, a missile shield and other weapons, produced in Europe, will need the support of “a joint diplomatic force that will speak with one voice and build bridges with Africa and Latin America,” the French leader said.

“Only then will Europe show that it's not a United States’ lap dog, and that it also knows how to talk to other regions of the world,” he said.

France has been a firm supporter of Ukraine in its fight against Russian aggression, and Macron has often clashed with other Western leaders as he has insisted that Europe must stand by the country at any cost. The French president alarmed European leaders by saying recently that sending Western troops into Ukraine to shore up its defenses shouldn’t be ruled out.

Referring to trade practices of China and the U.S., Macron said “the two world powers have decided not to respect the rules of global trade” by shoring up protections and subsides while Europe’s industry remains open and is stuck in overregulation.

“Let’s do the same, we are in competition,” Macron said.

“We must buy faster, we must produce more and we must buy more that is made in Europe. That is key,” Macron said.

Thursday's speech came less than two months before a pivotal European Parliament election.

Macron, an avid advocate of a united and assertive Europe, also rallied support for his centrist Renaissance party before the June 6-9 vote as far-right parties lead the moderate coalitions in the polls. He called for safeguarding democratic values as the “authoritarian model” was becoming “more popular” across the continent.

The war in Ukraine and immigration are top priorities for European Union voters, according to polls. Far-right parties have gained support by criticizing Macron’s government policies on both issues. Macron acknowledged divisions on immigration policies, including on asylum and deportation rules for those who have arrived to Europe illegally.

He emphasized the need for an effective response and Europe-wide coordination for curbing illegal immigration, closer cooperation with immigrants' countries of origin and a unified, relentless fight against human traffickers.

Macron criticized the idea of striking an agreement, as Britain as done, with countries in Africa and elsewhere to transfer immigrants there.

“This is a betrayal of our values that ultimately leads us to dependency on other counties,” Macron said.

The British government earlier this week approved a law allowing the deportation of some migrants who enter the country illegally to Rwanda.

Macron lost his majority in France’s most influential house of parliament, the National Assembly, after the 2022 election to the far-left coalition and the far-right National Rally party.

The social situation in France remains tense as Paris prepares to host the Olympic Games this summer, amid protests from teachers and police officers, and farmer demonstrations in recent weeks. The protests follow huge rallies last year against Macron’s ultimately successful proposal to increase the retirement age from 62 to 64.

Barbara Surk reported from Nice, France. Lorne Cook contributed to this report from Brussels.

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron arrives to deliver a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)

French President Emmanuel Macron speaks during a media conference at an EU summit in Brussels, Thursday, April 18, 2024. European Union leaders on Wednesday debated a new "European Competitiveness Deal" aimed at helping the 27-nation bloc close the gap with Chinese and American rivals amid fears the region's industries will otherwise be left behind for good. (AP Photo/Omar Havana)