New Medium-Term Program Published

Recent Developments

The Presidential Decree on the Approval of the Medium-Term Program (2025-2027) (“MTP“) issued by the Ministry of Treasury and Finance and the Directorate of Strategy and Budget (“Decree“) was published in the Official Gazette dated 5 September 2024 and numbered 32653 (bis).

With the Decree, the MTP has been updated to cover the years 2025-2027, and macroeconomic objectives and policies to be pursued in economic and social areas have been determined based on the developments in the global, regional and national economy. It is also aimed at ensuring predictability for the public and private sectors.

The Decree is available here (in Turkish).

The objectives set out under the MTP

The MTP broadly sets objectives for growth, employment, price stability, balance of payments, financial stability and public finance policies. In accordance with the aforementioned policies, the main objectives set out by the MTP for foreign trade, healthcare, personal data protection, digital transformation and artificial intelligence, and intellectual property are as follows:

A. Objectives Related to Foreign Trade

The MTP aims to simplify customs and trade procedures and ensure effective trade diplomacy to improve trade capacity and increase competitiveness in foreign trade.

It is anticipated that the transaction capacities of customs authorities and customs gates will be increased, their physical and technological infrastructures renewed in line with needs by considering domestic utilization capabilities, and the efforts to update the Customs Union with the EU institutions maintained.

B. Objectives for Healthcare Sector

The main objectives set out for the healthcare sector are as follows:

• - It is anticipated that local production of products with high added value will be ensured by conducting R&D studies in health science and technologies, especially vaccines, medicines, medical devices, diagnostic kits and artificial intelligence solutions.

• - The support for the trade of FX-generating services based on competitiveness in the healthcare sector will be maintained. In this respect, service capacity in the healthcare  tourism sector will be improved in terms of quality and quantity, and promotional and marketing activities will be increased.

• - The effectiveness of primary healthcare services as part of the health system will be increased, and integration between service levels will be enhanced. Demand control in healthcare products and services and integration between service levels will be enhanced, and appropriate utilization of service levels will be achieved.

• - Audit models based on risk analysis and behavior of service providers in the reimbursement of healthcare services will be developed.

• - The scope of the Health Market Application (tr. Sağlık Marketi Uygulaması) will be expanded, and the supply chain of pharmaceuticals and medical equipment will be further enhanced. To ensure financial sustainability without restricting access to healthcare services, reimbursement criteria through data analysis will be examined, value-based reimbursement methods will be disseminated, and expenditures will be enabled with regard to rapidly increasing groups such as medicines procured from abroad.

C. Objectives Related to the Harmonization Process of Personal Data Protection Legislation with EU Legislation

The harmonization process of the Personal Data Protection Law with EU legislation, particularly the EU General Data Protection Regulation (“GDPR“), is anticipated to be completed by the 4th quarter of 2025 in line with the EU digital economy regulations, especially in aspects affecting the export of goods and services.

D. Objectives Related to the Strategies for Digital Transformation and Artificial Intelligence

The MTP aims to ensure the sustainability of growth by accelerating the digital transformation process and supporting the capacity and capabilities of firms, primarily SMEs, in digital technologies. In this respect:

• - Digital technologies will be used at the highest level across the country to enhance cybersecurity with holistic policies, to make public administration more effective and to improve public services.

• - The infrastructure of the Competence and Digital Transformation Centers (tr. Yetkinlik ve Dijital Dönüşüm Merkezleri) (Model Factories) established to increase productivity will be completed to provide digital transformation services, and their capacities will be increased to provide new services to meet the needs of the manufacturing industry for green transformation.

• - R&D, design, production and commercialization capabilities in the chip industry will be improved.

• - 5G roadmap will be determined, and an application plan will be drafted until the 4th quarter of 2025.

• - Legislative efforts will be pursued for the harmonization with the EU Regulation on Artificial Intelligence.

• - An independent legal regulation on cybersecurity and the necessary secondary regulations will be made in line with the EU regulation.

• - A Cyber Security Strategy and Action Plan, National Data Strategy and Action Plan, and Digital State Strategy and Action Plan will be introduced.

• - To accelerate the transition to a data economy, a national policy framework that includes data ownership as well as data sharing responsibilities and technical methods will be drafted, and data governance regulatory framework and governance infrastructure will be established.

E. Objectives Related to Intellectual Property

To enhance the contribution of intellectual property assets to high-tech and value-added production, the MTP aims to strengthen the valuation, financial access and commercialization mechanisms for patents, trademarks and designs. Furthermore, it will aim to raise public awareness in the field of intellectual property, and the commercialization of the intellectual property rights will be accelerated by developing an ecosystem supporting the establishment of intellectual property rights.

Conclusion

The MTP aims for sustainable growth by strengthening macroeconomic and financial stability, enhancing R&D and innovation capacity, ensuring technological transformation with a focus on transition to green and digital economy, and improving the business and investment environment. The policies and targets set out in the MTP will be a determining factor in the preparation of the public institutions’ budgets, the adoption of legal and administrative regulations, as well as decision-making and implementation processes.