COMPOSITION OF THE EU

★ Found in 1993

★ 28 member states (To Be 27)

★ Population of about 513.5 million

★ 24 official languages

★ Nominal GDP of $19.67 Trillion (2017)

EU OBJECTIVES

EU AIMS
★ the promotion of peace and the well-being of the
Union´s citizens

★ an area of freedom, security and justice without

internal frontiers

★ sustainable development based on balanced economic

growth and social justice

★ a social market economy - highly competitive and

aiming at full employment and social progress

★ a free single market

Who takes the decision ?

★ The EU Parliament:
represents the EU's citizens and is directly
elected by them

★ The European Council:

consists of the Head of State or Government of
the EU Member States

★ The Council:
represents the governments of the
EU Member States

★ The EU Commission:
represents the interests of the EU as a whole
SWOT ANALYSIS - EU

STRENGTHS

★ Allied front against outside aggression

★ More Jobs & Higher Wages because of EU

★ Industrialisation evolution due to EU

SWOT ANALYSIS - EU

WEAKNESSES

★ Lack of transparency at times

★ EU favors larger countries at the expense of the smaller

★ Taxation structure doesn’t encourage development of new

businesses
 SWOT ANALYSIS - EU

OPPORTUNITIES

★ Improving SME’s access to finance & markets

★ Most open market to developing countries in the world

SWOT ANALYSIS - EU
THREATS

★ Internal Threats

★ Concern over America’s new direction

European Monetary System

★ Established in 1979 under the Jenkins European Commission

★ Formed to avoid large scale currency fluctuations and protect

the member nations’ currency from the fluctuating dollar

★ Participating Nations: Belgium, France, Denmark, Ireland, Italy,

Luxembourg, Netherlands, Germany, Spain, U.K.

★ The European currency “Snake” - Exchange Rate Mechanism

★ European Currency Unit

★ Exchange Rate Mechanism II

The Problem
★ CAD and Foreign currency debt

★ Imports > Exports

★ Huge capital inflows to fund projects

★ Low foreign currency reserves

Current Account Deficit
(in billion)
★ Ambiguity of investors 2016 2017 2018

★ Stock market fell by 17% $ 33.1 $ 47.3 $ 51.6

★ Govt. borrowings increased by 18%

★ Inflation hit 15%

Bad Relations with the U.S.

★ Worsened relations with Donald Trump’s administration

★ Justice &Interior Minister hit with sanctions

★ U.S. pastor Andrew Brunson held for 2 years

★ Shifting Allegiance by President Erdogan

SWOT ANALYSIS - TURKEY

STRENGTHS

★ Large, dynamic internal market

★ Young, growing population

★ Attractive geographical location

★ Well developed industrial base

★ Motivated workers
SWOT ANALYSIS - TURKEY

WEAKNESSES

★ Internal & geopolitical instability

★ Inefficient education & legal system

★ Heavy bureaucracy

★ High import dependency of the industry

 SWOT ANALYSIS - TURKEY

OPPORTUNITIES

★ Regional energy rotary disc

★ High interest in renewable energies & energy efficiency

★ Massive expansion of energy & transport infrastructure

★ Opportunities for the local production of high-quality goods

★ Interest in Industry 4.0

SWOT ANALYSIS - TURKEY
THREATS

★ Possible erosion to Turkey’s competitiveness

★ Dependence on EU markets

★ Rapid growth in China & India

€/$ PAIR (3 YEARS)
Data on Weekly basis:
Closing Price
2019 2018 2017
Maximum 1.1465 1.2453 1.2030
Minimum 1.0994 1.1301 1.0557
Mean 1.1236 1.1793 1.1345
Standard Deviation 0.0115 0.0371 0.0511

Closing price
2019 2018 2017
Maximum January January September
Minimum August December February

3 years Standard Deviation 0.0457

Maximum 1.2453
Minimum 1.0557
Mean 1.1482
 1.10625
Aug-19
1.09934
Jul-19
1.10762
Jun-19
1.13693
May-19
1.11682
Apr-19
1.12151
Mar-19
1.12175
Feb-19
1.13704
Jan-19
1.14473
Dec-18
€/$ Closing Price (Jan' 2017 to Aug' 2019)

1.14673
Nov-18
1.13154
Oct-18
1.13133
Sep-18
1.16028
Aug-18
1.16081
Jul-18
1.16901
Jun-18
1.16824
May-18
1.16928
Apr-18
€/$ PAIR (3 YEARS)

1.20801
Mar-18
1.23262
Feb-18
1.2194
Jan-18
1.24135
Dec-17
1.19978
Nov-17
1.19037
Oct-17
1.16454
Sep-17
1.18165
Aug-17
1.19088
Jul-17
1.18406
Jun-17
1.14193
May-17
1.12427
Apr-17
1.08991
Mar-17
1.06579
Feb-17
1.05768
Jan-17

1.3

1.2

1.1

1
1.25

1.15

1.05
EXCHANGE RATE
 1.08891
Aug-19
1.09087
Jul-19
1.11322
Jun-19
1.11789
May-19
1.13859
Apr-19
1.12174
Mar-19
1.1352
Feb-19
€/CHF Closing Price (Jan' 2017 to Aug' 2019)

1.14017
Jan-19
1.12414
Dec-18
1.13013
Nov-18
1.14283
Oct-18
1.14271
Sep-18
1.12448
Aug-18
1.15011
Jul-18
€/CHF PAIR (3 YEARS)

1.16274
Jun-18
1.15164
May-18
1.19645
Apr-18
1.17789
Mar-18
1.15539
Feb-18
1.1601
Jan-18
1.12414
Dec-17
1.13013
Nov-17
Data on Weekly basis:

1.14283
Oct-17
1.14271
Sep-17
1.12448
Aug-17
1.15011
Jul-17
1.15696
Jun-17
1.15164
May-17
1.19645
Apr-17
1.17549
Mar-17
1.15539
Feb-17
1.1601
Jan-17

1.2

1.1
1.25

1.15

1.05
EXCHANGE RATE