Turkey's central bank taking a stand to improve the economy

Turkey has been facing a lot of economic turmoil recently. Inflation has been rising at startling rates and currently stands at 7% and the value of the lira (the money used in Turkey which used to be the monetary unit of Italy, Malta, San Marino and the Vatican City before they replaced it with the Euro) falls. In an attempt to rectify this situation on Tuesday January 28^th Turkey’s central bank raised interest rates from 4.5% to 10%. The Prime Minister Recep Teyyip Erdogan had threatened the bank that they would be held accountable for any impact the increase in interest rates would have but the bank went ahead with the increase anyways. Mr. Erdogan does have some hopes that increased rates would help. Tuesday morning saw an increase of the lira by 3.6%, when it had already lost 30% against the US dollar the past year 3.6% in one day is a good first step.

Turkey has attracted a lot of concern from other countries as it has a huge account deficit, 80% of which is being financed by short-term capital. Along with its unpredictable politics many states and companies are beginning to question whether Turkey’s economy is in trouble. This move by the central bank, refusing to heed the warnings of Mr. Erdogan may be what Turkey’s economy needs to slow down and lower inflation rates. It also shows that the central bank is now finally catching up with the times and is now talking about increasing lending rates to 12% if things do not improve. This may be just what Turkey needs to get the lira out of its slump and increase companies confidence in their economy, but this remains to be seen.

Every country in Western and Eastern Europe is suffering from at least some minor forms of economic turmoil. Every country that can afford to/ achieve at bailing themselves out is one more country that can help all of Europe recover from the economic struggle it is currently in. The more economically stable members NATO has the better it can function because it will have more funding to create helpful projects and dole out aid. 

http://www.ft.com/cms/s/0/428393a4-8876-11e3-85a2-00144feab7de.html#axzz2rwVtxxs6

Poland Dragging their Feet on "Green Energy"

In the "New York Times" article, "Poland, Wedded to Coal, Spurns Europe on Clean Energy Targets" Poland demonstrates their dependence upon coal and fossil fuels for their countries energy. Much of the European Union is pushing to reduce greenhouse gas emissions and transfer to more sustainable mechanisms, following Germany's lead. However, Poland does not feel as if they are in the financial position to be able to do this and have a long bond with coal. It is important to note that Poland is no longer self-sufficient with coal (importing a good amount from Russia) and citizens are protesting the resulting air pollution from coal use.

http://www.nytimes.com/2013/11/01/business/energy-environment/poland-wedded-to-coal-spurns-europe-on-clean-energy.html?pagewanted=1&_r=0