Türkiye in Focus 21-25 September 2026
In this week’s Türkiye in Focus;
- President Erdoğan has renewed Türkiye’s call to reform the UN Security Council, including ending the veto power of its permanent members.
- Recent volatility, confined to a small segment of Türkiye’s investment-fund market, has highlighted new measures to strengthen oversight and transparency.
- Mansur Yavaş’s resignation from the CHP adds a new dimension to the ongoing realignment within Türkiye’s opposition.
Erdoğan Calls for Reform of the UN Security Council Veto System
President Recep Tayyip Erdoğan’s participation in the 81st United Nations General Assembly in New York has once again brought Türkiye’s longstanding call for reform of the international system to the forefront. Building on his longstanding calls for a fairer world and his assertion that “the world is bigger than five”, President Erdoğan placed the abolition of the five permanent UN Security Council members’ veto power at the heart of this year’s reform proposal.
The Turkish President elaborated on his reform proposals in an article for Bloomberg, arguing that merely expanding the number of permanent members would fall short of meaningful reform. Instead, he advocated a system that gives elected members greater influence and better reflects the evolving international balance of power. His proposals attracted international attention, with Russia expressing support for broader Security Council reform while favouring the retention of the existing veto system.
The call also reflects Türkiye’s broader diplomatic efforts to bring greater international attention to conflicts and grievances that are overlooked. Erdoğan again placed Gaza and the question of Palestinian statehood prominently in his UN address, calling on the international community to recognise Palestine and take stronger action. At the same time, the emphasis on a more representative international system reflects Türkiye’s support for a more multipolar global order, in which decision-making is not concentrated among a small number of major powers.
The prominence of these messages also reflects the evolution of Türkiye’s foreign policy over the past two decades. Through an increasingly active diplomatic presence across regions and engagement on issues ranging from Gaza and Syria to Ukraine and the Black Sea, Türkiye has sought a more visible role in international affairs. Erdoğan’s UN speeches have become a main platform for articulating this approach, combining calls for institutional reform with positions on major international crises. Domestically, this assertive international posture has also found support beyond the government’s traditional political base, with some opposition voices and commentators expressing appreciation for Türkiye taking a more prominent role on the global stage. This suggests that, despite continuing political differences within Türkiye, there is a broader interest in seeing the country act as an influential global player and have a greater voice in shaping international affairs.
Investment Fund Turbulence Amid Tighter Regulation in Türkiye
Recent volatility in Türkiye’s capital markets is increasingly being viewed in the context of a regulatory process that has been under way for months. The Financial Stability Committee, chaired by Finance Minister Mehmet Şimşek, first took up the issue in December 2025 after regulators identified unusual price movements in certain thinly traded shares linked to some investment funds. The Capital Markets Board (SPK) subsequently began work on a new framework to strengthen transparency, protect investors, and limit the scope for market manipulation through investment funds. Following several months of consultations and preparatory measures, the framework was finalised and announced on 28 August, marking the latest stage in a broader effort to strengthen oversight of the sector.
The implementation of the new framework has since shed further light on areas of the fund market where additional improvements may be needed. The authorities have stressed that the problems are concentrated in a limited number of portfolio-management companies and funds, rather than reflecting a broader structural problem in Borsa İstanbul or Türkiye’s capital markets. On 17 September, the SPK ordered the liquidation of funds managed by seven portfolio-management companies, later clarifying the number at 131 funds. The regulator later extended the liquidation period from three to six months, allowing assets to be sold with greater consideration for individual portfolio structures and prevailing market conditions. The Financial Stability Committee has likewise described the situation as temporary and manageable, while taking measures to ease liquidity pressures and limit the risk of contagion.
The developments have also moved beyond regulatory action into the judicial sphere. Investigations launched following SPK findings now include suspected market fraud and possible money-laundering offences, with financial authorities examining transactions involving companies and individuals linked to the case. On 23 September, authorities arrested five senior figures connected to Tera and Pusula as part of the ongoing investigation. The allegations remain subject to judicial proceedings, but the combination of tighter regulation, closer financial scrutiny and legal action points to a broader effort to address weaknesses in the market as they emerge. While the process may continue to create short-term volatility, stronger oversight, greater transparency, and clearer rules could, in the longer term, reinforce investor confidence and support Türkiye’s efforts to develop a more resilient and attractive capital market.
Mansur Yavaş Resigns from the CHP
Ankara Mayor Mansur Yavaş has long been one of the most prominent figures in Türkiye’s opposition, alongside Istanbul Mayor Ekrem İmamoğlu, who is currently in prison on allegations including corruption and was widely regarded as a potential presidential candidate ahead of the 2023 elections. Yet, his reluctance to openly pursue or reject such ambitions, combined with the deepening divisions within the opposition, gradually weakened the momentum around his candidacy. The recent split within the CHP has, however, given Yavaş’s previously cautious position a new political context. While several MPs and mayors left the CHP to join Özgür Özel’s newly established New Party, Yavaş remained in the CHP and continued to emphasise unity and dialogue across the opposition divide. His decision to remain outside both camps has now taken a more concrete form.
The turning point came after Yavaş met with President Recep Tayyip Erdoğan on 9 September. Yavaş subsequently said that both CHP Chairman Kemal Kılıçdaroğlu and New Party leader Özgür Özel had been informed of the meeting, amid speculation over his political intentions. After CHP spokesperson Müslim Sarı criticised Yavaş for informing the leader of another party, Yavaş resigned from the CHP on 23 September and announced that he would continue his political career as an independent. Some political commentators have interpreted the move as an attempt to preserve space for Yavaş as a potential unifying figure, including in the event of a future opposition-wide presidential candidacy. Whether such a role can emerge, however, will depend not only on Yavaş but also on his future relationship with the CHP leadership, the position of İmamoğlu and his political camp, and the direction taken by Özel’s New Party. His resignation therefore marks a shift from a largely passive form of political neutrality towards a more active independent position. However, whether this can develop into a broader political role remains an open question.
Highlights
- President Erdoğan also held a series of diplomatic meetings during his visit to the US for the UN General Assembly. The President attended Trump’s reception for world leaders in New York. He also met with the UN Secretary-General and the leaders of several countries, including Qatar, Bangladesh, Senegal, Lebanon, Kosovo, Armenia, Georgia, Iraq, the UK, Ukraine and Japan. First Lady Emine Erdoğan, meanwhile, addressed the opening of Climate Week in New York.
- In a joint statement, Türkiye and Iraq announced an agreement for Türkiye to gradually withdraw its military presence from the Bashika-Zilkan area in parallel with efforts to end the presence of outlawed armed groups in Iraq’s Sinjar region.
- An attack in Manisa shortly after the start of the new school year left 11 students injured, prompting the Ministries of National Education and Interior to take an active role in the response.
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