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Yeni Safak, a staunchly pro-government newspaper, published a front-page story on Monday sharply criticizing Treasury and Finance Minister Mehmet Simsek’s economic policies, particularly the aggressive interest rate hikes seen under his tenure.
Simsek is largely seen as a savior of the Turkish economy for his high reputation on the international stage. Simsek and President Recep Tayyip Erdogan's economic policies are known to be fundamentally at odds. Erdogan traditionally argues that inflation is caused by high interest rates. One might speculate how Simsek comments on Erdogan’s publicly known views in private, but so far, Erdogan has allowed Simsek to work independently until now, unlike previous economic officials.
Yeni Safak's coverage indicates that a camp within the government is now openly opposing Simsek, moving beyond private criticism to public dissent.
Yeni Safak's article claims that Türkiye’s shift to orthodox monetary policy, led by Simsek and supported by the central bank, has failed to deliver the promised results in fighting inflation and has instead severely burdened the economy.
“Despite all the challenges Türkiye faced—from the COVID-19 pandemic and the war in Ukraine to the February 6 earthquakes and two elections—the country managed to grow with low interest rates,” the paper wrote. “But for the last 24 months, Türkiye has been struggling under high interest rates.”
According to Yeni Safak, the rising interest rates have led to a sharp decline in industrial production, business closures, and layoffs in labor-intensive sectors. The article added that inflation, despite tightening policies, remains stubbornly high—peaking at 75.45% in May 2024 and dropping only to 37.86%.
The paper also pointed to a spike in bankruptcy filings and debt-related stress on businesses. It reported that 782 companies filed for bankruptcy in the first four months of 2025 alone, compared to 1,723 in all of 2024.
The newspaper predicts that total debt-related interest payments by the end of 2025 could approach ₺2 trillion ($51 billion).
Meanwhile, opposition leader Ozgur Ozel of the Republican People's Party (CHP) recently claimed that Simsek is considering resigning and may already be planning his next steps. "Those who believe he will leave are already offering themselves as replacements," Ozel said, adding that Yeni Safak appears to be signaling its preferred candidate—allegedly referring to a relative of President Erdogan.
The criticism is notable given Yeni Safak’s close alignment with the ruling Justice and Development Party (AK Party). The rare public rebuke may refer to a growing tension within the government over the direction of economic policy amid ongoing public dissatisfaction with high inflation and weak growth.
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