Germany: Merkel Facing Humiliation as Turkey Plots Purchase of Deutsche Bank
BELEAGUERED Angela Merkel (pictured, right) is facing political and diplomatic humiliation with Turkey set to take advantage of Germany’s economic woes to buy out its biggest bank.
Ankara’s strongman leader Recep Tayyip Erdogan (pictured) wants to take a controlling stake in the ailing Deutsche Bank, creating a nightmare scenario for Mrs Merkel.
Stunned German media reported he could even change its name to Turkish Bank in what would surely be a fatal political blow to the reeling Chancellor.
Berlin has descended into panic over the collapse of Deutsche Bank’s shares which have lost almost half of their value this year, prompting fears of a European financial crash to match 2008.
On top of that, the prospect of Turkey’s controversial president buying up Germany’s biggest bank would provide a severe political headache for Mrs Merkel.
It would give Mr Erdogan a hugely influential stake in the German economy at a time when he already has the Chancellor over a barrel due to the migrant crisis she exacerbated.The potential buyout was announced in a tweet sent out today by the Turkish leader’s influential chief advisor, Yigit Bulut.
He sent a message to his boss asking him: “Wouldn’t it make you happy if the Deutsche Bank would become the Turkish bank?”
Economic experts have said Turkey could finance such a takeover either through a sovereign wealth fund or by proxy via its network of state-owned banks.
And more worryingly still, Mr Bulut hinted that Ankara’s ambition may not stop at Deutsche Bank, saying Turkey could take advantage of the EU’s dire economic situation to buy up a whole host of influential counties.
He urged Mr Erdogan to “be ready” for the eventuality that other European financial institutions would be driven to the brink of collapse, such as Germany’s second biggest bank Commerzbank and a plethora of Italian firms.
The development is hugely concerning for Brussels, which has significantly cooled relations with Turkey in light of the purge which followed a failed coup earlier this year.
Both parties are locked in an escalating power struggle, with Mr Erdogan pressing for more and more concessions from Europe in return for his help in dealing with the migrant crisis.
Over the summer Brussels and Ankara signed a pact under which Turkey agrees to stop the flow of refugees across to Greece, with its 80million citizens getting visa-free travel to the Schengen zone as a result.
The deal was largely championed by Mrs Merkel who is desperate to bring the numbers of migrants down after her party took an unprecedented battering in recent elections.
The German leader recently described the deal as a great success and reaffirmed her commitment to it, guaranteeing Mr Erdogan’s continued influence over the EU for the foreseeable future.
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