Türkiye is “evaluating all options” to boost its air defenses, including the potential purchase of Patriot systems from Washington ⁠or Franco-Italian SAMP-T systems, Defense Minister Yaşar Güler said Tuesday.

For years, Türkiye has been ramping up investments as it seeks to have its own fully fledged missile defenses. It is meanwhile producing components for its integrated, multilayered “Steel Dome” air defense system.

“Our core approach on this issue is clear: We are open to all cooperation that meets our ⁠country’s security needs, that includes technology-sharing ​and joint production, and that is sustainable and in line with the spirit of alliance,” Güler told an interview with Reuters.

Technical and political talks with the relevant countries are taking place “from time to time,” he added.

Güler’s remarks came ahead of a historic NATO summit in Ankara next week.

Türkiye has NATO’s second-largest army and in recent years has significantly cut its external dependence in the defense sector, developing one of the world’s leading defense industries.

European security initiatives

It has also been seeking to join many European initiatives aimed at revamping the continent’s defenses to counter Russia and the risk of a U.S. pullback from NATO.

Güler said that while Ankara, in principle, viewed European steps to strengthen defense and security as positive, these efforts lacked inclusivity and would therefore not be fully effective.

“We believe excluding such an important capacity (Türkiye) from Europe’s defense initiatives is a ​strategically inaccurate approach,” he said, adding that Ankara expected Europe to adopt a “visionary approach” and embrace cooperation with Türkiye.

On Monday, President Recep Tayyip Erdoğan said Türkiye must be included in all of Europe’s defense structures and that defense trade restrictions between NATO members must be removed.

“Türkiye’s indispensable contributions to European security are sometimes overlooked,” Erdoğan told parliamentary delegates from all 32 NATO member states in Istanbul. He said Türkiye wanted “to participate in all defense and security initiatives” on the continent.

At issue is Türkiye’s access to the European Union’s 150 billion euro ($176 billion) Security Action for Europe (SAFE) initiative, intended to strengthen European defense capabilities.

Within SAFE, firms from non-EU countries such as Türkiye, Britain and the United States can only supply up to 35% of the component costs of weaponry funded by the scheme.

If Türkiye wants its companies to be able to tap a bigger part of the funds, Ankara needs to sign a security partnership with the EU and then negotiate special access with Brussels – a process that would require approval from all 27 EU members.

“If we ‌want ⁠to combat the tests we are facing, we must lift restrictions on defense industry trade while carrying out burden sharing in a balanced and fair manner,” Erdoğan said, adding Türkiye was doing its part in terms of reaching ​NATO’s defense spending targets.

Last year, allies ​agreed on a defense spending goal of 5% of gross domestic product (GDP) by 2035.

Güler said Türkiye was committed to that goal and was gradually increasing its spending to meet it, adding that Ankara aimed to meet all its capability targets ⁠by 2029.

He said ‌the priority ‌areas for defense spending were drones, anti-drone systems, air defense and missile systems, naval projects, ⁠unmanned systems and cyber capabilities, adding that the “Steel Dome” integrated air defense ‌system would be completed “as soon as possible.”

The system, first announced in July 2024, foresees integration of locally developed missile batteries, radars, electro-optical sensors, communications modules and command-and-control centers.

It aims to provide integrated protection against low, medium and high-altitude threats through land-based and sea-based air defense platforms and sensors developed at home.

NATO security landscape stance

Türkiye will host 32 NATO leaders, as well ⁠as officials from the Gulf and Asia-Pacific region, on July 7-8 for a summit that it hopes will emphasize alliance unity and bolster deterrence.

U.S. President Donald Trump has threatened to pull his country out of the ​alliance while Washington has moved to withdraw troops, planes, ships and weapons from Europe ​due ⁠to tensions among allies over burden-sharing, defense spending and U.S. complaints about allies’ lack of involvement in reopening the Strait of Hormuz.

Güler said NATO is adjusting ​to a shifting security landscape and suggested that the U.S. is not seeking to leave the alliance.

He said priorities for the summit would be showing allies’ increased defense spending, taking steps towards a stronger transatlantic defense industry, reaffirming unity within the alliance and boosting support for Ukraine.

“NATO continues to be an unparalleled and fundamental platform for Euro-Atlantic security and defense. We evaluate the period we are going through not as a crisis, but as a process of adjusting to the changing security environment,” Güler said.

Washington had “no intention of withdrawing” from NATO, he said, but rather wanted European allies and Canada to assume more responsibility for European security.

“It is expected that contacts and efforts on creating a concrete road map to strengthen the European pillar will intensify at the summit,” Güler said, adding that while Ankara backed a ⁠fairer ⁠burden-sharing scheme, its priority was preserving the unity of the alliance.

NATO has been under unprecedented strain, with some European allies concerned that Washington may withdraw outright or is working to fill gaps from the reduction of U.S. forces.

Güler said Washington played a central role in the bloc’s security and deterrence and that it was of strategic importance to preserve the trans-Atlantic bond.

“NATO’s current nuclear sharing arrangements and the U.S. role of extended deterrence remain fundamentally important to the security of the alliance,” he said.

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Türkiye’s unemployment rate stood at 8.2% in May, unchanged compared to the previous month, the country’s statistical authority said Tuesday.

The number of unemployed people age 15 and over rose by 9,000 month-over-month to 2.88 million, according to the Turkish Statistical Institute (TurkStat).

The jobless rate was estimated at 7.0% for men and 10.5% for women, the institute said.

Youth unemployment, covering the 15-24 age group, climbed 0.4 percentage points to 14.8% in May.

Meanwhile, the number of employed people surged 285,000 from the previous month to 32.46 million, while the employment rate was up 0.4 percentage points to 48.5%.

The labor force participation rate also rose 0.4 percentage points to 52.8%.

The labor underutilization rate, which includes time-related underemployment, potential labor force, and unemployment, was up 0.9 percentage points to 31%.

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Japanese officials reiterated on Tuesday that they stand ready to respond to currency movements, maintaining the unchanged rhetoric despite the yen’s slide to a four-decade low.

The yen accelerated ⁠its decline to hit 162.41 in Tuesday morning trade ⁠after breaching the 162-per-dollar level for the first time since 1986, renewing speculation that Tokyo could intervene in the market at any time.

“It all comes down to being ready to respond appropriately to currency ​moves at any time,” Finance Minister Satsuki Katayama said at a regular news ​conference, ⁠when asked about the yen’s fall past 162 per dollar, repeating language authorities have used consistently.

Responding to a question on whether her sense of urgency has changed, Katayama said her message has remained unchanged.

The references to appropriate action “includes the possibility of decisive measures, as confirmed at a recent online meeting with the United States,” she said.

Government officials have said privately that authorities’ “final warning” on April 30, issued just hours before the last bout of intervention, remains in place, underscoring the risk of sudden action in the currency market.

Tokyo spent a record 11.7 trillion yen ($72.17 billion) intervening in foreign exchange markets between late April and early May.

In a separate press conference, Chief Cabinet Secretary Minoru Kihara said the government will build an economic structure that is resilient to foreign exchange fluctuations while standing ready ⁠to ⁠take action in the market if needed.

Kihara said he would not comment on the current foreign exchange levels, remarks echoed by Katayama.

The yen has remained under downward pressure despite the latest rate hike by the Bank of Japan (BOJ) this month, as the move has done little to alter the fundamental drivers in foreign exchange markets.

Japan’s interest rates remain far below those in the U.S., leaving a wide yield gap that favors the dollar and sustains carry trades, in which investors borrow cheaply in yen and invest in higher-yielding currencies.

The government’s forthcoming annual economic policy blueprint is expected to signal a preference for keeping borrowing costs low, Reuters reported last ⁠week, fuelling concerns that the central bank may be discouraged from raising rates further.

Higher tolerance for a weaker yen?

A persistently weak yen is lifting import costs and stoking price pressures, at a time when the Middle East-driven energy shock has made fuel prices volatile. ​But it also boosts the profits of Japanese exporters in yen terms.

The absence of an intervention is stoking speculation ​that the government’s tolerance threshold for yen weakness has shifted higher.

“If public support for Prime Minister Sanae Takaichi’s government remains intact despite the weak yen, the administration could interpret that as a sign that voters have accepted ⁠a weak ‌yen,” Masafumi ‌Yamamoto, chief strategist at Mizuho Securities, said in a report to clients.

Prashant Newnaha, ⁠a senior rates strategist at TD Securities, said unilateral intervention has so ‌far been ineffective, and policy makers have failed to send clear signals on the possibility of intervention.

“Given the USD’s broad uptrend against global ​currencies, the risk is skewed towards a more ⁠delayed intervention, perhaps within a 163-165 range,” Newnaha said.

On the other hand, some ⁠traders and government officials said room for further yen weakness may be limited in light of lower oil prices ⁠and receding inflation fears in ​the United States.

U.S. jobs data to be released on Thursday could set a fresh direction for currency trends, they said.

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Indian conglomerate Adani Group announced Tuesday that shipping giant MSC will acquire a 49% stake in its deep-water transshipment port in southern India for $1.4 billion.

The purchase by Switzerland-based MSC, the world’s largest container shipping company, represents the “single largest foreign private investment in Indian port infrastructure,” Adani said in a statement.

The agreement comes as India seeks to develop a network of major seaports and reduce its dependence on regional transshipment hubs such as Singapore and Colombo by handling a greater share of cargo domestically.

The Adani Group said MSC would buy the stake in Adani Vizhinjam Port Private Limited, which operates the Vizhinjam International Seaport in the southern state of Kerala.

The transaction will be carried out through MSC’s investment arm, Terminal Investment Limited, and remains subject to regulatory approvals.

The group said the partnership was expected to increase cargo volumes at Vizhinjam and help the port capture a larger share of Bangladesh cargo that is currently routed through other Southeast Asian hubs.

“Vizhinjam port has emerged as a premier transshipment hub and ramped up at an unprecedented pace,” Adani Ports chief executive Ashwani Gupta said in the statement.

Vizhinjam is India’s first dedicated deep-water container transshipment port and is designed to handle some of the large container vessels that currently bypass Indian ports.

New Delhi has outlined plans to build and expand major port infrastructure over the coming decades as it seeks to boost trade competitiveness.

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EU ​trade chief Maros Sefcovic, who held talks with China’s Commerce Minister Wang Wentao ⁠in Brussels on Monday, said ⁠he wanted dialogue to yield “tangible” results by October and another meeting planned in China as the bloc aims to work on a widening gap with the world’s second-largest economy.

Talks were “intensive, ⁠focused and constructive,” Sefcovic told reporters on Monday, adding both national delegations will keep talking during the evening.

“We think that between now and October, our teams have sufficient time to deliver tangible results,” he said. Wang invited him to travel to Beijing in October.

Sefcovic insisted the European Union wants the ⁠talks ⁠to address the widening trade gap.

“Not everything will be fixed, but we think that between now and October, our teams have sufficient time to deliver the tangible results,” he said.

“China’s exports to the EU keep rising, while our market share in China keeps shrinking. This trend is not sustainable and the status quo is not an option,” he noted.

He also said both sides set up groups ⁠to discuss trade balance, export controls, intellectual property and World Trade Organization (WTO) reform.

The assurances given by China that rare ​earth controls will not disrupt EU supply chains is ​positive, he said.

Sefcovic said Wang reassured him that “existing export controls on rare earth and permanent magnets will not disrupt EU supply chains.”

European Union leaders have asked the Commission, which handles trade ⁠relationships ‌for ‌the bloc, to produce results from ⁠dialogue with China, as ‌its trade surplus with the EU hit 360.6 billion euros ($411.95 ​billion) in 2025, ⁠a 15% increase on 2024.

Wang’s visit comes less than two weeks after the leaders tasked the Commission with tackling the issue through talks with Beijing, while simultaneously preparing beefed-up defense measures to protect key sectors.

Brussels fears it will lose certain industries entirely if it does not act against a glut of inexpensive goods made in China, which it says are threatening manufacturers in Europe. It insists on the need for a level playing field, pointing out that Chinese firms have an unfair advantage because of massive state subsidies.

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Türkiye on Monday urged for closer economic cooperation among Islamic countries, saying stronger production partnerships, investment collaboration, logistics, connectivity and integration are needed to boost their share of global trade.

“We need to increase the share Islamic countries receive from the world economy and trade. This will happen not only through efforts we make individually, but also through what we do together,” Vice President Cevdet Yılmaz said.

Yılmaz was speaking at an event held as part of the Islamic Chamber of Commerce and Development meetings in Ankara.

The event, hosted by the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), brought together chamber representatives from 20 Islamic countries.

Yılmaz said the global economy is facing challenges including geopolitical tensions, rising protectionism, supply chain changes, financing constraints, digitalization and the green transition.

He said the Organization of Islamic Cooperation (OIC), which has 57 members, accounts for nearly one-fifth of the world’s population but only 10%-11% of global goods trade, highlighting significant untapped potential.

“This picture needs to change,” he said. “In this context, we need more production partnerships, more cooperation in investments, logistics, connectivity and integration.”

Trade with OIC countries reaches $118B

Yılmaz said Türkiye has played a leading role in advancing economic and commercial cooperation within the OIC.

Türkiye’s economy grew from $238 billion in 2002 to more than $1.6 trillion in 2025, he said. He added that the country’s exports of goods and services reached $396 billion last year and are expected to exceed $400 billion this year.

Türkiye’s trade volume with OIC member countries reached $118 billion last year, while OIC member states have invested $27.3 billion in Türkiye since 2003, he said. Türkiye’s direct investments in OIC countries totaled $15.2 billion over the same period.

Yılmaz said mutual investments should be increased to place trade relations on a stronger foundation.

He also pointed to the work of the Standing Committee for Economic and Commercial Cooperation of the OIC (COMCEC), chaired by Turkish President Recep Tayyip Erdoğan, saying it has supported economic and commercial cooperation among Islamic countries for more than 40 years.

Under COMCEC, 155 technical working group meetings have been held, 119 research reports have been prepared, and 209 projects have been supported, he said.

Yılmaz added that 38 projects have been implemented in Palestine under the COMCEC Al-Quds Program, while the COMCEC Syria Program will be implemented this year.

Intra-OIC trade target still not met

Yılmaz said Islamic countries have not yet reached their target of increasing intra-OIC trade to 25%.

“In fact, even this 25% is low. We need to target much more,” he noted.

He said the OIC Preferential Trade System is one of the most important tools for reaching that goal, while the long-term objective should be to establish a free trade area among Islamic countries.

Yılmaz also underlined the importance of strengthening the OIC Arbitration Center for the fair and independent resolution of trade and investment disputes.

He said the world is moving from a low-cost production model toward resilient economic structures, making ties with nearby and friendly countries more important.

“In this important transformation process, we must increase our cooperation and turn this environment to our advantage,” he said.

Yılmaz said Türkiye is also working to improve its investment climate and strengthen the Istanbul Financial Center (IFC), particularly through participation and Islamic finance instruments.

He welcomed a memorandum of understanding signed between TOBB and the Federation of Saudi Chambers, saying Türkiye and Saudi Arabia have positive economic and political relations.

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