Spain intends to buy 15 more Hürjet jet trainers on top of the 30 it has already contracted, Turkish Aerospace Industries (TAI) CEO Mehmet Demiroğlu said Tuesday.

Speaking at an event in Kastamonu, northern Türkiye, Demiroğlu said deliveries to Spain are scheduled to begin in 2028.

“Before we even started deliveries to our Air Force, Spain said, ‘I like it, I want to buy 30,’ and bought them. We signed the agreement,” he said. “We are working toward deliveries in 2028. It is planning to buy another 15.”

The 30-aircraft contract, worth about 2.6 billion euros (nearly $2.9 billion), was announced in late December 2025.

Demiroğlu also highlighted TAI’s production capacity. He said its campus brings together work on the homegrown Kaan fighter jet, the Hürjet and Hürkuş aircraft, helicopters, unmanned aerial vehicles, satellites and aircraft components.

He said testing and production across six different fields are carried out at the same site. He described the facility as a source of national pride and said TAI employs 16,500 people.

On the Hürkuş advanced trainer aircraft, Demiroğlu said deliveries had begun and would continue in the coming years. He named Azerbaijan as an export customer and said TAI hopes to win more overseas orders.

A total of 55 Hürkuş II aircraft are planned to be delivered through 2028, including 12 that are scheduled for delivery by the end of this year.

Demiroğlu said Türkiye’s defense industry successes had raised the country’s international standing and drawn growing interest in its technology.

“In the 2020s, particularly with the successes in the defense industry, tremendous admiration for Türkiye has emerged around the world,” he said. “They admire our products, what we do and our achievements.”

Demiroğlu also described deterrence as a central goal of Türkiye’s defense programs, including Kaan, saying the aim is to strengthen the country’s ability to prevent conflict. He added that both the armed forces and the country as a whole must be prepared for security threats.

“We are not working to wage war. We need to work to avoid war,” he said. “We do not want to use Kaan. We are building it so that we do not have to use it.”

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Trade Minister Ömer Bolat said Wednesday that progress had been made in some areas of efforts to update Türkiye’s customs union with the European Union.

Bolat, speaking to reporters in Brussels, also said Ankara is lobbying hard against restrictions in a planned EU industrial law that could affect Turkish carmakers.

A day earlier, European Trade Commissioner Maros Sefcovic announced progress on two customs-related issues after the High-Level EU-Türkiye Trade Dialogue, and defended the bloc’s “Made in EU” proposals amid differences among member states.

This week’s trip marks Bolat’s third official visit to the de facto capital of the European Union in the past three months and fifth in the past year.

The trade chief held a series of high-level talks, including the trade dialogue with Sefcovic, and attended the Türkiye-EU Business Summit, which was dominated by calls for a modernized customs union, a place in the bloc’s industrial supply chains and a clearer accession perspective.

Customs union update

Bolat said the EU Council has not yet authorized the European Commission to open formal negotiations on updating the customs union, because of the position of some member states.

“Since the relevant issues have come up, the relevant authorities at the European Commission are conducting negotiations with us. We are making progress on a case-by-case basis,” he said.

Bolat said the four main topics of the update are e-commerce, public procurement, investment and agricultural products, and that progress has been made in each.

On public procurement, Bolat pointed to a law that Türkiye’s Parliament passed in July. He said the analysis phase for a bilateral agreement with the EU is complete and technical talks have started.

In digital trade, he said the EU coordinated with Türkiye while drafting its own rules. Türkiye was exempted from EU legislation that took effect on July 1 and imposes a charge of 3 euros ($3.36) per package, he said.

Steps announced after trade dialogue

Speaking at a news conference with Bolat on Tuesday, Sefcovic announced progress in addressing barriers linked to Türkiye’s import control system, TAREKS. He said Ankara had introduced several transparency measures to make the system easier for EU exporters to use.

The two sides also agreed on a mutual recognition agreement covering their Authorized Economic Operator (AEO) programs, which has been published in the EU’s Official Journal. Under the deal, each side will recognize the other’s trusted traders, allowing their goods to benefit from faster border procedures.

“This is a real step forward for smooth trade flows and customs cooperation within the current Customs Union framework,” Sefcovic said.

Industrial policies and ‘Made in EU’

Bolat said Türkiye has worked intensively for the past year on the EU’s regulations proposed under the draft Industrial Accelerator Act (IAA).

He stressed the draft contains restrictive provisions affecting future investment and electric vehicles, particularly in the automotive industry.

Türkiye is conducting intensive diplomacy to have those provisions removed, he said. Turkish officials have set out their expectations clearly to their counterparts and remain in contact, he added.

At the Türkiye-EU Business Summit, Bolat warned that excluding Türkiye from the “Made in EU” initiative would undermine decades of economic integration and established supply chains.

“We respect the (EU’s) ideal Industrial Accelerator Act, which is normal, and we suffer from the same grave concerns about huge imports from third countries. But the solution should not be to exclude trusted partners or the customs union,” he said.

Bolat stressed that Türkiye’s inclusion would serve the interests of both sides, particularly their auto industries and wider manufacturing sectors.

Sefcovic, for his part, said the Commission’s proposals aim to strengthen the bloc’s competitiveness and help it adapt to changing global trade conditions. He said they followed “very thorough reflection” on how to respond to concerns about state subsidies, trade-distorting practices and a European market flooded with goods, amid strong suspicions that some practices did not comply with World Trade Organization rules.

The EU, he said, is seeking new ways to address these challenges while maintaining its commitment to free and fair trade.

Asked about member states’ concerns over the proposed rules, Sefcovic noted that many of the proposals are in the legislative process and will go through the usual procedures in Parliament and the Council. “I believe that the goal is the same: to make sure that Europe is more competitive, stronger, and better fit for the current very volatile trade world,” he said.

The proposal has exposed differences among member states over which countries should qualify. France favors an EU-only approach, while Germany wants eligibility extended to trusted partners such as the United Kingdom, Canada and Japan, with Türkiye also potentially included.

The European Commission has put forward the proposal, and the European Parliament and EU Council are still to make decisions on it, Bolat told reporters on Wednesday.

He cautioned that an unfavorable outcome is possible once politics and parliaments are involved. But many EU officials, he said, believe Türkiye must be included under “Made in EU” rules.

He said the EU is not a single, uniform bloc and contains very different communities and nations, and that the number of friends and partners Türkiye has within it is growing.

“God willing, the result will be a good one,” he said.

‘Win-win relationship’

Bolat said economic ties are just as important for the EU as they are for Türkiye, and that many European partners recognize this.

“They want to continue close and strong economic relations with Türkiye,” he said.

Trade between Türkiye and the EU has grown since the customs union came into force three decades ago to $233 billion, he said. “So this is a win-win relationship.”

Türkiye’s exports to the EU rose 3.9% year-over-year to $81.5 billion in the first nine months of this year, according to official data.

Germany was Türkiye’s top European market, with exports rising 4.2% to $15.4 billion, followed by Italy with $9.6 billion, Spain with $8.3 billion and France with $7.9 billion.

Other leading export destinations included Romania and the Netherlands, with nearly $5.5 billion each, and Poland with $4.8 billion.

Türkiye’s total exports to its top four European markets (Germany, Italy, Spain and France) reached $41.2 billion in January-September.

The auto sector was the main driver of growth, with exports to the EU rising 4.8% to $22.9 billion, followed by the chemicals and chemical products sector with $10.2 billion and the ready-to-wear apparel sector with $7.3 billion.

The German Cabinet greenlit on Wednesday a new tax on sugary drinks, aiming to raise revenue and incentivize manufacturers to make healthier products.

The tax, which still requires parliamentary approval, would apply to sweetened drinks with a total sugar content of at least 5 grams per 100 milliliters. According to the Finance Ministry, these include lemonades, iced teas, energy drinks and fruit juices with added sugar.

Alcoholic drinks, non-alcoholic beers, wines and cocktails would not be affected. Pure fruit and vegetable juices, unsweetened fizzy drinks and those containing sweeteners – so-called zero drinks – would also be exempt.

Two tax bands are planned depending on sugar content. Exemptions are envisaged for small producers, though the precise thresholds have yet to be finalized.

The German government is seeking an exemption for all businesses producing a maximum of 1 million liters per year, but this requires authorization from the European Commission.

The new tax is due to come into force on July 1, 2027. It could generate 690 million euros ($772 million) for the federal government next year, with revenues of 925 million euros projected for 2028 and between 875 million euros and 890 million euros in subsequent years.

The revenue is intended to help keep contributions to the statutory health care system stable. At the same time, the tax is designed to incentivize beverage manufacturers to reduce the sugar content of their products.

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Streaming giant Netflix is laying off 6% of its workforce, or roughly ​1,000 employees, in its biggest cuts since 2022, according to a Reuters report on Wednesday citing an internal memo.

The layoffs come as the ⁠company faces tough competition ⁠for viewers from legacy rivals and YouTube.

The bulk of the job cuts would be in Netflix’s product, tech, legal and human-resources ​teams, the email Co-CEOs Greg Peters and Ted ​Sarandos ⁠sent to employees on Wednesday showed.

“Our mission – to entertain the world – is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” they said in the memo.

“Our business is strong and growing, and we remain on track to deliver our full-year forecast.”

Netflix shares, down around 25% so far this year, rose 0.7% on Wednesday. The company had about 16,000 employees at the end of last year.

This year, the streaming giant has faced ⁠doubts ⁠about its ability to sustain the growth that disrupted the U.S. media industry by putting pressure on cable TV businesses.

Engagement, or the amount of time users spend on Netflix, has become a key concern for investors as platforms such as YouTube and TikTok attract viewers with free-to-watch, user-generated content that gives them a cost advantage over Netflix.

A failed pursuit of Warner Bros. Discovery’s streaming and studio assets earlier this ⁠year deepened doubts about Netflix’s strategy. Paramount completed its $110-billion Warner Bros acquisition earlier this month to form Skydance.

“They haven’t been able to find like another line of major revenue,” ​said Ross Benes, senior analyst at eMarketer, adding the company remains reliant ​on a subscription business that could be approaching a ceiling.

“Eventually, because they’ve kind of nearing a ceiling with that, they’ll need another ⁠revenue ‌stream to ‌diversify, and that’s where it’s been more of ⁠a struggle.”

Netflix has been trying to expand ‌beyond its subscription business by investing in an ad tier, live programming and gaming.

Its last ​major round of layoffs ⁠came in 2022, when it cut about 450 jobs ⁠in two rounds after losing subscribers for the first time in more ⁠than a decade.

The ​Wall Street Journal first reported on Wednesday’s memo.

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Higher interest rates on France’s government debt are an alarm signal for the country, even though Paris retains bond investors’ confidence, the country’s finance minister said Wednesday, as concerns grow over the sustainability of the French budget.

“We have the confidence of the markets in the sense that we have no trouble issuing debt,” Roland Lescure told Franceinfo radio. “But it costs us more, and that is an alarm signal we all need to take on board.”

With investor worries mounting over France’s debt and the ability of the government to pay it down, Paris has to offer higher interest rates on the government bonds it issues to reward investors for the perceived additional risk.

France’s 10-year government bond yield has already neared 5% on the markets in recent weeks.

EU Economy Commissioner Valdis Dombrovskis told Agence France-Presse (AFP) on the sidelines of the IMF-World Bank annual meetings in Bangkok on Tuesday that “it’s important to have clarity about the budget” in France.

IMF chief Kristalina Georgieva warned meanwhile that it “would take time” before France’s debt levels could come down to levels “that are providing confidence – full confidence – to people and to the investor community.”

French public debt is projected to reach a record high of 121.7% of GDP in 2027 under the government’s budget proposal, up from 119% at the end of June.

The budget that the French government is seeking to push through parliament also envisages pushing down the budget deficit to 5% of GDP next year, from an estimated 5.4% for 2026.

But its lack of a majority in the lower house of parliament has made adoption of the budget an uphill struggle.

The situation is further complicated by France’s approaching presidential election, with President Emmanuel Macron, a centrist former investment banker, unable to seek a new term.

Front-running candidate Marine Le Pen of the far right, in an interview with The Financial Times published Wednesday, acknowledged the “gigantic, enormous debt… that could become uncontrollable.”

She wants to impose 140 billion euros in cost-savings that would come partly from slashing the French contribution to the EU budget.

“We know there will be a tough debate, even a trial of strength” with Brussels, she said.

Speaking in Bangkok, Bank of France Governor Emmanuel Moulin called on French political leaders to “shoulder their responsibilities” to ensure the adoption of a budget, in apparent reference to a constitutional provision that allows governments to force through legislation without a vote.

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U.S. consumer inflation jumped more than expected in September, government data showed Wednesday, as the U.S. war with Iran continued to push energy costs higher, deepening strains on American households ahead of next month’s midterm elections.

The uptick underscores voter worries over high costs of living, and comes as President Donald Trump is campaigning in U.S. states to shore up support for his Republican party as it tries to retain control of Congress.

The consumer price index (CPI) rose 3.7% year-over-year in September, the Department of Labor said, more than the 3.6% analysts forecast according to MarketWatch.

This was a notable acceleration from 3.4% in August, in one of the last major economic reports before the Nov. 3 vote.

Inflation picked up pace on a month-over-month basis too, accelerating from 0.4% in August to 0.6% last month.

Gasoline costs accounted for more than half of the jump, surging 9.1% on a monthly basis, Wednesday’s report said.

Energy prices have jumped since the U.S. and Israel attacked Iran in late February, prompting Tehran to block off the Strait of Hormuz, a vital route for oil and gas shipments.

Average prices at U.S. gasoline pumps have surged more than 45% since the Middle East war to $4.33 per gallon, according to AAA data.

Diesel prices have surged even more, by 67.7%, boosting the cost of transporting goods and threatening further spillovers to consumers.

“Again, the Iran-U.S. conflict has led to higher motor fuel costs that everyone is experiencing,” ING economist James Knightley told Agence France-Presse (AFP).

“The U.S. is also seeing substantial increases in airline fares,” he said, adding that this will likely contribute to additional price pressures.

With the underlying U.S. economy remaining strong as massive spending linked to the artificial intelligence sector boosts demand for chips and labor, economists warn that higher costs could continue filtering through to households.

Excluding volatile food and energy prices, core CPI was up 2.6% from a year ago.

But Knightley does not expect the latest report to prompt the Federal Reserve (Fed) to raise interest rates at its Oct. 27-28 meeting.

Several Fed policymakers have suggested “that we don’t need to see back-to-back interest rate increases,” he said, instead leaning towards “a slow and steady” approach.

Industries sensitive to interest rates, like housing, are already under pressure from steeper borrowing costs.

“I think the Federal Reserve just wants to be a little bit careful and cautious in terms of its policy tightening,” Knightley said.

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