EU’s proposal to Türkiye can help cost-saving in payments system
The European Union (EU) proposed that Türkiye join its cost-saving payments system, in a move aimed at boosting economic integration and lowering the cost of cross-border money transfers.
Jurgis Vilcinskas, EU Chargé d’affaires in Türkiye, said Marta Kos, European Commissioner for Enlargement, discussed the proposal with Turkish Foreign Minister Hakan Fidan during a meeting in Ankara last month.
The EU’s 41-country Single Euro Payments Area (SEPA) is designed to make Euro-denominated cross-border payments cheaper, faster and more secure. The bloc said smaller candidate countries including Albania, Moldova, Montenegro and North Macedonia, which joined the system last year, could collectively save up to 500 million Euros (about $573 million).
Türkiye’s position on the proposal remains unclear
A Turkish diplomatic source confirmed that the offer was conveyed during Kos’ visit to Ankara on Feb. 6, noting that the issue falls under the jurisdiction of the Finance Ministry, which has not publicly commented.
Under the SEPA system, Turkish banks could lose revenue from transfer fees, which vary widely. A transfer of between 1,000 Euros and 5,000 Euros between Türkiye and Europe can cost around 40 euros, according to Western Union.
As a side note, Europe remains Türkiye’s largest trading partner, with annual trade volume exceeding 200 billion Euros. While EU accession talks have been effectively stalled for years, both sides have expressed interest in modernizing their customs union and strengthening economic ties.
Trade Minister Ömer Bolat recently reiterated Ankara’s goal of updating the decades-old customs framework to better reflect current economic conditions. Türkiye has also been included in the EU’s “Made in Europe” industrial policy initiative, a step seen as reinforcing bilateral economic cooperation.
A Turkish banking source said SEPA could deliver significant savings, particularly for the large Turkish diaspora across Europe.
Separately, Odile Renaud-Basso, Head of the European Bank for Reconstruction and Development, said in an interview this month that the system would “basically make transactions cost-free.”
Opening image: ChatGPT
