Prime Minister Mesut Yilmaz on 7 July said combating inflation and accelerating privatisation would be the priorities of the new government's economic policy. Presenting the government's programme to parliament, he also stressed a commitment to secularism and broadly pro-West policies. Parliament is scheduled to debate the programme on 10 July ahead of a confidence vote two days later.

The programme promises to introduce an extension to eight from five years of mandatory state elementary education. This was a key demand by the military aimed at curbing Islamist schools, and was strongly resisted by the Welfare Party (Refah), the party of former prime minister Necmettin Erbakan.

Yilmaz also reaffirmed Turkey's aspiration for full membership of the EU, saying it was not just a goal but a right based on previous agreements. Legislation will be passed to harmonise practices with those of the EU customs union, he said.

New Finance Minister Zekeriya Temizel has announced revised economic targets for 1997. They include: an upward revision of gross national product (GNP) to $189,197 million from $187,852 million, implying GNP growth of 5.5-6 per cent from a previous target of 4 per cent; a $500 million reduction in the trade deficit to $20,000 million; and a reduction of the current account deficit to $4,000 million-4,500 million from $5,600 million.

The new government aims at an end-1997 budget deficit of TL 2,400 million million ($16,000 million) after introducing a supplementary budget of TL 2,000 million, Temizel said at an 8 July press conference in Ankara.

The government will also reform the social security system and accelerate privatisation, he said. Both measures are key reforms urged by the IMF and the World Bank for long-term economic stability. The government will seek to generate $4,000 million in privatisation revenues by the end of 1997, Temizel said.