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Istiklal street near Taksim Square in Istanbul. Also at stake in the dispute between Germany and Turkey is the future of a refugee deal between the European Union and Turkey. Image Credit: Bloomberg

BERLIN, ANKARA

Germany and Turkey traded barbs over democratic values as relations between the Nato allies slumped to their lowest ebb of the postwar period.

Chancellor Angela Merkel’s veteran finance minister, Wolfgang Schaeuble, compared Turkey to the former communist East Germany, while Turkish Foreign Minister Mevlut Cavusoglu said his country wouldn’t give in to threats or “blackmail.”

The tit-for-tat escalation underscores what Turkey called a “serious crisis of confidence” with Germany that threatens to harm trading ties worth more than $36 billion last year. After months of discord over Nato troop visits, imprisoned journalists and Turkish barbs peppered with Nazi references, tensions came to a head this week over the detention of a German human rights activist.

Turkey’s unwillingness to meet even basic consular standards “reminds me of how it used to be in the GDR,” Schaeuble said in an interview published Friday in Bild newspaper, referring to East Germany. “It was clear to whomever travelled there: If something happens to you, no one can help you. If Turkey doesn’t stop this game, we’ll need to tell people that you travel there at your own risk, we can no longer offer you guarantees.”

German ‘Reorientation’

This week’s flare-up was prompted by Turkey’s arrest of German rights activist Peter Steudtner and five others on the grounds that they were part of a terrorist organisation — an act denounced by Merkel as “absolutely unjustified.”

German Foreign Minister Sigmar Gabriel on Thursday announced a “re-orientation” of German policy toward Turkey, warning companies against doing business in the country and issued revised guidelines for travellers. German business groups, including the BGA exporter lobby, immediately warned of a “significant drop” in sales to Turkey.

“Germany knows very well that the Turkish people have never bent in the face of any threats or blackmail,” Turkish Foreign Minister Mevlut Cavusoglu said later that evening. “We will evaluate these threats made to us with the same state seriousness and we will of course respond.”

Refugee Deal

The rapidly escalating situation affects two Nato allies that are mutually dependent. Germany is Turkey’s largest trading partner, while ethnic Turks make up Germany’s largest minority. More than 6,800 German firms are currently operating in Turkey, according to the German-Turkish chamber of commerce.

At stake is also the future of a refugee deal between the European Union and Turkey. Merkel was key in pressing for the accord with President Recep Tayyip Erdogan under which Turkey keeps mainly Syrian refugees in the country in return for billions of euros in aid and progress toward EU membership.

“This is the worst crisis between Turkey and Germany since World War II, when Turkey and Germany took their places on the opposite camps even though Turkey did not enter the war,” Huseyin Pazarci, a professor of international relations who lectures at Near East University in northern Cyprus, said by phone from Ankara. “Political and trade relations with Germany have been steadily improving since it began receiving Turkish workers in 1960s.”

Tourism Declines

As Erdogan has cracked down on dissent since a failed coup last year — sacking or jailing more than 100,000 supposed followers of the cleric Turkey says organised the putsch attempt — Germany has been a prime target of his wrath.

The Turkish leader resorted to Nazi references when attacking Germany for stopping his officials from campaigning among Germany-based Turks ahead of a critical referendum, contributing to a 25 per cent decline in German visitors to Turkey so far this year.

Turkey’s actions show that it’s “departing from the basis of European values,” Gabriel told reporters in Berlin on Thursday.

“We can’t go on as we have before,” he added. “We have to be clearer than before so that those in charge in Ankara understand that such a policy won’t be without consequences.”

German meddling

Turkey is blaming Germany for harbouring terrorists, including members of the Gulenist movement it accuses of leading the coup as well as the autonomy-seeking Kurdish PKK, Pazarci said. “Turkey is very much disappointed over the lack of cooperation from its main allies, including the US and Germany, on that front, and the more its demands are ignored, the more the Turkish government is adopting a tougher tone.”

Caught in the crossfires, Germany’s BGA exporters signalled the threat over business is real, saying that companies had already halted investment. At 22 billion euros ($25 billion) in deliveries of mostly auto parts and chemical products, Turkey ranked in 15th place last year, BGA said. By contrast, Turkish exports to Germany of some $14 billion made it the No. 1 destination for foreign sales, ahead of the UK, Italy and Iraq.