German-Turkish relations are currently dominated by Turkey’s candidacy for accession to the European Union (EU).

German Development Cooperation with Turkey goes back to the 1960s, and started under the Ankara Agreement that was signed between the European Economic Community (EEC) and Turkey. Based on this association agreement, a customs union was formed between the EU and Turkey in 1995. In March 2003 the EU introduced a reviewed accession partnership which prioritises reforms and foresees the granting of financial support. On the basis of this partnership Turkey’s government has developed a detailed national programme to integrate the EU’s body of legislation, the acquis communautaire, into its own legislation. To date the Turkish parliament has met many of the EU requirements governing the legislative aspect of the accession partnership, by implementing seven major reform packages as well as a constitutional amendment.

Besides financial support from the EU, Turkey receives a significant amount of financial assistance from the World Bank and above all the International Monetary Fund (IMF). The existing support agreement with the IMF will be complemented by another agreement in 2004. The Turkish government is currently drafting a corresponding government programme for the period 2005 to 2007. Its main concerns are a medium-term reduction in the public debt, further reduction of inflation, stabilisation of the economic upturn, lowering unemployment, compliance with a stringent financial policy, reform of the tax administration and the financial sector, promotion of privatisation, increase in government revenues and creation of an investment-friendly environment.

Against this economic backdrop, German Development Cooperation with Turkey focuses on the following areas:

At regional level, promotional measures are currently addressing the economically less developed provinces of Turkey.

When preparing, implementing and evaluating technical cooperation projects, GTZ uses a number of instruments to assess the overall impact of the project measures on development.

To support cooperation with Turkey, an "Office for German Development Cooperation – GTZ" was opened in Ankara in 1996. The KfW has been represented in this office since 1998.