The European Union pitched to Türkiye last month the idea that the candidate for bloc membership could join a cost-cutting payments system to boost integration efforts and benefit those sending money abroad, the EU envoy to Ankara told Reuters.
Jurgis Vilcinskas, the bloc's chargé d’affaires in Türkiye, said European Commissioner for Enlargement Marta Kos discussed the proposal with Foreign Minister Hakan Fidan, when the two met last month in Ankara.
The EU says its 41-country Single Euro Payments Area (SEPA) makes cross-border euro-currency payments cheaper, faster and more secure. Users in far smaller Balkan candidates Albania, Moldova, Montenegro and North Macedonia, which adopted the scheme last year, could save up to 500 million euros, it said.
"SEPA could present a valuable opportunity to strengthen Türkiye's economic integration as a candidate country and a key trade and economic partner of the EU," Vilcinskas told Reuters in a response.
It could generate "significant savings annually for Turkish businesses, consumers and diaspora by making cross-border transfers in Euros as fast and as cheap as domestic ones," he said.
Ankara's view on the matter is unclear.
A Turkish diplomatic source confirmed that during Kos' February 6 visit an offer had been conveyed to Ankara, adding the SEPA issue was under the jurisdiction and coordination of the Finance Ministry, which did not comment on the matter.
STEPS EYED TO BOLSTER ECONOMIC TIES
Under SEPA, Turkish banks could stand to lose revenues on transfers, which vary widely based on size. A Türkiye-Europe transfer of 1,000 euros to 5000 euros can cost 40 euros, according to Western Union.
Europe is Türkiye’s largest trading partner with more than 200 billion euros in volume. With bloc membership talks effectively stalled for years, both say they want to modernize their customs union and move to boost economic ties.
Vilcinskas said Türkiye would need to comply with the EU's Payment Services Directive, including strengthening its anti-money laundering and data protection rules, adding that the Commission was ready to support Türkiye in any SEPA endeavor.
SEPA could bring "significant" savings, especially for the large Turkish diaspora across Europe, a Turkish banking source said.
In an interview this month, Odile Renaud-Basso, president of the European Bank for Reconstruction and Development, said SEPA would "basically make transactions cost-free".
