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Turkey has inched closer to fulfilling reforms required by the European Union before membership talks with the bloc can begin, with the country’s top advisory council recommending an end to emergency rule in the southeast of the country.

As Turkey pursues a strict regiment of fiscal belt-tightening and structural reforms, Foreign Direct Investment (FDI) languishes in the malaise of existing political and economic uncertainty and bureaucratic strictures.

Turkey has had a roller-coaster couple of weeks, with strong industrial output data on May 8th raising hopes that reform targets can be met, only to be followed by uncertainties over Prime Minister Bulent Ecevit's health problems, which pushed markets down.

Amongst the most important pledges from the Turkish government to the IMF, which is due to begin another review on May 15th, is that to complete an audit and re-capitalisation of private banks.

Ankara’s need to accelerate the rate of privatisation was reinforced on May 7th as the IMF presented a substantial list to the government outlining needed reforms, including increased privatisation, audit of private banks, restructuring of corporate debt, tax reform, government staff cuts, and increased foreign investment.

Always vociferous in its support for the Palestinian cause, the UAE has drawn the line at supporting an oil embargo, as proposed by Iraq in early April.