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© 2026 Benzinga | All Rights Reserved
October 31, 2025 10:30 AM 5 min read

EU-US Rivalry For Influence With Turkey Heats Up With Jet Deals, Defense Overtures

by European Capital Insights Benzinga Contributor
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The European Union (EU) and the US have moved to forge deeper business ties in Turkey as they vie for influence with the second-largest military in NATO.

"I personally, and the German government, see Turkey as a close partner of the European Union," Merz said alongside Erdogan. "We want to continue smoothing the way to Europe."

Europe Looks to Counter Trump's Influence with Erdogan

The visits by Starmer and Merz came about a month after US President Donald Trump hosted Erdogan. The Brookings Institution described the two leaders as sharing "a worldview about the global order" with “increasingly similar instincts."

Trump praised Erdogan for his strong leadership at home and in the Middle East. Trump refrained from any outspoken criticism about the country's elections and the arrest of a key opposition figure. He focused on US-Turkey business deals for aircraft, a nuclear power plant, and LNG supplies.

"From a European perspective, these developments delineate a striking new US-Turkey relationship," Marc Pierini, a senior fellow at Carnegie Europe, wrote on October 8.

"Trump has given his blessing for a massive purchase of Boeing aircraft by Turkish Airlines, a company usually keen to strike a balance between its two suppliers, Airbus and Boeing,” Pierini said. “Trump is hoping to disconnect Turkey from Russian oil—and perhaps from Russian gas as well."

Starmer, Merz Avoid Mention of Opposition Crackdown

For Starmer and Merz, their visits tried to strengthen EU ties with Turkey and limit Trump's influence on Erdogan. Merz avoided direct mention of former Istanbul mayor Ekrem Imamoglu. He is considered to be Erdogan's rival in the 2028 presidential elections. Authorities jailed him in March.

"Decisions have been made in Turkey that do not yet meet the requirements regarding the rule of law and democracy as we understand them from the European point of view," Merz said. Starmer made no public mention of Imamoglu's imprisonment or the new charges.

Business Trumps Human Rights for Europe

With quarterly economic growth of 0.3% in the UK and zero growth in Germany, Starmer and Merz prioritized trade. The leaders have faced challenges from Reform UK and the Alternative for Germany.

For the UK, the deal will "sustain a 20,000-strong UK-wide workforce," Downing Street said in a press statement. Workers on production lines in Edinburgh, Warton, Samlesbury, and Bristol will the first delivery of the fighter jets by 2030.

The UK, Germany, Italy, and Spain jointly manufacture the Eurofighter Typhoon jets. The UK, led by BAE Systems [BA.L], producers about 37% of each fighter.

The deal is “a new chapter in our longstanding relationship” with Turkey, BAE Systems chief executive Charles Woodburn said. "The investment in defense can fuel significant economic growth and returns across the UK," he added.

US Uneasy Over Fighter Jets for Turkey

Erdogan's pursuit of advanced fighters has strained ties with the US. Turkey got kicked out of the US-led F-35 fighter NATO defense program in 2019. Ankara purchased the S-400 surface-to-air missile anti-aircraft defense system from Russia.

Washington barred Ankara's participation over concerns that Turkey could transfer sensitive F-35 intelligence to Moscow.

Despite Turkey's insistence on readmission into the F-35 program, Ankara hasn’t discussed giving up the S-400 system.

"Turkey's failure to secure the F-35 and F110 engines is both frustrating and self-inflicted," Sinan Ciddi, senior fellow and director of the Turkey program at the Foundation for Defense of Democracies (FDD), said on October 10.

Ankara has "no plan to divest from the S-400s, no pledges to address NATO concerns over Turkish adventurism in the eastern Mediterranean," Ciddi said.

Disclaimer:

Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only. 

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


Posted In:
GovernmentEurozoneEmerging Market ETFsPoliticsGlobalOpinionEconomicscontributorsExpert Ideas

British Prime Minister Keir Starmer and German Chancellor Friedrich Merz pushed for closer defense ties in Ankara this week. Starmer and President Tayyip Erdogan signed a €9 billion deal for the purchase of 20 Eurofighter Typhoon jets on Monday.

The deal "will bolster security across NATO, deepen our bilateral defense cooperation and boost economic growth here and in the United Kingdom," Starmer said in Ankara. Erdogan described the agreement as a "new symbol of the strategic relationship between us as two close allies."

Merz then met Erdogan in the Turkish capital three days later. His visit coincided with reports of German backing for Turkey's participation in a European proposed defense initiative known as the Security Action for Europe, or SAFE. The EU designed the €150-billion program to enhance the continent's military capabilities.

NATO Military Sizes by Nation With Russia & Ukraine Comparison: Source

A day after their meeting, The Boeing Co. (NYSE:BA) and Turkish Airlines announced a firm order for up to 75 787 Dreamliners. The deal included 35 of the 787 9 model, 15 of the larger 787 10, and options for 25 787 Dreamliners. The order will support more than 123,000 US jobs.

Prosecutors filed new "espionage" charges against Imamoglu on the day that Starmer and Erdogan signed the deal for the Eurofighters. Prosecutors allege Imamoglu's connection to a Turkish businessman accused of being a UK spy.

Human Rights Watch had urged Merz to speak out against Turkey's crackdown on the opposition. Starmer's spokesman said that London expects Ankara "to uphold its international obligations and the rule of law."

"I hope the F-35 issue will be resolved," Erdogan said on October 8, referencing his Trump talks. "We must achieve this. Our visit has ushered in a new era in Turkish-US relations and further strengthened the dialogue and friendship between us."

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