European “Digital Industry” Awaits Recession

State Support is a Priority for European and Turkish Companies

A research report was prepared by DIGITAL EUROPE on the effects of the covid-19 epidemic, which has affected the whole world, including 35 companies from Turkey, and a total of 650 digital industry companies, including the current situation and future expectations. The Digital Turkey platform, which was established in 2011 with the cooperation of the Turkish Informatics Foundation, TÜBISAD and TESID and is a member of DIGITAL Europe, shared the details of the work through the internet.

The event was attended by TBV Chairman Faruk Eczacıbaşı, TÜBISAD Chairman Erman Karaca and Tesid Chairman Müjdat Altay; it was announced that 93% of the European companies were expecting a recession both in their own countries and in the world. The common expectation and desire of both European and Turkish companies is shaped by their states contributing to employee wages and delaying taxes.

The report, which was contributed by 14 NGOs from 14 European countries and mediated by the Digital Turkey platform for Turkey data (DTP), was presented by Turkey Informatics Foundation Projects Coordinator Seda Çakmak. The highlights of the report, in which there are many important findings and future expectations, and in which the situation we are in is compared especially with EU countries technology-based industry and Turkey, are quite remarkable.

What are the Expectations of European Countries?

According to information shared by Seda Çakmak, 77% of respondents expect the outbreak to affect their sector negatively, while 35% expect a reduction in employee numbers and  74% of respondents report disruptions in cross-border trade. One of the most remarkable result is that , 93% of the participating companies states that they think this pandemic will lead to a recession both for their own countries and globally. European companies also expect effective measures from their states to contribute to employee wages, defer taxes, launch remotely manageable auctions nationally and throughout the EU, and in particular to support investment in digital education and infrastructure. In the case of working from home, which is very curious topic about how it will happen, 82% of the companies indicate that their employees are provided with working conditions from home.

What are the Predictions of Turkish Companies?

When we look at the results of the survey in Turkey, it is seen that 63% of the participating companies explain that there is an uncertainty about of their customers, also 57% of them explain that they face with cancellation of the orders. Also, %40 of the participating companies express that they have suspended their investment decisions. While 64% of Turkish companies say their employees can work at home at full capacity, the general digital industry also notes the importance of spreading public and private tenders to the base. On the other hand, it is emphasized that hygiene measures and crisis teams are established rapidly in Turkish companies.

83% of companies that have specified their expectations about the recession, want that employee wages should be supported by the state and 74% of them want tax deferral should be done. The proportion of those who stated that COVID-19 should be included in force majeure was 74%, while the expectation for low-interest loans was 52%.

We had the biggest disruption with COVID-19.

After sharing report details first speaker president of TBV who is Faruk Eczacibasi mentioned that the world had huge disruption after COVID-19 and he said that “ Our purpose is that we make our country society information in this purpose we will strategically work with EU and we want to take advantage of EU’s knowledges and experiences. Also we will help to EU with our knowledges and experiences. Besides we want to develop our nongovernmental organizations and Turkish institutions with EU especially technologically and financially. We extremely support to Digital Europe because of our purposes converge with Digital Europe. In this time future of technology is not clear that is why we are caring about like this organization.The future is unclear  We have seen just in 4 months. This unclear situation is exist with COVID-19 and the world could not expect that situation now the world in big depression. We face to face with uncertain future. How much is going to continue ? How much is going to the virus intensity ? What will impact in society ? But most important thing What kind of impacts has going to on economy ? TBV’s purposes are dealing with economic disruption and we are working on individual and public behaviour.I can obviously saying that the most disruption is COVID-19. We are hearing many times that “ nothing will remain the same” Absolutely something is going to change, even something is changing.We have seen in many company that they work online and they make online meeting etc.

He also mentioned that in the report some companies are pessimist and suspicious about future and he continued his speech “ It is true… The future is uncertain and we are  bad situation economically we are conscious of this situation but like this crises give to us some opportunity “Instead of looking desperately into the future and getting stuck under today’s heavy load, we should focus on the different business and life models that this great disruption will bring, and always take the support of technology to build the future.”Our work with Digital Europe provides both that an important environment for us to take advantage of the opportunities of common mind and collaboration, as well as opportunities for our own initiatives to create new opportunities in our western regions.I should say also Digital Europe are pleased to our cooperation. This cooperation with Digital Europe is valuable and they contribute that cooperativeness. For sure we are going to support this association in the near future and also far future. “

Detailed information and report /

Report :

About Digital Turkish Platform:

We have established in 2011 association with Turkish Science Foundation, TUBISAD and TESID . As a member of DIGITAL EUROPE, which is the most effective institution in determining the digital agenda of the European Union and following the developments in the technology field, It follows the sectoral developments on the European continent and also mediates the sharing of all kinds of experiences, information and developments on knowledge-communication and telecom topics between our country and EU countries.