Background: Greece and the Greek Cypriot Administration have used EU institutions to advance positions against Turkey, including through European Parliament resolutions on the 1974 Cyprus operation. On July 8, the European Parliament adopted a non-binding resolution accusing Turkey of crimes against women and children during the 1974 intervention, with 575 votes in favor, 33 against, and 43 abstentions. The resolution was drafted by Greek MEP Eleonora Meleti of the New Democracy Party. In response, multiple Turkish government bodies and political parties issued separate condemnations, including the Ministry of Foreign Affairs, the Presidency's Directorate of Communications, the Ministry of National Defense, and nearly all parties in the Turkish Grand National Assembly, as well as the TRNC Foreign Ministry and TAM Party leader Serdar Denktaş. Notably, AKEL MEP Giorgos Georgiou acknowledged that atrocities were also committed by Greek Cypriot paramilitaries against Turkish Cypriots, highlighting ongoing tensions between Turkey and the EU.

UN Secretary-General Antonio Guterres will travel to Cyprus from July 27 to 29, 2026, to meet Turkish Cypriot President Tufan Erhurman and Greek Cypriot leader Nikos Christodoulides, as part of his good offices mission to advance the peace process on the divided island. The visit is the first by a UN secretary-general in 16 years, following a renewed UN initiative launched after a March meeting in Geneva. The UN is exploring a possible new framework that would grant greater autonomy to constituent states in exchange for territorial adjustments including the return of Varosha and Morphou, and new security arrangements allowing Greek and Turkish troops under NATO command. The election of Turkish Cypriot leader Tufan Erhurman, who supports a federal solution, has created new momentum. The EU has appointed Raffaele Fitto as special representative for Cyprus, signaling increased EU engagement. Guterres will also meet other stakeholders during his stay, aiming to support stability on the island.

Haluk Levent, founder of the Ahbap charity that gained prominence after the 2023 earthquakes, was previously detained in a money laundering probe. The investigation has since expanded to include fraud and organized crime charges, and Levent was formally arrested on July 16. Investigations by MASAK revealed suspicious financial flows through associates' accounts, including gambling losses and unsecured loans. Multiple victims have come forward, including a businessman who transferred $60 million in real estate. The case now includes Levent's brother and assistant, with allegations that political connections were suppressed during questioning. The investigation has widened further, with 10 additional suspects referred to the Istanbul Courthouse on July 20, including Oğuzhan Uğur, Gülgün Öztürk, Suzan Düşküner, Emir Taşar, Emre Kartaloğlu, Hüseyin Küçük, Fatih Eke, Muharrem Karataş, Ersin Gökgün, and Özgür Ömer Güner. In a separate operation by the Anti-Smuggling and Organized Crime Branch of the Istanbul Provincial Gendarmerie, 17 more suspects were detained, of whom 4 were arrested and 8 released under judicial control, bringing the total number of arrests to 18. Authorities have also seized assets belonging to the Ahbap Association and several suspects.

Turkey has commissioned a vessel traffic monitoring system in the Turkish Republic of Northern Cyprus (TRNC) on July 20, 2026, as part of the Eastern Mediterranean Vessel Traffic Services Project. Developed domestically by Havelsan, the system uses radars, cameras, AIS systems, and other sensors to provide 24/7 monitoring of vessel traffic in TRNC maritime jurisdiction areas. Data is transmitted simultaneously to a center in the TRNC and to Turkey's Mersin Vessel Traffic Services Center. The move aims to protect Turkish Cypriot rights and Turkey's 'Blue Homeland' doctrine, reinforcing Turkey's maritime presence in the Eastern Mediterranean. The system supports vessel identification, traffic regulation, navigation information, warnings, and emergency response.

Background: Armenia's upcoming parliamentary elections in June test public support for Prime Minister Pashinyan's peace agenda with Turkey and Azerbaijan, including the US-brokered TRIPP corridor. Today: Azerbaijan's presidential aide Hikmet Hajiyev reiterated that Armenia must remove territorial claims from its constitution before a final peace agreement can be signed. Armenia's PM Pashinyan plans a referendum on a new constitution, but lacks parliamentary majority. The US-backed TRIPP transport corridor, connecting Azerbaijan to Nakhchivan and Turkey via Armenia, could begin construction this autumn, potentially reshaping regional trade and reducing reliance on Russia.

Turkey's central government budget shifted to a surplus of TL 114.2 billion ($2.4 billion) in June 2026, driven by a 66% revenue increase to $32.1 billion and a 72% surge in tax collections, reversing a deficit from the same month in 2025. Expenditures rose 12.6% to $29.7 billion. The primary balance showed a $6.7 billion surplus. For the first half of 2026, the budget deficit narrowed to $20 billion from $20.8 billion in the same period of 2025, with tax revenues increasing 38.7% to $140.7 billion, reflecting improved fiscal performance amid ongoing economic adjustments. Finance Minister Mehmet Şimşek estimated the annual budget deficit narrowed to around 2.5% of GDP as of June, down from 2.9% in 2025, citing stronger fiscal discipline despite revenue losses from inflation containment measures related to the Iran war. He noted the improvement came despite forgoing some tax revenues to limit inflationary impact of geopolitical developments. The primary balance registered a surplus of TL 521 billion in the first half of the year. Tax revenues surged 72% year-over-year in June, with income tax up 145.7%, domestic VAT up 89.6%, and import VAT up 53.1%, while corporate tax rose 31.8% and special consumption tax edged down 0.1%. Şimşek attributed the performance to combating the informal economy, increasing voluntary tax compliance, and tighter public spending control, and said the stronger budget performance helped keep domestic debt rollover ratios below last year's levels and official projections.

The Ahbap charity, founded by singer Haluk Levent, has been under investigation for alleged financial crimes including fraud and money laundering related to earthquake donations. Justice Minister Akın Gürlek publicly defended the probe, stating that civil society organizations must operate transparently and remain subject to legal oversight, and rejecting attempts to influence courts through social media or political pressure. He announced the arrest of 14 suspects, including Levent, and that 25 suspects were referred to court on charges including establishing a criminal organization, aggravated fraud, and laundering proceeds of crime. Financial crime investigators examined banking records, MASAK reports, and surveillance findings, alleging that suspects conducted transactions inconsistent with declared income, transferred large sums among themselves, lost money through betting, and carried out multiple property transfers.

Foreign real estate investment in Turkey increased 28.3% year-on-year in March–May 2026, totaling $590 million, as the outbreak of war in the Middle East drove non-resident buyers to Turkish property. Turkish nationals' overseas purchases dropped 26% to $517 million, especially in Dubai and Greece, due to the conflict and bilateral tensions. Investors from Russia, the Gulf, Azerbaijan, and Kazakhstan led the inflow.