The Turkish government has dropped a request for Germany to help it investigate hundreds of German companies it said could have links to terrorism.
After the reported claims against nearly 700 German firms including giants Daimler and BASF added further tensions to the dispute, the German and Turkish interior ministers held talks aimed at clearing up the issue.
On Monday, Turkey's interior minister told his German counterpart that Ankara's submission to Interpol of a list of nearly 700 German companies that it suspected of backing terrorism had stemmed from "a communications problem".
Turkish Interior Minister Süleyman Soylu "assured us that the Turkish authorities were not investigating companies on the list in Turkey or in Germany," German interior ministry spokesman Tobias Plate said.
A spokeswoman for the German economy ministry, Tanja Alemany, said that despite the clarification of the issue, it would "take a while before German companies can win back confidence" in Turkey as a place to do business.
Deputy Prime Minister and Turkish government spokesman Bekir Bozdağ confirmed that Turkey had recalled the list at the weekend, adding Soylu held a "constructive" discussion with his German counterpart Thomas de Maiziere.
"The demand for information was not regarding any investigations or cases against German firms, but a routine correspondence with Interpol about Turkish companies," Bozdağ said. The Turkish government asked Interpol for information regarding the exports of 40 Turkish companies with alleged links to U.S.-based cleric Fethullah Gulen, one of the masterminds of last year's failed coup attempt, Bozdağ said. "There are German-based companies among them. However, due to an error in communication, we gave up on our demand for information from Germany. There is no ongoing investigation or court case against German companies situated in Turkey or in Germany. Turkey will remain a safe haven for foreign investors and companies," he said.
On Thursday, Germany's economy minister, Brigitte Zypries, said that if German companies "suddenly show up on 'black lists' and are branded as terror supporters, then that is a climate that makes further business and investments in Turkey extremely difficult." German Foreign Minister Sigmar Gabriel on Thursday also warned German firms against investment in Turkey and spoke of an "overhaul" of the entire relationship.
Turkish President Recep Tayyip Erdoğan had said the reports were "black propaganda" aimed at pressurising German companies not to invest in Turkey. Turkish Prime Minister Binali Yıldırım had also dismissed the report as "entirely a lie" and urged Berlin to solve an escalating crisis through dialogue.
