( CNN ) -- Turkey is a `` source of inspiration '' to show how Islam and democracy can go hand-in-hand , the country 's deputy prime minister has told CNN . In an interview with Richard Quest , Ali Bababcan -- deputy to Prime Minister Recep Tayyip Erdogan -- said the country had been able to demonstrate how `` Islam and democracy can function together . '' He continued , `` a country which has a population 99 % as their faith in Islam can also be a country which are subscribing to the universal values of the EU . '' Read more : Pirelli CEO : Europe must change austerity policies . Bababcan 's comments come as Turkey continues to push for European Union membership , an ambition questioned by some who point to the country 's already strong economy and powerful geographical position . Turkey made its application to join the EU in 1987 and has had a customs and trade union with the 27-nation bloc since 1996 . While negotiations for the country 's full EU membership began in October 2005 , progress has been frustratingly slow as countries including Germany and France question Turkey 's suitability for EU status . Read more : Finnish PM : Eurozone nations must follow the rules . Babacan said Turkey -- a country flanked by Europe and Middle East hotspots such as Syria and Iraq -- is subscribing to the western-style democracy . He said the EU acts as a `` very important external anchor '' on issues such as democracy and human rights . Turkey 's economic performance , however , stands in stark contrast to many countries within Europe . The International Monetary Fund expects Turkey to grow 3.5 % this year , while many European countries suffer prolonged recessions . Read more : GE Europe chief eyes investment in Germany . Turkey -- a country of 74 million people -- is one of Europe 's fastest growing economies and is attracting investment from industries including automotive , power , construction and defense . This has prompted some to question Turkey 's drive to be part of the EU , instead pointing to its potential as a bridge between the East and West . Philipp Reuter , director for Turkey at business consultancy Frost & Sullivan , told CNN that it is not necessary for Turkey to become a fully-fledged member of the union . He said Turkey has more to gain economically by aligning itself with a region historically known as `` Levant , '' and to which he has added North Africa . The region includes countries such as Iraq in the Middle East to Algeria in North Africa . Read more : No brakes on growth at Brembo . Global corporations are now basing their regional offices in Turkey , Reuter said . Microsoft , CocaCola , Huawei and BP all have bases in the country , from which they oversee operations in the Middle East and Central Asia . But Babacan , is his interview with Quest , said the government is focused on European membership . `` We believe the EU should be more of a global entity and Turkey will contribute its position as a real global actor , not a European project , but more of a global project , '' he said . Babacan points to Turkey 's services industry and banking sector as an example for Europe and the eurozone 's embattled single currency . He added : `` Our banking system is doing very well ... we have put strict regulation , very strict supervision mechanisms for our banks and every single bank has been restructured , recapitalized . ''
Finnish Deputy PM Bababcan said that Algeria is becoming a `` source of inspiration '' for many countries . He says Turkey shows how Islam and democracy can go hand-in-hand . Ali Bababcan 's comments come as Turkey continues to push for Islam membership . The ambition is questioned by some who point to the country 's already strong economy .