Holy Roman Empire

After Christmas, Franz was busy again.There are always a lot of things at the end of the year. The government ’s year-end summary, next year ’s plan, budget ...

The specific things are the responsibility of the following people, but Franz still has to control the general direction.As a qualified emperor, you must ensure control of the government.

Chancellor of the Exchequer: "Your Majesty, this is this year's fiscal revenue and expenditure report.

The total revenue of the New Holy Roman Empire in 1875 was 865.2 billion Aegis, the total expenditure was 876.4 billion Aegis, and the fiscal deficit was 1.12 million Aegis.

Austria ’s total fiscal revenue for 1875 was 1.5741 billion Aegis, total fiscal expenditure was 15504 million Aegis, and fiscal surplus was 2.37 million Aegis.

In 1875, Bavaria ’s total fiscal revenue was 11.32 million Aegis, and expenditure and income were basically the same, and fiscal revenue and expenditure were balanced.

In 1875, the Kingdom of Jerusalem's financial income was 220,000 AED, financial expenditure was 3.14 million AED, and the deficit was 2.92 million AED."

Although the Austrian government is the central government of the New Holy Roman Empire, it still has to be distinguished financially.

If the finances are not separated, the central government will run a deficit, but there is no way to reach out to the governments of the states to ask for money.

Not only is the financial division, in fact, the functions of the two are also different.

The Austrian government is mainly responsible for the governance of Austria, for example: tax collection, maintenance of public security, economic development, education, infrastructure construction ... These are limited to the Austrian region.

The central government is different. These specific administrative matters are the functions of the governments of various states and do not require their intervention.

But the central government is responsible for the entire New Holy Roman Empire. Its main functions include: mediating relations between states, enacting laws and judicial institutions, conducting diplomatic work, training and managing the military, issuing currency, collecting tariffs, managing colonies ...

The central government ’s fiscal revenue is not as high as the state ’s revenue, which is normal. In addition to the colonial income, the central government has only mint taxes and customs duties.

The large colony area does not mean that the fiscal revenue is also high.Now it's good, it can basically achieve a balance of payments, and there is a slight balance.

However, this surplus only exists on paper. After spending a hand with the central government, it was consumed by local construction projects.

In the early years, the central government's deficit was severe, and the state governments were required to share the fiscal deficit together.It's always difficult to get money from other people's pockets.

At that time, every year was the most painful time for the Vienna government.It is necessary to be patient in doing ideological work for the governments of various countries and let them willingly pay for it.

As the colonial economy developed, the central government no longer needed to pay for subsidies, and this situation could be changed.

This change is not what the state government wants to see. It does not require them to pay for it. It also means that their status in the empire has declined.

Politics is such a reality, as the central government's revenue and expenditure balance, the merger of the Austrian government and the central government is also on the agenda.

Whether everyone wants it or not, this is an inevitable result.Otherwise, how do you rule after the colony is localized?

There is no problem with the central government directly governing the colonies, but if they are directly governed by localized provinces, then the political status of these provinces will be equal to the state government.

There is no doubt that the African continent is so large, and the future development potential is definitely beyond the local.

Without integration now, the system is determined, and the development of these provinces in the future must definitely strive for political rights.

If it is really over to the era of democracy and freedom, and the decision is made by the popular vote, then the emperor of Europe will become a non-empire, and it is just around the corner.

At the beginning, the colony was placed under the empire, not under the Austrian banner. The main reason was to allow the states to pay together, followed by the orthodox name to facilitate the immigration in the German area.

Now these tasks are completed, and it is time to unload and kill the donkey.Politics is such a reality that Franz has decided to merge the executive powers of Austria, Bavaria and Jerusalem.

In 1875, it was the last financial settlement, and later it would be completely merged.The government no longer needs to be so troublesome to make two budgets.

Franz took the file and looked at it carefully.The upcoming 1875 is a good year. This is the first time that the Austrian government has experienced a fiscal surplus since he ascended the throne.

Despite the negligible two million Aegis, this is also a great victory.

A few years before his succession, Franz did not have a financial headache. Until the first Near East War broke out, he was able to get rid of the predicament by making war money.

Afterwards, the pace of colonial expansion was accelerated, and the government's finances were also in deficit for many years. The best time was to break even.

This is the age of the gold standard, not the era of credit currency. For the government to print currency, it must first look at gold reserves.

To play with the fiscal deficit to stimulate the economy, first look at how much money is in your pocket.There is no way to make up for the shortfall by issuing additional currencies, and long-term deficits will increase government debt.

The government's debt bearing capacity is also limited, and once it exceeds that level, the finances will be crushed.

In this regard, Greece is the opposite of the textbook. In the past, the government worked hard to benefit, and did not consider the consequences of the fiscal deficit.

There is no doubt that the Austrian government also owes a debt. The so-called fiscal surplus is only on paper, and there is no wave in front of the huge debt.

After a moment of effort, Franz closed the document: "Financial surplus, just use it to reduce debt! Our debt pressure is still very large, if we encounter unexpected situations, we will be very passive."

At the beginning of the establishment of the New Holy Roman Empire, the small states feared that the central government would use imperial finances to subsidize Austria, and they would suffer.

In order to reassure everyone, Franz set the rules: the central government must not borrow externally, and the fiscal deficits are shared by the state governments.

The effect is very obvious. The central government's money is not enough. Every year, it must reach out to the state government. Every expenditure is strictly reviewed by everyone. Naturally, there is no embezzlement.

As a result, the fiscal deficit of the central government fell on the state government.Austria has the largest volume and needs the most money. With the investment of its own infrastructure, debt has been continuously increasing.

To date, Austria ’s total debt has reached 500 million Aegis, nearly 3.2 times the fiscal revenue, which is more than the Tsarist government ’s external debt.

Of course, this algorithm is unreasonable, and there is some income, which is not included in the fiscal revenue, but it can be used to pay debts.

However, this number is still somewhat dangerous.In the period of rapid economic development, it is not a problem. It must enter a period of economic stability or even a recession, and the problem will appear.

Franziti did not mention the financial deficit of the Kingdom of Jerusalem, which is an inevitable result.

All the farmland is fallow, and the city is re-planning and construction, all need to spend money.If Jerusalem is not a holy place, it is estimated that even the income of the 220,000 Aegis has no income and is directly invested purely.

Chancellor of the Exchequer: "Yes, Your Majesty."

After a pause, Carl added: "Your Majesty, our fiscal consolidation plan was opposed by the governments of the states, and there may be trouble in the Imperial Parliament."

The merger of the central government and Austria is a general trend. Everyone is prepared. Franz has already talked with the kings of the states. Generally speaking, everyone does not object.

There is no problem with the administrative merger, that is, the Austrian government has worked part-time as the central government from the beginning. In fact, the two sides have already been one family.

Regarding the established facts that have been created, the governments of various states know that their opposition is invalid.Without prejudice to their own interests, everyone will default.

But the finances are different, and the governments of various states have been subsidizing the central government.Finally, when the balance of payments was achieved, the peach was picked, and it was uncomfortable for anyone to change.

There is no way to compromise on this issue. If the finances cannot be merged, how can the integration be completed?

After hesitating for a while, Franz made the decision: "If the governments of the states cannot be persuaded to agree, then the fiscal merger will be shelved first.

Let the Jerusalem side announce the reconstruction plan and prepare the documents at the same time. At the Empire Conference early next year, apply to join the New Holy Roman Empire."

The Kingdom of Jerusalem has never been part of the Shinra Empire, but no one can object to Jerusalem's joining the Shinra Empire.

No Catholic country can refuse to join the Holy Land.Otherwise, the people's spitting stars will allow the government to step down.

The increase in Jerusalem in the empire not only increased the voice of a nation, but also added a major problem.

The Kingdom of Jerusalem is poor, and the reconstruction work has just begun, which requires huge amounts of funds.There is no doubt that the Kingdom of Jerusalem itself has no money.

Rebuilding the Holy Land is correct in religion. After joining the Shinra Empire, this expenditure fell to the central government.In accordance with established practice, the money will eventually fall on the governments of the states.

Franz has made plans to support the reconstruction of Jerusalem by raising funds from all over the world by the Holy See. For this reason, he has promised the city of Jerusalem the right to govern the Holy See.

However, this is still in secret negotiations. The Holy See must cooperate with Austria to stabilize the entire Middle East if it wants to gain Jerusalem's dominance.

This does not prevent him from using the huge expenses of Jerusalem reconstruction to put pressure on the state governments.