Holy Roman Empire - Chapter 379:

Chapter 379: Chapter 66, Safety First

The tax policy was still only a proposal, and the extent to which it could be implemented would ultimately depend on the actual situation. Aside from the stakeholders, the majority of people were indifferent.

However, the integration of the colonies and the homeland was a different matter. As soon as the Vienna Government released a hint of it, it quickly sparked a heated public debate.

Supporters and opponents tore at each other in the newspapers every day, even hot topics like the Prusso-Russian War, the negotiations with the United States, and the Russian navy being bullied by pirates were pushed aside.

No single opinion dominated public discourse; the battle between supporters and opponents was evenly matched. This reassured Franz, as it seemed that the likelihood of integration passing in the Imperial Parliament was quite high.

As the Emperor, while he had the power to forcibly push through a decision, Franz had never done so.

On the surface, doing so would appear domineering, displaying the authoritative might of a Monarch. But in reality, it brought with it significant potential political threats. If the decision was correct, it was expected, but if there was a mistake, the Emperor would have to take responsibility.

No one could guarantee they would never make mistakes, moreover, a decision that was right but made at the wrong time or place was also a mistake.

The Imperial Parliament was the highest authority of the New Holy Roman Empire, with one of its roles being to take the blame for political decisions. Usually, major political decisions needed to pass through there.

This was the political safeguard Franz had prepared; in case of serious problems, if he did not want the Cabinet to be dismissed, he could hold the Imperial Parliament accountable instead.

After many years of restructuring, the current Imperial Parliament was no longer the small group of individuals it had been initially; the number of members had increased significantly, but the system based on Sub-States had not changed.

Even the smallest Free City had at least one seat, and then there was one seat for every three million people. To accommodate the smaller Sub-States, an additional seat was added directly once the population exceeded three million.

No matter how it was arranged, Austria always occupied half of the seats. However, if one-third of the members opposed, a proposal could be rejected, and amending the constitution required the agreement of over ninety-five percent of the members.

It is worth mentioning that the issue regarding the constitution did not originate from Franz, but from the Sub-States themselves, who actively demanded it.

Because the Imperial constitution guaranteed their autonomy, to exclude any possibility of Austria’s interference in their internal affairs, they directly posed a condition that was nearly impossible to meet.

Naturally, clauses in the constitution that protected the Emperor and Kings also contributed to the establishment of this stipulation. Everyone was smart, and of course, they would support terms that benefitted them.

The power of the Central Government was inevitably limited, and no matter how powerful the bureaucratic group was, their rights were legally restricted.

Each Sub-State government had its own team. It’s just that the current New Holy Roman Empire Cabinet had significant power because it was on the premise that they also served as the Austrian Cabinet.

If one day Franz grew dissatisfied, he could simply have them separate. The Empire Cabinet would then awkwardly discover that without the cooperation of the Sub-State governments, they couldn’t accomplish anything.

The military was under the Emperor and the Kings below; the Cabinet had no right to deploy it. Each Sub-State had a high degree of autonomy; the Central Government had no right to meddle in their internal affairs.

Only a portion of fiscal authority remained with the Central Government. They could print money, but even this required the approval of the Imperial Parliament; the Coinage Tax and customs duties collected by the Central Government had to cover administrative expenses, military expenses, the Royal family’s annuity, etc., and any shortfall had to be shared by the Sub-State governments.

Of course, diplomatic authority was in the hands of the Central Government, and so was the authority to manage the colonies, but none of these could be separated from the cooperation of the Sub-States.

Especially when it came to internal political issues of the Sub-States, all policies had to be established with the cooperation of the Sub-State governments before they could be implemented.

For instance, if the government now plans to issue tax rebates to textile factories, it must obtain the cooperation of the sub-state governments to proceed.

If a certain sub-state government opposes the measure, they can still go about their own business, continuing to tax according to their own laws, without regard for the decisions of the Central Government.

This is only in theory; in actuality, the economy of the New Holy Roman Empire has already integrated. Many economic issues require the coordination and resolution of the Central Government, and there is no reason for them to refuse provisions that are favorable to themselves.

This is also Franz’s positioning of the Central Government, as an organizer and coordinator, linking all the sub-states together.

This is somewhat similar to the historical German Empire, except that his Emperor’s powers are much greater. The Central Government has no right to interfere with the internal affairs of the sub-states, but this does not mean that the Emperor has no right to intervene.

Having the right to intervene is one thing; whether or not to get involved is another matter altogether.

Unless a sub-state government provokes widespread anger and the people rise up, necessitating the Emperor to step in and intervene, only then will Franz take action.

Since the establishment of the New Holy Roman Empire, there has never been such a situation, so Franz has always been drawing a salary without doing the work.

He’s not a power-hungry man, so why involve himself in thankless tasks? As Emperor of the New Holy Roman Empire, it’s sufficient to be a good arbiter.

Besides, Franz also holds the titles of Austrian Emperor and King Bavarian, so even if he had an overwhelming desire for power, there were outlets for it.

If that weren’t enough, he could always meddle with the colonies, as there are always endless tasks. If one is not afraid of sudden death, it’s entirely possible to work twenty-four hours a day.

Being involved in multiple roles has its advantages too; in a European society with clearly defined property rights, Franz naturally earns multiple salaries.

The pensions of the New Holy Roman Empire Emperor, the Austrian Emperor, the King Bavarian, and if the colonial integration process is completed in the future, he will likely acquire several more titles, adding up to a considerable income.

As for merging the colonies into Austria? That’s completely out of the question.

Establishing overseas colonies is very costly, and Austria alone clearly cannot afford it—the finances ultimately come from the New Holy Roman Empire.

In other words, all the sub-states contribute money together to establish the current Colonial Empire.

If they were all allocated to Austria, the stakeholders who contributed the funds would definitely not agree. Dividing it up among them is even less likely; due to the colonies being overseas, decentralization is inevitable.

It is sufficient for the sub-states to gain economic benefits; even if they obtain nominal managerial rights, they would not be capable of managing the colonies.

Franz is an advocate for everyone to establish overseas colonies. Sub-state governments wanting to establish their own colonies can do so independently.

Considering the terrifying investment and risk, everyone unanimously decides to let the Central Government take the lead! If there’s a profit, all share it; if there’s a loss, all bear it.

The most crucial point is that even acting independently, one cannot diverge from the Central Government; without the protection of the Imperial Navy, how can the security of the colonies be ensured?

Haven’t you seen the colonial outposts established by Prussian and German Federation capitalists overseas, all actively requesting to join?

Even now, as Prussia and the German Federation join the colonial movement, they cannot do so without the support of the New Roman Empire.

This is not something that can be solved by relying on powerful connections; overseas colonies are an entirely different world. All countries possess a large number of private colonial teams overseas, and these groups are not completely controlled by their respective governments.

If a conflict occurs, the governments will naturally side with their own people.

At the end, it all comes down to strength; if you have formidable power in a certain overseas region, you can dominate that area, and it’s not just about the strength of the nation itself.

This is also the reason why the Netherlands and Portugal were able to maintain large colonies despite their countries not being powerful—because they were strong enough in certain regions.

Since the Colonial Empire was established jointly with funds and efforts from everyone involved, the ownership of the colonies naturally belongs to the Empire. How exactly the colonies should be incorporated into the Empire is also a matter that requires study.

Autonomous provinces, Free Cities, autonomous territories, directly-governed provinces, Sub-States, Nobility fiefdoms…

These are all alternative options, and different names represent different systems.

A Free City implies fragmentation of the colonies, an autonomous territory suggests that the colonies retain a larger piece of land, directly-governed provinces mean direct control by the Central Government, Sub-States are like the current situation in various Sub-States…

From the perspective of interests, Franz would naturally prefer the colonies to join the Empire as Sub-States, which would help consolidate imperial authority.

Put simply, whether it is a duchy or a kingdom, Franz can directly assume the role of King, with the Emperor as the primary bond of the Empire, followed by economic integration.

The more roles he assumes, the more secure the throne becomes, unless all the Sub-States unite against the Emperor, which would ensure safety.

Under normal circumstances, no one would dare depose the Emperor at the risk of the nation splitting apart. Moreover, before dethroning the Emperor, one must first fight a civil war.

It’s necessary to use military force to subdue the opposing Sub-States, otherwise, the Imperial Parliament won’t pass it. Without the ability to amend the constitution, the new regime cannot gain legitimacy.

In the European political system, the legitimacy of a regime is extremely important; usually, the lower the legitimacy, the shorter the lifespan of the regime.

A regime without legitimacy should be prepared to suppress uprisings every day! No, without legitimacy, it can’t be called an uprising—it’s considered justified rebellion.

Regarding the issue of revolution, Franz felt very confident. As long as the army did not rebel, any situation could be easily handled.

Just look at Vienna, which has no basis for revolution. Even if the whole of Europe were in revolution, turmoil couldn’t break out here.

Since Franz ascended to the throne, Vienna has not experienced any major strikes; even when strikes did occur, they were limited to a scale of a hundred or so people, which already speaks volumes.

There’s a reason for this. For over a decade, the Vienna Government has prohibited the establishment of any factories in Vienna, and existing factories have also gradually relocated away.

A city without industry naturally lacks large-scale strikes.

At present, Vienna’s economy mainly focuses on services, scientific research, and finance. The economic structure determines the superstructure, and incomes in these industries are relatively good.

Without industrial pollution, Vienna has become Europe’s most beautiful city and is the first large city in Europe without slums.

Small cities don’t count; in this era, a small city in itself is one large slum, with no need for distinctions.

As a consequence, Vienna’s population growth is slow, and its urban development lags far behind London and Paris.

Even within the New Holy Roman Empire, there are now quite a few cities that have surpassed Vienna in population, such as Milan and Munich.

Of course, population does not equal the economy; Vienna now has a total population of only 680,000, with only 310,000 within the city proper, yet its economic output is surpassed only by London and Paris.

With a small population and a developed economy, the standard of living for the populace is among the highest in Europe, and naturally, there are fewer social conflicts. With fewer social conflicts, there is also reduced desire for revolution among the public.

As the fundamental stronghold for the Habsburg Family, Franz takes Vienna very seriously. As the capital of two empires, Vienna enjoys a unique advantage and does not need to develop any industry at all.

Greater London and Greater Paris may seem prestigious, but only they know their own troubles. London has become the foggy city, while Paris has become the capital of revolution.

Furthermore, big cities are inherently unsuited for industrial development, with land prices and living costs far exceeding those in smaller cities, thereby inflating industrial production costs from the onset.

For example, in Vienna, if one were to invest in building a factory, land prices would be three times higher than in smaller cities, and labor costs would increase by at least one-third.

This doesn’t even take into account the issue of transporting raw materials. When considering various factors, typically these factories’ production costs would increase by 10% to 30%.

Franz could only lament that competition in this era was not intense enough, and capitalists still did not understand optimizing industrial allocation or do their utmost to save costs.

After all, capitalists in later times would move factories to wherever production costs were the lowest. If someone insisted on staying in a major city, they would either be kicked out or would have to shut down.

Of course, Franz was very clear that the enthusiasm for squeezing into the capital was mainly because it was close to the center of power, which could bring political gain.

However, Franz, who does not like capital interference in politics, overturned the table from the start, denying them this opportunity.

Vienna already had ample resources and did not need these industries, but many smaller cities did. Under this policy, Austria gained seven or eight new industrial cities.

In this way, Austria’s total industrial output might not have increased much, but the competitive strength of its industry increased, which was very beneficial for long-term development.

In this era, large cities are prone to strikes, often due to capitalists trying to ensure their own interests by shifting the additional costs onto workers.

The worse the economic situation, the more frequent the strikes and the more intense the social conflicts.

From the ruler’s standpoint, as long as Vienna remains calm, Franz’s rule is stable. If problems arise elsewhere, troops can be sent to suppress them.

This is a lesson from history; most of Europe’s successful revolutions occurred in the capital. There might be exceptions, but Franz could not recall any.

In conclusion, whether for the sake of industrial development or the need to maintain rule, Franz achieved deindustrialization in Vienna.

This was a measure of foresight; a stable capital, combined with a perfect system, can be said to have taken the concept of safety first to the extreme with Franz. As long as one does not actively court disaster, one truly would not face it.