Holy Roman Empire

Chapter 838 - 101, They Are All Smart People

Dismissing officials is easy with a single decree, but the trouble lies in the aftermath of their removal.

It has been proven that the farm projects led by bureaucrats have failed.

To solve the issue, what is required are loyal, incorruptible, capable officials who do not seek glory or profit and are willing to endure hardships in the colonies.

Such bureaucrats may exist, but they are certainly a rarity, treasures wherever they might be, without any to spare for the colonies.

Prime Minister Terence Burkin proposed, "Your Majesty, dismissing them now is pointless. The most important thing at the moment is to ensure these projects are realized.

I suggest a grace period to mandate the completion of tasks, dealing only with those who fail to meet the deadline."

A grace period was necessary, as the French government simply could not find that many replacement officials overnight.

The most crucial aspect was that even after these people were removed, the money would not return. No bureaucrat would be foolish enough to keep all their assets in their own name.

Moreover, embezzling public funds wasn’t the act of just one or two individuals; it involved people at all levels, making it impossible to investigate thoroughly.

After calming down, Napoleon IV asked, "With a grace period, will they be able to complete the tasks?"

At this point, it was common knowledge that the funds allocated by the government for the projects had been embezzled. The primary officials responsible might have taken the lion’s share, but that was not everything.

The biggest issue with completing the initial plans was funding. The government would not allocate more money, so the gap had to be filled by the responsible parties themselves.

Napoleon IV did not believe these bureaucrats would be noble enough to pay out of their own pockets to close the gap, even if it meant cutting their own flesh for the sake of their positions.

It could not be expected that these individuals would manage to reclaim the money from those who divided it among themselves.

Prime Minister Terence Burkin explained, "Complete fulfillment is naturally impossible, but there is hope for achieving half of it.

The government can apply pressure and severely punish those officials who cannot produce results."

Typical bureaucratic solution, naturally unsatisfactory for Napoleon IV, but with no alternative, it was the best option at hand.

Dealing with these bureaucrats required a slow boil, as pushing them too hard could cause severe disruptions.

…

The infighting within the French government was not a matter of pride, and those in the know distinctly opted to handle it with discretion.

Had it not been for intelligence reports, Franz would have been unaware that France nearly faced another revolution.

By then, however, it was too late, having missed the best window for intervention.

Otherwise, if they had managed to detain Napoleon IV in Algeria, the mighty French Empire would have indeed fallen.

To detain the Emperor was easy, but taking control of the French government was difficult; the Paris Government would not sit idly by, and not everyone could instigate a coup.

Given the integrity of the bureaucrats, the possibility of simply proclaiming the Crown Prince as the successor was higher, since a young emperor is easier to control. Napoleon IV’s son, still nursing, was definitely the ideal choice.

However, a young ruler couldn’t command the respect necessary. Domestic Orleans and Bourbon Dynasties wouldn’t accept it, and colonial bureaucrats, backed into a corner, would only have one path to follow.

Throw the Italians into the mix for good measure, and the situation would be complete chaos.

There was no choice; it was a symptom of the Monarch’s lost authority. The Paris Revolution shook the foundation of Napoleon IV’s rule, and the burning of the Palace of Versailles further tarnished his reputation.

Seeing one leaf fall and knowing that autumn is coming, if the French colonial system is rotting away, what is the state of the Austrian Colonial System?

No one can answer that question. Perhaps the colonized regions in Austro-Africa, with strict government control, might fare better.

As for the distant Southeast Asia and America, that would depend on the integrity of the bureaucrats, though Franz held little hope.

Putting down the secret document in his hand, Franz sighed. Even if there were problems, they were not his to handle at present.

These were the challenges he had prepared as a final test for his sons; if he offered the solutions now, what purpose would they serve?

Realigning his thoughts, Franz’s attention returned to domestic matters. Austria faced similar difficulties with its large-scale farm plan as France did.

Only it wasn’t farms but businesses and factories seized in purges that had to be converted to cash, which couldn’t be done immediately, leaving the government to operate them temporarily.

Undoubtedly, this was going to be a losing business. While businesses and factories could be directly taken over, client orders and networks of relationships could not be inherited.

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The government-appointed temporary management team’s primary role was to stabilize morale and ensure smooth production.

As for sales, they were still exploring options, and the results were naturally quite average.

Unless it was one of the few enterprises with its own sales network that could ensure profitability, most companies had accumulated a large stock of unsold goods, either already suffering losses or teetering on the brink of loss.

In Vienna Palace, Franz asked, "How far has the asset liquidation progressed?"

If you can’t make a profit running the business, then the only option is to have a fire sale. Since the judgment took effect, the Vienna Government had begun handling the matter.

Prime Minister Carl candidly replied, "Financial assets and bonds have all been sold off, and the larger mining and industrial enterprises have mostly been sold as well.

To avoid impacting the domestic market, we plan to temporarily hold on to real estate properties such as land and buildings, and decide later on whether to sell them based on the circumstances."

The real challenge now lies with the small factories; there are myriad of them, and their operations depend entirely on the personal connections of the owners, making it difficult to find suitable buyers.

Furthermore, we’ve discovered some assets of implicated individuals abroad; the Foreign Ministry is currently negotiating with the concerned countries over this issue."

The answer seemed light, but behind it lay much helplessness. Often the assets were of high quality, but due to the businesses operating at a loss, they still had to be painfully sold off.

The biggest problem with small mining and industrial enterprises that couldn’t be sold wasn’t that they weren’t profitable, but rather that their internal management was too chaotic, with many of the procedures illegal, or the businesses outright operating as illicit underground factories.

For the government, these were toxic assets; holding onto them only increased expenditures and had no value, requiring disposal.

Franz nodded, "Sell what can be sold, and for those that can’t find buyers, just process them through bankruptcy.

The French have sounded the alarm for us; blind project initiation with no operational capabilities only breeds parasites."

"Yes, Your Majesty!" replied Prime Minister Carl.

After a pause, Franz continued, "The French farm project has temporarily failed, so how far has the grain self-sufficiency plan of the United Kingdom progressed?"

Austria cannot afford not to care; it remains the world’s leading agricultural exporter and must be vigilant against potential competitors.

If possible, Franz wouldn’t mind sabotaging the plans of England and France to ensure Austria’s pricing power in the international agricultural export market.

However, this was impossible. The entry threshold for grain production was too low, and its importance too high; the more Austria tried to sabotage, the more England and France would be driven to promote it.

Minister of Agriculture Hols answered, "The British approach differs from the French; they adopt a policy of subsidizing farmers through the government, using economic means to encourage private cultivation.

However, this policy recently encountered problems when the domestic agricultural association protested to the government, demanding equal treatment from the British Government.

If the London Government chooses to compromise, it will mean a reduction of 7.8 million British Pounds in government revenue and an additional expenditure of 12 million British Pounds."

The net result would be a shortfall of nearly 20 million British Pounds, well beyond the financial means of the British Government.

But the British agricultural association is powerful, and from the current situation, it seems that the London Government won’t be able to hold out for long.

Either they will have to scrap the subsidy plan or lower the subsidy amount, extending it to include domestic farmers."

This is a dilemma; scrapping the subsidy plan equates to failure in achieving grain self-sufficiency.

A standardized subsidy for all would put the government finances under strain; after all, the direct fiscal income of the British Government is just over 80 million British Pounds, amounting to a nearly one-fourth reduction at once. Explore more adventures at empire

Franz shook his head, "You’re too optimistic; the British Government isn’t foolish. The seemingly difficult choice can actually be adjusted.

For instance: revising the subsidy plan to only provide certain years of subsidies for newly opened farms will significantly reduce government expenditure.

This expense can be recovered through taxes on agricultural trade and processing, meaning there may be losses in the first year or two, but a balanced budget is achievable thereafter."

Such strategies have become all too common in later times. A single agriculture subsidy not only stimulates grain production but also promotes the development of domestic agricultural processing, increases employment opportunities, and is a win-win for many aspects.

Overall, the grain planting subsidy policy of the United Kingdom is much more reliable than the French Government’s direct involvement in farming.

Of course, this doesn’t mean the French Government is foolish. France is a major grain producer, and the French Agricultural Association is far more powerful than its British counterpart.

If the Paris Government were to only give subsidies to the colonial farms for grain cultivation, French farmers would surely revolt. A universal subsidy is beyond the financial ability of the government.

The farming class is the largest base of the Bonaparte Dynasty; Napoleon IV would naturally not commit such a foolish act as digging his own grave.

In this context, state-owned farms become the best and only choice for the French government.

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