Chapter 128: The Austrian Economic Circle Program
Chapter 127 The Austrian Economic Circle Program
While the civil service exams were in a frenzy, the Austrian army – far away in the Papal States – embarked on its homeward journey, cheered on by Pope Pius IX.
Louis Napoleon Bonaparte, who had just ascended to the presidency and wanted to use the intervention in the Papal States to brush up his presence, had to regretfully choose to give up.
The Austrian army had already finished the job, Pope Pius IX had absolutely no intention of changing the boss, and any further passage by the French army would have been an invasion.
If the Austrian army does not go, perhaps Pius IX will still look for the French to check and balance, but now they have begun to withdraw, why would he want to give himself a hard time?
History took a turn for the worse here, the French were not able to take the opportunity to penetrate deep into the Italian region, and by interfering in the military operations of the Papal States, Austria retained its influence in the Italian states.
This was very important for the Austrian business community. Retaining political influence also meant retaining this commercial market, and injected a strong dose of heartburn into the ongoing industrial revolution.
At a new government meeting, the finance minister, Karl Ludwig von Bruck, exclaimed: “Industry and commerce cannot develop without the market.
Throughout the world, only the British have accomplished the Industrial Revolution, and this was based on their possession of large colonies.
Austria does not have a vast colony, we want to catch up with the British, which requires the establishment of a market belonging to Austria.
We unleashed the local market through a series of reforms, but this took time to cultivate and was far from being able to meet the real needs of our industrial and commercial development.
The use of diplomacy to create a commercial circle with Austria at its head will greatly promote economic development at home and accelerate our industrialization.
By including the Kingdom of Naples, the Papal States, Tuscany, Bavaria, Württemberg, and other regions in the economic circle, we will form a large market of 67 million people and become the largest economy on the European continent.
……”
Pulling in the Italian states and South Germany to form the largest economy on the continent of Europe could be more than just economic, politically this could likewise solidify Austria’s hegemony in Southern Europe.
By the way, it can also hit the rising Kingdom of Prussia, with Austria as the core of the completion of the commercial circle, the German Customs Union will exist in name only.
Because of the relationship between transportation, even if the Prussians to join the new economy, the Italian region they can not reach, before the railroad is not connected, the cost of transportation alone can make their products uncompetitive.
The new market can not reach, the original German market will be facing the impact of Austrian goods, now the Kingdom of Prussia is not twenty years after the Kingdom of Prussia, the manufacturing industry against Austria does not have the advantage.
Although the plan is good, but to implement it is not easy. The first thing is to rely on what makes everyone believe that the common economy is favorable to them.
No matter any alliance, interest is the best bond. An Austrian-led economic circle is clearly in Austria’s interest, but not necessarily for these joining countries.
That the Austrian industrial revolution needed to draw blood from the outside world was essential, at least in the early stages, no one can deny.
Only at a later stage can we profit from the high added value of our products under the guise of a balance of trade and make the eating look good.
Metternich objected, “Mr. Karl, your plan is indeed very good, but unfortunately the success rate of this plan is too low.
Whether it’s the Italian states or the South German states, once the exploitation goes too far, they will jump ship, and Austria is not their only option.”
These small states follow Austria for the sake of their interests, and if Austria is no longer able to safeguard their interests, then a new boss would not be out of the question.
Don’t talk about loyalty between countries, it doesn’t exist. There is no betrayal, that’s because the bargaining chip for betrayal is not enough.
Finance Minister Karl explained with a confident chest, “But Austria is the best choice for them! A common economy, it’s true that we get the most benefit, but that doesn’t mean that they’re completely out of luck.
At least the part of the population that cooperates with us gets a bigger share of the benefits, and if the ruling class is turned into this interest group, then nothing will be a problem.
As long as we can still control this degree, the people at the bottom won’t feel it, for example, the customs union in the German region, didn’t the people boycott the Kingdom of Prussia?
Once the Industrial Revolution is complete, with our technological superiority, we can also push for a commercial balance of trade to further hide this wealth pillage.”
Franz’s mind was startled, this was to support the buying class.
The Italian region’s industrial germination was in the north, the south-central region was a blank slate, the capitalist economy had yet to develop; the South German region was not much better, again the economy was slow and the market was flooded with goods from the Kingdom of Prussia.
Now Austria wanted to establish an economic circle, for the ruling class of these states, it did not harm their interests, on the contrary, we can realize a win-win situation through cooperation.
“What about the attitude of the other powers? If we push for this plan, will it create an uncontrollable diplomatic situation?” Prime Minister Felix asked with concern
Metternich got up and wandered around the chamber for a few steps before giving his answer.
“There is not much of a problem. The aforementioned areas are all in our traditional sphere of influence, we’re not fishing over the line, and the reaction of the powers won’t be too drastic.
The British Foreign Minister Palmerston visited Vienna not long ago, and we also redefined everyone’s sphere of influence in the Italian region, so even if the British are displeased, they have no reason to interfere.
On the side of the Russians, we can still gain support, and the Czarist government won’t care about these minor issues.
The French are left to their own devices, and Louis Napoleon Bonaparte has resorted to dishonorable means to be elected President, and the Republicans will not serve him.
With a republican dominated cabinet and parliament against the president, the French could do nothing for a long time to come.
It is expected that the Prussians will strongly oppose it, but their opinion is dispensable and powerless to stop us.”
“The British have no reason to intervene,” was a joke, and Franz preferred to believe that the British had no power to intervene, or no interest that would make them act in spite of everything.
There was no shortage of markets for the British Empire in this day and age, and as the only industrialized nation with the widest colonial market, they were having a far too comfortable time.
British investment in Italy was concentrated in the Kingdom of Sardinia, and then there was Lombardy and Venice, and few merchants would have been foolish enough to invest in what they wanted, and what they didn’t have, in Southern Italy.
Italian states are still feudal dynasties, the commercial market for John Bull is dispensable, and is not worth it to turn the tables with Austria.
Plus the support of the Russians, the British even if the opposition is ineffective. Before the Crimean War, the British hadn’t gained the hegemony everyone recognized, at least not by Austria.
The attitude of the Kingdom of Prussia wasn’t enough to scare Austria now, now that they hadn’t united Germany and weren’t the awesome Second Reich of later times.
In 1848, the population of the Kingdom of Prussia was only 13 million, less than forty percent of Austria’s, and the total economy was about half of Austria’s. (Note: the economy was not the same as Austria’s.) The Kingdom of Prussia’s attitude was not enough to make Austria afraid. (Remark: total economy does not equal industry)
“What about Spain?” Franz asked with concern
Other European countries can be ignored, but the attitude of Spain can not be disregarded, in the Kingdom of Naples Spain’s influence is not weak at all, and even greater.
Spain is no longer the era of the Habsburg dynasty, it is now the era of the Bourbon dynasty Isabel II, their attitude must also be taken into account.
Metternich explained: ”Your Majesty, according to the intelligence we have, the Spanish Kingdom has serious internal contradictions and a revolution may occur at any time.
We are only establishing a business alliance and not harming their interests, it is unlikely that the Spanish government will interfere.”
Franz nodded, is not the most conventional operation to pinch the soft persimmon, as long as Austria did not annex the Kingdom of Naples, the Spaniards can accept it.
Besides, on Spain’s current industrial level, the export of industrial products to the Kingdom of Naples is really not much.
“Mr. Carl, we are so expanding the market, the domestic industry and commerce can keep up? If we are not able to capture the market in the first place, if we cultivate a bunch of competitors out of it, we will be disgraced.” Prime Minister Felix frowned and asked
Don’t laugh at others, the Austrian industry in this era is not that developed. In southeastern Europe that is the developed level, and the British compared to it is far worse, is compared to the French are a little worse.
“Your Excellency the Prime Minister, you can rest assured of this, our Ministry of Industry can guarantee to beat any competitor!” Industry Minister Kaschin Quibek said confidently
His confidence was built on the premise of the initial success of the state-owned enterprise system, compared to the private sector’s pursuit of profit, the state-owned enterprise’s strategic goal now was to complete the industrial revolution as soon as possible, profit was a floating cloud.
The Austrian government did not draw blood from the enterprises, and now the profits generated by these enterprises are naturally all invested in technological innovation, and the expansion of production.
Because of the war on the industrial and commercial damage caused by the war, has now been restored after the Austrian manufacturing industry is rapidly climbing in.
This speed is not the limit, as long as the government is willing to spend money on this, can continue to improve.
This is in Franz’s expectations, no matter how later in life to attack the state-owned system, but the original stage of capital accumulation, the state-owned economy has played a positive role.
As long as the management of the enterprise is not rotten, the state-owned enterprises with many advantages, absolutely more combatant than private enterprises.
The Soviet Union is the best example of this, leapfrogging ahead in a short period of time and building a huge empire.
As for the problem of decline at a later stage, Franz was completely unconcerned. If you want to decline, you have to rise first. There are not even problems yet, why think so far ahead?
The big thing is to wait for the state-owned economy is not working, and then the economic transformation. In any case, Austria is not just a state-owned economy, private enterprises are also in the process of development.
When the industrial revolution is completed, the unprofitable light industry enterprises will be sold off one after another, and the government will control the industries that have a bearing on the country’s economy and people’s livelihood.
Seeing that everyone has no more questions, Franz said, “If everyone has no questions, then the establishment of Austria as the core of the business circle plan, now start voting, please raise your hand if you agree.”
Democratic voting, this is not Franz’s innovation, in Europe has long been there, he is just learning from the advanced experience of the previous generation.
Austria is qualified to participate in decision-making are ministers and above high officials, the main purpose is still to power checks and balances.
Franz is not a person who loves to seize power, most of the political affairs were thrown to the cabinet, in order to avoid being hollowed out, he added a democratic vote in the expanded government meeting.
Officials above the ministerial level were appointed and dismissed by the Emperor himself, and could not be bought off under normal circumstances. They were all candidates for Cabinet ministers, and while accepting the leadership of the Cabinet, they shared in its power.
(End of chapter)