Kazulia

[Maxington]

Agatha's Government is estimated to collect some $800 billion on royalties from the petroleum sector over the next century, and
emissions from oil and gas extraction are expected to triple during that time, a new report from the State Ministry for Energy
and Natural Resources. That stunning number — equivalent to the entire annual revenue obtained by the federal government through
taxation and twice the size of Flindar's (Agatha's stately rival) economy — will likely be welcomed by Agathans who can look
forward to decades of budget surpluses and low taxes but will likely raise alarm among economists about the future shape of
Kazulia's economy. The State Ministry for Energy and Natural Resources projects that Agatha's oil production will rise from
800,000 barrels per day at present to 2.1 million barrels in the coming decades and efforts to curtail greenhouse gases will
have virtually no effect on emissions. “While technological innovation within the petroleum and petrochemicals industry (in
addition to carbon capture and storage) is expected to help reduce these emissions, the emissions are still expected to rise,”
the report states. Including the other petrochemicals, Agatha possesses the largest portion of Kazulia's net petrochemical output
— among the world's largest producers of oil and natural gas. The report predicts the royalties Agatha collects from petroleum
and natural gas will double within the coming years, to $10 billion per year, reaching $30 billion in the next decade and $52
billion in the decade after that. But Agatha's emissions rules (which are heavily enforced by the Federal Government) mean oil
producers will pay in the billions, the report states. Agatha, as being the largest contributor to Kazulia's oil and natural gas
sector, is subject to Kazulia's most stringent environmental rules, however, recent conservative governments of the Agathan
People's Party have been slowly defanging the environmental rules.

Agatha's green rules require companies to buy carbon offsets at $20 per tonne for anything above their emission target this year.
The amount paid is to be increased incrementally, by 10 per cent per year over the next century. In total, the industry will have
paid more than $200 billion in compliance costs by 4860, the study predicts. The report will likely raise new concerns among some
economists concerned that increasing dependence on energy exports will be detrimental to Agatha's economy should a situation such
as a collapse of oil/natural gas prices. As oil and natural gas profits and royalties grow, the economic gap between Agatha and
the rest of Kazulia continues to expand. Although an oil-producing state itself, Dreton has committed to keep its oil and natural
gas in the ground in the foreseeable future and to look into other avenues for revenue collection. This can be most obviously
seen in federal transfer payments, which equalize state revenue between “have” and “have-not” states. Traditionally, Agatha and
Flindar were “have” provinces that contributed more tax money than they received from the federal government. But today, with
Flindar's manufacturing sector slumping and oil prices above $100, Agatha and the other "energy" provinces — namely Dreton — have
become "have" states, and Flindar is a net recipient of transfer payment. Kazulian economists have been warning for years that
excess reliance on oil and gas could cause Agatha to suffer from “Narik Disease,” which occurs when a country's currency rises in
value as a result of an oil boom, making non-energy industries uncompetitive in the global economy, and “hollowing out” the
country/states’ manufacturing and knowledge base.

Minister-President of Agatha, Eerika Vanhatalo recently found herself in a spat with her Flindarian counterpart
Minister-President Max Schauman when she complained that the “petro-krona” was driving manufacturing out of the state. "If I had
my preferences as to whether we have a rapidly growing oil and gas sector in the North or a lower krona benefiting Flindar, I
stand with the lower krona,” Schauman said, reflecting the views of many economists. But that drew a sharp rebuke from Agathan
Minister-President Eerika Vanhatalo, who called Schauman's argument a “false paradigm.” "We know how the value of the krona
works,” she said. “It's in relation to an overall national economy. The reason the Kazulian krona is high is partly due to the
fact that the economies of the region have been going through some economic difficulties.” Infighting among provinces is not the
only front where Agatha's petroleum sector is causing controversy. Another front is the Transylvanian pipeline, whose proposed
construction to carry Kazulian oil to Lourennais refineries has caused numerous protests in Agatha over the potential of the plan
to divert billions of krona away from the Agathan economy. Federal Minister of Energy and Energy Affairs Vebjørn Ronning stated
that the project was still under review by the federal government and consultations with the respective parties would continue.
Whilst the Agathan economy continues to benefit from its massive petrochemical reserves, the states of Flindar, Kelvon and Hent
are galvanizing their economies against external shocks such as price-wars by aggressive diversifying their economies away from
having to depend on revenue streams from Agatha.

[Maxington]

Agriculture and manufacturing were the foundations on which the city of Drangnaeyjar was built, however, amidst the reformed
federal constitution, the manufacturing centre of Kelvon, Asvald (now known as the Free City of Asvald), is a separate entity, an
enclave within Kelvon. Amidst the transition whereby the revenues obtained through manufacturing from Asvald no longer play a
leading role in Kelvon's ability to maintain a budget surplus, Kelvon's Government is aiming to develop the state beyond having
to depend solely on its agricultural exports, with a particular interest in information technology. State Minister for Business
and Innovation, Leópold Eggertsson stated that he intends on working with State Minister for Finance Arnlaugur Þórarnarson on
reforming the foundation of Kelvon's economy to ensure that the state can be as sustainable as the other states, albeit without
Asvald contributing to the majority of the state's revenue brackets. In a factory that resembles a high-tech laboratory more than
a production line, advanced materials known as semiconductors are produced. These "semiconductors" form the basis of computer
chips that are tapped to power everything from electronics to electric cars and smart energy grids. "We try to ensure that our
products meet the standards as set by the Federal Bureau of Standards," explained Ingmar Sófóníasarson, CEO of Surge
Microsystems, an upcoming semiconductor/microchip firm based in Drangnaeyjar. Surge Microsystems is apart of the growing
information technology cluster being developed in Drangnaeyjar through partnerships between public and private enterprises. The
aim is to develop an information technology cluster capable of competing against the IT cluster in Folland and the IT cluster in
Asvald.

As of recent, numerous information technology firms (indigenous to the city) have been increasing their visibility and spread.
The majority of these firms have been small to medium size businesses producing silicon semiconductors. It is the hope of both
the City Council and the Kelvonese Government to build on the concentration of facilities and expertise at the forefront of a
smart industrial revolution within the state. Compound semiconductors according to the International Technologies Corporation
(ITC), Kazulia's largest information technologies corporation, combine two or more elements have superior properties to tradition
silicon semiconductors. Mayor of Drangnaeyjar Sævarr Veigarsson hoped that developing the raw materials for chips in Kelvon will
encourage the restoring of electronics manufacturing to the State of Kelvon. "As you go along the supply chain, the value
increases and therefore so does the margin of profit. Kelvon wants to be at the end part of the supply chain and designing the
systems that use compound semiconductors." Chief Operations Officer of Silicon Inc, another one of the companies operating in the
Drangnaeyjar information technology cluster. The potential prize is massive: the global silicon market is worth some $300
billion+, with compound semiconductor sales account for 15% of the estimated amount. According to Skalm Stock Exchange subsidiary
Grossman Markets and the Federal Department for Trade and Industry, the global silicon market is expected to grow at a rate of
three (3) percent. According to State Minister Leópold Eggertsson, it was his intention to work with the semiconductor companies
in Drangnaeyjar to increase Kelvon's stake in the global silicon market from 0.008% to at least 1.2%. With Asvald contribute to
around 10% of the global semiconductor market alone, Eggertsson stated that he hoped to be able to continue to work with
Governing Mayor of Asvald, Georg Haraldsen in allowing for Kelvon to market its semiconductors through Asvald's established and
mature relationships with major supply chains.

"These are not startup firms, most of these companies have been here for decades and we know the key to our support is
encouraging the cluster to work collectively — the interests of the collective are much greater than the sum of parts," said
State Minister for Finance Arnlaugur Þórarnarson. The National Institute for Employment Research has stated that the Drangnaeyjar
cluster could generate some 3,000 employment opportunities for the city and some 1,000 employment opportunities open for the
wider state.

[Maxington]

Kelvon's State Minister of Finance, Arnlaugur Þórarnarson is moving to impose sweeping austerity measures and budget cuts
following a dramatic drop in revenue brought about by the end of the honeymoon period between Asvald's transition out of Kelvon's
economic pie. During his budget presentation at the Legislative Council of Kelvon, Minister Þórarnarson stated that the upcoming
fiscal term will see tax increases, some welfare cuts and a general expenditure cut. The Minister said the "unavoidable budget"
required higher capital gains tax, a levy on banks, a two-year public sector pay freeze and less generous benefits, but insisted
the package was needed to prepare the State for its economic transformation. According to the Minister, VAT would not increase
but would be increased from 3% to 1% to ease the burden on the general population. In his speech, Þórarnarson pleased the rating
agencies and Deputy Prime Minister and Finance Minister Karoline Berrefjord who urged the state to reduce government expenditure
across the board to ensure that the state is capable of maintaining a budget surplus. Federal Finance Minister Karoline
Berrefjord stated that she had come to an agreement with State Minister of Finance Þórarnarson on having Kelvon reduce government
expenditure, increased taxation in-order to accommodate for the $900 billion krona stimulus package she intends on rolling out in
the coming months. Þórarnarson warned today that protecting public healthcare and education meant non-protected departments would
face average real cuts of 15-25% but that some clemency would be shown to agriculture and community development. State Minister
Þórarnarson avoided even deeper cuts by earmarking the welfare budget for more than a third – $11bn – of the $32bn reduction in
spending. Child benefit will be frozen, and the government will eventually save almost $6bn a year by linking all state benefits
other than pensions to the slower-growing consumer prices index rather than the retail prices index.

The State Ministry for Finance will raise more than $20bn from the increase in taxation, but the chancellor sought to soften the
blow from the toughest budget in modern times by raising personal allowances by $1,000 and rely on Deputy Prime Minister
Berrefjord's promised stimulus package which is intended to put more money into the pockets of individual citizens, shore-up
small and medium businesses and stimulate national growth. Þórarnarson stated that he had been in consultation with the Budget
Department of the State Ministry for Finance on whether to increase or decrease corporation as a means of an extra revenue
source. According to Þórarnarson, a reduction in corporation tax would help the private sector become the engine of growth, and
the economy would have to rely more heavily on investment and exports over the coming years, but also noted that an increase in
corporation tax would allow for the government roll back on some of its austerity measures coming out of increased revenue
streams. The Tax Administration of Kelvon has stated that it has an extremely important role to play in the State Minister
Þórarnarson's austerity measures. According to Commissioner of the Tax Administration of Kelvon, Agni Sölvarsson the tax
administration had to work to ensure that all taxes were collected and had to transform its systems of operation to completely
wipeout tax leakages. The need to cushion the fall of the markets amidst the sudden removal of the state's historically high
revenue streams is extremely important to Kelvon's development, said State Minister Þórarnarson. "Higher interest rates, more
business failures, sharper rises in unemployment, and potentially even a catastrophic loss of confidence and the end of the
recovery. We cannot let that happen." Net borrowing – a combination of the running costs of government and spending on
infrastructure projects – will be reduced underneath these austerity measures."



Minister-President of Kelvon, Sölmundur Vilbertsson has announced sweeping reforms to the agricultural sector of Kelvon, the
state's primary source of taxation after income taxation. Earlier this morning, speaking before the Legislative Council,
Minister-President Vilbertsson stated that the State Government had come to a decision to enact laws to break up the large
farming corporations in Kelvon to make room for small-time farmers and to allow for greater competition in the area of
agriculture between individuals and companies and to drive innovation in the sector through market competition. Known as the
Agricultural Development, Fair Competition and Investment Act or K03/4756 (act 3 of 4756). The law intends to "level the playing
field for Kelvonese family farmers," many of whom have been staving off bankruptcy as farm incomes hit a historic low. "Farmers
are caught in a vise, but the squeeze on family farms isn't inevitable," Vilbertsson said when he piloted the bill through the
Legislative Council. "It's because bad decisions of previous governments have consistently favoured the interests of
multinational corporations and big business lobbyists over the interests of family farmers." The Agricultural Development, Fair
Competition and Investment Act moves to form new merger rules for agricultural companies, makes checkoff programs optional, and
establishing a mandatory country-of-origin label for beef and pork. Through the yeoman service of Minister for Justice and Human
Rights, Annabella Victorsdóttir and the State Ministry for Justice and Human Rights, the question of consolidation has been
investigated. Underneath the new regulations as established by the bill, the State Ministry for Justice and Human Rights would
amend its guidelines on vertical mergers within the agricultural sector, proposing separate anti-trust rules to govern
agricultural companies.

According to Kelvon's State Ministry for Justice and Human Rights, consolidation has shifted the majority of production—and the
profits—to ever-larger farms. An Agricultural Research Service report found that more than half the value of Kazulian farm
production came from farms with at least $1 million in sales, compared to 31 percent in previous years. As State Ministry for
Agriculture and Food Production Kristmundur Henrýsson notes, the Mara-Andrason merger is now expected to secure the company's
monopoly on the vegetable seed market. The new legislation also takes aim at "abusive" contract farming in the livestock sector,
which the State Ministry for Agriculture and Food Production defines as replacing or supplementing production by contracting some
of the work to local farmers. Contract farming can protect small farmers from risk and open up new markets, but "sponsoring
companies may be unreliable or exploit a monopoly position," according to a report from the Federal Department of Agriculture and
Food Production. The system is widely used in in the Kazulian livestock industry, where the top meat-processing and seed
companies have the majority of the market share. But Lúis Kolsson, professor of agricultural and resource economics at the
University of Kelvon, says going after contract farming won't necessarily address this exploitation. "The last thing a grape
grower wants is to harvest their grapes and then see if they can sell them," he says. "They want a contract to sell their
grapes." One point in the new bill is a clear nod to small farmers: making checkoff programs optional. Since the 4500s, national
laws have required nearly every farmer in Kazulia contribute to one of these programs, which help producers advertise and sell
commodities. They're marketing funds, only mandatory—and the Federal Department of Agriculture and Food Production (DAFP) serves
as tax collector, gathering $750 million in checkoff funds a year. There's one for honey, for grapes, for eggs, and even corn,
although meat and dairy are by far the biggest.

Proponents of country-of-origin labels say they would give Kazulian producers a leg up on those in other territories, but the
National Institute for Trade and Economics has repeatedly contested these rules—and won the argument time and time again. Since
the Stortinget repealed the rule decades prior, the lack of a label has misled Kazulian consumers who might believe they're
buying locally sourced meat. In debating the bill in the legislative council (which subsequently was passed), Minister-President
Vilbertsson said that he intends to push hard for new country-of-origin rules for beef and pork" and lobby for the federal
government restrict foreign ownership of Kazulian companies and farmland. The reality is more complicated: Although these rules
are often justified on the basis of "right to know" arguments for consumers, experts say there's little demand for them.
Moreover, they function as "a form of protectionism" and a "non-tariff barrier to trade," according to one University of Kelvon
report. Previous estimates said these rules could cost domestic producers and retailers up to $2 billion krona annually, forcing
some products off the shelves. Lúis Kolsson, professor of agricultural and resource economics at the University of Kelvon, who
advised the National Institute for Trade and Economics in its case against lobbyist for Kazulian cow-calf operators, said the
plank takes an "anti-foreigner stance." "This is sort of right-wing meets the left-wing," he says. On top of that, he says
Kazulian producers ultimately lose out: "It's sort of like a version of heavy steel tariffs. It makes zero economic sense for all
the obvious reasons." He stated that he doesn't see the Minister-President achieving as there have been rumours of a potential
reformation of the Western Dovani Economic Area which will aim to plug the many gaps in the treaty and allow for future
amendments. One of the gaps in the treaty is the Country of Origin clause, which the reformed treaty will seek to remove to
discourage protectionism.

[Maxington]

Kazulian HF-35Ks uniquely will have an overriding Kazulian-built C4 program that runs “on top” of Horizon Technology's operating
system. Following the conclusion of the North Dovanian conflict, Chief of the Air-Force, Lt. General Alexander Caspersen
announced that its HF-35 stealth fighters had flown numerous combat missions on “different fronts.” While details on those
missions have not been released—it had been the spearhead of the Royal Kazulian Air Force's operations deep into North Dovanian
territory as the Kazulian Armed Forces sought to reduce airborne casualties brought about by increased numbers of mobile
anti-aircraft vehicles operating throughout the country. It has become a common practice to create custom variants of
fourth-generation jet fighters such as the HF-16 for export clients, made to order with local avionics, weapons and upgrades that
suit a particular air force’s doctrine and strategic priorities. Today, the Home Guard Air Guard operates heavily upgraded
single-seater and two-seater HF-16K combat aircraft. Furthermore, Kazulia, in particular, hasn’t hesitated to modify aircraft it
has already received fit its needs and to push said equipment to the limit. A large majority of the global average for HF-16
pilot hours is underneath the belt of the Royal Kazulian Air Force and the Home Guard Air Guard. However, the Jetstream has
mostly refused to allow major country-specific modifications to the HF-35D/F, despite the hundreds of millions of dollars foreign
HF-35 operators contributed to the aircraft’s development. There is, of course, an efficiency-based rationale, given the
additional costs and delays of creating country-specific variants, and the fact that Jetstream is struggling to both produce
HF-35s fast and cheaply enough and build enough spare parts for the hundreds already in service.

Kazulia, however, managed to carve out an exception. The Defence Material Agency, acting on behalf of the Royal Kazulian Air
Force made an order for 100 HF-35D. Kazulia has paid a high price of between $110 to $125 million per unit for its initial order,
but in the future unit, the cost is hoped to decline to around $85 million. The aircraft's sophisticated flight computer and
ground-based logistics system have become a matter of contention with many HF-35 operators. Foreign air forces would like to have
greater access to the HF-35's computer source codes to upgrade and modify them as they see fit without needing to involve
external parties—but Lockheed doesn’t want to hand over full access for both commercial and security-based reasons. Kazulian
HF-35Ks uniquely will have an overriding Kazulian-built C4 program that runs “on top” of Horizon's operating system. One of
HF-35's key capabilities come from its superior ability to soak up data with its sensors and share it with friendly forces.
Compatibility with datalinks used by friendly Kazulian air and ground forces is thus an important aspect from Kazulia's
perspective as it tracks the position of hostile surface-to-surface rocket launchers and surface-to-air missiles systems. The new
system will also allow the Kazulian Armed Forces to install Kazulian-built datalinks and defensive avionics systems such as
radar-jamming pods. An official from the Department of Defence stated that the once the aircraft has been filled acquired the
Royal Kazulian Air Force intends on taking advantage of the enhance stealth technology and amenities. There already exist methods
for detecting stealth fighters, including long-range infrared sensors, electromagnetic sensors, and low bandwidth radars (though
all have significant limitations).

Thus, the RKAF particularly values the flexibility to install “plug-and-play” defensive countermeasures such as jamming pods as
they become relevant and available. It so happens the Kazulian firms Asvald Gruppen and SlipStream Defence are major developers
of such systems. However, due to the HF-35Ks highly “fused” avionics, such plug-and-play support needs to be built both into
aircraft's software and even the airframe. Kazulia is also developing two different sets of external fuel tanks to extend the
aircraft's range. The first will be non-stealthy 425-gallon underwing tanks developed by a subsidiary of Asvald Gruppen—these
could be dropped when approaching enemy airspace or used for missions in which stealth isn’t necessary. Further down the line,
SlipStream Defence wants to co-develop with JetStream, bolt-on conformal fuel tanks which “hug” the HF-35K airframe so as not to
compromise stealth and aerodynamics. In speaking to rumours of a major remilitarisation programme for the Royal Kazulian Air
Force, Lt. General Caspersen stated that the Royal Kazulian Air Force remains committed to ensure international peace through
vigilance and strength. With centuries of combat experience underneath its belt, the Royal Kazulian Air Force is lining up to
defend its title as the most capable air-force operating in Terra's skies.

[colonelvesica]

Princess Diana Stays in Kazullia on "Extended Vacation" as Hutorian Royal Family Flees Hutori

[Maxington]

The Navy has run its 5 aircraft carriers hard since the Kazulian Government ordered that the carriers be deployed to forward
positions and were involved in the North Dovanian war and is now paying the resulting maintenance bill, with 4/5 of the fleet
tied up in repairs and 1 carrier trying to keep up with combatant commanders’ needs. During a Select Committee on Defence and
National Security hearing on aircraft carrier presence, Programme Executive Officer for Aircraft Carriers Rear Adm. Arnstein
Hammer said that four of the five carriers are unavailable for tasking due to maintenance work. HKMS-Dag R(01) is in the middle
of its Refueling and Complex Overhaul (RCOH) at Pennington-Gna Shipbuilding, and HMS-Kazulia R(03) is making a slow,
engagement-filled voyage from its previous homeport in Kalopia to Pennington-Gna Shipbuilding, where it will undergo its
maintenance and modernisation programme. HKMS-King Arvid II R(02) is currently at Pennington-Reid's secondary shipyard in
Arenheim underneath a modernisation programme which seeks to improve the carrier's engine and to address problems as it pertains
to the technological equipment on the carrier. HKMS-Queen Annette R(01) is currently in Dry Dock in Lourenne undergoing repairs
and modernisations. This leaves HKMS-Skalm R(04) currently docked in Hutori as the only aircraft carrier on deployment. “I think
what we’ve seen here recently, as a result of being down to one aircraft carrier and having to run the carrier at a pace faster
than they were designed for – for instance, HKMS-Skalm R(04) just finished a 24-month availability, which was only scheduled for
14 months; she had been deployed to Hutori to work alongside the Royal Hutorian Navy to expand maritime patrols in the Northern
Hemisphere whilst a majority of Kazulia's ability to project power outside of its natural borders remained hamstrung. So much
faster than we had designed, consumed the service life of that ship much faster, so it’s really no surprise that you saw some of
the impacts there.”

“We’ve got to get our arms around that, I’ve certainly spent a lot of time looking at HKMS-Skalm to figure out where we can do
better going into maintenance periods,” Hammer said. Hammer said during the hearing that the operational tempo for the carrier
fleet has gotten higher since the North Dovanian conflict. HKMS-King Arvid II and HKMS-Kazulia, in particular, have been pushed
hard, and it shows in the maintenance periods. HKMS-Kazulia's 14-month maintenance availability had to be extended by nearly a
year, forcing the amphibious assault ships connected to the fleet which the HKMS-Kazulia commands, that being the 5th Fleet to
take on an unscheduled deployment in the coming months to return to their pre-Skalm class carrier roles of being virtual
carriers, being capable of launching the navy's fleet of HF-35Bs. And HKMS-King Arvid II will spend the better part of three
years in maintenance to make up for work that has been skipped previously to allow for greater overseas presence, Hammer said.
“We really run her at a higher optempo than some of the other carriers, so of the availabilities, we have going on right now I
would tell you that the carrier in Arenheim is the most challenging in terms of the size of the work package,” he said. To
compensate, rather than send King Arvid II straight into its regularly scheduled docked availability, the Navy inserted a
14-month “extended maintenance availability” to be followed by the docked period, “so she’s going to have, in the span of three
years, a significant amount of maintenance done on her to try to catch back up.” Even if HKMS-King Arvid II and HKMS-Kazulia took
the worst of the combined carrier shortfall and an uptick in combatant commander demand since the return of major global players,
the other ships have been pushed hard too.

“In the last three years in order to meet the demand signal from the combatant commanders we’ve run the carriers harder than
we’ve typically done and harder than they were designed,” Hammer said. “As these vessels come out of their respective
modernisation programmes we intend to see an increase in demand between maintenance availabilities – not all consecutive
(deployed days), but that’s an awful lot of run time, and that’s a challenge we’re going to have to continue to face here until
we get another carrier. We have already alerted the Defence Material Agency on the acquisition of another carrier in the
Skalm-class." The Navy is transitioning into its new deployment schedules which would limit deployments to a shorter time period
and ensure proper maintenance and training time for the ships, crews and air wings. However, given that only one carrier is
currently available for tasking, there are some in the defence and security community who are seriously doubting whether the
Kazulian Navy would be able to properly ensure maritime security. “From this, it is easy to see that the Navy is going to be
swamped with demands, and it’s going to take discipline to maintain this for the next three years or so,” said committee member
Tommy Endresen. “Do you all feel confident we’re going to be able to get through this patch and accomplish the goals of a fleet
that is ready to meet all the requirements that are out there?” Endresen questioned. Deputy Chief of the Navy (Operations),
Vice-Admiral Sondre Gregersen, responded that the Navy had planned for such events and thus the amphibious assault ships
possessed by the Navy were built in specific ways. Already the Navy has chosen to accept gaps in carrier presence around the
world to deal with the current condition of the carrier fleet. There is no aircraft carrier in Majatra, Eastern Dovani, Artania
or Western Dovani.

Navy acquisition chief Edith Tanberg added that “we’re operating a single carrier (with around 5-7 amphibious assault ships),
low-density, high-demand, and if the temperature rises in a risk area around the world, then senior leadership is going to have
to decide is it more important to do that maintenance, which is a long-term investment, or do we have to respond today to the
immediate crisis.” She said that returning to a 5-carrier force in the next three years will help create a more sustainable
schedule for maintenance and deployments, but being down four carriers now means driving the one carrier and the remaining ships
of the carrier-less fleets are going to have to be pushed harder, which puts more ships in maintenance than planned, which forces
even fewer ships to work even harder to meet global obligations. Hammer told Politkeren after the hearing that he intends on
advising the Chief of the Navy to acquire a new aircraft carrier to ensure that the Kazulian Navy can field a 6-carrier fleet and
to reduce the burden on its amphibious assault ships once more.

[Maxington]

On the eve of what is going to become her first regional tour, Prime Minister Linda Rasmussen mounted a bipartisan effort in the
Stortinget to promote her vision for reform within the Western Dovani Economic Area and also championing for its survival as an
organisation, arguing that it would not only bolster the Kazulian economy but also enhance national security Kazulia's immediate
neighbourhood through cooperation. Speaking before the memorial to former Prime Minister and Foreign Minister Ellinor Ketelsen,
Ms Rasmussen presented what has long been the establishment Skalm consensus in favour of free trade against the surging tide of
populist outrage from both sides of the political and international spectrum that such agreements were a direct threat to
workers. The Western Dovani Economic Area, as the agreement is known, is the economic cornerstone of the National Labour Party's
drive to promote strengthen within the Dovanian region. Concurrently, as the organisation stands, it sets rules of the road for
trade and investment between Kazulia, Lourenne and Hulstria, nations who account for a significant percentage of the amount of
trade and investment flowing through the Dovanian region. “If we are to remain an important player in this region, then we must
strive for both economic cooperation and security,” Ms Ramussen said in an appearance with former diplomatic officials in the
Prime Minister's residence in Skalm. “That’s why all of us agree that the Western Dovani Economic Area is an important
organisation to the region and should be reformed to ensure that it remains relevant.” The Prime Minister has made the Eroncourt
Convention (the founding document of the organisation), the cornerstone of her argument as she called for the signatory nations
of the convention to Reconvene for a summit to reform the treaty.

To promote the convention, the Office of the Prime Minister in recent days published an op-ed article in Politkeren, a column on
the Market and a letter to business owners who conduct business through the WDEA. She also invited retired and notable diplomatic
figures from the previous administration, led by incumbent Minister of Foreign Affairs Viktoria Johansen to join her at the Prime
Minister's Residence to talk up the merits of reforming the Eroncourt Convention to ensure that the Western Dovani Economic Area
(as mentioned prior) remains an extremely relevant organisation to global trade. Others who joined him on Friday were three
geopolitical analysts, Raymond Loe, Amund Ramstad and Jacob Gudmundson; a former minister of defence, Magne Belland; and several
defence analysts, including Aslak Bratland, Vebjørn Bylund and Johannes Negaard. “One of the things that we all agreed on, as
we’ve discussed the issue here today, is that if we fail to get address the problems of the Western Dovani Economic Area and the
subsequent Eroncourt Convention, if we do not create the architecture for high-standards trade and commerce in this region, then
that void will be filled by other non-beneficial entities; it will be filled by our economic competitors,” Mr Bratland said.
“Issues pertaining to this region especially in the area of economics and trade would be governed by entities with no connection
to the region. Where is the science in that?” The gathering was reminiscent of Prime Minister Markus Hanevold campaign to
convince the Kazulian population that Kazulia had to bailout the Dovanian continent following the Dovanian Conflict through the
Bortnem-Pomerleau Initiative. Back then, Prime Minister Markus Hanevold utilised reformed diplomats, politicians, defence
ministers, chiefs of defence to appeal to the population for an economic intervention which (as the results showed) has become
Kazulia's most successful international development initiative yet.

The Eroncourt Convention has come underneath heavy criticism from conservative sources, particularly those in the Agathan
People's Party who stated that the agreement would simply bend over to the whims of others states. Among those opposing it are
the leading political figures mainly from Agatha's conservative government. According to the Agathan Government, having seen the
planned reformed by Prime Minister Rasmussen, stated that the welfare state would be allowed to expand to unreasonable levels and
argued that it didn't do enough to promote competition and compel the signatory nations to privatise/liberalise their economies.
Socialist/Liberals have been more supportive, arguing that the agreement made clear plans to address concerns as it pertains to
labour, workers rights and environmental standards. “The Eroncourt Convention as it stands is fine. I don't see a reason for it
to be changed. Because some nations can't settle their economies doesn't mean that Kazulia has to bear the burden for their
mistakes.” one political commentator said. “You open up the proposals to the treaty: welfare? financial market regulation? I
think we shouldn't be regulating any markets, let the market do that on its own.” He added that he was “strong proponent of free
trade,” but said that “there aren't many smart people in Skalm making our agreements.” Ms Ramussen defended the trade pact
against critics, saying the WDEA through its Comprehensive Free Trade Agreements, protected intellectual property and opened up
markets. Moreover, she argued that reforms would address the very issues critics raise. “We are going to ensure that economies of
size are accounted for to ensure that the agreement is truly equal,” she said, “so that we create a level playing field and they
don’t have the ability as effectively to undercut Kazulian workers and Kazulian businesses who are following higher standards.”
Prime Minister Rasmussen begins her Dovanian tour with a visit to Dankuk where she intends on reassuring Dankuk's Government on
the benefits of the WDEA.

[Auditorii]

Dorvische Allgemeine Zeuitung: Growing concern in the Lievenian Sea (January 4760)

[Maxington]

Earlier this morning, AWACS (Airborne Warning And Control System) aircraft of the Royal Kazulian Air Force landed at the Finn
Hammarskjöld Airbase in Telamon on the island of Migadon. The aircraft's arrival wasn’t surprising given widespread concern
coming out of the situation developing between Telamon, Likatonia and Davostan. The aircraft's deployment comes underneath an
enhancement patrol schedule by NORDIC (Northern Defence Integrated Command) to monitor the situation recognising the geopolitical
implications. "NORDIC intelligence is always on alert for potential situations as they develop in the Northern Hemisphere," an
unnamed individual from NORDIC's Command Centre said. Following an exercise conducted by the NTA (North Terran Alliance), a
military alliance consisting of Davostan and Likatonia, which entered Telamonese aerospace and conducted extremely provocative
and dangerous manoeuvres, which resulted in the damaging of a Telamonese vessel. "We have been monitoring the movement of
Likatonian aircraft for a long time. Through GAMS-1 and GAMS-2 we are able to track the movement of aircraft throughout the
Northern Hemisphere. What happened in Telamonese aircraft is a serious breach of international law." Deputy Chief of the Airforce
(Operations), Lt.General Richard Wahlgren stated that the Royal Kazulian Air Force, working alongside NORDIC had been monitoring
Likatonian aircraft and had expressed a degree of concern as it pertains to their behaviour in the international aerospace. The
AWACS aircraft is apart of a growing armada of surveillance aircraft being re-routed to the station on Migadon as apart of NORDIC
and the Royal Kazulian Air Force's enhanced surveillance schedule for the region. According to statements from NORDIC, increased
patrols are expected to be conducted by the Royal Kazulian Air Force and the Royal Hutorian Air Force to combine their collective
forces underneath coordination and C4 from NORDIC Command Centre.

“The North Terran Alliance's recklessness underscores the growing threat in the region,” Lt. General Zakarias Holmquist (RKAF),
Deputy Commander of NORDIC told members of the media during a press conference at NORDIC Headquarters. “A history of a clear and
present danger to hemispheric peace, as demonstrated by a number of provocative actions and reckless military actions in previous
years.” Lt.General Holmquist stated that NORDIC would continue to monitor the aerospace in the Northern Hemisphere, especially
around Macon, with a particular focus on the movement of aircraft from Likatonia, Telamon and Davostan (the three parties at the
centre of the situation). NORDIC's array of powerful spy satellites would be one option. Unfortunately, satellites have regular
orbits and it generally takes time to adjust them into new positions. This generally makes them best suited for long-term
surveillance of static points. The National Observation Centre (NOC) Space-Based Infrared System utilises multiple types of
satellites and sensors to address some of these issues and provide greater coverage. According to defence contractor Asvald
Gruppen (who was responsible for the construction of the system), the constellation can watch for the heat signature of enemy
missile launches and track them in flight, gather details about those weapons and their capabilities, and simply provide a broad
picture of activities down below should the need arise for such intelligence. Lt.General Holmquist stated that there would be no
need for the National Observation Centre to become involved through its infrared surveillance system as NORDIC had already come
to a conclusion that neither Telamon, Davostan nor Likatonia possess ballistic missiles of any sort/nature. Lt.General Holmquist
spoke to a report concluded by NORDIC which focused on the organisation's ability to monitor all movement in northern hemispheric
aerospace. The report concluded that whilst the organisation could have the ability to do so through enhancing its surveillance
satellite array, there is currently no present need for such systems as the traditional ballistic missile powers which concern
them the most have not reactivated their programmes, the traditional ballistic missile powers which concern NORDIC the most being
Trigunia and Vanuku.

The situation as it stands concerns Skalm mainly due to the Kazulian-Telamonian Memorandum of Understanding on Defence and
Security and its articles on mutual security and defence. Director-General of the Department for Macon and Kerisian Affairs, Brit
Christensen stated that as the treaty stands Telamon is well within its rights to ask for defence assistance from Kazulia should
the need arise. She stated that the treaty allows for Kazulia to operate in Telamon's aerospace for the purposes of security.
Chief of Defence, General Christoffer Lonning and Minister of Defence Richard Madsen issued a joint statement urging the
Likatonian Government to launch an investigation into the situation and to ensure that such an occurrence does not occur again,
stating that a future situation of this magnitude could lead to a military miscalculation and a potential spill-over in the
region.

[Maxington]

When Kazulian Attorney-General Anders Schmidt and Minister of Domestic Affairs Bernhard Klausen met with Lourennais High
Chancellor Xochitl Valferra, it marked the highest-level discussion of a matter of great concern between the two countries:
should the two nations intervene in the piracy situation in eastern Dovani and the drug trade developing across the continent?
Attorney-General Schmidt arrived in Eroncourt last week after Prime Minister Linda Rasmussen stated that it was her intention of
ensuring Kazulia pivots to the Dovanian continent and become involved in anti-piracy and counter-narcotics operations. For
decades, Kazulia has worked with other nations to combat drug cartels, helping to develop the security apparatus of many nations
in the region to ensure that they themselves maintain a capacity to respond to threats coming from drug cartels and pirates. A
study conducted by the Department of Domestic Affairs found that around 80-90% of the illicit drugs (hard-drugs) entering the
streets of Kazulia were coming from drug cartels operating within the Dovanian continent. According to the study, the mature
tunnel systems, secret tracks and other hidden transport systems were also being used by certain groups to smuggle firearms and
persons across the continent. Although Prime Minister Rasmussen has stated that she does not intend on mirroring the mistakes of
her predecessor, she stated that she has an obligation to the Kazulian population to ensure that certain illicit drugs remain out
of Kazulia and out of the hands of vulnerable groups. Underneath Kazulia's drug policy, Class A drugs are prohibited underneath
the Dangerous Drugs Act. The National Drug Detection Agency, the agency created to monitor the sale of decriminalised drugs and
the combat the movement of class A drugs into Kazulia through cooperation with the Federal Police, the Kazulian Security
Intelligence Service, the Department of the Attorney-General and Legal Affairs and the Department of Domestic Affairs.

The meeting with High Chancellor Valferra discussed the potential implications for intervention. It was noted that intervention,
especially in the area of narcotics could make both nations the subject of attacks from clandestine cartel forces and will
increase the potential/frequency of cartel kidnappings, hits etc. On the implications for intervention into anti-piracy
especially around Rapa Pile and Midway, Domestic Affairs Minister Klausen stated that through cooperation with the Department of
Defence through the Royal Kazulian Navy and the Royal Kazulian Coast Guard and with the relevant nations in the region,
particularly Vascania, he stated that instances of piracy in the region could decrease 10-fold through aggressive action.
According to Attorney-General Schmidt, comprehensive anti-money laundering policies will have to be applied by both sides and by
other nations in the region. Hence, Schmidt has stated that should the joint collaboration come into fruition he intends on going
to several Dovanian nations such as Vascania, Hanzen, Bianjie, Ostland and other states to urge their respective governments to
improve their anti-money laundering capacity. When asked what were the implications if a nation refused to enhance its anti-money
laundering capacity, Attorney-General Schmidt stated that said nation could find itself being Blacklisted by the Federal Tax
Administration. Although not speaking to the sanctions that might come out of being blacklist, Schmidt said that states on the
blacklist might find themselves with limited wiggle room for external financing, especially in the area of bonds and credit
financing. Kazulia remains the Dovanian continent benchmark bond issuer, meaning Kazulian Government bonds provides a standard
against which the performance of other bonds can be measured. Kazulia remains the region's primary external creditor, meaning it
invests more in the world and the wider region than the world invests in Kazulia.

The Department of Domestic Affairs through the Federal Police have released a list of Kazulia's most wanted drug cartel leaders
and pirate gangs operating within the region. Minister Klausen stated that the idea of placing a bounty on some of the leaders of
the listed organisations in under consideration by the legal team at the Department of Domestic Affairs, however, he noted that
the situation remained fluid. National Commissioner of the Kazulian Federal Police, Mikael Knudsen stated that the Federal
Police had been conducting intelligence on the operations of several criminal organisations operating in Kazulia. He stated that
the Serious and Organised Crime Division of the Federal Police had been involved in numerous operations including raids and
prosecutions, but noted that the leaders of the criminal organisations are the persons whom the Federal Police wish to extradite
to Kazulia for prosecution.