Keymon

[Lionking]

Keymon, a safe haven for business!
A 0% profit tax to attrack businesses all over terra.

A new tax haven has been born! Keymon, our beautifull island nation, has entered a new dawn. Like in the past Keymon was well know for it's offshore financial banking & insurance sector. This has been on the decline under the previous administration who decided to introduce a profit tax of 24%. The government has now overturned this and brought it back to 0% after they initially cut it by 10% the previous fiscal year. The difference between now and the past is that the 0% profit tax will be introduced for all companies who are residing in Keymon and this for all industries. Another change is that residents who are self-employed, like Dietrich the plumber or Jocki the Laywer, are now able to benefit from this scheme too.

General Der Armee Tragott Dähler reacts to the ' sancations ' imposed by Luthori and Likatonia :

These sanctions will not affect Keymon, under the previous administration and under ours we have done everything to de-Luthorionize and Likatonianize our economy. In fact these unfair and unprovoked sanctions will only strenghten our businesses as more and more opportunities will arise for them. So the thing is about Bisshop Ian Hornblower, well i can only make this very clear, he broke the law! And someone who broke the law should face justice. We do have a independent court system, unlike Luthori where Judges and magistrates are appointed by the Ministry of Justice. On the other hand, Luthori hasn't gotten a free press as there are still laws against subversive anti-government material. So who are the actual fascists here!? They threathen us with warships? Who the h*ll do they think they are!?

*someone shouting in the public ' donkey's, donkey's!*

Ha! Yes i suppose they are!

[imperialpearl]

Dr. Franziska Giezendanner, the former university professor and social advocate, secured an absolute victory for the reformed and revitalised Social Democratic Party, defeating conservative and centrist opponents in a sweep that saw the party secure all 75 seats of the Chamber of Deputies. Giezendanner, an academic in every aspect, will become the nation's newest Minister-President, and the first woman to hold the substantive position in more than a century. Her appointment marks a major turning point for the nation. Having moved through the motion of numerous caretaker administrations and a brief military dictatorship, the Keymonite population has been yearning for a semblance of political, social and economic stability. The election had existed between the constraints of competence vs incompetence, experienced vs the in-experienced and meritocracy vs kleptocracy, as Giezendanner sought to revive the SDP's founding principle of "meritocratic technocracy." The concept, born out of the musings of SDP founder and former Minister-President Jacques Périer posits that government departments should be run by policy-matter experts instead of politicians. Placing the track record of the nation's history with caretaker governments at the very centre of the debate, Giezendanner hammered home to point that throughout Keymon's modern economic history, it was always the SDP and its meritocracy technocracy that reset the national focus and steered the nation towards greener pastures. Striking a cooperative tone in her victory speech, Giezendanner promised to action many of the promises made on the campaign trail, chief among them being introducing a wide-reaching long-term plan to revive the Keymonite economy. "It is my every intention to work assiduously towards actioning the promises I have made on the campaign trial. From our comprehensive plan to rescue the economy from the depths of conservative/right-wing dogma to forging a new geopolitical path for our nation, I will remain committed to ensuring the people of Keymon can take pride in their nation's achievements once again."

[imperialpearl]

On the heels of the party's return to the Keymonite political scene and its subsequent electoral victory, Minister of Finance and Economic Development Dr Oscar Brennwald unveiled the SDP's budget plan for the coming fiscal term, striking a completely different tone as compared to his predecessors. During his maiden presentation to the Chamber of Deputies, the Finance Minister unveiled his 200 billion KED in what would mark the single largest increase in government expenditure in centuries by any Keymonite Government, in pursuit of sweeping fiscal and macroeconomic changes aimed at boosting the Keymonite economy. The budget represents an amalgamation of the numerous policies promised by the party on the campaign trail including reinvestment into the nation's manufacturing sector, boosting national standards for education and healthcare access, addressing chronic shortcomings in the nation's woefully outdated and ineffective social safety net, and miscellaneous spending. The budget represents a major departure from the restrained, conservative budgets of the previous political administrations. Underneath the previous caretaker administration, government expenditure had been capped at around 80 billion KED, as that administration sought to contain national debt to around 50-60% of GDP. In that budget, spending was primarily centred around maintaining payments and gratuities to public servants, continuing support for the regional health authorities and containing inflation. Noticeably absent from these budgets was new funding for new projects which led many economists and financial analysts to posit that the budgets of the previous administrations were primarily made to "keep the lights on". The budget is expected to increase the national debt to around 70-80% of GDP. Dr Brennwald noted that although the budget would send the national debt to GDP ratio "into the red", it was not a cause for great concern. "We believe that pushing our debt to GDP into the "run" is not a major cause for concern at this time. Under the current circumstance wherein the economy is below full employment, deficit spending can enable us to address the most pressing issues now and come back later to address the issue of our national debt once we have obtained enough room to do so," Dr Brennwald explained. In addressing the concern of the more aggressive fiscal hawks within the population, Dr Brennwald stated that the budget is expected to also be financed through loan financing arrangements, and drawdowns from the Stabilisation Fund. Brennwald explained that with the SDP having the foresight to create the fund at the high of the nation's journey into becoming a major producer of downstream petrochemical products, both the Stabilisation Fund and the Green Fund has accrued a combined value of around 400 billion KED, with 150 billion resting in the Green Fund and 250 billion in the Stabilisation Fund. It is expected that the stabilisation fund will finance much of the government's spending in the future as Dr Brennwald notes that he intends to amend the legislation creating both funds to allow for the government to make more than one drawdown from the fund per year.

Beyond the fiscal side of the budget, Dr Brennwald spoke with great detail on the proposals made within the budget. Dr Brennwald noted that amidst the SDP slip from the national political scene, the progress made by the party to reduce Keymon's dependence on natural gas for electricity had been lost. Admitting that although the discovery of natural gas resources off the nation's coast had sidetracked the supposed green agenda outlined in the early phases of the party's governance, Brennwald noted that there was considerable momentum building domestically for a refocusing of the government's efforts to a green transformation. Amidst all this, Brennwald said that the process will have to be repeated albeit with major changes to how the government approaches it. The budget includes 5 billion KED for the creation/operationalisation of a national utility company to prioritise the transition away from fossil fuels. "Natstroum" as the company is expected to be called, will be wholly responsible for executing major renewable energy projects by the government via funding from the Green Fund. State Secretary for Energy and Natural Resources Jérôme Kieffer stated that the agency would exist alongside private companies, in that the Keymonite Government had no intention to nationalise the entire electricity generation market as seen in other territories. Instead, Natstroum will exist alongside private companies/enterprises as it would be responsible for constructing offshore wind farms and solar parks and the power/electricity generated in these spaces would be subsequently sold to private energy companies and the national grid. Additionally, the budget proposes sweeping changes to the National Innovation Fund which would allow for it to be accessed by microenterprises. Concurrently, the National Innovation Fund is aimed solely at firms within the digital economy ecosystem, and thus firms within other areas of the economy such as green technology and manufacturing are often hamstrung by their inability to fund/finance research & development as they cannot access loans from financial institutions. Minister of Economic Affairs and Communications Dr Sana Kocherhans noted that the reformed National Innovation Fund will be present in all sectors of the economy where cleaner energy applications can be encouraged. "From carbon capture and storage to green hydrogen, the NIF's scope will be expanded to include a strong focus on green tech going forward." Dr Kocherhans said. The budget also refocuses the government's efforts on the digital economy. It is without a shred of doubt that Keymon is one of the most, if not the most technologically integrated societies, with technological applications playing numerous important roles in public life from governance to the economy. Amidst the SDP's slip from the political scene, attention on furthering the digital economy following the success of the digital government agenda had largely faltered. State Secretary for the Digital Economy Isabel Langenauer confirmed that some 5 billion KED had been included within the budget for the digital economy and would primarily be focused on angel financing for startups in the digital economy.

With Keymon being a largely financial economy, owing to the nation's robust financial services sector and it being a major transhipment point between Artania and Seleya, a plan to revive the financial economy remains at the very top of the government's agenda for stabilising the national economy. Although banks such as Credit Klavia have largely weathered the storm, Dr Brennwald believes there is considerable room for Keymon's financial economy to bounce back in a major way. He noted that he wanted to encourage growth among the nation's smaller/medium-sized banks as he noted that allowing Credit Klavia to grow without competition and to be the only major bank on the island could be extremely detrimental to the national economy, should the bank become "too big to fail" or "too big to bail". The budget included 1 billion KED for an international financial centre company whose primary purpose would be to aid in the redevelopment of Keymon's financial services sector. Dr Brennwald notes that although in the past Keymon's financial services sector had developed naturally, this time around, the sector would need considerable assistance in its redevelopment beyond concessions and MoUs. Coined the Keymon International Financial Center, the company's CEO has been identified as former senior financial adviser to the Minister-President Dr Jean-Claude Seimetz, with Dr Veronika Waldvogel, former Secretary-General at the Department of Finance and Economic Development, as the Chairman. Dr Seimetz explained that the company's focus would be to encourage/create an enabling environment for growth among the nation's small to medium-sized banks alongside creating new avenues of opportunity, most notably in the area of fintech and green financing. Outside of financial services, manufacturing is the 2nd most important sector within the Keymonite economy, accounting for around 10% of all economic activity and employing around 30% of the national labour force. Minister of Commerce and Industry Max Hundsberger stated that the budget had accounted for an increase in funding for the Business Development Bank to the tune of around 10 billion KED. According to Minister Hundsberger, this 10 billion KED is expected to be channelled specifically to manufacturing firms via new loan financing arrangements and technical assistance. A major caveat of manufacturing in Keymon remains the question of increasing productivity with a relatively small labour force compared to other nations. In the past, the answer to this question has been the integration of automation into the manufacturing process via a clearly struck balance between AI and human labour. Hundsberger believes that amidst a refocusing of the government's efforts on the digital economy, so too should its focus on enhancing the use of AI and advanced machinery in manufacturing return. Alongside this, Hundsberger notes that a review of the nation's immigration policy is in need. Underneath the previous administrations, the clarity of Keymon's immigration policy had been blurred as the nation moved from actively encouraging individuals to reside in the nation to the brief military dictatorship banning both immigration and emigration. Hundsberger believes that should the domestic labour force not grow, Keymon must be welcoming of migrants as a means of keeping the nation's prospects for growth afloat.

[imperialpearl]

Once a rising powerhouse in innovation in the natural gas sector, Keymon has become a shell of its former self. Amidst decades of divestment from the natural gas sector and the continued failure of successive administrations to transform the nation's natural gas riches into greater opportunities for economic growth and diversification, Keymon's once commanding presence in the global natural gas market has been all but dismantled. This has been a conclusion that many within the sector have not come to terms with. They argue that compared to other nations, Keymon possessed much of the infrastructure, expertise and financing required to keep the sector virtually moving without considerable government intervention. Brennstoff, the state-owned natural gas company had, at least at the time, become involved throughout the entire natural gas supply chain, from extraction to refining to distribution. It had even begun diversifying its portfolio into operations outside the natural gas business via its renewable energy subsidiary, Brennstoff Alternatives. Yet, amidst the decades of corrosive governance which had plagued the nation, from a brief military dictatorship to an attempt by sympathisers of the HLE (Holy Luthori Empire) to bring Keymon under the receivership of Luthori, a lack of attention on the need for the company to become more nimble and diversify its investment portfolio beyond natural gas tied with overbearing government interference in the most minute details of its operations and incompetence at the hands of the company's executives had all compounded to bring about the company's untimely downfall. The knock-on effects of this subsequent downfall have sent shock waves throughout the Keymonite economy. The Petroleum and Natural Gas Profits Tax Act and its subsequent amendment provided that the government would impose a tax/levy on profits made in excess when crude oil and natural gas prices were at a specific level. For example, should global crude oil prices hover between $60-100 per barrel, and a company produced, marketed and sold crude oil in excess of its average production, the profits made in excess would be taxed by 25%. For natural gas, it was very similar in that should global natural gas prices hover between $2-10 per mbtu, and a company produced, marketed and sold natural gas in excess of its average production, the profits made in excess would be taxed by 25%. Much of the monies derived from these levies were placed into three sovereign wealth funds managed by the Bank of Keymon and the Department of Finance and Economic Development respectively: the Future Investment Fund, the Green Fund and the Stabilisation Fund. The Future Investment Fund was established as a means of setting aside a certain percentage of the monies gained from the aforementioned taxes/levies for future generations, primarily as a means of either Universal Basic Income (UBI) or supplemental financing for infrastructure projects should the need arise. The Green Fund was established to finance the government's green investment strategy, as at the time of its creation the success of Brennstoff Alternatives had impressed upon the government, the need for Keymon to begin transitioning towards renewable energy. The Stabilisation Fund was established as a means of stabilising the national economy by providing supplemental funds to avoid budget deficits. If the government expenditure exceeds revenue, the Department of Finance and Economic Development (which managed the fund) would primarily make drawdowns from the fund as a means of avoiding a deficit. The evisceration of Brennstoff's operations and the decline of the Keymonite natural gas sector has placed the national economy in a position of unique risk, in that although the government can make drawdowns from the aforementioned funds (which all stand at 12 billion, 8 billion and 20 billion respectively), the funds cannot be replenished due to a lack of foreign exchange moving into the country via the natural gas sector.

In seeking to mount a complete rebound of the sector, from the nature of the operations to the state's involvement, Minister-President Dr Franziska Giezendanner has commissioned a committee to oversee a complete reassessment and realignment of the sector in line with the new administration's policies. The committee, according to Dr Giezendanner, is comprised of the Minister of Finance and Economic Development Dr Oscar Brennwald, Minister of Economic Affairs and Communications Dr Sana Kocherhans, State Secretary for Energy and Natural Resources Richard Ries and Professor of Energy Economics and Finance at the University of Keymon Dr Mireille Mullenbach. The committee found that in order for Keymon to re-establish itself as a major player in the global natural gas and downstream sectors, a considerable amount of investment would have to be focused on the area, both in terms of monetary investment and "policy investment." It stated that a complete restructuring of Brennstoff had to be initiated in order to ensure the company is prepared to retake its place among one of the most innovative companies in the natural gas and downstream petrochemicals business. The committee noted that the government would have to revisit the Petroleum and Natural Gas Profits Tax Act with the intention of halting the collection of taxation from the various small to medium-sized private companies operating in the South Ocean gas fields. It explained that in compiling its report to the Minister-President, the committee had a series of discussions with business leaders and persons connected to the private-sector side of Keymon's natural gas sector where it was revealed that amidst record low natural gas production and a lack of financing to drive production up once more, the private sector was being "squeezed out of the market" as it noted that the rates of the Petroleum and Natural Gas Profits Tax Act were coming extremely close to their break-even profit values. "The tax is becoming a major hindrance to business. It's squeezing a lot of our companies out as we can't even break even sometimes due to low production and the tax (with its high rates) comes in from the side with the killing blow," said Eugène Nilles, President and CEO of Nikron Energy and President of the Petroleum Producers Alliance of Keymon. According to Dr Mullenbach, a potential solution would be for the government to (until production increases/returns to its pre-collapse levels) collect royalties on the blocks owned by the numerous companies operating in the Cobra-4 shelf. She explained that the royalties are virtually a "rent" of a sort wherein companies pay the government a percentage of the value of the land/acreage itself. She stated that an enabling environment would have to be established to enable companies to conduct their business without delay or bureaucratic hindrance. She also added that it was undoubtedly time for Keymon to reduce the amount of natural gas involved in its energy mix. She explained that it would be better for the state, via a restructured Brennstoff to maximise its profits from its involvement in the natural gas business by ensuring that all if not most of the natural gas they [Brennstoff] extracts is sold on the international market instead of a percentage of its production being sold domestically to Natstroum and the national grid. State Secretary Ries stated that the restructuring and rebranding of Brennstoff would be led by the company's new President and CEO. For much of the past decade, the company has been primarily managed via an Acting CEO/President, appointed by the company's board of directors. A communique has been released by the Office of the Minister-President (Plazhaus/Platzhaus) has formally invited the CEOs/Presidents/Chairs of the nation's oil and natural gas companies to a "sit down" with members of the Keymonite Government in an attempt to determine the way forward for the nation's small to medium-sized O&G producers. The road to rebuilding Keymon's prominence on the global stage will undoubtedly be fraught with challenges, but Dr Giezendanner believes that a realignment of the government's focus towards policies which encompass a "whole of the economy" approach could aid in weakening the blows associated with changing the macroeconomic foundation of a nation.

[imperialpearl]

With much of the nation's defence capabilities having been reduced to nothing amidst nearly a century of mismanagement and inaction by defence planners within previous political administrations, the Keymon Defence Force's readiness for a potential conflict on the nation's doorstep is virtually non-existent. In recognising the importance of possessing a capable defence as a means of ensuring the nation remains independent of others, especially in the area of defence, the Keymonite Government has committed to a long-term rearmament and modernisation programme for the KDF with the hope that in the future, Keymon can become completely self-reliant on matters as it relates to its national defence. The commitment comes amidst concerns among Keymonite defence planners at the fact that with the nation vying to return to economic prominence as a major global financial and manufacturing centre, the defence of the nation must be placed at the same level of importance as the nation's economic recovery as they note that the defence of the self works hand in hand with ambitions for greater economic/political influence. During his maiden budget presentation, Minister of Finance and Economic Development Dr Oscar Brennwald announced a 100% increase in Keymon's defence budget, increasing the allocation from 20 billion KED to 40 billion KED. Although the increase in the budgetary allocation is profound and presents the largest increase in national defence spending since the last SDP administration, the question which had occupied the minds of defence planners and policy experts alike is how the "Verteidegungsmuecht (KDF)" go about spending said money in a manner which would be cost-effective and would enable the Verteidegungsmuecht to achieve its objective of enhancing its combat and operational effectiveness in the shortest space of time. Underneath previous administrations, little to no work had been done on enhancing the capabilities of the Verteidegungsmuecht beyond its current constraints. In an assessment conducted by the Department of National Defence on the readiness of the Verteidegungsmuecht for a major conflict on the nation's borders involving major economic and military powers, it was found that in all cases, the KDF would not have been able to hold its own against both an overwhelming force and would fail to mobilise much of its military might in time. The report noted that the lack of transformation/modernisation of the KDF's core doctrine of "Total Defence" would continue to hinder any meaningful progress regardless of an increase in the budgetary appropriation to national defence. It is against the backdrop of this that many of those who continued to monitor the efforts of the KDF throughout the numerous political administrations of the past have come to the same conclusion: the Verteidegungsmuecht continues to suffer from a lack of core leadership, contains major readiness gaps and has fallen considerably behind other nations in terms of equipment and operational effectiveness.

With much of this in mind, Minister of National Defence Martine Barthel has sought to bring in expert advice in the hopes of carving out a coherent strategy for consistent modernisation within the verteidegungsmuecht. To that end, the Minister has commissioned the Defence Advisory Board (DAB) as a special advisory council under the purview of the Department of National Defence, which will act as an integral part of Keymon's defence planning going forward. Comprised of former high-level commanders within the verteidegungsmuecht and national security experts, the DAB will provide recommendations for enhancing the operational effectiveness of the verteidegungsmuecht by continuing reviews of the nation's defence policy and working with the technocrats of the Department of National Defence and the Defence Policy Center of the Office of the Chief of Defence. Former Commander of the Air Force Divisionär (ret.) Léon Brandebourg had been appointed as the Chairman of the DAB four months ago and is quoted to have begun a complete review of the verteidegungsmuecht. Although the complete report has not been completed, Brandebourg shared snippets from the DAB's preliminary report and spoke to some of the recommendations to be suggested. According to the DAB's preliminary report, it was confirmed that the verteidegungsmuecht suffers from a lack of core leadership and is some decades behind other nations in terms of defence equipment. Pointing to the laziness of commanders in all three branches, the report said that the lack of ambition demonstrated by said commanders created a malaise within the verteidegungsmuecht, whereby equipment was either poorly maintained or not maintained at all. It noted that as a result, billions of dollars in investment had been wasted at the hands of incompetent commanders. It recommended that a complete overhaul of the leadership structure of the verteidegungsmuecht be conducted with an emphasis on developing a system whereby merit is placed well above seniority (i.e. how long someone has been in the service). On wasted appropriations, the DAB preliminary report recommended that all procurement and maintenance related to major equipment stocks, namely the nation's infantry fighting vehicles, main battle tanks, combat and transport aircraft, helicopters and electronic equipment be monitored and governed by an independent "Defence Procurement Agency". It is believed that Minister Barthel is already acting on the recommendations outlined in the preliminary report as he announced the appointment of a new Chief of Defence, Korpskommandant Jacques Rabinger. KKdt Rabinger is a career officer and the former Commandant of the Defence Force College. KKdt Rabinger's appointment was subsequently accompanied by a reshuffling of commanders of the various branches. Commander of the Air Force Divisionär Hansueli Schneiter has been replaced by Divisionär Fiete Winzenried, Commander of the Navy Vizeadmiral Jérôme Schumacher has been replaced by Vizeadmiral Mathias Schiltz and Commander of the Air Force Divisionär Fabrice Schneider has been replaced by Divisionär Yolande Wagener.

On operational effectiveness, the narrative has changed from quantity over quality to the reverse. One of the major caveats of Keymon's economic condition remains the constraints which exist amidst a tightly enforced budget. Gone are the days under the nation's brief military dictatorship whereby the numbers of the verteidegungsmuecht swole to numbers never before seen. Now, the KDF must focus on enhancing the quality of the training and equipment fielded by the individual soldier. A unique emphasis would thus have to be placed on ensuring the common Keymonite soldier is as competent and as well equipped as any other nation, if not better. As the matter of equipment of primarily a matter related to defence procurement, the DAB has advised that the Department of National Defence reconstitute the Defence Procurement Agency (DPA). It noted that, in reconstituting the DPA, an emphasis should be placed on ensuring the agency is capable of managing the needs and expectations of the various branches of the Verteidegungsmuecht. "A new way in which procurement proposals are made/are proposed to the DPA would have to be created. In conducting our research, we've observed a trend in defence procurement contracts with the KDF/VM in that a proposal is made, financing is secured but the company never produces the amount requested thus leading the DPA to conduct investigations into the company and then pull the procurement contract. Under this new DPA we're hoping to see that when a procurement request is made to the DPA, the agency compiles a list of companies of known contractors and then conducts an investigation into their history/track record. The contract would be then given to the company which it [the DPA] believes would be able to fulfil the wishes of the contract (i.e. whether they can produce a requested amount of tanks, rifles or ammunition). Should the company fail to uphold its end of the agreement, the DPA would be able to sue the contractor for failure to satisfy the terms of the agreement in order to sequester the monies gained by the contractor from the contract. The DPA would then add the company to a black-list, barring it from conducting business with the contractor in the future," Mr Brandebourg explained. The average Keymonite soldier would have to undergo a series of courses which would become standard practice. Owing to Keymon's mountainous topography, Keymonite soldiers would have to be proficient (in some form) in mountain warfare as well as ski combat. A complete rebuilding of the KDF's airlift corps would have to be done as helicopters would be the primary means by which the KDF would be able to move troops around the country, especially into the more extremely mountainous regions. "We've always had a good relationship with companies like ADG (Artanian Defence Group), so we don't expect to see any sort of issue when it comes to procuring more helicopters for them," Brandebourg said.

[imperialpearl]

For much of its modern economic history, the manufacturing sector has played the most important role in Keymon's economic development. Established initially as the foundation of the modern Keymonite economy, the manufacturing sector has been a key source of employment and opportunities among citizens and can easily be attributed to pulling the nation out of economic ruin following the global economic downturn. But for all its marked importance, manufacturing and Keymon's ability to compete against established manufacturing powers had been gradually eroding over the past decades. With little to no investment in enhancing the capacity and general productivity of the nation's handful of large-scale manufacturers and with little attention being given to the nation's small and medium-sized enterprises, the once economically important keymonite manufacturing sector is but a shell of its former self. As the economy transitioned towards digital transformation, firm plans had not been set into motion to diversify the nation's manufacturing away from niches. Traditionally, keymon's manufacturing sector has produced low-level trade items such as beverages, foodstuff and a handful of machine tools. For a nation's manufacturing capacity to grow, there must be consistency both in the established practices and movement in terms of becoming involved in new areas. The lack of diversification within the nation's manufacturing sector can thus be attributed to its demise. Aside from the issues surrounding a lack of diversification within manufacturing, there remain significant considerations for labour and workforce. For much of its history, the manufacturing sector's ability to compete against established manufacturing powers such as Dorvik, Lourenne, Yingdala and Deltaria, has been pinned on its ability to integrate advances in technology into business operations. Unlike the aforementioned nations with large labour pools, Keymon's labour pool remains relatively small. With a population of around 18 million, Keymon does not have much wiggle room in terms of individuals to call upon to boost the nation's productivity. The labour productivity levels of Dorvik, an established manufacturing hub in the western hemisphere, far outstrip Keymon's ability mainly because the nation maintains an extremely diverse manufacturing base and a large, highly-skilled labour pool, and thus the nation's manufacturing sector can compete with other established manufacturing hubs not just on a basis of productivity but can also leverage the depth of the sector against other industries as a potential buffer to economic shocks.

The question of how Keymon enhances its manufacturing capacity has been debated ad nauseam. Having been the subject of numerous case studies and green papers, the constant of many of these studies has been the integration of ICT into factories and businesses. As the digital transformation agenda continues into its new thrust of establishing a digital economy, the benefits of automation have been talked about for quite a while. One of the many conclusions drawn by economists and demographers is that although automation can have a direct impact on employment, tipping the scales in favour of human labour by allowing for the jobs of humans to become easier via automation with having to fire them can bring about long-term benefits in terms of enhanced productivity and competitiveness. As economist Alfred Diederich points out "introducing automation into the workplace, especially in manufacturing can bring about enhancing productivity as it has been shown that where humans and machines are paired labour productivity increases significantly." Diederich notes that automation can enhance the productivity of manufacturers of all sizes, from small and medium-sized enterprises to large multinationals, advocating for SMEs to be the benefactors of automation for large and established companies. "SMEs account for around 60% of the manufacturing companies within Keymon. I believe that any attempt at enhancing the nation's manufacturing capacity through automation should be aimed at these companies." One of the other considerations in enhancing the nation's manufacturing capacity remains workforce development. As established, Keymon's small labour pool does not allow for much wiggle room. Thus the idea of workforce development comes increasingly important as the nation must maintain a highly-skilled and flexible workforce capable of leaning into its numerous strengths. Although Keymon maintains a workforce development programme through the National Apprenticeship System, the scope and scale of the programme remain constrained. As the University of Keymon notes in a recent paper on the effectiveness of the system, "there is room for significant improvement, both in terms of scope and scale. Aside from up-skilling noncollege-educated workers, the programme should lean into providing unique/tailor-made workforce development models/programmes for SMEs. Having regard to the fact that a transformation in Keymon's manufacturing sector cannot be achieved through the efforts of the private sector alone, Minister of Commerce and Industry Max Hundsberger made numerous announcements on the government's agenda for the manufacturing sector. Speaking at the annual conference of the Association of Keymonite Manufacturers (VKH/APK), Minister Hundsberger stated that having noted the green papers of previous administrations, the numerous academic studies of the University of Keymon and commentary of economist and public policy experts, the Department of Commerce and Industry had set out to craft numerous policy interventions which it believes will enhance the nation's manufacturing capacity and bring about a revival in domestic manufacturing. Among the interventions were: (1) The establishment of numerous tax credits for research and development, workforce development and diversification, (2) the establishment of a national quality policy, (3) the establishment of a national quality and standards agency to develop, promote and enforce standards in order to improve the quality and performance of goods produced or used within Keymon, (4) reform the national apprenticeship system to allow for technical advice to be rendered to private sector entities, (5) reform the factory automation tax credit to favour SMEs instead of established conglomerates and (6) reform the Business Development Bank.

[imperialpearl]

Although the region’s importance to the Keymonite economy has been undercut by decades of mismanagement and protectionism at the hands of previous political administrations, the dangers of a Keymon disconnected from the wider Artanian economy are becoming more profound. In a report entitled: “Trade and Investment: Keymon's Future with the Artanian Community”, Professor of International Trade from the University of Keymon, Dr François Diederich argues that Keymon's economic recovery could be seriously hindered should it continue on its current path of avoiding interactions with the wider Artanian economy and remaining merely dependent on its relationship with the Seleyan continent. Pointing to the slowdown in economic activity on the continent due to the collapse of Lodamun's Democratic Party, Dr Diederich urged that future political administrations within Keymon should aim to diversify the nation's economy away from exports to and imports from Seleya only and focus on expanding the nation's reach into other continents. He warns: “the political and economic climate on Seleya is not conducive to long-term economic development for any nation that engages in trade with the nation. Our continued dependence on Seleya as an export market and on the imports that come from the continent leaves us in a unique situation whereby we are importing inflation alongside the vibrations of much of Seleya's politically unstable "democracies". Therefore it is incumbent on the current and future political administrations to diversify both our import and export market away from the continent and towards more stable partners.” The Social Democratic Party's return to the Keymonite political scene presents an opportunity for the new political administration in Münberg to reset the nation’s trade relationships and steer the nation towards green pastures. Concurrently, Keymon lacks a comprehensive trade policy as it pertains to the Artanian markets. Having not committed much attention to the development of strong economic bonds with its neighbours, the aforementioned dependence on the Luthorian market is thus realised. The Bank of Keymon estimates that Keymon garnered 800 million LOD from the export to the wider Artanian market compared to the 6 billion LOD gained via exports to the Seleyan market within the same period. The imbalance, according to numerous trade policy exports and economists creates the impetus for situations such as imported inflation and Keymon's vulnerability to external shocks. “This dependence we’ve created for ourselves is going to be the death of our economy and its growth potential. Economic hardship on that continent [Seleya] manifests itself as an economic crisis in Keymon due to the openness out of the market, its relative size and its dependence on the continent's consumer base. We can ill afford to continue along this path, tied to such a toxic relationship.” Professor Diederich warned.

Having recognised the importance of diversifying the nation’s export markets and addressing the nation’s overdependence on the Seleyan consumer economy, Minister-President Dr Franziska Giezendanner commissioned a cabinet-appointed committee to aid in the development of a new trade and investment policy for Keymon to pivot the nation towards catering to the wider Artanian market as well as setting the groundwork for the nation’s eventual pivot to the wider global economy. Among the numerous proposals/recommendations made by the committee (1) a closer economic relationship with Dorvik (2) reducing the nation’s dependence on imports and (3) rebuilding Keymon into an efficient, export-oriented industrialised nation became key pieces in the Minister-President's address to parliament wherein he spoke to the future of Keymon's relationship with Artania. Speaking on a closer economic relationship with Dorvik, Minister-President Giezendanner stated that the Dorvish market presented numerous benefits compared to the Seleyan markets. Pointing to economies of scale, a larger and more developed consumer market and a stable government capable of addressing potential trade disputes, Dr Giezendanner stated that a pivot to the Dorvish market as a potential alternative to the Seleyan market was the easiest decision any government could make. “For the past 50 years, the Dorvish economy has continued to develop at a pace which dwarfs that of many nations on the Seleyan continent. The presence of a stable and competent government lends itself to greater market confidence as well as predictability.” Dr Giezendanner noted that a closer Dorvish-Keymonite economic partnership represents the best avenue towards the development of a larger economic community within Artania. Highlighting the Luthorian-led attempt to erect a new Artanian Union (AU) as sort of a failure, Dr Giezendanner believes that a Keymonite pivot to Artania could see the nation become involved in an attempt to rebuild the organisation as it stands. She noted that a Keymonite entrance into the AU would be a major boon to the Keymonite economy as the nation would have access to a much larger, much more stable and more specialised consumer base. Speaking on reducing the nation’s dependence on imports, Dr Giezendanner stated that the government intends on aiding small and medium-sized enterprises within Keymon in becoming more productive, thus enhancing their contribution to national GDP. Concurrently, the Bank of Keymon estimates that the nation is heading towards a current account deficit as imports are set to exceed exports, with Governor of the Bank of Keymon Dr Eliane Brandebourg warning that imports continue to place significant strain on the nation’s foreign exchange situation. “By helping these companies enhance domestic production as well as enabling them to diversify into other markets to offset/reduce imports we can avoid a balance of payments crisis.”

Near the end of her address, the Dr Giezendanner reiterated her vision of Keymon retaking its position as a highly competitive, export-oriented economy. She stated that, unlike Dorvik, Malivia and other nations with large consumer markets, Keymon could not develop a budding consumer-based economy. Noting the nation’s comparative advantages lie in the nation's ability to develop efficient processes. “If we can leverage our comparative advantages against other regional and global markets, we can carve out our piece of global market share and develop economies of scale.” Minister of Foreign Affairs and International Cooperation Monika Klein stated that the success of an export-oriented economy was its reach/connections to other markets. To this extent, the Minister announced numerous diplomatic appoints earlier this morning including Keymonite Ambassador to Dorvik Richard Goergen, Keymonite Ambassador to Luthori Emmanuel Wagner, Keymonite Ambassador to Dundorf Francine Kieffer, Keymonite Ambassador to Kundrati Mélanie Kirsch and State Secretary for International Trade and Investment Jean-Pierre Thill. Mr Thill is expected to become a major figure within Keymon's foreign and trade policy transformation as his position as State Secretary for International Trade and Investment (a subordinate to the Minister of Commerce and Industry), being largely inspired by Dorvik's independent Trade Commissioner, will be largely responsible for implementing the nation's new trade policy which focuses on pushing towards reviving the Artanian Union and enhancing Keymon's economic relationship with the nations of the Artanian continent.

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In her first international visit since becoming Minister-President, Dr Franziska Giezendanner has arrived in Haldor, Dorvik becoming the first Keymonite Minister-President to visit the North Artanian economic powerhouse since the formation of the 2nd Republic and the reformation of the Principality. Her visit, historic as it may be, is intended to settle both old and new business between the two nations. Having expressed interest in pulling Keymon closer to the Artanian continent and the Artanian economic sphere, even going as far as to initiate the process which would see Keymon ascend to the Artanian Union, Dr Giezendanner's visit to Haldor, Dorvik has been viewed by many as a charm offensive, aimed at securing the support of the continent's largest economy, and Keymon's only true ally on the continent as a means of marketing the benefits of the nation's realignment/pivot to the continent to the people at home in Keymon. Dr Giezendanner reportedly met with numerous Dorvish officials including Dorvish State Chancellor Otto Huhn and Foreign Affairs Minister Rayk Hertzog. Dr Giezendanner discussed a reactivation of the Dorvish naval installation in Keymon, noting that whilst the nation finds its grounding as the KDF begins its reorganisation and modernisation programme, it remains at risk of unprovoked attacks from neighbouring states, most notably Likatonia which she has noted has made multiple attempts against the nation's sovereignty in the past. At a press conference held at Platzhaus in Münberg prior to her departure for Dorvik, Dr Giezendanner stated that Keymon's aggressive and ambitious pivot to the Artanian continent was not based on an inert fear that the nation would be relegated to the sidelines of history, but was based on the numerous opportunities with which the continent could provide the Keymonite economy to grow. "My government's push towards decoupling from the Seleyan continent and advancing an aggressive and ambitious path towards aligning with the politics and economics of the Artanian continent is not based on an inert fear that our nation could somehow be forgotten, cast aside to be relegated to the sidelines of history, but is based on our belief that a closer relationship with what is easily the fastest growing continent could provide Keymon with numerous opportunities for economic growth; opportunities which we must at least admit were/are not present on the Seleyan continent." She noted that a revived and functioning Artanian Union, one which is intrinsically involved in augmenting the efforts of member states to boost economic activity and growth within their respective nations was an opportunity no nation would/should pass by. "In its current form, it is clear that the Luthorian-led attempt to rebuild the Artanian Union has fallen short of expectations and it is understood that it has done so. It should be noted that the attempt before that failed as well owing to many of the same problems which have befallen the current model. Keymon will sign up to the Charter of the Artanian Union and we will add our voice to the conversation on where the AU should stand in our modern world and what should its role be as it relates to both the individual nations of the continent and the continent as a whole," Dr Giezendanner said. Martin Reichmann, a geopolitical analyst working for the Schüpbach Consulting Group, noted that Dr Giezendanner's visit to Dorvik was primarily an attempt to get Dorvik on board with the idea of trying again as it related to rebuilding/reviving the AU. "Although the Minister-President attempted to hide her intentions during this visit with talk of a closer economic relationship with Dorvik, it is clear that this visit is about roping Dorvik into the idea of cooperating on building a new AU from the ashes of the previous attempt. Whether this moves beyond mere talk is left to be seen," Reichmann said.

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Having explained to her to Dorvish counterpart that one of the core tenants behind whether Keymon commits wholly to adopting the Charter of the Artanian Union was the promise of reforming the organisation or more certainly reviving the organisation under a new light, Minister-President Dr Franziska Giezendanner's visit to Luthori should come as no surprise to the most observant of commentators. Luthori was the principal architect behind the most recent attempt to revive the Artanian Union, bringing the numerous nations key to the organisation's success together. Most notable was the nation's attempt to rope Kundrati and Dundorf into the organisation, who were noticeably absent during the previous Rutanian-led attempt. In a statement dated earlier this morning, Platzhaus (Platz House) stated that during the visit, the Minister-President intended to have a series of meetings with Luthorian Government officials ranging from the Prime Minister to the nation's Acting Foreign Secretary. According to Dr Giezendanner, Keymon's entrance into the Artanian Union presented an opportunity for the business/operation of the organisation to change from the inside out. "It is very clear that the AU has lost much of the steam that carried it through the negotiation period. This organisation has the potential to be something extremely world-changing and by committing to fully become a member of this organisation we stake our claim to that world-changing potential," Dr Giezendanner said. Although the visit to Luthori is historic in many ways, primarily as it is the first time in centuries a Keymonite head of government has visited Luthori and notwithstanding previous Luthorian overtures as to convert Keymon into a client-state of the nation, the visit is simply intended to gauge the willingness of Luthori's political class to enter negotiations related to the AU once more. "Similar to what she did in Dorvik, the Minister-President is seeking to determine for herself and for the technocrats at the Department of Foreign Affairs and International Cooperation as to whether the Luthorian political class has the appetite for virtually dropping the current AU form as it stands and renegotiating a new settlement. The visit also serves as a means to signal to the Luthorian political class that the Keymonite Government views it [Luthori] as integral to the success of the organisation, recognising that the nation is rapidly becoming one of the region's fastest-growing economies," Laurin Birchmeier, a senior foreign policy fellow at the Lütscher Hausemer Institute said during an interview.

[imperialpearl]

Having ratified the Charter of the Artanian Union, the Principality of Keymon is now officially, the newest member of the Artanian Union. Having campaigned on enhancing the nation's cooperation with Dorvik and the continent's other rising powers, the Keymonite Government's aggressive pivot away from the Seleyan continent to Artania and the AU presented both Keymon itself but also the Artanian Union with a unique opportunity for self-reflection and introspection. It is no secret to the average observer that the most recent attempt to revive and transform the Artanian Union into a more active and functioning economic alliance has largely failed, and where the blame for that failure must fall remains the subject of muted discussions and whispers. Nonetheless, the organisation as it stands remains a symbol of the continent's inability to unite under a common, singular cause. Minister-President Dr Franziska Giezendanner, Minister of Foreign Affairs and International Cooperation and the nation's Chief AU Negotiator State Secretary for International Trade and Investment Jean-Pierre Thill are expected to arrive in Haldor, Dorvik to host (by proxy) a two-week summit of the member states of the Artanian Union where they intend to outline the plans they had developed alongside the Dorvish delegation to reform the Artanian Union into a functioning economic alliance/union. Dr Giezendanner stated that the optics of the organisation's newest member hosting a summit that could potentially transform the very nature of the organisation did not seem "right" in the face of the AU's more veteran members, such as Dorvik. Dr Giezendanner noted that Dorvik was chosen as the location for the summit primarily due to the nation's importance to the entire organisation's success. In an op-ed distributed domestically and in Dorvish newspapers, Dr Giezendanner stated that one of the major contributing factors behind the failure of the most recent AU revival attempt was the lack of true involvement of the continent's largest economy. "Without Dorvik, the continent's largest economy and one of its core/original founding members, the Artanian Union cannot stand as a functioning organisation. From our observation, the lack of interest at the hands of the Dorvish state as it related to the current iteration of the AU is primarily due to the lack of clear and coherent consultation at the hands of the organisation's previous chief negotiators: Luthori. In campaigning to get both Dorvik and Luthori on board with the idea of reforming the organisation, our discussions with Dorvish officials revealed to us their reservations about how rushed the negotiations related to the "revival" seemed," Dr Giezendanner opined. The summit is expected to be attended by numerous delegations from AU member states including Kundrati, Dorvik, Dundorf, Luthori and Narikaton/Darnussia.

Among the summit's pressing business, the matter of reforming the Treaty of Dunblane to include Keymon remains a top priority. Dr Giezendanner noted that by not becoming a signatory of the Treaty of Dunblane, Keymon would be at a strategic and economic disadvantage when compared to the other nations of the AU as it would be virtually locked out of the organisation's single market and economy and thus would be unable to accrue the benefits which can the drawn from a strengthening of the AU's economic activity. AU negotiator Jean-Pierre Thill explained that before any reforms to the Treaty of Dunblane could even be discussed, matters related to the structure of this new Artanian Union have to be settled. "All treaties and agreements related to the Artanian Union require a vote by the AU Council (the organisation's principal executive organ, comprised of the heads of state/heads of government of the AU member states) and thus it would require that the AU be "reconstituted" or brought back into good, functioning order as to allow for a new AU Council to be constituted alongside it," Thill said. Separately, questions on the extent/scope of the organisation will also take focus during the summit. As was the case during the Rutanian-led negotiations, the question of how much influence should this reformed Artanian Union possess over the domestic affairs of the member states has resurfaced. Some members remain reserved on the idea of the AU Parliament being able to impose domain over their sovereign legislatures by forcing sovereign/domestic laws to fit in the rigid structure of supposed AU Parliament legislation. Negotiator Thill has noted that insofar as the Keymonite delegation is concerned, the idea of an AU Parliament with powers reaching as far as to influence the internal politics of member states remains something up for the consideration and hopeful vote of the summit itself as he said, "On the matter of the AU Parliament and the extent and limitations of its powers, that is something solely up to the summit itself when it convenes." In a much grander scope, the economics behind the AU Single Market and Economy would undoubtedly be a source of contention among members as the intention to reform the treaty to include Keymon as a signatory could potentially enable members to push for grander reforms related to the single market and economy's structure. Thill stated that the Keymonite Government would not support the idea of weakening the AU's economic arrangements. Instead, he notes that the Keymonite Government supports the idea of expanding the organisation's economic arrangements and its core economic institutions. Pointing to legacy AU institutions such as the Artanian Infrastructure Investment Bank (AIIB), Thill noted that the negotiations and reforms expected to follow right after, should and will reflect a strengthening of the AU's core institutions. "we would like to see the AIIB become more present in the business of the AU's economy. There are numerous gaps in economic planning throughout the continent and I believe the AIIB is uniquely positioned to lead the continent in enhancing infrastructure and bringing greater depth to the economies of the AU and the continent by extension via technical assistance and advice," Thill explained.