Holy Roman Empire

The indifference of the Vienna Government undoubtedly emboldened the nationalists of North Germany. Although the Sub-State governments didn’t take a stand, the calls from the civilians were growing louder.

In order to proceed with his plans smoothly, Emperor George I even declared in private that establishing the North German Empire was a key step in the unification process of Germany.

On the surface, it seemed unproblematic, from a tripartite to a bipartite structure, indeed a step closer to the unification of Germany.

However, upon closer inspection, the problems were substantial. If the amalgamation of Prussia and Germany was considered the North German Empire, then the New Holy Roman Empire that Franz was scheming would become the South German Empire.

Who would unify whom in the future would require careful discussion.

Did George I want to unify South Germany under North Germany?

Well, if said aloud, probably no sane person would believe it.

If it were the peak period of the Prusso Federation merging with Germany, there might have been a sliver of a chance. That tiny possibility, however, rested on the condition that Austria was collectively attacked by other European countries.

Now, even that tiny chance was gone. The Kingdom of Prussia, severely weakened, had comprehensive national power that was even less than Bavaria’s, and the so-called Comedic Empire was at most equivalent to the power of a few Sub-States within Shinra.

Lacking in strength and plagued with internal issues, not to mention that even the armies of the various Sub-States were not straightened out. Each Sub-State’s army existed independently, and the Central Government had no command over them.

If that were not enough, most Sub-States, including Hanover, had a defense treaty with Austria.

Mainly aimed against the French, it also implied opposition to the Russians. According to the treaty, allied forces would be formed with Austria at the core when facing foreign invasion.

This was Metternich’s contribution. The international environment back then was completely different from now; everyone was merely worried about the French-Russian threat, and Austria was considered harmless, so they boarded the ship cheerily.

Now, this treaty had become a double-edged sword, protecting the security of the German Federation while also restraining the Central Government of Germany from consolidating military power from the Sub-States.

The Vienna Government could pull everyone together for joint exercises, but the Central Government of Germany could not; they did not have this authority, and the Sub-State governments were under no obligation to cooperate.

In order to unify the military and political issues within the country, Emperor George I negotiated with the Sub-State governments several times to no avail.

Without the threat of an external force, no one was willing to give up their power in hand. That inconspicuous defense treaty from the past had become one of the legal bases for Sub-States to maintain their independent military forces.

After multiple failures, George I had fallen into despair. He was ready to give up, but at that moment, the British gave him a new hope.

The establishment of the North German Empire marked a new round of political reshuffling. The Kingdom of Prussia, originally the biggest competitor, had lost its qualification to contend for the Empire’s leadership due to the war.

Even because of financial reasons, the Berlin Government had to make a series of concessions in order to obtain financial aid from the Central Government.

That included the command of the military forces. No mistake, the Berlin Government was prepared to give up its army.

It wasn’t that Wilhelm I did not want an army, but they genuinely could no longer afford it; the Berlin Government at that time couldn’t even pay out pensions.

To exchange an army that they couldn’t support for financial aid was a non-losing proposition.

Unlike Austria, Hanover had limited capacity. If the two countries’ armies merged, the experienced Junker aristocracy could easily take up a dominant position.

This was also Wilhelm I’s way to appease the military. By trading benefits to ensure the regular disbursement of pensions, losing some authority was more agreeable to everyone than sending them back to work the fields, making it a case of mutual need.

Their generosity was not limited to the military; the financial concessions were even more severe. The Berlin Government proposed that as long as Hanover was willing to take on its debt, the Kingdom of Prussia’s fiscal revenues could be entirely handed over to the Central Government for unified distribution.

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Without a doubt, this unreasonable demand was staunchly refused by George I. What a joke, as if he coveted the financial income of the Sub-States, he absolutely couldn’t accept it!

Unlike in the military and financial aspects, where significant concessions were made, when it came to territory, the Berlin Government became stingy, and the two parties failed to reach an agreement for a long time.

...

In Hanover Palace, George I angrily threw down the documents in his hand, cursing, "Damn Prussian barbarians, really think we’re like them, all boneheaded brutes?

Always looking to reap the benefits without paying the price, does such a good deal even exist in the world?

Always scheming, treating others like fools, never thinking about the German people at all.

It seems like they’ve spent too much time with the Polish, forgetting their own identity, and utterly lost our fine traditions.

..."

Despite not understanding how George I managed to link "boneheaded" with "scheming," Prime Minister Philip still dutifully responded, "Your Majesty, don’t worry. Harsh reality will bring those Prussian barbarians to their senses.

They are still basking in their past glory and failing to recognize their situation. They will know how to choose after the Vienna Peace Conference."

Frankly speaking, George I was right in his rant. On the surface, it seemed that the Berlin Government had made significant concessions, but in essence, they were bartering interests.

If they wanted the financial authority, they would have to take on the resulting debt; if they desired the command of the military, they would have to pay for the casualty pensions.

The debts were not to be touched. If George I dared to take them on in the name of the Central Government, the Imperial Parliament would not hesitate to reject them, and while at it, perhaps replace the Emperor.

The military situation might be negotiable. The Berlin Government had already paid out a considerable amount for pensions, and the remaining amount was due to be paid in installments over the years.

When it comes to soldier pensions, there is no country in the world that dares to claim it can do better than the Kingdom of Prussia.

No matter how tight the finances were, Wilhelm I never paid much attention to it. Even when there had been occasional defaults, they were quickly rectified.

Among the Berlin Government’s colossal military expenditures, pensions also occupied a significant portion.

George I’s expression eased slightly, "Let’s hope so! We cannot make any concessions on this issue.

Although I don’t know what price the Kingdom of Prussia will have to pay at the Vienna conference, we must absolutely preserve the traditional territories of the Germany Region.

The remaining territories also far exceed Hanover. We cannot maintain dominance without weakening the Kingdom of Prussia, even if the North German Empire were established.

Taking the Schleswig-Holstein Duchies and the territories west of the River Elbe is our minimum requirement, and the foundation for suppressing Prussia in the future.

The Foreign Ministry continues to work with the London Government, it was their plan, and now we need their support."

The Schleswig-Holstein Duchies + territories west of the Prussian Elbe, in terms of land area alone, have already surpassed the Kingdom of Hanover.

Of course, the Kingdom of Hanover’s economy is more prosperous, and its population greater. Our shared cultural traditions make it easier to digest this piece of fatty meat.

Moreover, being freed from the Kingdom of Prussia would mean escaping the enormous post-war debt and avoiding high taxes, so the local people might even feel fortunate.

After assimilating this territory, along with the Rhineland region controlled by the Imperial Parliament, the merged Prussian-German Central Government will possess the strength to suppress the Kingdom of Prussia and hold a definitive advantage over other Sub-States.

Under these circumstances, as long as the Kingdom of Prussia makes concessions in military and political matters, the other smaller Sub-States won’t last long.

After that, it’s just a matter of time. Theoretically, in another twenty or thirty years, political means could largely integrate the North German Empire and step into the ranks of the great powers.

If this prospect weren’t so tempting, George I wouldn’t be so enticed. Who would want to play second fiddle when they could stand on their own?

Although the likelihood of failure is somewhat high in practice, it is clearly less risky than joining the Shinra Empire.

There’s no helping it; the unification of the Germany Region by Austria would be the spark for a major war in Europe. Faced with universal opposition, George I had no confidence in Austria.

Rather than leaving fate in the hands of others, it’s better to take control of it oneself.

George I naturally prepared an exit strategy before daring to join the Anglo-Austrian game so early. He stood with the British now because there was greater profit to be had.

Failure would be no hindrance, the Shinra Empire’s unique system meant that as long as one didn’t go too far, challenging the Vienna Government wouldn’t lead to utter ruin.

If successful, it would lay the foundations of an empire; if not, at worst he would abandon the throne, but the Hanoverian crown could still be retained.

As long as there was no military clash on the battlefield, Austria would have no reason to strip him of his kingship; the most severe consequence would be his abdication, with his descendants continuing as Kings.

A business venture with low risk and high reward is always fascinating.

"Yes, Your Majesty," the Foreign Minister replied.

"Your Majesty, while our fiscal revenue is not low, our expenditures are considerable, and there isn’t much money available for purchasing land.

We must control the transaction price during negotiations and cannot exceed the market price by too much," Finance Minister Gomez Farias cautioned.

"Market price," in reality, means that currently there is a price but no market. This is not just now but has been the case for most of the time. Colonial trades aside, European nations are rarely willing to sell their own territories unless necessary.

In this day and age, land valuation is not high, but any territory in the European Region, regardless of its value, won’t come cheap. n/ô/vel/b//jn dot c//om

International territorial transaction prices can only serve as references. The specific price has to be determined based on the demands of both sides, taking all factors into account.

The Russians sold Alaska, an area over a million square kilometers, for just a few million Divine Shields, while the Kingdom of Prussia previously sold the Rhineland territories, only tens of thousands of square kilometers, for up to a hundred million Divine Shields.

Similar cases include the Saxon territory trade under Prussian control. Even during wartime, these could fetch tens of millions of Divine Shields.

George I waved his hand dismissively, "Money is not an issue, the British are very willing to take this deal. The Kingdom of Prussia owes them a massive debt that could turn bad at any moment, and the bankers have long been anxious.

Right now, what the Prussians lack most is money, they might concede in other aspects, but when it comes to ’money’, there is no room for negotiation.

The Foreign Ministry should just do its best. As long as the final transaction price does not exceed that of the previous Rhineland territories, we can accept it."

One must admit, George I had a knack for understanding the human heart, and his judgment was indeed accurate.

The British were truly worried about the collapse of the Berlin Government, and the loans they had issued becoming bad debts. Now that Hanover was willing to step in, they would dare to lend even without collateral.

Frankly put, it was a matter of transferring funds from one hand to the other. Hanover would take out loans to buy land, and the Berlin Government would use the money to repay the British.

In essence, John Bull doesn’t need to shell out a penny; a few account adjustments would complete two business transactions, while also reducing their own operational risk.

With its strong fiscal status and virtually no government debt, lending money to Hanover was definitely more reliable than lending to the potentially bankrupt Prussia.

The worse the financial situation, the more the government values money. For the current Berlin Government, money was not merely money anymore, but their lifeblood.

Without sufficient funds, they would soon collapse on their own.