From WB to IMF

At this moment, most of the people in the banquet hall gathered around Steffens.

Vice Speaker Kolkirk simply had his Servant move the tables and chairs aside, gesturing for Steffens to sit in the chair in the middle of the room. "Leonard, please speak here."

So the second half of the dinner turned into a lecture session.

Steffens hadn't expected that "helping his France friends with something" would garner him influence among the members of parliament, and immediately became even more zealous. "Actually, I think the most valuable part of the Trade Alliance isn't what I just mentioned, but rather the Holy Investment Bank and the Alliance Monetary Management Committee."

Some people around looked interested, while others frowned slightly. After all, the investment bank in front sounded decent, while the one behind seemed like a department trying to interfere in Cologne's economy.

Steffens quickly explained, "The Holy Investment Bank is a bank jointly funded and owned by all member countries of the Trade Alliance. Its main function is to promote the development of countries through investment, especially to help poor countries improve their economic level as quickly as possible."

"The Monetary Management Committee is responsible for identifying member countries' financial risks in advance and providing loans to help member countries with debt repayment difficulties overcome their difficulties. For example, if a country is already experiencing financial difficulties but continues to import large quantities of goods, it will inevitably Debt Default after a period of time."

"The committee sends people to assess each country's currency and tax policies, as well as the stability of their balance of payments, every so often, such as once a year."

"Once risks are identified in these areas, warnings are immediately issued, and the country is required to come up with solutions, such as budget cuts or tax increases."

"With this committee in place, the risks of international trade will be minimized. Combined with the European Settlement Bank, the efficiency and stability of trade within the Union will be many times greater than before."

Well, these two departments may sound unfamiliar, but in terms of structure and function, you can see that they are actually Joseph's copy of the WB and IMF, namely the World Bank and the International Monetary Fund.

The encrypted communication system of the European Settlement Bank, which had been operating for a long time in the Mediterranean Sea trade circle, was actually equivalent to SWIFT in later times.

Once the Holy Investment Bank and the Monetary Management Committee were established, the entire trade-finance-settlement system was roughly in its nascent stage.

As the initiator, designer, and most influential "player" of this system, France will hold unparalleled influence over the entire system.

A Cologne member of parliament remarked dismissively, "This committee you mentioned is unlikely to play its proper role. Many countries don't even know what monetary policy is; they themselves are completely clueless about their balance of payments. Well, actually, our country isn't much better off."

"In that case, how can the committee identify and mitigate the risks?"

"You've found the crux of the problem," Steffens said immediately. "So joining the Holy Trade Alliance isn't without its conditions."

For this to be eligible, the applicant country must first meet a series of monetary and financial standards.

"For example, completing the establishment of Gold and Silver Standard system within 8 or 10 years, improving the banking system according to standards, and improving domestic trade and Financial Law, etc."

"For our country, this is a good opportunity to accelerate the promotion of the Gold and Silver Standard. It is said that France will also send financial experts to help us formulate a plan."

"As everyone knows, the complete shift to Paper Money has a very significant effect on promoting trade development."

"Mr. Olvers, is that so?"

A middle-aged man with a long, thin face and glasses immediately nodded. "You're absolutely right. In fact, Gold and Silver Standard Paper Money has long been a hallmark of major trading nations."

Yes, Olvers is the head of the Lin-O Bank and also a major shareholder of the Münster Savings Bank. If Gold and Silver Standard were implemented for Paper Money, the Münster Savings Bank would certainly be responsible for issuing the Paper Money.

This was also Joseph's Open Conspiracy of leveraging the wave of monetary and financial reforms sweeping across Europe to link joining the Trade Alliance with his domestic reforms.

It may seem like France is taking a huge loss by providing manpower and resources to help these countries improve their financial systems, almost without charging any fees. However, the truth is that as long as these countries' financial systems are marked with France influence from the very beginning, the future profits will be enough for France to live off for centuries.

Furthermore, many small countries don't even have banks, let alone mature financial systems, which often leads to Debt Default.

Ultimately, it's the France businesses that suffer.

You can't always resort to diplomacy for a few tens of thousands of Franc, can you?

Therefore, helping them improve their financial system is also helping France improve its market environment, and investing some costs upfront is worthwhile.

The banquet ended an hour and a half later than scheduled, and as the members of parliament left the Prince-Bishop's Palace, they were all chatting with each other in great interest.

In particular, Liberals members of parliament, mainly composed of industrial and commercial capitalists, felt that the Holy Trade Alliance was very attractive even without the Holy See's "concessions".

Representative Harcourt was one of them.

He was walking alongside an elderly man when he said, "Mr. Marek, the people want that corrupt official to be punished as soon as possible."

Marek hesitated for a moment, then said, "This probably doesn't follow the proper procedure—"

"This is a consensus reached by the Speaker, Dr. Gleiner, and myself."

The old man nodded immediately. "Yes, the evidence is very clear, and the verdict may be announced next Tuesday. He will likely be sent to a ship in the Mediterranean Sea to perform hard labor."

His nephew is Grand Justice in Münster and the presiding judge in the Drost corruption case.

Marek nodded. "A very fair ruling. Oh, I heard the Mediterranean Sea has been quite rough lately; I hope nothing bad happens to him."

Drost and others are the biggest obstacle for Cologne in obtaining favorable terms during the accession negotiations, and the top leaders of the Cologne Parliament are very unanimous in their opinion on how to deal with them. This is also to give an explanation for the offense done to Mr. Susie.

Unlike the cheerful Cologne MPs, Sir Briggs has been nothing but troubled lately.

London also received news that Cologne was preparing to launch accession negotiations, which greatly angered Lord Hawkesbury, who quickly sent an advisor to "assist" him.

"While this may be somewhat unfair to you," the advisor Henderson said, glancing at Briggs, "His Excellency believes you have failed in your duties."

The latter simply lowered his head and remained silent. He was already hesitating whether to continue vying for the position of Minister to Cologne. With Cologne beginning its EU accession negotiations, the troubles to be resolved here might increase in the future.

Henderson casually sat down in the chair. "Tell me about Münster's situation first."

However, he frowned when he heard that Drost had been suddenly arrested.

"It seems the Cologne Parliament has decided to side with the France," he mused. "We can only try to find a solution through the Church."