1725 Constancian crisis

Elections were held for the 14th Imperial Synkletos, which convened on 14.1.1724 AN. Brutus Antipatros was elected Speaker, while Ismail al-Osman was appointed Mesazon, having the support and confidence of the ruling Nationalist & Humanist Party, particularly those dikastis from Raspur.

Background

A cost-of-living crisis became evident at the start of 1725 AN, where inflation Constancian economists brushed away the "irrational exuberance", but other economists outside of Constancia urged others to see the inflation as the result of too much currency chasing too few goods and services. Experts who refused to be identified claimed that the inflation was a natural consequence of large-scale bribery to purchase seats and loyalties.

Prices, particularly for food, rose, resulting in social unrest and a cost of living crisis. The foreign exchange rate of the Constancian stater soon fell consistently over the next few days, as well as significant drops in the Constancian Commercial Exchange, representing a crisis of investor confidence as well. Interest rates rose as a result, causing a credit crunch as well.

Government responses

Initial government response was to assuage public outrage by firing Zvonko Shani as Minister of Finance, Erast Meginfrid as Minister of International Trade and Industry, and Frederik Adonai as Minister for Budget and Management, with new appointments forthcoming. Hansjörg Monat, Minister for Labor and Employment resigned a few days after this, claiming personal health issues, which some journalists claimed was disgust at government mismanagement of the crisis.

The government likewise went on a public relations offensive, emphasizing the economic benefits to be reaped due to the effectivity of the Treaty of Northbloom on 11.XI.1726, as well as the Treaty between Constancia and Çakaristan‎, and the effects of the Constancian Development Plan, 1724-1729.

General strike

A general strike was called for 13.VI.1725, initially led by the Road Hauliers Transport Association, which saw their take-home pay dwindle to nothing, with the rise of costs of transport as well as the rise of petroleum costs, as well as the cost of food. This was soon followed by a similar announcement by the Constancian Education Association, representing teachers nationwide, and the National Nurses League. The Democratic Alliance called for political reforms, particularly elections for local government.

The Committee of Euran Salvation declared the general strike to be an act of political subversion, contrary to the interests of the Euran Economic Union and the Raspur Pact, inviting Trans-Euran Command to deploy forces to disperse any gathering of individuals suspected of intending acts of economic disruption or sabotage.

General Order 1 of 1726, issued by the Political Directorate of Trans-Euran Command, on 16.VI.1726, implemented the declaration of military authority within the Imperial State, directing all organs of the government and civil society to be immediately placed at the disposal of the Imperial Constancian Armed Forces, establishing the ability and obligation of the military to intervene in any and every area of public life during the "period of exception" which commenced from the date of the order.

General Order 2 of 1726 mandated the Euran Economic Union, the Grand Commissariat of Eura and Corum, and the Honourable Company to exercise dictatorial powers (in the words of the order) over the Constancian economy during the period of exception. Regulation 1 of the Tripartite Economic Committee, issued on 17.VI.1726, mandated the freezing of all commodity prices at their present level. 'Market manipulators', meanwhile, were meanwhile to be identified and taken into custody by the State Protection Authority, pending the organisation of public trials intended to assuage the anger of the public.

General Order 3 of 1726 meanwhile ordered the mobilisation of first and second reserve personnel in the Home Guard for the purpose of strike breaking actions and for the securing of food and fuel reserves in the Imperial State.

In more general terms, the Committee of Euran Salvation was intensely eager to bring the unexpected surge in inflation under control as swiftly as possible, lest mounting unrest were to imperil ongoing pacification campaigns in the Norasht and Zinjibar regions. In addition to price controls and political repression, the Committee also sought to obtain the speedy dumping of foodstuffs and fuels into the Euran market so as to collapse the inflationary pressures which had begun this crisis. Nouvelle Alexandrie, Natopia, and the Benacian Union, were all approached with proposals to export essential commodities to Euran Economic Union at a heavy discount in return for trade credits and yields from bonds purchased with the nominal value of the cumulative discount in purchases made by public authorities and economic actors under the ultimate control of the Committee of Euran Salvation.