Holy Roman Empire

There are many small countries in Europe that manage to survive and thrive, each with its unique way of living.

Now that Prussia has fallen from the ranks of the great powers, to live comfortably without constantly receiving a social thrashing, it must abandon its previous ways and learn the survival strategies of small nations.

Frederick III was very clear-headed, "The merger of Prussia and Hanover to establish North Germany, integrating the many sub-states of the Germany Region and controlling this new nation to rejoin the ranks of the great powers," was just a fabricated lie to cheat naive youths.

In this era of survival of the fittest, without strength, you are nothing.

The Kingdom of Prussia, having lost the region of Prussia, had greatly diminished in strength. To dominate the situation, it first had to consider whether Hanover would agree.

The Kingdom of Hanover, having acquired territory, had overtaken Prussia in terms of overt power, especially in economic advantage.

Without engaging in war, how could they possibly turn the tables?

Military force? Don’t even think about it!

Initiating a civil war would be a dead end. Not to mention whether they could suppress Hanover, even if victorious, they would have lost the legal basis for their actions.

Hanover was a part of the German Federation Empire, whereas the Kingdom of Prussia was not. As long as George I wasn’t foolish, he wouldn’t allow them to take a seat in the Imperial Parliament.

Political infiltration seems decent. Frederick III knew that if it were truly completed, it wouldn’t involve him anymore.

The Junker aristocracy had regained control of the state, and for their own interests, they would push for the complete integration of Prussia and Hanover.

Prussia, having offended the Russians because of the war, meant that the Hohenzollern Dynasty hoping to take power at the center would definitely be opposed by the Tsarist Government.

Prussia and Hanover were small nations; only by merging could they become a medium-sized nation, and only with a strong nation could the military expand. Unable to take control of the center meant they could only be abolished.

From this perspective, the military Junker was the real foundation of a powerful nation, their interests were tied too closely to the state.

Frederick III, having just ascended to the throne, had no choice but to engage in political reshuffling, using the failed war as an opportunity to rebalance the powers.

Berlin Palace

Army Minister Von Roshwald handed over a document, saying, "Your Majesty, this is the Army Department’s draft plan for military reorganization.

According to the plan, once the reorganization is complete, we shall maintain 3 infantry divisions, one garrison division, 2 cavalry regiments, and 2 artillery regiments, with these forces retaining only half of their personnel during peacetime, totaling 23,000 troops."

The total strength after reorganization didn’t even match one-tenth of the pre-war level; if the plan were to become public, it would certainly cause an uproar.

But there was no choice; this is the price of defeat. With the government facing financial difficulties, the military had to be cut to reduce expenditures.

The one overseeing this disarmament, Von Roshwald, although a member of the Junker aristocracy, was an anomaly in the military, a staunch member of the anti-war faction.

Before the war, the anti-war faction was weak and held little political say; after the war, the situation fundamentally reversed, with pacifism prevailing all over Europe, and Prussia was no exception.

Against this backdrop, Frederick III took the opportunity to promote a large number of pacifists, beginning to suppress the influence of the military.

Taking the document, Frederick III casually flipped through a few pages and asked, "The plan looks good, but is it feasible?"

Even the best plan counts for nothing if it can’t be implemented; a plan will always just be a plan otherwise.

The Prussian Military was too dominant, and even using the opportunity of the war to replace the top echelons of the military didn’t change the fact that the military’s influence was still significant.

Army Minister Von Roshwald: "There should not be much issue. The anti-war sentiment is strong in the country; we can use public opinion to pressure the military to yield.

To ensure the plan’s smooth implementation, Your Majesty will need to step in to persuade those highly respected generals to appease the military’s mood."

Frederick III nodded helplessly, knowing it would not be an easy task to get the military leaders to agree to disarmament.

But however difficult, it must be done. If military expenses were not reduced, financial bankruptcy would be inevitable.

Frederick III couldn’t help but want to question the Russians, why didn’t they use the treaty to restrict the size of the Prussian Army?

If there were stipulations in the treaty, there wouldn’t be a need for all this trouble. The war was fought by the military; they lost and must bear the responsibility. Everyone has no choice but to accept it.

Prime Minister Leo Von Caprivi, "Your Majesty, the issue of disarmament should be approached with caution rather than haste.

It would be best to first give the officers and soldiers a leave so they can be exposed to anti-war thinking. I believe most of them will understand.

The war has brought too much damage, and our domestic economy has been severely impacted, with a very high unemployment rate. In recent times, many people have emigrated.

As of now, the total domestic population has fallen to 7.368 million, and this number is still in decline.

According to sociologists, even without emigration, we are likely to experience negative population growth within the next five years.

To revive the economy and prevent massive population outflows, the government plans to give tax relief to some domestic enterprises and citizens to alleviate everyone’s living pressure."

Tax relief is naturally good, but the problem is that our finances are deeply affected. Although the war has ended, the enormous debt remains.

To maintain a continental army, the Kingdom of Prussia has always had high taxes, and the living standards of its people have been the lowest in the Germany Region for years.

When economic conditions are good, we can cope. When the economy worsens, ordinary people’s lives become unsustainable.

Luckily, there is the option to emigrate; otherwise, there would be a revolution, so preventing people from leaving is impossible.

If we want them to stay, the only way is to restore the economy, increase employment, and lessen the burden on ordinary citizens.

After pondering for a moment, Frederick III said, "Just cutting taxes is probably not enough—without jobs, people still cannot survive.

The most urgent issue is to solve the unemployment problem. If it really comes to it, distribute relief food.

The wounds inflicted by the war are too great. Once the economy recovers, we will definitely have a shortage in the labor force. We must retain as many people as possible.

If the government has no money, then it must go begging, asking for help from German Confederation Sub-States such as Austria, Hanover, Baden, and Saxon, without being ashamed.

We don’t need money, whether it’s taking loans or issuing bonds, either is possible.

By the way, how are domestic bond sales going?"

The war has made the Berlin Government realize the importance of the population. If not for the shortage of people, the outcome of the Prusso-Russian war might still be uncertain.

Finance Minister Fedor Ogude responded, "It’s very unsatisfactory; as of now, we have sold a total of 6.18 million marks.

Ordinary citizens have no money, and bankers doubt the government’s repayment ability and are simply unwilling to cooperate.

Especially those Jewish capitalists who, instead of cooperating with the government in issuing bonds, have been short selling the mark in the market, causing our currency to depreciate significantly."

It’s not just the Jews who are short selling the mark; domestic and foreign capitalists alike are involved.

But since the Jewish capitalists are the most aggressive and have no patrons, they naturally end up being the scapegoat.

Frederick III fiercely slammed the table; not cooperating is one thing—that’s their freedom. In Europe, private property is sacred and inviolable, and one cannot be forced to buy.

But short selling the mark is going too far; that’s undermining the foundations of the Kingdom of Prussia. Once the credibility of the mark collapses, the Berlin Government is doomed.

Having just suffered a defeat, the people cannot tolerate their assets turning into useless paper again.

Frederick III sternly said, "Investigate! No matter who is behind this, we must dig out these dark hands!"

The people exchanged glances as if struck by telepathy, knowing instantly what to do next.

"Anti-Semitism" is a compulsory course for European monarchs, dating back a thousand years. When monarchs ran out of money, they would borrow from the Jews, and if they couldn’t repay, they would turn to anti-Semitism.

Now the Berlin Government’s finances are clearly unsustainable, and bankruptcy is a matter of time without finding ways to increase revenue and cut spending.

The core of expenditure reduction lies in disarmament, which is not so simple. If they want to make quick money in the short term, they will have to exploit the people.

It just so happens that someone is short selling the mark now, giving the Berlin Government an excuse to act.