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Chapter 258 Eastern European Central Bank

Although Hungary and Poland after the Color Revolution got rid of the Soviet Union's political guidance and also lost the Soviet Union's economic aid to both countries, the Americans were not more generous than the Soviet Union. Faced with huge foreign debt and the collapsed domestic market, both countries urgently needed new saviors to help them get out of their predicament and guide the economy back to the right track.

As the first country to accept the takeover of the Bank of Colombia, Poland's economy has begun to show results, but Hungary, because it does not have developed industries, is much worse than Poland. In addition, although Czechoslovakia has developed industry, it is also difficult for countries with inland and lack of product sales to live after the Color Revolution, especially in the relatively backward Slovakia region, which is even worse than Hungary.

Under such circumstances, it is a wise path to keep warm. Therefore, since signing the agreement with Hungary to steward the central government, Mikhail has been lobbying the two countries to establish a unified market. Hungary is a traditional agricultural country with an industry that is not well developed. Apart from agricultural products, wine and bauxite, there are basically no distinctive economic highlights. In addition, Hungary is an inland country, which makes Hungary's exports more difficult. On the other hand, although Poland's industry is not very developed, it is much more perfect than Hungary. In addition, Poland has a famous port in the Baltic Sea - the Port of Gdansk, which makes Poland's export products much more convenient than Hungary and Czechoslovakia.

Under this realistic environment, Mikhail began to sell a unified market plan to Poland, Hungary and Czechoslovakia according to Seriosha's instructions. Simply put, when the United States and the Soviet Union gave up these three countries, they would connect the markets of the three countries into a whole, learn from each other's strengths and weaknesses, and jointly resist debt and economic downward risks. This will not only expand the voice of the three countries in world trade, but more importantly, the markets formed by the three countries will be more stable and can play a role in self-sufficiency to a certain extent.

So under Mikhail's repeated lobbying, the Hungarian and Polish governments finally agreed to sit together and meet on the issue of a unified market, while the Czech Republic and Slovakia each sent their own representatives as observers to participate in the unified market plan.

The negotiation location was arranged in Budapest, the capital of Hungary. In order to avoid unnecessary trouble before reaching an agreement, no one involved in the negotiations disclosed any information to the outside world. Leh Walesa visited Hungary on other names and met with Hungary's newly elected President Gentz ​​Albad and others.

Whether it is Hungary, Poland, or Czechoslovakia, as early as when Mikhail's plan was proposed, they had realized that a unified market would bring substantial benefits to countries. However, on some issues, countries still have certain differences. Because according to the Bank of Colombia, a major premise for a unified market is that everyone must reduce tariffs to zero and use a unified currency. There is no precedent in this plan in history. Although the central banks of Hungary and Poland have been in the hands of the Bank of Colombia, and the right to issue money has long been controlled by the Bank of Colombia, it is crazy to make two independent sovereign states adapt to the same currency.

"Dear President Albad, Prime Minister Varessa, and representatives from Czechoslovakia, when it comes to unified currency, although there are disadvantages of one kind or another, the benefits are obvious. It can turn our three countries into a unified market. If we estimate based on our current GDP, it is basically the same as Austria. I don't think I need to tremble anymore. Everyone knows that if this plan is implemented smoothly, our GDP will definitely not be just the sum of the existing GDP of the three countries. The decision we make here today will benefit the 60 million people of the three countries..." Mikhail Mai persuaded in bad expectations.

When Albad and Varessa heard Mikhail's words, they couldn't help but nodded frequently. The two countries' economic complementarity is strong. Once the currency is unified, Hungary will not have to spend a lot of precious foreign exchange to import some automobiles and electromechanical products that Poland can produce. Poland can also directly use its own currency to purchase agricultural products produced in Hungary. However, Czechoslovakia, sandwiched between the two countries, has not nodded yet, so the opinions of the representative of Czechoslovakia are crucial to a unified market plan.

Seeing that Czechoslovakia could never give a positive answer, Mikhail took the initiative to speak: "I know that among us, in terms of industrial development, Czechoslovakia does have unique features. But in Slovakia, there is a market environment similar to Hungary. In the developed Czech region, although the Skoda factory is very excellent, we all know that the unification of the two Germanys will be inevitable, and Germany's strong industrial strength will definitely regard us countries as products dumping places. At that time, I don't think the Czech industry can withstand the impact of Germany. Czechoslovakia needs markets like Poland and Hungary. Once we use a currency, no matter how much we compete, German products will definitely not be a Czech opponent under the influence of tariffs and exchange rates..."

During the talks in Budapest, the representatives of the three countries finally unanimously passed the plan of the Bank of Colombia. According to this plan, the central banks of Poland and Hungary will be combined into one and become a unified central bank, managed by the Bank of Colombia, and the Czechoslovakia will then join the unified market plan. After the agreement is signed, the tariffs between the three countries will automatically be reduced to zero. The currency issuance of the three countries will be the newly established central bank.

Mikhail optimistically stated that more Eastern European countries may join our unified market plan in the future, so he suggested that the newly established central bank be called the Eastern European Central Bank. As for the newly issued unified currency, it is called the Eastern Euro. The reverse side of the Eastern Euro adopts a unified form of coupons, while the front side is designed by each country.

Just the day after the agreement to unify the Eastern European market was signed, the three governments announced the news to the world at the same time. Neither Western Europe, North America, or East Asia had expected that an unprecedented unified market would be formed in the declining Eastern Europe.
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