Luthori

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Prime Minister rules out negotiations for siege, says Luthori “will not negotiate with terrorists”. 
February 5700

It’s been two days since the reported seizure of the Luthorian Embassy in Chukyo by warlords, who, following a long and sluggish campaign, managed to enter Chukyo, New Verham’s capital city which has been suffering heavy combats since in a new brazen offensive attempting to seize the city by force, assembling over 4500 militiamen to try to take the capital. During the fighting, the Luthorian Embassy, one of the sole remaining working foreign embassies in the desolate New Verhamese capital was promptly attacked by a group of militiamen, who then seized it, taking its occupants as hostage and taking as prisoners, a small group of Imperial Marines tasked with defending the area. 

The Prime Minister confirmed today in a session in the Imperial Diet, the unfortunate demise of two marines, Paul Keith-Joseph (23) and Sam Proming (27). Both died from their injuries sustained during the fight, the Prime Minister mentioned that the two men “fought honorably until their last breath”, he also vowed to take their bodies back in Luthori for a proper funeral ceremony, stating that it was the “least” that the “nation could do for two fallen heroes”. 

The occupiers made their demands clear through New Verhamese underground media yesterday, demanding from the Luthorian government to negotiate on their behalf for a withdrawal of Egelian troops from the country and the release of former President Argat, who is currently under Bianjie custody. Failure to do so will result in the sommary execution of Luthorian diplomats and other foreign nationals present within the Embassy’s walls and hostages of the pro-government forces. 

Prime Minister Cameron Seddon stated to the Imperial Diet that “Luthori will not, under any circumstances, negotiate with or on behalf of these terrorists who have thrown away the very principle of international law which called for the respect of a foreign embassy.”, the Prime Minister refered to these groups as being “terrorists”, marking a sharp contrast from his statement prior to the Luthorian embassy’s seizure, the Seddon administration followed its predecessors’ footsteps of “non-interventionism” related to New Verham, a policy that the current government carried on effectively throughout the months following its entry in Crown Street. 

The recent shift in power, with the seizure of the embassy marked a turning point, as Luthori’s policy regarding the civil conflict currently ongoing in New Verham changed as well. Luthorian statemen no longer “wish” for the continuation of “non-interventionism” as it was, as this policy cannot be reasonably carried when Luthorians are currently being taken hostage by a group referred as “terrorists” by His Majesty’s Government. Warhawks within the Cabinet reportedly called for a “military intervention” in New Verham, aiming at rescuing the hostage and taking back the embassy, other more dovish voices have called on the Prime Minister to “negotiate” with these occupiers in order “to save the most people”. 

Defence Secretary John Myers, Foreign Secretary Stewart (Earl of) and others have called for a “show of strength” to be made. Comments which, has, for now, not been answered to by Number 10. 

The Prime Minister has met with the Chief of the Defence Staff, Gen. Thomas Porter yesterday during lunch time, he also, during this time, met with the Foreign Secretary and the Defence Secretary in order to “know all of his options related to the quick resolution of this crisis”. Prime Minister Seddon might want to score points with a quick, relatively bloodless affair, as there’s talk of a dissolution of the Imperial Diet before September to ride off the “popularity and patriotic wave” caused by such events. 

The Conservatives are, for now, on track to secure a minority or a short majority government, a successful handling of the hostage crisis might be more than enough to cause the Tories to be guaranteed to win an absolute majority in Parliament.

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Heavy fighting dominated the skies of Chukyo today as Luthorian forces moved to secure the embassy. Following the seizure of the Luthorian embassy by pro-government forces on February 8th, the Luthorian government announced its “refusal” to negotiate with the pro-government militias which had taken the compound. Their ultimatum, demanding Luthorian intervention in the withdrawal of Egelian troops from the International Airport. Failure to do so would result in the summary execution of the embassy staff; the 12 remaining Luthorian marines stranded and taken as POWs inside the embassy complex and other civilians, victims of this act of unheard aggression towards a neutral power.  

The Luthorian Empire had maintained an official position of “neutrality” in relation to the conflict, deciding to not take sides and call for a peaceful and quick resolution of the conflict. Even as the Kingdom of Egelion and the Kingdom of Vanuku both unilaterally intervened in New Verham, the Luthorian position remained the same old “non-interventionist” position drafted by former Foreign Secretary Learmouth at the outbreak of the civil war in the Dovani nation. The capture of Luthori’s embassy in Chukyo marked a turning point in Luthorian foreign policy, with the Prime Minister using a violent “warhawk” tone to refer to the seizure, refe rring to pro-government militias as “terrorists” and vowing to “take back” the embassy “regardless of the consequences”. 

Today, it has been reported that at 1:31 pm, gunfire was heard at the location of the Luthorian embassy, witnesses stated having seen numerous helicopters closing on the site of the embassy prior to the attack. Luthorian authorities would later confirm that these helicopters were AP-44 transport helicopter used in the Imperial Luthorian Army. The Imperial Marines’ 12th Company “Springbird” launched a brazen assault into the compound, aiming at driving out the insurgents from the embassy and restoring order to the nearby streets to assure its security. The first wave of attack was launched by 30 Marines, who, by the account of numerous witnesses, entered the compound through the roof’s emergency exit and by the first floor’s windows.  

The main objective was to avoid the unnecessary killing of innocents, guaranteed by the terrorists if their demands weren’t met by the Luthorian government. A group of 15 soldiers entered the embassy to find the location of the hostages, which were held by a group of 6 armed terrorists in guard duty on the second floor. Following a shootout between the two groups, the official casualties as declared by the Luthorian government was that all terrorists tasked with the surveillance of the hostages had been eliminated by Luthorian Marines and all hostages were rescued, with only 1 Marine being lightly injured. 

For the rest of the embassy, another group of 15 Marines, then joined by the second wave of attack (30 Marines) on the ground floor at 1:47 pm were tasked with clearing up the perimeter and securing it until reinforcement came to dissuade potential brazen insurgents. A long shootout of 45 minutes ensued, throughout the embassy, where the insurgents tried desperately to hold the area among the rapid and clean offensive of the Luthorian Marines. In total, among the 60 Marines sent in the area, only 3 were slightly injured, while among the insurgents, at least 62 have been killed and 41 have been taken as prisoners (POWs). In the first draft of the plan released by the Luthorian General Staff, it was planned, that because these Marines were facing an enemy superior in numbers, that the rest of the 12th Company (composed of 22 soldiers) was to come in and finish off the fight. 

The following plan was then promptly modified due to the technological and structural superiority of Luthorian armed forces compared to the disorganised pro-government militias. Reports now states that the Luthorian Embassy has been totally secured and reconquered by Luthorian armed forces. The Luthorians also linked up with the Egelian Armed Forces at Chukyo International Airport (currently occupied by Egelion) to ensure the safe transfer of civilians to the airport. 

The Luthorian government announced that a special program of direct flights between the Fort William International Airport and the Chukyo International Airport to ensure the safe travel of refugees fleeing New Verham through Luthori’s national air corporation, Luthori Airlines. The Luthorian Embassy in Gemun (Bianjie Khanate) has stated being in contact with the Bianjie Government to provide for a shorter route of evacuation, changing the itinerary from Fort William towards Gemun. The Luthorian government has stated, that in line with current policies of different foreign governments that their nationals evacuated in Luthori would then be directly sent to flights towards the country of origin. 

Prime Minister Cameron Seddon stated in a post in social media regarding the successful military operation in New Verham to be “a great day in the defence of Luthorian interests and the protection of Luthorian nationals throughout the World.”. The Foreign Secretary, the Earl of Stewart stated that “Luthori once proved that terrorists cannot dictate her policy”, for his part, the Defence Secretary, the civilian head of the Department of Defence John Myers stated his and the Armed Forces’ “great satisfaction at the clean, short military operation” that led to the liberation of the Luthorian embassy in Chukyo. 

The Prime Minister also took time to thank the Bianjie Khanate for its “steadfast collaboration”, contributing at large at the success of the operation. The Bianjie Government agreed at letting Luthorian troops to use its territory as a launching point towards New Verham. Luthorian troops used Bianjie as a launching point for their operations, using one of the Bianjie armed forces’ military airport as refuelling point and one where Luthorian troops could safely change aircraft before the operation’s beginning. 

Today, the Luthorian Embassy is guarded by 90 brave troopers, and the safe evacuation is aimed at being restarted soon, according to Ambassador Walker Shorten. 

(Published on February 11, 5700, on LBC World Service in Kunikata - translated in Luthorian)

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For many centuries, the Luthorian intelligence services have been in Fort William, the traditional seat of power of the Luthorian government. Located in similar fashion to 10 Crown Street, the Orange Palace and Darlington Palace, seat of power for the executive, the imperial family and the legislature respectively, it seems nonetheless that this era is slowly, but surely, coming to an end. As today, the Director-General of the Imperial Foreign Intelligence Agency (IFIA), Sir Geoffrey Parkinson announced the moving of the agency’s base of operation from Fort William to the town of Redonshire, in the southern suburbs of the Luthorian capital city, in replacement of its current location in the city centre. 

This change in location was justified by the Director-General as a “necessary endeavour”, as he argues that the current location is “untrustworthy” and “poses many risks to the operation and classified information that the IFIA currently holds”, he stated that the Luthorian foreign intelligence and counterintelligence agency’s move from the city centre to the southern suburbs was “to be completed in the next few years”. 

The Luthorian government, in different levels, approved a plan, which would create a new enormous complex aimed at hosting the Imperial Foreign Intelligence Agency in this small town of 3.951 inhabitants. This complex, planned to be around 0.53 km² (530.000 m²) should be able to host around 3.000 to 5.000 employees inside it. The megaproject’s cost has been the subject of much controversy, with initial previsions stating that the construction project would cost around £785 million over 8 years, with a completion expected by 5708. 

Luthorian government officials have hailed the approval of the mega construction project, the Home Secretary (Andrew Mackenzie) stating that it was “a remarkable building is now on the making”, other officials in the Treasury defused concern about the high cost of the project, stating that the Luthorian government “weighed the pros and cons beforehand regarding the approval of the construction project with the aim of avoiding adding liquidity to the debt” and reassured that the million-pounds project was “perfectly under budget targets”. 

While the IFIA is moving out of Fort William to its suburbs, neither the Domestic Intelligence Agency (DIA) nor the Imperial Security Service (ISS) have expressed interest at leaving the capital and the fate of the current IFIA headquarters in Fort William remains unknown, with numerous scenarios being imagined.

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Hero Marines dead bodies in New Verham return home, received by Prime Minister. 
February 5700 (backdated)

Following the successful seizure of the Luthorian embassy in Chukyo, New Verham, it has been stated by media sources in New Verham, at the request of the terrorists who first attacked the embassy, that 2 Luthorian Marines, tasked with defending the embassy were killed during the crossfire exchange in the battle. These two soliders, then revealed to be Paul Keith-Joseph (23) and Sam Proming (27) have been stated to have brought back home today. Their caskets being welcomed at the Emperor Albert Military Airport (Fort William) by their respective families and members of the Luthorian government such as Prime Minister Cameron Seddon following the successful mission to liberate the Luthorian embassy. 

The Luthorian Prime Minister, who promised back on February 11th that the nation would organise a “proper funeral ceremony” had to back down from his promises following opposition from their respective families. A statement issued by the Proming family through their lawyer stated the family’s wish to “mourn [their son] quietly without the pomp of an official military funeral”. 

The government seemingly “quietly” abandoned their projects, when faced with the families’ ultimate rejection of such a farewell ceremony. Both soldiers are to be buried with military honours in their respective cities, with only a chosen few, chosen by their respective families in a private gathering to celebrate their lives, achievements and make a proper, small and private farewell. 

Both families had been received at Rottingham Palace by Emperor Richard II following the announcement of their sons’ demise, the Emperor expressed his “deepest sympathy” and that of the entire Luthorian imperial family at this tragedy. His Majesty also commended their sons’ courage and commitment at defending the Luthorian embassy, even if outnumbered. 

Both riflemen were posthumously promoted to Lance Corporal and Sergeant respectively following their demise, as per recent orders signed by Emperor Richard II regarding the two’s ranks in death.

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The Conservative Party once again scored a victory in the general elections, with the Prime Minister’s political party winning a majority in the Imperial Diet, winning 241 seats in the lower house while securing 39.2% of the national popular vote, far ahead of the National Labour Party under LOTO Holian-Keaty, which won only 31.8% of the national popular vote and 202 seats in the Diet. New political parties formed, such as the Hosian People’s Party, replacing the former Hosian Democratic party of the HDA, this party secured 9 seats in the Imperial Diet and 7.7% of the national popular vote. 

This was Luthori’s first experience in a century with first-past-the-post voting and while some parties are considered as being beneficiaries, such as the Conservatives and the Labour parties, some are, on the contrary, considered as losers, the Liberal Party, formerly in a large coalition with the former hard-right Harper government lost an average of 50 seats (recent projections states that it was 54 seats), to fall to 11 seats and securing 9.3% of the national popular vote. In a similar fashion, the Green Party of Luthori, once influential, fell to a disappointing result in this election cycle, winning merely 6 seats and 5.3% of the national popular vote. 

Regardless of the disappointing results tonight, the Conservative majority is shaky, only formed of 3 seats in the Diet. While the Prime Minister secured an important victory for the rest of his agenda, he nevertheless achieved this important success thanks to the success of his foreign policy. The successful rescue mission in New Verham boosted the Conservatives’ chances, as remarked by numerous election and political analysts prior and following the election, Seddon’s success at capturing the embassy through military force seemed to have encouraged the head of government to request the Emperor to dissolve Parliament on February 21st, with a writ of election being delivered for March 31st. 

While the Conservatives now have a working majority in both Houses of Parliament (Imperial Diet and House of Peers), some Conservative MPs hope that this term will be “less dominated by foreign affairs” and more by the Conservative promises at home, particularly concerning the economy. Conservative backbencher and de facto leader of the Identity Study Committee (far-right), Patrick Simon, acting in this position since the departure of former Home Secretary Margaret Harper in 5700 to the House of Peers stated today in an interview on Channel 7 that he “hoped that the economy would be a more pressing concern for this administration”, he added that “foreign policy successes are something that in my opinion the Party shouldn’t place her weight into”, moreover, the hard-right leader said that “the Conservative Party must remain what it is for voters, a right-wing, socially conservative, fiscally conservative and economically liberal political formation and to prove that to voters, we got to act on these issues”. 

When asked if he doesn’t “underestimate” the strength of Luthori’s recent foreign policy successes in the Prime Minister’s re-election campaign, he said that “the recent success were a positive boost to our campaign, but I wouldn’t call them the decisive factor, as you’ve seen, the Party only win a majority of 3 seats, a close one [...], besides voters are still blaming the Tories for the economic situation, their perceived view on the budget and other issues, such as national security etc..., so we got to work on that and not ignore these issues if we want to have a successful administration”. 

Number 10 hasn’t issued an official statement, although reports stated that the Prime Minister remained “calm” following his electoral victory and “heard the concern” from numerous MPs on this matter. Following the Tories’ electoral victory, the Prime Minister promised that his following administration would “one of action towards the different needs of the Luthorian people”. It remains to be seen if the Tories can, once again, keep their promises. 

(Published on April 3, 5700)

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Ascending to the Imperial throne in 5627, Emperor Richard II’s life and reign have both been long and filled with events. With the Orange Palace announcing the tragic news that His Majesty had died peacefully by his sleep during the night through a statement issued at 10:22 am (GMT-9), this article focuses on the life of the late sovereign and the events awaiting the Empire following his passing. 

His Imperial Majesty ascended the Throne at the death of his grandmother, Empress Katherine on October 23, 5627 at merely 23 years of age, becoming the youngest sovereign in recent Luthorian history to have taken the throne. Crowned as Emperor of Luthori and King of Mordusia on 3rd July 5628, the young monarch was immediately thrown into a constitutional crisis as in, following the resignation of his first Prime Minister, Matilda Brakenbrooke, the Emperor, at her advice then appointed Minister-President of Orange, Michael Rodgers to the Premiership. The new Prime Minister, whose appointment was a breach of constitutional precedent, then refused to leave his office of Minister-President, prompting calls from the Labour opposition to the Sovereign to either dismiss Rodgers from the Premiership or dissolve Parliament for early elections. 

Following some skilled manoeuvres from the Emperor, Prime Minister Rodgers agreed to request the dissolution of Parliament, ushering in the large victory of the Labour Party and the Emperor’s introduction to his first Labour Prime Minister, Olivia Hall.  

Emperor Richard II married then-Princess Valeria of the House of Mongradon, a member of Egelian nobility, daughter of the former Royal Councillor Mongradon and currently related to current Egelian Royal Councillor Mondragon. Their marriage lasting 64 years would become synonymous with “longevity”, “fidelity” and a “long-lasting loving relationship”. Princess Valeria would, by virtue of her marriage, Empress of Luthori and Queen of Mordusia and act as a “special political advisor” to the Emperor. According to some, even if the Emperor would sometime disregard the advice of her advisors or even those of the Prime Minister on some occasion, he would never disregard the advice of his wife and valued her advice greatly. Empress-Queen Valeria (98), in virtue of the death of her husband, has become known as the Empress-Mother. 

The Emperor would face another crisis during his reign, that being the outbreak of the Second Kundrati War in 5637, in which Luthorian troops played a large part in the collapse of the Legionary government, addressing the nation in April of that year, he stressed the “righteous fight” that the Luthorian Army was waging. The Imperial Household, as per his and his wife’s orders, donated £3m to the war effort. 

Throughout his reign, the Emperor made numerous state visits, it is estimated that the Emperor made at least 12 state visits in 6 different nations. He particularly held in the great regard the relationship that the Luthorian Empire and the Mordusian Commonwealth, two nations in which he was the head of state held between themselves, with both nations intervening in each other's wars to defend the other. His Majesty, in a rare public address (excluding Hallowtide) had in 5689 expressed his hope at “bringing the two nations ever closer together” before his death. Many recognise this moment as an official laying stone in the founding of the Imperial Confederation, in which he was recognised as the Sovereign. 

As Emperor Richard II departs this Earth, he is survived by his three children, Prince William (now Emperor), Prince Andrew and Princess Sarah, the Princess Royal and his wife, the Empress-Mother Valeria. The Orange Palace stated that invitations have been sent to foreign nations for potential presence at the funeral, which will be held on December 4th, 5700 at the St. Richard Cathedral. Before that date, the Emperor’s body will be laid-in-state at Darlington Palace for 12 days before the official funeral ceremony. 

Prince William, Prince of Orange and Duke of Armstead has automatically become Emperor of Luthori and King of Mordusia, Sovereign of the Imperial Confederation upon the announcement of his father’s demise, becoming known as Emperor and King William XI. His previous titles being merged into the Crown until further notice. 

Following the announcement of His Majesty’s demise, the (Luthorian) Prime Minister, Cameron Seddon, held a grim and solemn press conference at Number 10 in which he praised the late monarch’s “helpful wisdom”, his presence as being “calm within a storm”, his longevity (73 years – the Emperor had celebrated his Platinum Jubilee in 5697) and stated his, and the government’s solidarity with the new Emperor and his family. The Prime Minister furthermore announced 2 weeks of national mourning. 

The Palace has announced that Emperor William will address the Nation tonight at 8:25 pm (GMT-9) to address his father’s demise. Already, since 10:30 am and the announcement of Emperor Richard’s death on major media outlets, a large crowd assembled before the Orange Palace and other imperial residences in Fort William in mourning. Minute of silences in tribute of the late Sovereign were held everywhere, notably in schools, in the City of Fort William, in Darlington Palace during a parliamentary session. 

The Second Richardian Era, which defined much of modern Luthori has closed, and a new era, the Eleventh Williamite Era, opening in the new 58th century will determine what Luthori will be or will look like at the beginning of this new century.

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The State Funeral of Emperor Richard II: The Solemn Last Farewell of the Nation.
December 7th, 5700 - 6:32 pm, Fort William, Luthori

Emperor Richard II died on November 27th, 5700, ending the 2nd Richardian era with his passing. In his stead, his son and heir, the Prince of Orange, William ascended the throne as Emperor of Luthori, King of Mordusia and Sovereign of the Imperial Confederation. The Orange Palace later released a statement announcing the new Emperor’s regnal name, becoming William XI. 

Emperor William XI announced that his eldest son and heir presumptive, Prince Edward was to become Prince of Orange during his address to the nation and the Imperial Confederation following the announcement of his father’s death. Prince Edward, 22, had joined the Imperial Air Force on September. 

Between the 27th and December 4, date of the funeral ceremony in the St. Richard Cathedral of Fort William, Luthori underwent serious changes. On the night of the 27th and the 28th, a vigil was held by members of the Imperial Family at the Orange Palace, attended by the Emperor, the Empress, the Empress-Mother, the Duke of Alchester, the Princess Royal, and other members of the Luthorian imperial household.  

One day following the Emperor’s passing, the Imperial Ascension Council, composed of numerous peers, state officials, former ministers, former Prime Ministers and current day Ministers of the Crown assembled at the Holy Imperial Palace in downtown Fort William to officially proclaim Prince William Frederick Martin Raul Charles as Emperor of Luthori and Sovereign of the Imperial Confederation as Charles XI. The proclamation was signed by the Emperor, the Empress, the Great Officers of State, such as the Prime Minister, the Lord High Chancellor (ex officio Secretary of State for Justice), the Lord President of the Privy Council  (ex officio the Secretary of State of the Imperial Household) the Archbishop of Oalapo, the Archbishop of Northminster and other state officials, who also recognised Emperor William as their lawful and legitimate monarch. 

Emperor William XI and Empress Victoria Mary attended an extraordinary meeting of both Houses of Parliament, where they received both Houses’ motion of condolences in regard to the death of our sovereign, Emperor Richard II. The Speaker of the Imperial Diet, the Hon’ Faith Beckham addressed the assembled Houses of Parliament in an address in which she said: “We, as is the nation in its entirety, mourn the death of His Majesty Emperor Richard II, during his reign, we, as a nation, struggled through numerous challenges through the long 7 decades in which he ruled the Empire, his steadfast and clear mind, coupled a velvet glove in leadership, shaped the nation, guiding it throughout the 57th century and creating the nation which is today, renowned around the World.” 

The coffin of the late Emperor was transferred to Darlington Palace to be laid-in-state for five days, between the 29th and 4th, five days during which, the Luthorian people could pay their respects to the late Emperor. The Emperor’s children (the Emperor, the Duke of Alchester and the Princess Royal) held a vigil on December 1st between 8:30 pm and 8:50 pm, for approximately 20 minutes, the Emperor’s own grandchildren also stood on vigil on the next day (December 2nd) for 20 minutes. According to Police sources, the queue to access Darlington Palace to witness the Emperor’s coffin was long, with an estimated 8 hours to get there if waiting in line. World leaders were seen paying their respects to the deceased monarch in Darlington Palace. Emperor Leon Alexander of Egelion, King William XVII of Hutori, Empress Elenora of Istalia, Prince Aldrkai, Archduke of Banstill (on behalf of his father, the King of Vanuku), Khan Nurhaci of Bianjie, most crowned heads of Terra were present, with the notable absentee being Empress Carolina of Kalistan, who was instead represented by Kalistan’s foreign minister, Sir Thomas Harney. 

The Orange Palace stated that Empress Carolina “was unable to attend His Majesty Emperor Richard II’s funeral but nonetheless expresses her deep sympathy to the Imperial Family and the Luthorian nation”. Other foreign leaders such as the Dundorfian Chancellor, the Tel Bira Foreign Secretary and Amudim’s Deputy Foreign & Diaspora Secretary, the Egelian Royal Councillor Andrea Mondragon y Astures, Hutorian Prime Minister David Woodbury, Kalistani Ambassador to Luthori Sir Richard Bratton IV, Xsampa’s Premier Metok, Nadiya’s Foreign Commissioner Dorin Epureanu and Ambassador to Luthori, Olesya Afanasiyivna Shevchuk. Lodamun’s Vice President represented the Seleyan nation to this event, for Bianjie, Foreign Minister Eje Cidumu attended the funeral alongside his monarch.  

The State Funeral took place on December 4th, with the noted presence of numerous Mordusian officials such as the Governor-General, Prince Louis Ferdinand, the Prime Minister and Leader of the Opposition and Speaker of the Federal Parliament, all of them have been received by Emperor-King William XI as part of an audience at the Orange Palace. The ceremony lasted 3:44 hours and was presided by the Archbishop of Oalapo at the St. Richard Cathedral.  

Emperor Richard II was then buried at the Imperial Family’s Crept at Highbury House, 30 km from downtown Fort William. The funeral represented a shift, the end of an era as millions watched the funeral on their TVs from their homes, according to Police sources, around a million assembled outside in Fort William to watch the procession from Darlington Palace to the St. Richard Cathedral, where His Majesty's coffin was brought to the religious monument by Mordusian and Luthorian servicemen and by his children, who were walking behind the coffin in a slow procession.

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Luthori “in close contact” with SOMECO over potential trade agreement, says Stanley. 
February 5701

The Foreign Office today announced that negotiations with the SOMECO (South Majatra Economic Cooperation Organization) economic bloc were going “well” and that the Luthorian government, alongside their respective Istalian and Deltarian counterparts was “hopeful” that the situation could lead to the signature of a trade agreement establishing a free trade zone between the two in the “swiftest delays”. 

The Foreign Secretary, Lord Stanley, assured that the Luthorian government was “in close and perpetual contact with SOMECO authorities” to ensure the negotiations go smoothly. According to sources, the Luthori-SOMECO agreement would be like the Egelion-SOMECO agreement signed in 5684. This trade agreement was agreed by both parties as being a “respectable framework” to work with.  

Luthorian diplomats hope to score an important victory through the signature of such an agreement, Luthorian goods have traditionally been absent from the Majatran continent due to geopolitical misfortune on Luthori’s part and the opportunity granted by the SOMECO for the creation of a free trade area between Luthori and numerous Majatran nations provide for an enormous opportunity for trade of Luthorian manufactured goods, and importation of other manufactured or raw materials from these regions. 

Luthorian diplomats remained cautious yet expressed optimism at the potential of the signature of a trade agreement with the rising economic bloc, a foreign office spokesperson stated that the likelihood of such an agreement happening will expand the realm of possibilities for Luthorian commerce, one that’ll reach all continents, from Artania to Dovani and to Majatra to Keris, both passing by Seleya. 

Luthorian diplomats argue that the trade agreement will “bind more countries sharing the same ideals of democracy, human rights protection and the primacy of international law”, especially due to the rise of so-called “rogue actors” in foreign policy in the last decades. Luthorian statesmen argue for the “exclusion” of such actors from the international commercial scene and expanding with SOMECO nations might further push that aim. 

Economically, Luthori will be a net-winner in that agreement. The realm of possibilities for its trade will be expanded through the addition of a new free trade compact between Luthori and the SOMECO. Luthori’s export-driven manufacturing sector will be, as per experts, the main short-term winner in that deal. Luthorian automobile contractors have been heavily lobbying the Luthorian government in hopes of seeing that deal being completed. 

Luthori’s Ambassador in Istalia, Sir George Mattoli remained, for his part, cautious, stating that “negociations, while hopeful, remained in their early stages” and that Luthori “shouldn’t overconfident over the chances of obtaining an agreement”.  

The Fort William Stock Exchange nonetheless reacted postively to the news, with the stocks of numerous corporations tied to the “MS45” Index (Main Street 45 Group Index), specifically automobile, machinery corporations being the greatest beneficiaries. 

Luthorian government officials have stated a “need” for Luthori to “diversify its exports” further by “expanding the industrial base” at home through subsidies granted to developing industries, for now, Luthori’s main exports remains its automobile base, which represented 39% of Luthorian exports in 5699. During that year, Luthorian exports rose to a staggering £756 billion. Luthorian government officials hope that by 5750, Luthorian exports, through the conclusion of new trade agreements with other nations, would rise to surpass the trillion figures. 

@TheFinancialInquirer - a single-issue newspaper covering the economy, political developments and their impact on Luthorian or global economics.

[Ligbruderkrieg]

The Department of Defence today unveiled a multi-million-pound investment scheme focused on the development of the Luthorian defence industry. In this plan, the Luthorian armed forces hope to push for the domestic production of missile technology, which has become widely used in modern warfare following the end of the Hubris War between Beiteynu and Lourenne.

Defence officials state that “missile warfare has been a core component of modern warfare for centuries” and argued that the fact that “Luthori, a so-called “great power” or “rising power” isn’t producing its own missile technology is humiliating and disheartening itself”. Defence officials blame previous administrations who “lacked leadership capabilities in order to strengthen national defence”. A move not well-received by many, who criticised the military’s comment as a breach of their “constitutional duty of guarantors of the constitutional order”. Some military officers argued that their duty was to “protect the Constitution, not leave the government unscathed”. 

The Luthorian program will focus on the development and usage of missiles such as IRBMs and ICBMs for “defensive measures”. For the military, both type of missiles will enter into the realm of a “future defensive strategy” aimed at securing and solidifying Luthorian sovereignty through the enactment of defensive strategies revolving around the avoidance of direct mainland invasion and the creation of countermeasures to air supremacy tactics in the air and naval supremacy tactics on the sea.

“This missile technology will not be aimed at others; it’ll be employed as a complement in the deterrence strategy of Luthorian armed forces.”, said Chief of the Defence Staff, General Josh D. Radcliff. He moreover stated that “Luthori’s commitment to the development of the missile technology will of course be worrying news for some. Some might argue that Luthori commits herself to a path of militarism, but in fact, we merely wish to acquire the technology that other nations currently possess.” 

Luthori’s decision to pursue missile weaponry marks a continuation of a Luthorian policy focused on the modernisation of its forces, Luthori’s military budget increase, decided in 5689 concluded in 5700, the current-day military budget stands at £199.7 billions, compared to £74.5 billion twelve years ago, an increase of 168.1% over the last 12 years, with an average increase of 14% per year. Luthorian defence officials have stated that the bloated military budget will be used to pursue more projects focused at the “protection of Luthori and of Luthorian interests abroad”. 

Furthermore in a break from tradition, Luthorian military officials have stated a willingness from “listening at advice from abroad”, the Chief of the General Staff, General Toby Martin stated on that subject that Luthori would “look on help from abroad” because of its current “under preparedness” in that field. He moreover said that “the defence sector is a careful machine that can’t be built alone or based off our internationally recognised hubris and short-sighted mindset”, he brushed off jokingly. This comment got the General a note from both the Malvin Building and Crown Street, a sharp warning upon his conduct and comments, both commenting on the General’s “communicative skills” that will need to be “reviewed”. 

The program will take the form of a R&D program within Luthori’s defence industrial giants – with the most performant corporation being awarded a juicy and lucrative contract by the Government of Luthori following a call for bids. 

For now, Luthorian defence forces left the possible cost of such a program as an interrogation, as they deferred to private corporations before making a concrete and precise estimation, although they've estimated that a "large financial effort might be undertaken", with talks of this project costing over £60 billion to £90 billions over an estimated decade.

[Ligbruderkrieg]

Bank of Luthori releases analysis of Luthori's GDP growth between 5689 and 5700, with 2 small-scaled recessions.
June 5701

Luthori’s economy was marked by various shifts that are considered as “natural” in a market-driven economy. First experiencing a recession caused by the collapse of the 3rd Point Federation, which acted as the main regional deterrent to foreign actors in the Migrants’ Pass and as a reinsurance for many in the international shipping. While Narikaton and Darnussia introduced the Migrants’ Pass Society (MPS) as a “leaderless and decentralised intelligence sharing platform”, the void left by the sudden end of the 3rd Point Federation, which had handled Pass security for two centuries at this point still left an uncomfortable record on the Luthorian economy.  

The collapse of the 3PF caused a recession and a long one too, spanning from 5689 to 5691, coupled to this was a weakening of Luthorian exports and a decrease in the demand in domestic markets. The recession lasted 25 months, one of the longest in recent Luthorian history. It was triggered in February 5689, and most economists agree that the downward trend in the economy ended in March 5691, during that period, GDP growth during that period rise at pitiful 1.1% over the span of two years, revealing the stagnant nature of the Luthorian economy. At the first quarter (Q1) of 5689, the Luthorian GDP shrank by –0.66%, caused in large part due to the negative reactions to the collapse of the 3rd Point Federation. This downward trend continued during the Q2 and Q3 of 5689, where the economy shrank by –0.32% and -0.21%. The economy showed signs of recovery in the 5689 Q4, where Luthori’s GDP growth stabilized at 0.11%. Overall, during this year, the Luthorian GDP shrank by –0.27% (passing from £6.42 trillion in 5688 to £6.402 trillion in 5689). 

The economy stabilized by 5690, as the Luthorian economy recovered from the first shock of the 3PF collapse in 5689, besides, as the Luthorian government reaffirmed its commitment to the security of the Migrants’ Pass by joining the new Migrants’ Pass Society (MPS) in August 5689 led to a small, yet steady stabilization of the Luthorian economy throughout this period, with GDP growth in the different periods being mostly small during this period, on 5690 Q1, Luthorian GDP growth was of 0.07%, a decrease from the growth remarked on 5689 Q4. Luthorian GDP growth was also helped by the increase in tourism activity from Amudim, caused by the exposure of one of the infamous 8 gems on Luthorian soil. Luthorian GDP growth remained, excluding a slight dip on Q3, stable. GDP growth on Q2 was of 0.09%, GDP growth wasn’t one, as the GDP shrank once again on Q3 and was of an abysmal –0.11%, finally growth on Q4 was of 0.15%. Throughout the year 5690, Luthori’s GDP growth was of 0.05% - a case revealing the stagnancy of the Luthorian economy in this period (from £6.402 trillion to £6.405 trillion). 

To conclude this chapter, Luthori’s GDP growth stopped falling following the year 5691, with an impressive (for this era) growth rate during 5691 Q1 of 0.44%, this trend was confirmed by following good economic results amid a reinsurance concerning the stability of the Migrants’ Pass and Luthorian economic stability and fiscal conservatism (caused due to long Conservative governance). Luthori’s GDP grew by 1.23% during this year, ending the recession and ushering in a new era of growth for the Luthorian economy (from £6.405 trillion to £6.483 trillion), through this recovery, Luthori surpassed its pre-recession economy (by 0.98%, which remains considered as being stagnant). 

From this period of recession until the short-lived recession of 5698, where the Luthorian economy once again suffered the consequences of world politics, with the outbreak of the New Verhamese Civil War and coupled with rising fears of insecurity in the Sovereign Sea caused by instability in Midway, the Luthorian economy experienced constant growth, in 5692, the GDP grew by 2.1% (from £6.483 trillion to £6.62 trillion), in 5693, growth slowed down and reached 1.4% (from £6.62 trillion to £6.71 trillion). This growth continued until 5698, by that time, Luthorian economic growth had reached 9.7% (+2.5 % in 5694, +2.4% in 5695, +2.2% in 5696 and +2.6% in 5697), a pattern of growth located between 2 and 3% during that period. Luthori’s GDP passed from £6.71 trillion to £7.36 trillions. 

The collapse of New Verham into civil war, originally, didn’t have much effect on the Luthorian economy nor through its stock exchange, although Luthorian economic growth slowed down and even stopped during what would be known as the 5698 Recession. During that period, over the span of one year, Luthorian economic growth stagnated in Q1 and Q4 and collapsed during Q2 and Q3. On Q1, Luthorian growth stagnated during the 1st quarter at 0.97%, only rising from £7.36 trillion in GDP to 7.43 trillion, then on Q2, following increased worries and a decrease in global trade due to the instability in the Sovereign Sea and Dovani as a whole, Luthori’s GDP shrank by -1.03% (from £7.43 trillion to £7.35 trillion), a downturn which carried on during the next quarter, where Luthori’s economy shrank by -0.77% (from £7.35 trillion to £7.29 trillions), although as the situation calmed down in the East Dovanian Seaboard, so did the Luthorian economy, with GDP growth remaining stable at 1.21% on Q4 (rising slightly from £7.29 trillions to £7.37 trillions). 

From then on, on 5699 and 5700, Luthori’s GDP rose by 3.1% over the two last years, timidly reaching around 1.5% growth in 5699 and 1.6% in 5700, a performance remarked to have been slower compared to earlier years, with today’s GDP rising at £7.59 trillions in 5701 Q1. Earlier reports from the Economic Statistics Analytic Council (ESAC) said that in 5701 Q1, Luthorian economic growth was estimated between 0.5% and 0.7%. Luthori’s unemployment rate remained unusually stable throughout this period, although a slight decrease was noticed during it, with the unemployment rate passing from 7.1% (in 5689) to 5.8% (in 5700). A stabilization in trade exchanges leading to higher ecomomic (especially job) opportunities is often credited for that fall. 

Luthori’s economy is expected to remain on the ongoing growth trend for at least 7 to 15 years, except if international or domestic financial issues come to hinder to corollate that projection.