Egelion

[Louis]

Increasing Debt, Management, and Budget Cuts: Insight of Egelian Economy into the New Century

Since the start of the new century, cutting back on government expenses has been one of the main focuses of the current Conservative government in the Royal Court. The effort, while it was started years ago, has seen little progress. Debt payments, balancing budgets, and cutting back on spending has been a relative ease for the Royal Court and the treasury, yet this has only reduced the debt to GDP percentage form 77% to 74%. It is however useful to understand where the Egelian economy stands at the turn of the century.

Years of absolute rule, sound centrist liberal policies, and a focus on the welfare state has propped up Egelion as one of the most successful and developed nations in Terra. Still with more room for improvement, the nation's financial status, ability to invest, and the prestige of its institutions make it an automatic magnet for economic growth. This work into the economy was developed for centuries. Ages of investing into architecture, housing, education, welfare, industry, finance, and trade has opened up several avenues for Egelion. The nation has gone through moments of high growth and moments of stagnation depending on international situations. 

In 5700, Egelion stood at its strongest, but also at its most vulnerable. The Royal Treasury estimated the national GDP to be around 4 Trillion at the turn of the century, yet debt to GDP remains at 74%, a warning for those in the Royal Treasury. Egelion's strongest sectors remain finance, military, maritime trade, industry, services, and construction. The nation's focus on a diverse economic field made it easy to grow to such a strong level. By far, Egelion is known for its financial institutions which are now conveniently located on almost all of Terra's continents. Egelian investments are also seen on a wide scale international level--usually following conflicts or international emergencies. By far, the Royal Treasury is most content with the prestige of Egelian institutions, both governmental and financial. The well-led machines offer services for millions in all of Terra and are the reason Egelion remains so attractive for investors.

Yet, despite the success seen in international markets and regional economies, Egelion is quite known to go into deep spending to achieve its goals. Much of this can be in the military and international investment sectors, where Egelion fields a large army, navy, robust air force, ICBMs and a state-of-the-art missile defense program. These costs, while heavy, make up much of Egelion's additional spending. The military remains the second highest funded sector in the government, with healthcare and education taking the top spot. Yet, while military costs have increased recently, several public services such as education have increased as well. Egelion's CROWN insurance system which covers state healthcare, childcare, unemployment, and housing is a major cost for the government. This usual temporary assistance program has helped millions get back into productivity after difficult circumstances and remains a popular policy. While it is relevant to see major spending plans into sectors like the military, several investments in public welfare have been made as well.

Overall, the Egelian economy remains one of the strongest in Terra thanks to its ability to invest in itself and in international markets. Citizens have access to quality healthcare and welfare services within the economy while the nation grapples with stricter budgets and higher debt. Recent governments have done much to reduce the debt with little progress nonetheless. The turn of the century seems to be temporarily subdued for Egelion: no major spending and cutting back on programs that no longer fit the needs of the people, which keeping taps open for major sectors. Fiscal and financial responsibility is crucial for a nation like Egelion who strives to be "risk-free" in an eternally chaotic Terra. The next few years will see fewer spending, more institutional reforms, and continuing the nation's ideals of financial dominance through modest and stable decisions.