Zardugal

[Flip]

FIRST ECONOMIC RECESSION AND INFLATION SINCE THE THIRTIES


Although the financial aids granted by the Executive Committee managed to cushion the effects of high electricity and oil prices on the economy it is ultimately declining. According to a paper released by the Commissariat of Trade and Industry nominal GDP sunk by 1,1% compared to August 5565. In order to fulfill the promised subsidy policy which aimed at corporate as well as private electricity users, an increase of national debt and domestic money supply was necessary. The Spesmilo's value shifted from 10,3 LFR to 10,15 LFR over the course of just a few months and is expected to plummet even further til the end of the year it might fall below 10 LFR. 

Meanwhile the EC is struggling to defend their position in the Supreme Council.
While Diarmaido and involved Commissars are still supported by a majority, voices against the current course are getting louder by the day. Director Diarmaido stoically defends his policy and states that the attempts he has made to ease the energy market in the long term will take at least until the end of the year to make a noticeable difference. Furthermore he declares that ongoing modernization of the currently outdated powerline and transformer net will have an impact and that the EC is currently striking a deal with Nihaton-Solar, a producer of solar energy systems from the Dual Republic in order to utilise large areas of fallow land near the Jelbic border for the national grid. The Commissariat of Infrastructure is also evaluating the re-activation of older coal power plants which are not close to urban centers. These would not fulfill current pollution standards, however in the current situation Commissar Daminido is confident that the Supreme Council will support making an exception.
The construction of the nuclear power plant "Ilerto-Orientherbejo" is expected to be complete not earlier than 5569.