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#21
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NEC "ILERTO-ORIENTHERBEJO" GOES ONLINE 

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After eight years of construction work, the brand new reactor is now feeding extremely cheap electricity into the Zardic grid thanks to advantageously traded uranium from Kundrati. Concerns about safety have been denied by the EC with reference to numerous independent safety reports. The location of the reactor was also deliberately chosen far away from urban centres in Zardugal's inland, which is less affected by flooding. The new power plant is already being seen as a guarantee for sustainable, self-sufficient stabilisation of the electricity price and as a model for similar projects in the future.
Commissar Gropo was particularly pleased, as this development puts an important damper on economic dependence on Vanuku. It is an open secret that the decision to purchase electricity from our Jelbic neighbours was only implemented against his vehement protest within the EC.
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#22
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#23
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Commissariat of Trade and Industry:
Nacia Ekonomia Raporto kaj Prognozo/National Economic Report and Prognosis (NERP)
Part I of II
5560-5570

GDP, Economic growth and Inflation
According to the nominal GDP Zardugal had only one year of economic recession in 5565 followed by one year of stagnation and a subsequent recovery. 
Due to the fact that the ECs relief program led to significant inflation of the Spesmilo (see Graph 2) while other currencies around the world were affected by no such thing, nominal GDP does not depict reality in this case. Therefore, to give a more realistic perspective on the economic development of the decade this report will concentrate on calculated GDPs based on the average exchange course of each respective year (see Graph 3&4)
In comparison to tits nominal counterpart the calculated GDP cleary shows that Zardugal found itself in a deeper recession and recovered more slowly. However both statistics show evidently that the Zardic economy is now growing again.

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Graph 1: Nominal GDP in Billion Spesmilo

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Graph 2: Spesmilo exchange course

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Graph 3: Calculated, more realistic GDP in Billion LFR

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Graph 4: Change in GDP based on calculations shown in Graph 3

This concludes part one of the second NERP. In the upcoming second part energy prices and distribution of wealth will be covered
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#24
La Mesagisto, 17th August 5572
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PROJECT “MEMPROVIZADO”, EC SEEKS NUTRITIONAL SELF SUFFICIENCY

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The Commissar in the rather “unconventionally” redecorated press office of his department

In a press conference Commissar Surfungo announced his departments ambitious agenda for the coming years. “In view of the economic struggles elsewhere caused by changes it market policy it has once again become clear to the EC that some goods are too essential to be left exposed to the vagaries of volatile international markets. We therefore see it as our duty to achieve complete autarky in matters of nutrition in Zardugal. In agreement with the rest of the EC I therefore decided it is time to shift my Commissariats investment focus in order to achieve a more diverse array of agricultural goods on the domestic market. At the moment funds are mostly spent on the development of “cash-crop” plantations such as coffee, tobacco, wine and opium poppies as well as producers of very basic food items such as grain. While these sectors will still receive some financial support to encourage further growth we deem them as self sufficient enough to cut spending for the time being.
Funds released as a result will flow into the reclamation of additional agricultural areas in Zardugal’s south. The local climate and soils are ideal for the cultivation of various sorts of vegetables such as tomatoes, cucumbers and bellpeppers as well as fruits like bananas and mangoes. Sadly this project will require additional forest clearing, still we are convinced the gains outweigh the costs in this case. To prevent a situation like the one we had several years ago under my office predecessor from occurring again, police forces have already been sent to secure the area until an official authorisation for clearing works has been granted by the Supreme Council next week”
A question on the potential impacts of the project on future trade of agricultural goods was answered by the also present Commissar Migdalo in his typical dry and curt style: “Indeed, the current plans are expected to create the necessity for a proper reevaluation of currently active trade agreements. This matter will be addressed in due time”
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#25
La Mesagisto, 20th August 5573
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DIARMAIDO CONCERNED ABOUT CONFLICT BETWEEN JELBIC EMPIRE AND XSAMPA
Commissar Gropo is snubbed by this "diplomatic one-man show"

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Reacting to the conflict between Xsampa and the Jelbic Empire that broke out over the establishment of a military base by Beiteynu, Director Diarmaido now found words of to adress the matter: “Although I know many wish for me to do so let me be clear: I am not going to blame either side for this conflict. Instead I want to appeal to both of them. This conflict has the potential to rip Zardic society apart. Neighbours are turned against comrades. Sadly there have already been first incidents of violence between members of Xsampan and Jelbic minorities inside Zardugal. This will only worsen once people who are not directly affected, start sympathising with one or the other side. It is the following role in which I speak to you. As a concerned friend of both parties, who asks them to reflect on the consequences of their behaviour not only in their own nations. It is also this role that gives me confidence to make the following offer, despite the fact that I am aware of the lack of any direct influence of my nation on any of the conflict parties. If Zardugal can assist in finding a peaceful agreement, it would be my honor to arrange this"

While many people who fear an open conflict between our Jelbic neighbours and our Xsampan comrades lauded the Director's efforts there is also a significant opposition against his diplomatic endeavours. They clearly see the Jelbic Empire or to be precise its member, Beiteynu at fault and criticize Diarmaido's supposed ignorance and opportunism. Most prominently Commissar of Foreign Affairs Mario Gropo was against the "display of pretended neutrality" as he called it. He also stated that the Director had clearly broken with the political conventions of the Executive Committee by going it alone diplomatically in this matter. According to him, Diarmaido had clearly overstepped the boundaries of his authority at this point.
It is already clear that this rift has the potential to have a major impact on the future direction of the government and its composition. A failure of Diarmaido's diplomatic efforts would probably cost him all his remaining political capital.
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#26
La Mesagisto, 20th August 5573
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FARMAKON-Z ANNOUNCES MAJOR EXPANSION TO ADDITIONAL CONTINENTS

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According to FARMAKON-Z chairman, Seneko Sensenco and the Commissariat of Economy new headquarters will be established in Aldegar and Lesnov. The general conditions in Lesnov offer an ideal location for a branch due to the oil fields recently acquired by NafRaf, which ensures shorter transportation routes for intermediate products. Favorable is also the current high demand for pharmaceuticals in all of former Trigunia and the available workforce.
Aldegar or rather Seleya as a whole on the other hand is a much more challenging environment for FARMAKON-Z. The step is seen as a strategic decision to establish serious competition to ODEN and attract customers away from them. As for now additional manufacturing facilities in Aldegar are not on the agenda.
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#27
La Mesagisto, 8th April 5574
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DIRECTOR DIARMAIDO ANNOUNCES END OF POLITICAL CAREER AFTER COMING ELECTION

With the Director’s endeavour to moderate between Xsampa and the Jelbic Empire only progressing slowly and the outbreak of an armed conflict between Istalia and Pontesi, a member of the JE, pressure from within the Supreme Council and the CK-LK has reached its peak. CK-LK leadership sources state that Diarmaido was confronted with an ultimatum to either give up on a candidacy for another term or be forced out of office by a Supreme Council majority immediately. According to said sources the Director was no longer able or willing to adjust his foreign policy to the ideas held by a majority in the SC. A heated debate over Diarmaido’s successor has already begun.
Not only the staffing of a post depends on the decision, but presumably also the future diplomatic course of Zardugal. While there are still elements who reject Diarmaido as director but would like to see his policies represented by a “fresher” face, the majority of council members agree that a new international policy is needed. Their self-proclaimed beacon of hope is Mario Gropo, who has completely broken with the Director since his reconciliation initiative. For weeks, Commissiar Gropo has been pleading for things like “An end to opportunistic and cowardly ingratiation with the Jelbic empire and a commitment to our true friends!” The latest poll results show that his almost grotesque display of opposition within his own government is both fascinating and disturbing for the Zardian population. The decision to elevate him to Director is therefore not an easy one for the Supreme Council and they are furtively looking around for alternatives.
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#28
La Mesagisto, 7th September 5574
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SUPREME COUNCIL ELECTS NEW EXECUTIVE COMMITTEE WITH GROPO AS DIRECTOR

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Many years of political struggle that have reached their peak of intensity in recent months seem to have finally paid off for Mario Gropo.
With 117 of 125 votes in the Supreme Council he was elected Director of the Executive Committee. The rest of the EC positions were filled by some well-known members and, above all, by people proposed by Gropo himself. His victory is absolute and his mandate to radically implement the turnaround in foreign policy that he has longed for is correspondingly strong. The remaining members of the EC have signaled renewed unity around the recently appointed Director as their leader. Especially between Gropo and Sojknabo, a member of the old guard and successor in the Foreign Affairs Commissariat, an unusual harmony seems to have spread. Similarly, Lisergio Surfungo has not uttered a single syllable critical of the new leadership, even though he was one of Diarmaido's last supporters until the end. According to his own statements, the explanation for this is simple: he remained a supporter not because of Diarmaido's foreign policy but in spite of it. In addition, he is generally not too involved in foreign policy, as he sees the development of Zardic economy in general and agriculture in particular as somewhat detached from such matters.

Gropo's Plan
In his inaugural speech and in a document published by his office, the new director outlines his concept for the reorientation of Zardugal.We have summarized the most important points of his agenda in a comprehensive List

1. Pontesi-Istalian conflict: Director Gropo supports aiding the Istalian cause in any shape or form possible. Proposed immediate measures are the provision of humanitarian aid to Istalia and the evaluation of economic sanctions against Pontesi and its affiliates.

2. Taking position against Jelbic Hegemony: Above all, Gropo advocates greater fraternization with natural allies such as Xsampa and Istalia, but also calls for the formation of a non-ideological cross-front against the ever-expanding JE

3. Armament, establishment of a military counterweight in Majatra: While Gropo knows just as well as anyone else that Zardugal alone or even supported by obvious partners such as Xsampa would be no match to the military might of the JE and its allies, this is exactly what proves his point: Majatran security policy is no longer balanced adequately by internal actors alone. Gropo is therefore signaling that Zardugal will open up to many potential military partners in order to create a security architecture that can realistically preserve the nation's sovereignty in all conceivable scenarios, even if potential partners' domestic and economic policy may contradict our ideological dogmas.

4. Relaxation of the relationship only through concessions: Director Gropo is aware that Zardugal's change of course will be defamed by the JE as aggressive, excessive and escalatory, and that reference will be made to de facto peaceful conditions and agreed treaties in order to portray Zardugal as a militaristic pariah. Gropo counters this by saying that when looking at the course of the JE's territorial expansion, there is no other conclusion possible than that Zardugal will also have to bow to the emperor in some way in the near future, if it does not act now. In his opinion, a credible, lasting peace order in Majatra can only be achieved through concessions on the part of the JE, such as a commitment to stop expansion. Such an agreement must also be enforced by third parties, if necessary those outside Majatra. 

5. International economic strategy: "Autarky where possible, trade where necessary". Since it is already an unpleasant admission to have to deal intensively with capitalist nations and to enter into dependencies for military security, Gropo wants to limit dependencies on such nations to an absolute minimum based on purely economic connections. This integration of economic policy into an overall foreign policy concept was co-developed by the new Economic Commissar Surfungo and enjoys his full support.
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#29
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Office of the Director of the PKdSK:
On the armed Conflict involving Istalia, Kafuristan and Pontesi


As per a Supreme Council resolution this is a joint announcement of the Director, and the Commissariat of Foreign Affairs declaring that Zardugal supports the just cause of Istalia.
It is their natural right to take up arms against foreign forces who interfere in their domestic affairs and undermine their sovereignity. Zardugal will send humanitarian aid to the Socialist Republic of Istalia in the form of food and pharmaceuticals and will support the erection and staffing of field hospitals in consultation with the Istalian armed forces.

Furthermore Zardugal condemns the actions taken by Pontesi and Kafuristan which have lead to the current situation. We appeal to the Jelbic Empire to get their subject of Pontesi under control and ensure they cannot inflict any more harm to the integrity of other nations in the future. We see this as their partial responsibility to quickly ensure the possibility of a ceasefire.

For the time being Zardugal will cease any form of economic collaboration with the nations of Pontesi and Kafuristan and reserves the option to extend this ban to supporters of said nations.
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#30
9th September 5574

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