Holy Roman Empire

The news of the Battle of Warsaw’s conclusion spread like wildfire, sparking an uproar across Europe. Newspapers scrambled to dedicate front-page coverage to this shocking development.

Not long ago, the Prussian army had celebrated the victory at Warsaw, and the public, unaware of the actual situation, had been under the impression that the Prussians were holding the upper hand in the region. This dramatic turn of events was simply too hard for many to comprehend.

For the speculators who had invested in the war bonds of the Prussian-Polish Federation, the bitter reality was even more difficult to accept.

Protests erupted in the streets of London, with throngs of demonstrators crowding outside the stock exchange, forming multiple layers of angry onlookers demanding accountability.

“Deceived!” was the common outcry, as people clamored for justice. Most of these individuals hadn’t been early investors but were latecomers lured in to buy the bonds at inflated prices, falling victim to the hype.

After the so-called “Victory at Warsaw,” British media had widely predicted the Prussian-Polish Federation would win the war, driving up the value of war bonds issued by the Prussian government.

Facts have proved that it is not easy to take advantage of the capitalists. If the Federation had genuinely been on the verge of victory, why would the insiders have exited early?

The “Kalmar Securities Company,” which had managed the issuance of the Federation’s war bonds, was now nearly deserted. Save for a few frontline employees, the company’s top executives had vanished without a trace.

“Smash it!”

No one knew who shouted it first, but the speculators, overwhelmed with anger, broke through the security personnel’s defenses and began venting their frustrations freely. The unfortunate staff members left behind became scapegoats, suffering brutal mistreatment from the crowd.

Fortunately, the stock exchange was a key area of focus for the London police. The violence at Kalmar Securities Company was quickly suppressed by officers who came to inquire.

This was just a snapshot of the situation. Amid the broader context of the financial tycoons retreating, it wasn’t just the securities market that was hit hard, the stock market also couldn’t escape the fallout.

Without a doubt, the banks taking on loans from the Prussian-Polish Federation became the hardest-hit sector in this turmoil, with their stock prices plummeting.

The Prussian-Polish Federation hadn’t even been defeated yet, but London had already descended into chaos. In these times, the British government still demonstrated a strong capacity for action. Prime Minister Benjamin immediately held a press conference to calm the public.

The main message was: “The debtor is still around, so don’t worry. The British government will find a way to keep the Prussian government, and the bonds in your hands won’t become worthless paper.”

If you were to interpret it further, it could also mean: “The debtor is still here, but they’re broke for now. When they’ll be able to repay, nobody knows.”

War bonds, after all, can’t be redeemed immediately. The shortest redemption period would be three to five years, while longer ones might take a decade or two and this was entirely normal.

By that time, the British government would have already changed hands, and any concerns would be the responsibility of the succeeding administration. Prime Minister Benjamin had no qualms about making empty promises for now.

Nevertheless, the British Foreign Office accelerated its actions, persistently lobbying European countries to intervene in the Russo-Prussian War. So far, Portugal, the Netherlands, and Belgium have echoed the British government’s ceasefire proposal.

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Not long ago, the Austrian government also received a mediation invitation from the Prussian government. Franz had been hesitating, but with the conclusion of the Battle of Warsaw, there was no more time to delay.

“We can’t keep waiting like this. The Russo-Prussian War is about to end, and we must take action, or the situation will spiral out of control,” suggested Foreign Minister Wessenberg.

Indeed, things were on the verge of spiraling out of control. If the Russian government were allowed to swallow the Kingdom of Prussia, it would be nearly impossible to force them to give it up later.

Given the current international situation, the Russian government was very likely to exploit Austria’s nationalism, offering Prussian territory to offset debts and effectively putting the Austrian government in a precarious position.

What’s worse, if the Russians went ahead with such a plan, the Austrian government wouldn’t just have to swallow the bitter pill, they would also have to express gratitude, at least on the surface.

What does the Kingdom of Prussia have now?

The answer: Debt!

If Austria were to take over the Kingdom of Prussia now, not only would the money lent to the Russians be unrecoverable, but Austria might even have to compensate the Russian government further.

And that’s not all, the Prussian government has accumulated massive debts that it will be unable to repay after the war. Taking over the Kingdom of Prussia would also mean inheriting those enormous debts.

Beyond the debts, post-war economic reconstruction would require a huge sum of money. There’s no doubt that the Prussian government wouldn’t be able to afford it, leaving the central government to foot the bill.

And that’s just the economic side. The political problems would be even greater. Poor diplomatic handling could make Austria a target of widespread criticism.

Knowing full well this would be a complete mess, Austria isn’t foolish enough to take over such a burden at this time.

Intervention became the best option. As long as the Russians are prevented from occupying the Kingdom of Prussia, these future problems won’t arise.

No matter how much debt or difficulty there is, it would remain the Prussian government’s responsibility. If they truly can’t pay, they could always default on their debts. After all, Germany isn’t unified yet, so Austria’s credit wouldn’t be affected.

“It’s still too early. The Prussian-Polish Federation still has strength remaining. We must let the Russians weaken them first, or they’ll become a major problem in the future,” opposed Prime Minister Felix.

As the leader of Greater Germanism, Prime Minister Felix had always prioritized the unification of the German territories. The Kingdom of Prussia, with its formidable military strength, was clearly an obstacle to national unification.

Foreign Minister Wessenberg reminded him, “Prime Minister, our top national policy is African integration. The unification of the German territories can only come second.

As of now, our African strategy is already more than halfway complete. Apart from Egypt, which is occupied by France, there’s only the dying Ottoman Empire left to deal with.

The most urgent task is to stabilize the European continent as quickly as possible, establish a new international order, and seize the opportunity to deal with the Ottoman Empire first.”

In reality, Austria had many national policies, but they evolved over time. Now, only these two remained.

For instance, the original Near East Strategy had been absorbed into the African strategy as the Ottoman Empire declined.

This shift was a forced move. After African integration, maintaining strong ties with the homeland became a top priority. While sea routes were convenient, they became unreliable during wartime.

The British Royal Navy’s dominance was overwhelming, and Austria’s navy couldn’t even come close to matching it. In the short term, not only was catching up to the British impossible, but even the French navy outclassed Austria’s navy.

Since the sea route was not an option, they had no choice but to find a solution on land. Most of the Middle East had already fallen into Austrian hands. If the Austrian government wanted to connect the homeland to Africa, the only obstacles standing in the way were French-controlled Egypt and the Ottoman Empire.

One step at a time. The French were no pushovers, so the Austrian government had no intention of targeting Egypt for now. However, the Ottoman Empire, being weak and vulnerable, was in trouble.

Prime Minister Felix nodded, then shook his head.

“Our core strategy is indeed African integration, but this does not conflict with the plan for German unification.

We have plenty of opportunities to deal with the Ottoman Empire. After the Russo-Prussian War, the Russian government will remain subdued for a long time and won’t have the energy to compete with us in the Near East.

It can be said that within the next decade, any actions against the Ottoman Empire will be led by us. The Russians won’t stop us from extending railways to the Suez Canal.

On the other hand, the Kingdom of Prussia is a bigger problem. We cannot act against them directly. If we don’t resolve the Prussian issue now, it will be difficult to find another opportunity in the future.”

Being the leader is never easy, especially when maintaining a good image. Even though the German region was divided, Austria’s leadership was still recognized. The core reason for this was the Austrian government’s consistent efforts over decades to cultivate its reputation.

The hard-earned good name could not be ruined in a civil war. Especially for Franz, preserving Austria’s reputation was paramount. He would rather leave the German region disunified than tarnish his family’s legacy.

Otherwise, they’d find themselves in the awkward position of finally unifying the nation, only to lose their own throne in the process.

There are plenty of similar historical examples, and Franz didn’t believe all his descendants would be formidable leaders capable of holding everything together.

To avoid resentment, the best approach was to minimize bloodshed in the process of German unification. And if blood had to be spilled, a scapegoat should be found to take the blame.

In this regard, the Russians were truly Austria’s best allies. In the south, the long-time rival Ottoman Empire had been defeated by the joint efforts of Russia and Austria. In the north, the ambitious Kingdom of Prussia was being dealt with by the Russian government.

Every time a conflict of interest arose between Russia and Austria, Franz would calm himself by remembering the contributions of the Russian government.

Money wasn’t the issue as it was all about the Russo-Austrian friendship. After all, when the Russian government declared a debt default last time, even then the Austrian government didn’t lose its temper.

Franz interrupted the argument between the two, saying, “Mediating the Russo-Prussian War can wait. First, send someone to test the Russian government’s bottom line.

If they intend to use the Kingdom of Prussia as debt payment and put us in a difficult position, then immediately cooperate with the British to intervene in the war.

Otherwise, everything else can be negotiated. A weak, or even fragmented, Prussia is the best Prussia.

As long as it’s not excessive, we can tacitly approve the Russian government annexing parts of Prussia’s territory, as long as it doesn’t involve German territories. Everything else is open for discussion.”

Even thugs demand a fee, let alone the Russians. They’ve fought their way through with great effort, sacrificing millions of soldiers and incurring massive debts. Some form of reward is only fair.

In Franz’s view, the Kingdom of Prussia had been enjoying decades of success and had become overconfident. They even dared to form their own system and challenge Austria’s authority. Such behavior needed to be curbed.

If an example isn’t made, what will the other German states do?

Take, for instance, the Kingdom of Hanover, which is already eager to move. Dissatisfied with the current German Federal Empire, they’re secretly working on some nonsensical North-South German plan, relying on British support.

The Austrian government hasn’t sought trouble with them yet because Hanover’s ambitions are still in the planning stage. While they’ve made many plans, they haven’t taken any concrete actions.

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