Economic news + update on Foreign Affairs

Flanders to launch economy

Even though voting time hasn't finished yet, it's clear by now that a majority in Parliament favours the government's plans to introduce an economic model, as of February 1st. The currency unit will be called the Flemish Ducat or VDK (Vlaamse Dukaat), divided into 100 stivers (stuivers) or st. Every citizen will receive a starting capital - 6 000 VDK for confirmed citizens, 4 000 VDK for non-confirmed citizens.Taxation on individual incomes will amount to 15%, but will only be introduced gradually - the richest citizens coming first. 200 VDK are considered to be tax-free. 15% of corporate profit will also be taxed.
The government will have a monopoly on banking, and will use a e-phpbank (located at http://www.emery.be/vrv/ephpbank/index.php), which was developed by Emery Frijters, after it became evident that Sander Dieleman's MX2 would not be launched in the near future. An e-phpbanking is an improved version of Dieleman's phpbank, allowing international transactions. In order to prevent a cash flow to other nations (in particular Mayo, which is set to introduce e-phpbanking in the near future as well), the government wishes to impose an export tax of 10%, which will be gradually diminished.

First budget

Together with the launch of an economy, comes the first government budget. Because the first tax revenues will only be collected in July, the government expects a budget deficit of 157 987,50 VDK. Out of the government budget, 8 000 will go to the department of Interior Affairs, in order to finance political parties; 5 000 VDK to Foreign Affairs; 20 000 VDK to the department of Culture (salaries of university professors, salary of the webmaster;...); 80 000 to the Economy department (financial aid to companies); 42 437,50 VDK for the Finances department (salaries for MP's and government officials, and the purchasing of an e-phpbank) and 4 250 VDK to the Justice department.

University

Junior Minister of Education Peeters announces his plans to found a Free University of Flanders (VUV). The University will be managed by a three member board, composed along the lines of party divisions in Parliament. Everyone will be allowed to give courses, but the board will have the ability to grand a "quality label" to certain courses, which would entitle the lecturer to a government pay.

Foreign Affairs

Meanwhile, the Ministry of Foreign Affairs has re-introduced the proposed treaty with the People's Republic of Charlotta, and this time, it seems likely that it will be accepted by Parliament. Now that relations with the Dutch sector seems to be completely established, the Ministry is "targetting" the anglophone sector. Cyberia seems to have been first on the list, mainly because it is one of the few micronations which had recognised the First Republic and which is still in existance today. However, the Cyberian authorities claim to have no record of this non-written mutual recognition (to which the Flemish delegate responded by providing evidence that there were at least contacts between both governments), and stated that Cyberia will regard Flanders as a new nation. Jack Santucci, Cyberia's Minister of Foreign Affairs, indicated that a treaty might be considered, but only in a few months time.
On the other hand, discussions about a treaty with Antica are reported to be progressing well. The Kingdom of Gotzborg has also been contacted, and has responded in a positive manner - even resulting in a short visit to Flanders by HM King Augustus Charles II.