Chapter 258 Central Bank of Eastern Europe

Although Hungary and Poland got rid of the Soviet Union's political guidance after the Color Revolution, they also lost the Soviet Union's economic aid to the two countries, and the Americans were no more generous than the Soviet Union to go there. Facing huge foreign debts and collapsing domestic markets, both countries urgently need a new savior to help them get out of the predicament and guide their economies back on the right track.

As the first country to accept the takeover of the Colombian bank, Poland's economy has begun to show results, but Hungary, because it does not have a developed industry, the situation is much worse than Poland. In addition, although Czechoslovakia is industrially developed, it is also difficult to live after the color revolution because of its inland location and lack of sales countries. Especially in the relatively backward Slovakia, the situation is even worse than Hungary.

Under such circumstances, it is a wise way to hold a group for warmth. So since signing the agreement with Hungary to host the central party, Mikhail has been lobbying the two countries to establish a unified market. Hungary is a traditional agricultural country, and its industry is not well developed. Except for agricultural products, wine, and bauxite, there are basically no distinctive economic highlights. In addition, Hungary is a landlocked country, which makes Hungary export has become more difficult. On the other hand, although Poland's industry is not very developed, it is much more complete than Hungary after all. In addition, Poland also has a famous port in the Baltic Sea - the Port of Gdansk, which allows Poland to export Products are much more convenient than in Hungary and Czechoslovakia.

In this realistic environment, Mikhail began to sell the plan of a unified market to Poland, Hungary, and Czechoslovakia according to Seryozha's instructions. To put it simply, when the United States and the Soviet Union have given up on these three countries, the markets of the three countries will be connected as a whole, learn from each other's strengths and complement each other's weaknesses, and jointly resist debt and economic downturn risks. Doing so will not only expand the discourse power of the three countries in world trade, but more importantly, the market formed by the three countries will be more stable and self-sufficient to a certain extent.

So under Mikhail's repeated lobbying, the Hungarian and Polish governments finally agreed to sit together and have a meeting on the issue of the unified market, while the Czech Republic and Slovakia each sent their own representatives as observers to participate in the unified market plan.

The location of the negotiations was arranged in Budapest, the capital of Hungary. In order to avoid unnecessary troubles before reaching an agreement, the four parties involved in the negotiations did not disclose any information to the outside world. Lech Walesa visited Hungary in other names and met with the newly elected Hungarian President Genz Albad and others.

Whether it is Hungary, Poland, or Czechoslovakia, as early as when Mikhail's plan was first proposed, they have already realized that a unified market will bring substantial benefits to all countries. However, on some issues, countries still have certain differences. Because according to the proposal of the Bank of Colombia, a major prerequisite for a unified market is that everyone must reduce tariffs to zero and use a unified currency. There is no precedent for such a plan in history. Although the central banks of Hungary and Poland have already been in the hands of the Bank of Colombia, and the right to issue banknotes has long been controlled by the Bank of Colombia, it is necessary for two independent sovereign countries to adapt to the same currency. , this is simply insane.

"Respected President Albad, Prime Minister Walesa, and representatives from Czechoslovakia, when it comes to the unified currency, although it has various shortcomings, the benefits are obvious. It can make our three countries into a unified currency. China's market, if estimated according to our current GDP, is basically the same as that of Austria. I don't think I need to tremble. Everyone knows that if this plan is implemented smoothly, our GDP is definitely not just the sum of the existing GDP of the three countries. To this extent. The decision we make here today will benefit 60 million people in the three countries..." Mikhail Maibai persuaded expectantly.

Albad and Walesa heard what Mikhail said, and they couldn't help nodding frequently. The economies of the two countries are very complementary. Once the currency is unified, Hungary will not need to spend a lot of precious foreign exchange to import some Poland. It can produce automobiles and electromechanical products, and Poland can also directly purchase agricultural products produced in Hungary with its own currency. But Czechoslovakia, sandwiched between the two countries, has yet to give the nod, so the views of Czechoslovak representatives are crucial to the unified market plan.

Mikhail saw that Czechoslovakia could not give a definite answer, so he took the initiative to say: "I know among us, in terms of industrial development level, Czechoslovakia is indeed unique. But in Slovakia, there is a The market environment is similar. In the developed Czech region, although the Skoda factory is very good, we all know that the unification of the two Germanys will be inevitable, and Germany's strong industrial strength will definitely use our countries as dumping grounds , At that time, I don’t think the Czech industry can withstand the impact from Germany. Czechoslovakia needs a market like Poland and Hungary. Once we use one currency, no matter how much competition there is, German products will be affected by tariffs and exchange rates. It is absolutely impossible to be an opponent of the Czech Republic..."

During the talks in Budapest, the representatives of the three countries finally unanimously approved the plan of the Bank of Colombia after several confrontations. According to this plan, the central banks of Poland and Hungary will be merged into one unified central bank, managed by the Bank of Colombia, and the Czechoslovak region will subsequently join the unified market plan. After the agreement is signed, tariffs between the three countries automatically drops to zero. The currency distribution of the three countries will be in charge of the newly established central bank.

Mikhail expressed optimism that more Eastern European countries may join our unified market plan in the future, so he suggested that the newly established central bank be called the Eastern European Central Bank, and the newly issued unified currency be called the Eastern Euro. The reverse side of the Eastern Euro adopts a unified face style, while the front side is designed by each country.

The day after the signing of the agreement on the unified market in Eastern Europe, the governments of the three countries announced the news to the world at the same time. Neither Western Europe, nor North America, nor the developed countries in East Asia thought that in the declining Eastern Europe, an unprecedented unified market would be formed.