Federation Budget Report Released

New Eden News | YC109-04-17

The Federation Government released its annual budget report last Wednesday afternoon, in a statement issued at the Senate’s final yearly sitting. Addressing a wide range of recent economic improvements, the report showed a financially healthy Federation geared towards a solid period of growth and consolidation.

An excerpt of the release delivered by Presidential Spokesperson Yuri Meureux follows:

_“The Federation has never been stronger, and it is clear to see that this is due to a sound foreign policy, backed by sensible internal spending and fiscal management. The last reporting period saw a 12% rise in the average standard of living, a decrease in infant mortality rates to less than twenty in one thousand, and a rise across the board in consumer spending; a clear indication of a booming economy.

Government revenue is steadily rising without a tax increase. The increase in volume of trade throughout the Federation has allowed the bolstering of annual budgets in key departments; notably the Federation Navy and Federation Customs.

Additionally, this increase in funding will allow the Federation Customs the ability to create a new department, dedicated to preventing the scourge of illegal narcotics trafficking. This team will ensure the quality of life for all citizens continues to improve by keeping our streets clean.”_

Coinciding with the Federation report were those of three independent financial assessment firms, contracted as third party advisors by each of the other empires. All three reports agreed with the figures posted by the Federal Government. In a concerned address to the Chief Executive Panel following the announcement, the Caldari Business Tribunal also issued a similar review. The trend towards increased economic might in the Federation has been a continual source of anxiety in the Caldari State as it slides towards a recession of its own.

An excerpt follows of an interview between Henri Cassel, Chief Economic Advisor at the Garoun Investment Bank and Gabriel Fontaine of the Interstellar Correspondents:

Gabriel Fontaine: Is there any truth to the claims of the Federal Government regarding the strength of the Federation’s economy?

Henri Cassel: As with any government statement, you are likely to have a bit of embellishment, but the simple fact is that the Federation’s economy is doing rather well at this moment, that much is beyond doubt. I am always wary however, of politicians trying to take credit for fluctuations that are usually part of a greater economic cycle.

GF: Do you see these positive trends continuing? With average incomes on the rise, and the early indications of recession in the Caldari State, there are likely to be some investors looking to move their ISK. What would you say to them?

HC: I would say that moving investments, especially short-term ones, over to Federation corporations is likely a smart move. The Caldari economy is resilient, and will recover eventually, but for now I would expect to see a great increase in investment inside Gallente space.

The State economy has been performing poorly in comparison to the recent Federation figures, with many analysts agreeing that recent large-scale economic events have returned lacklustre revenue, causing further economic fallouts in their wake. Sindri Hinrik, head of the Economics department at Science and Trade Institute agreed partially with the Federation’s report, stating: “With the recent Mind Clash tournaments pulling in below expected revenue there was an influx of foreign investors falling back to the long-term reliability of the Federation’s entertainment industry. We’ve been losing foreign investment and domestic capital in this fashion for a long period of time now, and the gears have started to slow down in many areas as a result.”

Mr Hinrik did not agree however, with the assessment that corporations outside the State represented a better investment. “Key industries in the State have always been solid enough performers to provide sustainable growth. The State is robust and flexible and will still remain competitive in many fields, readjusting during this period of downturn to consolidate in those areas more fully.”

Despite the wary sentiments of outsiders, most in the Federation have embraced the good news and are pleased with the Government’s recent fiscal management. An unusually placated Senate praised the reports and promised to push towards further growth through bipartisan co-operation. The new departmental openings have particularly helped the Presidential office, which has slowly earned more support throughout the previously disgruntled security community, a sector that has struggled in recent years with funding and governmental assistance. The renewed growth of the Federation’s military industry has also provided millions of new jobs, helping reduce the level of unemployment even further, ensuring additional popularity for the administration in areas previously lacking their support.

The President has not issued any personal statements at this point in time, preferring to delegate the announcement to one of his spokesman. Many have commended the singular Senate announcement as a sign that President Foiritan intends to continue towards improving the Federation without self-congratulatory fanfare. “It’s good news for him and the government,” stated Mr. Cassel. “He looks at the moment, however, like a man wanting to get on with the job.”