Persian Empire 1845

Chapter 543 Things in Spain are always terrible

Spain's chaotic situation remains unchanged. Madrid and Barcelona are in slightly better shape, but Spain has not yet emerged from the shadow of industrial crisis, poor harvests, and hyperinflation. It lags behind not only France, but also smaller countries like Belgium, the Netherlands, and Italy, and even Portugal.

Interim government leader Juan Perem was in a terrible predicament regarding the current situation in Spain; otherwise, why would he have sought out the king so quickly? It was because he didn't want to deal with this mess.

Spain's current debt has reached 38 billion pesetas, more than twenty times its fiscal revenue. The government relies on short-term, high-interest loans, but has extremely low international creditworthiness and high borrowing costs. Therefore, by forcibly allocating national debt to banks and local governments, it has triggered public discontent.

Spain's industrialization began late, with Catalonia and the Basque Country being the centers. However, the development of the mining industry and political instability hampered the process. While countries like Britain had already completed their industrial revolutions, Spain's industrialization was just beginning.

In Catalonia, particularly Barcelona, ​​the textile industry flourished, making it a major center of light industry, thanks to its geographical advantages and commercial traditions. In the Basque Country, Bilbao, with its abundant iron ore resources and excellent port conditions, developed its metallurgical and shipbuilding industries. Although mining made some progress in Andalusia and Asturia, they ultimately supplied raw materials to other European countries.

With both agriculture and industry in dire straits, he wouldn't seek help from France, as that would be like throwing himself into the lion's den; but he also wouldn't seek help from Britain, given the historical issues and territorial disputes between Spain and Britain over Gibraltar.

In 1704, Britain captured Gibraltar during the War of the Spanish Succession. In the Treaty of Utrecht in 1713, the Spanish Bourbon dynasty formally ceded Gibraltar to Britain in exchange for British recognition of its legitimacy. Since then, Gibraltar has been under British rule.

Although the cession was voluntary, why should the people bear the burden of the Bourbon dynasty's sins? Therefore, republicans have always considered Gibraltar to be Spanish territory. However, due to national power constraints, the plan to reclaim it remained just a piece of paper.

"General, Lord Antonio has arrived."

"Please!"

After the Hohenzollern family rejected the king's invitation, Perim chose the second option—King Maximilian of Sicily. Domestically, the Habsburgs were welcomed back to the throne. The Bourbon dynasty had a lackluster start, plagued by scandals and the fall of its kingdom. This caused the Bourbon's support to plummet, while the Habsburgs, who had led Spain to power, gained even more support.

In Barcelona, ​​the Friends of the Habsburgs were founded, with Antonio as its president. The general invited him to discuss matters concerning the King of Spain.

"General Hurricane, how does it feel to be the leader of Spain now?"

"Don't even mention it. I only wanted to get rid of Queen Isabella and invite someone who truly cares about Spain to be king."

"I understand. King Maximilian has devoted himself to Sicily and has built many projects for the local area. If you don't believe me, General, you can go and see for yourself."

No need for that, he believes it! Everyone has seen Sicily's development over the years. Although it is not as geographically advantageous as northern Italy, the south has its own unique advantages, namely maritime transport and sulfur mines.

Combining these two advantages, along with capital inflows from Iran and Austria, Sicily's economy has been developing rapidly in recent years. Fiscal revenue has doubled, and its external debt has been reduced by two-thirds, and it will soon be fully paid off.

Sicily is also undergoing a massive railway construction project, with plans to build over 5000 kilometers of railway, 10,000 kilometers of highways, and upgrades to its ports. These are all things Spain lacks. Therefore, making Maximilian King of Spain their second choice. "However, King Maximilian already holds the title of King of Sicily, and adding the title of King of Spain to that would likely provoke hostility from other countries, especially France."

“The French,” he sneered, pulling a yellowed map from a drawer, “didn’t consider the integrity of Spain when Napoleon III secretly funded Catalan separatists last year.”

Catalonia was part of the Frankish Empire before the 12th century and maintained close cultural and political ties with France. During the Thirty Years' War, Catalonia briefly achieved independence by allying with France against Spain.

During the reign of Napoleon I, Catalonia was annexed as a province of France. It was later returned after the war. All of this fueled Spain's distrust of France.

"That's good. Austria and Iran both support His Majesty Maximilian becoming King of Spain, but now is not the time."

"How long will it take?"

"It'll be soon, just waiting for the major changes in France. But for now, we can discuss your country's economic cooperation."

Iran has a strong interest in Spain and has begun investing 2000 million rials in Spanish mines. The return on investment has been quite good.

"Iran hopes to jointly establish a company with your country and demands special rights from your country. Here is the list."

Hurim saw that there was too much stuff in there. If he signed it, wouldn't the people beat him to death as a traitor?
"This is all for the good of your country, and it was agreed upon by His Majesty Maximilian. You only need to nod."

Moreover, Iran will immediately provide funds to alleviate the current difficulties.

His final words were to urge him to sign immediately and get the money first. According to the agreement, Spain sold iron and copper exploration rights in Andalusia to Iran, along with future railway construction rights, and offered the most favorable terms to Iranian companies. In return, Iran would provide a loan of 2800 million rials to help them overcome their difficulties.

On December 8th, the Spanish industrial company was established. Although its name includes "Spain," its shareholding structure and board of directors are entirely composed of Iranians and members of the Habsburg royal family. Its registered capital is 75 million riyals, with Iran holding 70% and the Habsburg family holding 30%.

As the first large enterprise with capital exceeding 5000 million reales, Spanish industry outlined an industrial blueprint: first connecting various regions with railways, then developing the profitable textile and mining industries. By accumulating capital, they planned to pursue even greater development.

The Spanish public didn't protest as much; after all, people were struggling to survive, and they weren't about to let such an opportunity slip by. Besides, the Iranian businessmen were quite accommodating to them, and they believed the Iranians could build a very good Spain.

(End of this chapter)