Holy Roman Empire

Though they failed to capture the main force of the French Army, Hutile and the others lost interest in pursuing the Egypt Colonial Army. After the battle ended, the Eighth Division immediately began a massive recruitment campaign.
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In just one week, the organization of the Eighth Division expanded threefold, and all the young and able-bodied in the surrounding areas were conscripted.

At least they still had some conscience and didn't really use men, women, and children as cannon fodder like bandits would.

The army advanced mightily along the Nile River, ignoring the cities along the way and specifically targeting the rural plantations.

While destroying the estates, they also recruited the enslaved Egyptian people, spreading ideas of national independence.

By relying on a tactic of bullying the weak and fearing the strong, the Eighth Division progressed smoothly and swelled rapidly like a rolling snowball.

By contrast, the progress of the main body of the Rebel Army was much worse. Unlike Hutile and his group who would hit and run, the high-ranking members of the Rebel Army still had aspirations.

Desiring to be warlords, they naturally needed territory. Mahidi, the leader, could no longer control the situation, as major factions began seizing land.

They even fought fiercely over territories. If not for the ongoing threat from the French, it's likely the Rebel Army would have split.

To unify the Rebel Army to collectively counter the French people's forthcoming counterattack, General Jeret frequently stepped in to mediate relations among the different groups.

However, the chaos that was bound to happen still ensued. The Rebel Army was overly complex in its composition, and internal conflicts were endless. It was only the threat from the French that maintained a semblance of unity.

As the leader of the Rebel Army, Mahidi was very dissatisfied with this situation. Unfortunately, the incident where he blew up the Aswan Dam had significantly diminished his prestige within the Rebel Army.

If it weren't for the support of the British, it was uncertain if he could still maintain his position as the leader.

By this time, if Mahidi didn't realize that the British had tricked him, he wouldn't have been able to establish a great reputation in the original timeline.

Once again, reality proved that one could shoulder any blame, but the blackest blame was untouchable.

Labeled as ruthless, Mahidi found it difficult to recruit followers. Everyone really disliked this leader who might betray his own people at any time.

Impacted by this, Retings, the second-in-command of the Rebel Army, directly led his troops to the River Valley Plain, preparing to carve out his own territory.

Mahidi was powerless against this move. Although he had won the first round of the anti-encirclement campaigns, his political reputation had also plummeted.

Without substantive restraints and relying merely on personal prestige to hold the Rebel Army together, it was inherently a loose alliance.

Driven to desperation, Mahidi could only join the fray to scramble for territory. This greatly displeased General Jeret, who wanted to march directly into Cairo.

At the Rebel Army headquarters, General Jeret solemnly said, "Gentlemen, the crisis has just begun; it's far from the time to enjoy the fruits of victory.

The French will not be content with failure, and it won't be long before they come back. Then, we'll be facing not just a disorganized colonial mob.

I'm sure you've all heard of the world's foremost army. This is not a reputation the French made up, but one forged with every blade and gun on the battlefield.

By luck, we've secured a victory once, but the same tactics can't be used a second time. After being tricked once, the French won't be fooled again.

In the future, we'll face an unprecedentedly tough battle. To gain an advantage in the upcoming conflicts, we must first take this place."

Looking in the direction pointed by General Jeret's baton, unsurprisingly, it was Cairo.

This ancient city, which embodies political, economic, and military values, is crucial for the Rebel Army's next battles.

Only by capturing Cairo could the Rebel Army have a chance to be independent from the French.

A middle-aged man asked doubtfully, "General, hasn't the Eighth Division already set out for Cairo?"

In his view, the French Army in Cairo had suffered heavy losses in a recent battle and was now at its weakest, making it easily overpowered by the Eighth Division.

Jeret shook his head, "Essner, you are too optimistic. Cairo is not like those small towns you've encountered.

Indeed, the reason why the Rebel Army has been progressing smoothly is that the French in those small towns were completely terrified and failed to organize any substantial resistance.

Cairo is different, being the center of Egypt, the French will definitely not give up.

The news of the defeat at the front has already been sent back, and the French left behind are likely, at this moment, organizing a new defense force.

Without heavy firepower, for the Eighth Division to take over Cairo City, which is heavily guarded by the French, is utterly a fool's dream."

Honestly speaking, Jeret was quite satisfied with the Eighth Division commanded by the Austrians.

Whether it was destroying the cotton plantations along the way or heading directly for the Delta, both actions were perfectly in line with the interests of Britain.

Considering the current circumstances, Egypt's cotton production is bound to plummet this year, and it will be difficult to recover in the coming years.

This is undoubtedly the best news for British cotton textile businesses. The decrease in a competitor's raw material supply and output is without doubt the best opportunity to seize the market.

Although he did not plan this, Jeret did not hesitate to take credit for it himself.

Politics also involves a quid pro quo. As the leader of this Egyptian uprising, he would naturally receive a reward from domestic businesses upon his return.

It might be economic, or it could be political, but in any case, General Jeret has made a huge profit this time.

Inciting the Rebel Army to attack Cairo was only a part of General Jeret's plan. If possible, he most hoped the Rebel Army would reach the Suez Canal.

It would be best to block the canal's navigation, and then the Great Britain Empire could use the opportunity to defend canal navigation to extend its influence into the Suez Canal Area.

...

The capital market is sensitive; affected by the battlefield losses in Egypt, the stock prices of Parisian textile companies plunged, and many companies managing Egyptian plantations went bankrupt.

With the storm brewing and the textile industry's stock plummeting, within just one week, the overall Paris stock market fell by 11.4%, and billions of francs in market value evaporated.

The international cotton prices also experienced severe fluctuations. On the London cotton futures market, the price of cotton even surged by a third.

Under this double blow, the French cotton textile industry faced its greatest winter.

Affected by the reduced supply of raw materials, numerous businesses announced layoffs and production cuts, leading to a soaring unemployment rate and once again challenging the French economy.

Although he had been mentally prepared, Napoleon IV felt as if he was in another world when all of this actually happened.

No matter how difficult it was emotionally, the issue still needed solving, or else a new round of economic crisis would erupt.

Having experienced the Paris Revolution, Napoleon IV was extremely vigilant about the economic crisis that could potentially destabilize his regime.

"As the domestic economy continues to deteriorate, does the Economic Ministry have any plans?"

After a brief moment of thought, Economic Minister Elsa carefully responded, "This economic turmoil is mainly due to the rebellion in Egypt, which has caused a significant drop in cotton production.

Combined with the drought in North America this year, a decline in cotton production is inevitable, and a sharp increase in cotton prices on the international market is already a certainty.

The Economic Ministry suggests that the government temporarily eliminate cotton import duties to reduce the cost of raw materials for textile enterprises, and also issue them low-interest loans to help them through this difficult time."

Would reducing tariffs really work?

The answer is no.

With insufficient cotton supply on the international market, it is inevitable that some enterprises will not be able to procure enough cotton.

Capital cooperation also follows a first-come, first-served basis, and capital owners involved in cotton wholesaling, at roughly similar prices, will definitely choose to work with reliable, long-standing customers first.

Many supply cooperation relationships have been continuing for several years, even decades, and are simply not something newcomers can easily displace.

Most of these enterprises are concentrated in Britain, and France's cotton textile industry, as a latecomer, only began to develop after securing the cotton-producing region of Egypt.

Unless they are willing to pay a high price, French textile companies simply cannot acquire enough cotton on the international market.

It was because of all this that many companies, before running out of their cotton reserves, had already announced layoffs and production cuts in preparation for the upcoming crisis.

Foreign Minister Terence Burkin cautioned, "It's not that simple. International wholesale cotton dealers are not fools; they wouldn't miss such a great opportunity to make a profit.

If things goes as expected, they might take this opportunity to force us into permanently eliminating cotton import tariffs."

Trade barriers have also been one of the main reasons why the French cotton plantation economy was able to develop.

High tariffs rendered cheap cotton uncompetitive after entering the French market, allowing local plantation entrepreneurs to make a fortune.

Driven by interests, capital owners investing in cotton plantations had been increasing in recent years, with the French virtually achieving self-sufficiency in cotton.

This harmed the interests of overseas cotton farmers and wholesalers who were eager to enter the market.

Normally it wouldn't matter, as France's strength was enough to withstand these interest groups.

But now it's different, France's cotton supply chain has issues, and they must find solutions on the international market.

Economic Minister Elsa objected, "Eliminating cotton import duties is impossible. Without sufficient incentives, domestic capitalists will not invest in cotton plantations.

Moreover, it's not just about cotton, it also involves other industries.

Once we compromise here, there will be a relentless demand for eliminating other tariffs as well.

Given the current state of domestic economic development, for a long time to come, we must implement trade barriers to protect our national industries."

It's a proven fact, as demonstrated in previous economic crises. France is truly not yet ready to compete internationally.

Finance Minister Roy Vernon added, "It's not just that. Recently, our foreign exchange reserves have significantly decreased.

Now, having to massively purchase cotton from abroad will certainly involve huge foreign exchange expenses, and the Empire's foreign exchange reserves are already dangerously low.

As of now, we hold 31.876 million British Pounds, 65.423 million Divine Shield, plus other minor currencies, totaling approximately 1.78 billion francs."

Ever since the shots of the Paris Revolution were fired, the French economy has been in a state of chronic trade deficit. The trade barriers have barely achieved trade balance, and now it has slipped back into a deficit.

Long-term capital outflows are obviously detrimental to the nation's economic development. Finding ways to reverse the trade deficit has become a major problem for the French government.

Economic Minister Elsa remarked, "The Marquis is correct, to restore our domestic economy, we must find ways to get out of the trade deficit situation.

Increasing exports is currently out of the question, even without tariff barriers, our industrial and commercial products lack international competitiveness.

In the short term, the best way to address this issue is by reducing foreign exchange expenditures.

At present, the main commodities we import consist of grains and coal.

Domestic coal production is insufficient, and no large coal mines have been found in North Africa. The only major coal mine we control is far away in the Indochina Peninsula.

But meeting domestic needs is still far from enough, and the high transportation costs make self-sufficiency impossible.

The only viable solution is grains; Algeria, Tunisia, and Morocco all have areas suitable for agricultural production, making national self-sufficiency easily achievable if we develop them.

Investing in grain cultivation yields low returns, so capitalists are not interested, leaving the government to be the main investor.

This is also a good thing; as long as we manage it well, we can ensure grain self-sufficiency without harming the interests of domestic farmers.

We can not only save a large amount on foreign exchange, but also challenge our competitors on the European Continent, ensuring strategic food security."

Since proposing the African farm plan, Elsa had become a proponent of this policy, continuously promoting its benefits.

Of course, this is just how outsiders view it. In reality, Elsa pursued this course because she had no other choice.

Exiting the free trade system has its advantages and disadvantages. While it brings benefits, it also necessitates bearing the policy's drawbacks.

You restrict me, I naturally restrict you. Affected by high tariffs, France's industrial and commercial export volumes sharply declined.

This is only a minor issue; by using trade protection to drive away international competitors, the domestic market share left behind has been sufficient for capitalists to compensate for their losses.

But France remains a major importer of industrial raw materials. The Grand Africa Development Strategy was one of the French government's measures to shed dependence on external resources.

Although progress was slow due to insufficient funding, from a results perspective, it was still successful.

France has virtually achieved self-sufficiency in various economic crops, including cotton, and even if not entirely self-sufficient, the demand for imports has decreased.

Yet, this still isn't enough, not all resources can regenerate themselves; coal and food remain significant vulnerabilities.

Elsa could do nothing about non-renewable coal. Faced with the trade deficit, her only choice was to tackle the solvable issue of food.