1605 Winter(December)

With the end of the war and peace treaty, it’s time to grant honors. Or to be more exact, time to consolidate Iberia – Portugal, and Castile – into the United Kingdom. Since Iberia and Great Britain(&Netherlands) were so different from each other, a new ruling method was necessary if I don’t want to face the winner’s curse.

“What say that I establish a new election district in Iberia and also consolidate them into the United Kingdom’s Parliament, just like I did to the Netherlands, Scotland, Ireland and Wales?”

“No, your majesty! If that happens, we, Great Britain will be swallowed by their overwhelming population! Please, reconsider!”

“No, your majesty! Do you wish to hand over the United Kingdom to the Spanish?”

My first option was consolidating the Iberia into the United Kingdom by setting up an election district and having their representatives in the United Kingdom’s congress, just like I did to the Netherlands in 1572-1573. However, it was rejected due to serious objections from both the House of Lords and the House of Commons. If election districts were also extended to the Iberia as well, the Iberia will become a super political party that can topple the Downing Street freely. Their worries were the same as what my old man – Felipe II – though, although it was the other way around.

In short, if Felipe II once worried about the “British Invasion” if Spain becomes a personal Union with England, the English Congressmen feared the “Spanish Invasion” now that England became a personal union with Spain.

And this time, they had a point. Unlike the Netherlands, Scotland, Ireland, and Wales, Portugal and Castile is both a big nation. It might become, ‘Tail which is wagging the dog’, instead of dog wagging the tail.

I must come up with a solution.

“Then, how about this? First, I’ll split Iberia into 3 regions – Portugal, Castile, and Leon and will establish self-ruling parliaments there. Also, I’ll allow England to establish its’ self-ruling parliament as well. Finally, I’ll set up a new House of Common in the United Kingdom’s Parliament, which is made up of congressmen chosen from 9 self-ruling Parliaments – England, Netherlands, Wales, Scotland, Ireland, Portugal, Castile, Leon, and London.”

“Impossible, your majesty! Doesn’t that mean congress dissolution and re-election? It would be a waste of taxes! Please, reconsider!”

“Very well. Then, I’ll split the Senate and the House of representatives on this matter. First, at the House of Representatives, the election districts will be expanded so that Iberia will be included. However, the Senate will be made up of 180 senators, 20 from every 9 self-ruling Parliaments – England, Netherlands, Wales, Scotland, Ireland, Portugal, Castile, Leon, and London. The newly made Senate will check & balance with the House of Representatives. Won’t this be a good idea?”

“Your majesty, how can you desert your loyal subjects! We Senators in this Kingdom’s Parliament are all loyalists who have kept fidelity to the Tudor royal family from father to son, at least from the Rose War! How can you suspect our loyalty!”

“No, I don’t suspect it. Thank you for your service. Then how about...”

And all other alternatives I’ve suggested were all rejected. It was an unprecedented objection during my entire reign until now. It was just as I’ve expected. The United Kingdom’s Congress is also an interest group. They too want to keep their share. And so will the Iberians. Since I didn’t want my newly expanded country to fall into civil war, I need to make a negotiation that both parties can be satisfied.

1606 Spring(March-May)

However, no negotiation was made until 1605 March. So, in the end, I had to make a 2nd Congress which is made up of Senate and House of Representatives in Iberia as well, just like the 1st Congress in Great Britain. And I’ve also made 5 self-ruling Parliaments in Iberian Region – Castile, Leon, Portugal, Andalusia, and Madrid – and established a new Constitution which is applied to the Iberian region only.

Luckily, since most senators and representatives in the 2nd Congress were in serious reds, I could silence their objection by lending or giving them a handsome amount of money.

So, only 3 things were consolidated between Great Britain(&Netherlands) and Iberia – Military, Diplomacy, and Economy. It was not military but Navy to be more exact. The army was only partially consolidated since only reserved forces of Iberia were consolidated under the King, with Iberian Feudal Lords’ private army still active.

If Iberian’s country credit rating and Spanish Real(*Spanish Currency from mid 14th Century to 1864 in the original history.) credit wasn’t in the dumps, economic consolidation would have also been impossible.

The Royal Bank of England – the central bank of the United Kingdom in London, established in 1585 – distributed 40 million Ducat worth of silver to Iberia, dissolving the credit crunch at once. And Spanish Real, which was a currency at Iberia till now, was abolished and was exchanged with ￡ at an appropriate exchange rate.

Not only me but also West India Company had to make a concession as well at the consolidation process. If I merge the Viceroyalties of Spain and Portugal in the Latin American region into the West India Company with the Castilians and Portuguese interests and right kept the same, the West India Company will fall into straight into their hands. Without the 21C technology, in ruling the Latin America, Castilians and Portuguese help was a must. But If I let them have their way in the West India Company, the stockholders in Great Britain and the Netherlands won’t be happy with it.

On the other hand, if I confiscate Castilians and Portuguese all their previous rights and give it to the West India Company, it would be no longer be a West India ‘Company’ but a West India ‘Empire’. An empire that rules millions of Native Americans, Mestizos, and whites in Latin America, a much worse conglomerate than the United Fruit Company in the original history. No, perhaps all Latin American Viceroaylties will revolt, declaring independence with all other European States will take their side. It would become a much bigger, worst-case-scenario than the American Revolution in original history to the United Kingdom.

So, I had no choice but to keep my words to the viceroys. Viceroyalties were kept, with all their previous rights and interests remaining the same. Instead, the West India Company was given exclusive trade rights with them.

“How can you do this to us, your majesty! We’ve fought most fervently at the previous war, but you gave us nothing!”

“Silence! Didn’t I give the West India Company the exclusive trade rights with the Viceroyalties? If you don’t like it, sell all your stocks and get out of here! Now!”

Just as I expected. The large stockholders of the West India Company were disappointed and expressed objections at the stockholders' meeting. But I kept my words. It was a necessary decision for a stable rule.

1606 Summer(June – August)

I was at Madrid – now the 2nd Capital of the United Kingdom, doing my work. It was my answer to the request

‘Your majesty, as a king of Spain, swear to Holy Father, Jesus Christ, and Virgin Mary that you’ll stay in Spain for 6 months every year.’

from one Spanish high-rank aristocrat in 1605.

“Hooray!”

“Long live King Eduardo I, the rich king!”

“Make Spain great again!”

“Thank you! Thank you! Hahahaha!”

After listening to cheers of Spanish citizens, I’ve entered Royal Seat of San Lorenzo de El Escorial – the Spanish Palace and Royal Monastery that Felipe II made – and carried out necessary reforms.

First was building Manufacturing Complex with a division of labor, which is standardized by the Gregorian Measurement Unit(* It's the equivalent to the Metric System in the original history, which was adopted by the French Revolutionary Assembly in 1795. I've devised and spread into entire Europe via Papal State during 1588 Spring and Summer. And with this, pound/yard/inch all disappeared.) and there was also supporting medical science, and I’ve also established Madrid Stock Exchange with the loan from the Bank of England. It was all emergency measures that are necessary to revive the devastated Iberia’s economy.

Just like what Keynes said, ‘In the long run, we’re all dead.’

So, what’s important is government intervention – spending to be more exact – to boost the economy so that the goods and services can circulate well in the country. But that goods and services shouldn’t be spent on luxuries – for now. It should be spent on essential parts in the actual economy such as building roads, reservoirs, bridges, manufacturing complexes, etc.

After a short contemplation and discussion with my closest aids, I’ve decided to do all those projects at the same time, borrowing 30 million ducat worth of assets from the Bank of England with the 4% annual interest rate. For one thing, it was to boost the Iberian region’s economy, but the ulterior motive was to consolidate London’s economic rule in Iberia.

Also, I’ve set up the Mediterranean Company in Madrid, a separate firm with both the East and West India Company, and granted them an exclusive trade right in the Mediterranean Sea region. Although I’ve left Aragon and the Italian City-States to Felipe III at the last war – War of Iberian Succession – due to my ignorance at the Mediterranean Sea, next time, I’ll also take those regions from him and make him penniless. For that, I need to invade from the economic sector first.

And Iberian Congress commented that

“Your majesty, it is estimated these projects will take at least 2 years to bear fruit.”

My reply was

“No, it’ll take 3 years. But no longer than that.”

Why? It’s not only the government that will invest in Iberia. The wealthy merchants of Great Britain and the Netherlands will also invest a tremendous amount of money in the Iberian region for hostile takeovers.

Meanwhile, in France, news of the engagement of French King, Louis XIII and young Duchess – her father and all other close male relatives were dead during the last war, which made her the heir - of Lorraine spread. Since the Duchess was only 11 and Louis XIII being only 12 years old, it was a compromise made by the regents of both sides, no, by the Lioness to be more precise.

“Lorraine...Alsace-Lorraine, huh? It’s becoming nasty.”

For now, it’s no issue, but maybe 10 years later? It’ll make France much stronger. France and Germany didn’t fight for that region for centuries – starting from Cardinal Richelieu and ending at the end of WWII - for nothing in the original history, you know.

“Okay...I need to speed up military system reform.”

I’ve already institutionalized the education and military service of the NCOs and officers. Now it’s time to make armed reserves, with the military officers all over the United Kingdom to train the adult male citizens regularly for an emergency, just like the 21C Switzerland and South Korea do.

Since Great Britain was an island, it was postponed because its priority was Navy. However, now that I’m also the King of Iberia – Portugal, and Castile – I should be able to gather at least 300,000, with the introduction of Conscription.

“But, for now...”

I need to have a Marriage of State. And now 2 issues are in question.

First, who should be the item on the marriage market? Me, who lost his queen at just the right time? Or my youngest daughter Jane, who’s just become 12 and can make engagement?

Also, who should be the partner?

“Hell will freeze over if I choose the Ottomans.”

It’s too obvious. If I’m just the King of Great Britain and the Netherlands, it might be okay. But I’m also the King of Iberia now, and that makes the peace with the Muslims out of the table.

Since Iberians have the trauma of 90% of the population converting into Muslims, and fighting with them from 711-1249(Portugal)/1492(Spain) in the Iberian Peninsula, they would rather accept a Protestant Queen or a King’s son-in-law, but would never, ever accept a Muslim in the United Kingdom’s Royal family, let alone peace treaty.

“And that leaves Polish–Lithuanian Commonwealth, Austrian Habsburg, Sweden, Protestant German Feudal Lords as a likely candidate. But, ugh...”

After long contemplation, I’ve decided to postpone both my re-marriage and Jane’s engagement. Instead, I’ve secretly sent a message to the assassins.

1606 Fall(September-November)

“Nooooo!”

‘Thud’

“Yes! I’ve successfully pushed Margaret, the Duchess of Lorraine from the roof terrace! Now it’s time to safely run away from here...”

“And where do you think you’re going? Killing my would-be- daughter-in-law?”

“Oh shit! It’s the Lioness...”

‘Clash’