Polasciana
United Federal Republic of Polasciana Федерация зямлізмены (Sarmatian) | |
|---|---|
 Flag
 Coat of arms
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Anthem: "Our World In Union" | |
 | |
| Capital | Karasicena |
| Largest city | Arvi |
| Official languages | Polasi |
| Other languages | Gallic, Sarmatian, Caspian |
| Ethnic groups | 68.4% Polasi Gal 21.9% Noric Centrican 5.2% Magillan Caspian 1.4% Bathi Il'm 3.1% Other |
| Religion | None |
| Demonym(s) |
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| Government | Semi-presidential federation |
| Gennadiy Artamova | |
| Asta Dahn | |
| Legislature | Federal Executive |
| Federal Assembly | |
| House of Deputies | |
| Formation | |
| 8 April 1996 | |
| 31 December 1996 | |
| 12 May 2003 | |
| Area | |
• Total | 437,595 km2 (168,956 sq mi) (25th) |
• Water (%) | 3.07 |
| Population | |
• 2011 estimate | 91,754,370 Increase (17th) |
• Density | 123/km2 (318.6/sq mi) (10th) |
| GDP (PPP) | 2019 estimate |
• Total | $1.271 trillion (21st) |
• Per capita | $33,472 |
| GDP (nominal) | 2019 estimate |
• Total | $581 billion (22nd) |
• Per capita | $15,313 |
| Gini (2015) | Positive decrease 29.8 low |
| HDI (2017) | Increase 0.765 high · 28th |
| Currency | Polasi Kryak (PKR) |
| Time zone | UTC+1 (CMT) |
• Summer (DST) | UTC+2 (CMST) |
| Driving side | right |
| Calling code | +66 |
| ISO 3166 code | POL |
| Internet TLD | .ufed |
Website ufed.world | |
Polasciana (Sarmatian: зямлізмены), officially the United Federal Republic of Polasciana 
, is a country in Meridian Gallia which constitutes the former disputed territories of the Polamar. Bordered by Eiffelland 
to the west, Wieserreich 
, the Centrální Republika 
and Unitania 
to the north and Shcerbatskaya 
to the east, Polasciana has a population estimated at over 92 million people. The capital Karasicena is located in the State of Kamchetka whilst its largest city Arvi is located in the Provincial State of Amar. Considered an emerging regional power, Polasciana is a federation of nine provincial states, three city states and four island territories. The country is governed by a directly elected President and an elected Prime Minister and Federal Government. Unified and founded as a nation in its own right in 1996 after a formal union agreement was signed between the former Eastern People's Republic of Polamar and the Democratic Republic of Saracia, Polasciana is heavily influenced by Gal and Il'm majority cultures.
The Transition Agreement, as a negotiated peace settlement, brought stability after decades of turbulence, war and terrorism. Following formal unification in 2003 Polasciana embraced rapid economic liberalism leading to the population becoming more secular, socially progressive and economically moderate under the leadership of Koruin Gruaman of the Centrist Party, who served as the country's first President. Gruaman and the Centrists dominated Polascianan politics for the first half of the decade until the 2007 Election where they were defeated whilst seeking a second term. The current term of the Central Federal Government began in 2018, whilst the current session is the seventh Federal Administration and is led by Prime Minister Asta Dahn who leads the lower-house of the Federal Executive with a majority.
The current President of Polasciana is former military commander Gennadiy Artamova, a leading Union Party figure, who holds a majority in the upper-house. Artamova became the first Polascianan Head of State to be re-relected after a historic win during the 2015 Presidential Election, defeating former Prime Minister Marina Yanaka.
Under its democratic leadership Polasciana has taken steps towards offering its citizens universal healthcare and has expanded its comprehensive school system. Under the one-year term of the Unionist Party between 2007-2008 the central government invested heavily in national infrastructure. The observed increase in spending resulted in a dramatic rise in the reliance on state borrowing. Polasciana's economy was destabilised by the 2007 Gallian Slowdown - an economic and political crisis caused by the onset of violence in Saarland 
and the invasion of Lorraine 
. Preceding the crisis Polasciana had seen stable economic growth led by manufacturing, agriculture and a rising trade in the export of oil from fields in the Long Sea. It was not until January 2015 that the economy posted figures of growth above 0.5% once again, and is not expected to reach its pre-crash levels of between 3 and 5% annual growth until at least 2021. Despite increased deregulation of economic controls since 2003, most large-enterprises in industry and utilities remain under public control and are assisted in management by local state administrations and other government controlled organisations and bodies. Since unification Polasciana has experienced moderate rises in the standards of living - whilst its economy has continually expanded.
History
Etymology
Prior to its formal adoption during unification, precedent for the use of the name 'Polasciana' can be seen throughout historical documents, however the term 'The Polamar' has been used more routinely to refer to the region, and peoples, where Meridian Gallia meets Greconia. 'Polasciana' itself was often used unofficially as a local term to describe the lands of the Eastern People's Republic of Polamar and the Democratic Republic of Saracia due to the merging of the names of the two rivers which run through the area - the rivers Polas and Ciana. The etymological foundations for these rivers comes from the Sarmatian 'Кірунак' and 'акіян'; together meaning 'journey to the ocean'. The decision to name the unified land 'Polasciana' in 1996 came from this original meaning - and was selected above other proposed names including 'Polamar', 'Galeconia', 'Magilla' and 'Niveria'.
Early History
Early Beginnings
Noric communities from Central Gallia are thought to have originated settlement in the region during eastward exploration for further sources of water and for better access to the sea for fishing. Fossils of animals, as well as potential tools used by early settlers, have been found in southern areas, near modern-day Kiasé as well as in the north on the river banks in Amar. The first recorded history of further non-Gallian immigration in The Polamar begins as early as the 5th Century, with the knowledge of the migration of Gal peoples from Greconia, who inhabited lands closer to modern-day Gunnlandia 
. These tribes settled further south from the lands of Sarmatia 
and Nuweland 
where the majority of migrating communities built early village collectives. The emergence of these Gal settlements on the shores of the Long Sea, prompted a displacement of the historic Noric communities which had inhabited the land previously. As a result Norics retreated further westwards, forming a dividing ethnic and cultural barrier between the east and west where modern-day Polasciana lays. Valuable natural resources and arable land formed the basis of the Gal settlements.
Within a century of early settlement, Gal settlers from Greconia, largely consisting of communities from Sarmatia , as well as the People of the Il'm 
, joined Gal towns and villages in the Polamar.
Early writings indicate an uneasy relationship between Gal and Noric ethnic communities on the Southern Gallian mainland, with an impeding struggle for daily life, resulting in cultural separation and rivalry. Throughout the 7th and 8th Centuries, rivalry often turned to fighting – where the more advanced Gal population dominated against a widely feudal Noric minority. More so during the time between the 10th and 12th Centuries, the Gal and Il'm population doubled in size, placing a renewed sense of dominance against the heritage of the Norics. Gals, becoming Polasi in definition, focused on culture, architecture and economic prowess to dominate the lands, which were expanding along the Long Sea, both eastwards from the Il'm and westwards towards current day Eiffelland .
The Niverian Kingdom
Formation of an official Polasi state began in the 13th Century, where King Polyansky, launched an assault against Noric settlements in the west and north of the region, taking control of vast regions and extending lands further north towards the border of Wiese. Fierce fighting between the cultures took place in the city of Niveri in the north-west and became an important milepost in the history of the nation – where many Noric settlements were burnt by Polasi war leaders. In an act of dominance, King Polyansky, considered a brutal oppressor, named the newly created 'Niverian Kingdom' after the historic loss of Noric life.
The border between the Niverian Kingdom and the Holy Centrican Empire, which by this time had been formed, continued to mark an important historical, geographic and cultural barrier between Gallia and Greconia. The Niverian Kingdom under King Polyansky continued its expansion further south, facing opposition from King Hahn, who led the small-Noric monarchy of Kronach in the far south. Coastal regions would continue to prove an obstacle for the Polasi Kingdom, where Polyansky faced fierce battles with both the Kronach people of the south-west and the Berlangan Kingdom led by King Lezebia. Supported by the Caspian Kingdom of the Coronado Empire, Lezebia forced Polyansky into defeat in the year 1280. Attempting the eradication of majority-Polasi communities, the new ruler pronounced the formation of the Greater Kingdom of Magilla, where Queen Gesler, of a mixed Noric and Caspian family, took the throne in Niveri.
The Lezebia/Gesler Dynasty
From the end of the 13th and until the late 17th Century, peace and stability was created with a 'holy trinity' in the region of the Berlangan, Kronachian and Magilla Kingdom's respectively. Records from the time suggest that peoples of the Noric and Caspian minorities were assimilated into Polasi society, and that many of the historical cultural rivalries were disbanded as Polasi's were encouraged to participate in civic life. Some disagree with this interpretation, and suggest the Kingdom's often oppressed and forced Polasi's to comply with strict cultural and civic rules, or face expulsion or death. The Gesler reign, according to documents, promoted harmony between the Centrican and Greconian way of life and Magilla developed at a faster and more advanced rate than its original rulers. By the early 14th Century, the Berlangan and Kronach Kingdom's had been vastly outpaced by the growth and strength of the Magillan society and eventually became part of the growing Greater Kingdom of Magilla, where the Lezebia and Gesler family continued to rule until 1696.
The Polasi Renaissance
King Gesler III (Herman Gesler) was overthrown by the Munsliv Revolution in late 1696. Patriarch Munzliv's rise to ruleship of the nation, following a bloody battle between supporters of the Gesler rulers of Magilla and Polasi-Polyansky loyalists of the Munzliv's, promoted a resurgence in Polasi culture. Noric and Caspian communities became marginalised from society once more, and under Patriarch Munzliv's direction in 1698, any mixed cultured families were sent for forced execution – including the children of the Lezebia/Gesler family who were still considered at the time as the rightful rulers of the Magillan Kingdom by monarchists. In a throw-back to the times of King Polyansky, Munzliv formed the Second Niverian Patriarchy, which would fight wars with both the Holy Centrican Empire and the Coronado Empire. These wars would see the Polasi people retreat from both the west and east towards the historical borders of their settlements, with restriction not distant from the borders of the modern-day Polasciana. These lands would become defined as 'Polascianan' and distinctly separate from the cultural borders of The Polamar which stretched across terrority in both the modern-day Polasciana, Shcerbatskaya and Centrální Republika .
In 1886, following the death of Patriarch Munzliv IV, fierce fighting broke out across the lands between Polasi, Caspian and Noric communities once more. Resulting in the deaths of many majority Polasi, the Munzliv family was overthrown after a prolonged war of several years and The Scheigan family, descendants of Noric royals from Eiffelland , restored the throne, once again forming the 'Alliance of Three Regions' – and by 1891 a reformed Third Niverian Kingdom. This would mark the formal end of majority Polasi dominance, and usher in a new age of uncertainty. The Scheigan leadership was defined by continued unrest between the cultural groups, despite a formal end to war between the former separate kingdoms.
The December Revolution
King Scheigan I was assassinated at his Royal Palace in the capital of the Niverian Kingdom, Niveri on December 19th 1919 as underground and resurgent Polasi military leaders launched a second revolution. They had attracted significant support and assistance from the Workers' Republic of Carentania 
, which had been formed only a month before through its own communitarian revolution. Aimed at promoting the growing Polasi republican cause, this new alliance attempted to imitate the communitarian revolution in Carentania and was the first time that Polasi culture had been heavily influenced by communitarian ideological arguments. Following the assassination, two prominent Polasi military leaders, instigated a war against loyal supporters of the monarchy. This, formally known as 'The December Revolution' would install communitarian leadership to the region, but two rival factions within the coup ended hopes of a unitary end to the fighting. Revolution turned to civil war, and fighting continued until December 1922, resulting in hundreds of thousands of deaths – the majority of which belonged to the Caspian and Noric minorities.
International negotiation
By mid-1923, against international pressure from Noric nations, including neighbouring Eiffeland and Frankish kingdoms a shared-statehood solution was drawn up to administer 'The Polamar' region. The Eastern People's Republic of Polamar - of mainly people of Polasi decadency was to be formed on the East, and the Democratic Republic of Saracia - a second Polasi nation but that would also host many of the remaining minority Caspian and Noric communities, to the west. Military leaders in Niveri initially rejected the move, with fighting continuing until 1926, when a putsch against the military communitarian leaders of the tri-state dictatorship brought negotiation between the different actors for the first time. Caspian, Noric and Polasi leaders in the west met in the autumn of 1926 and formally pronounced the abolishment of the ruling alliance and formed the Union of the Kamchetkan Republic and the State of Saracia, a precursor to the Saracian Republic which would later be formed in 1938.
Rulers in eastern Polamar came under significant political pressure by 1931 to enact a similar arrangement as their Western neighbours, and formally abolish the remaining elements of the Third Niverian Kingdom and set new constitutional boundaries for the state. Whilst this was originally resisted, the ageing military leadership was forced to begin to enact some elements of the international shared-statehood plan, fearing a further revolution or internal civil disputes. 'The Communitarian Republic of the Polamar' was created in 1933, eventually transitioning to the Eastern People's Republic by 1937. Both republics by 1940 had adopted much of the arrangements detailed in the international peace plan, however neither declared a formal peace with the other. Despite attempts to negotiate a formal settlement, the two republics continued in a state of war, with state-sponsored terrorism forming the basis of the fighting, for nearly fifty years.
The Wars of Retribution
The period between 1940 and 1980 saw the Saracian state develop technologically at a quicker rate than its eastern counter-part. A propaganda war between the two states mirrored underground violent action which continued to kill many citizens of both states in high-profile terrorist attacks. Each attack brought a retaliatory action by the other, and the fighting became known as 'The Wars of Retribution'. Designated by many international observers as a civil war, the Global Covenant continued to categorise the war as a conflict of independent states but failed at repeated attempts to bring both sides to negotiation.
By 1950, Shcerbatskaya and the Centrální Republika had been formed as independent states, following independence from The Il'm . Both began proposals to liberalise their economy and move away from the communitarian ideology that they had been governed by, influenced by other communitarian revolutions that followed the leading proponents of communitarianism in Carentania. Many believed the more moderate communitarian leaderships in these countries would promote changes within the states of the Polamar, however this never came to be the case. Tensions between the republics and its neighbours, resulted in heavy military border patrols and many citizens of the republics being killed trying to cross borders both in the north and west. Retaliation strikes for deaths, particularly by the Eastern People's Republic, saw the tensions and violence escalate across international borders.
Minich Kinvah had become the Commanding General of Communitarian Polamar and Uyri Inauyna, the leader of Saracia, by 1955. Both commanding officers had became known for their brutal strategic decisions as junior members of their military divisions which had resulted in the increase of suicide attacks and targeted assassinations of journalists and police officers. Both men became the poster-children of their respective military campaigns, and enhanced the propaganda war between the nations. In 1958, Inauyna faced an uprising against his leadership - leading to a one year civil war in Saracia between communitarian loyalists and democratic unionists. The protesters were crushed, and failed to bring an end to the communitarian leadership which had become increasingly powerful during this time.
The escalation of violence continued and by 1960 renewed pressure for an international agreement took apace. Failed plans by both Eiffelland and The Freestates Union 
were presented in 1962 and 1969 respectively. The populations of both republics fell rapidly during the period of 1969 to 1971 where many citizens fled the escalating war-zone. An international refugee programme was launched for Caspian and Noric communities by Aleconia 
and an alliance of 10 other states. Some 900,000 people were supported to leave The Polamar, as the number of deaths continued to rise in both isolated and coordinated attacks on both the mainland and in its island and border regions.
Instability, Terrorism and Corruption
Throughout the 1970s Kinvah remained the de facto leader of the Eastern People's Republic, but due to his increasing age and rapidly decreasing health, no longer made strategic or military decisions - deputising to relatively unknown and unaccountable advisers and generals. Quality of life, as well as life expectancy, fell rapidly throughout the decade until 1980 with Kinvah's death. By the time of his death, the Commanding General had lost significant influence, with his own deputies conspiring against his pre-defined principles for the communitarian agenda in the nation. Infiltrated by international cartels, the new leadership promoted Vladimir Marinin to a new position as President of the Eastern People's Republic of the Polamar. Marinin's leadership was propped up, funded and supported by other communitarian states, such as Kadikistan 
. Whilst the use of foreign fighters escalated, particularly those from Bathi countries such as Jurzan 
and Jazirat 
, the number of domestically planned attacks began to fall for the first time in over four decades. This was followed by the arrival of a moderate movement in Saracia, led by Akim Beletsky, which finally won power in many local jurisdictions in 1985 and became part of the Government Settlement of the republic. Many Bathi fighters remained in the Polamar and gradually assimilated into Polascianan society.
Steps towards peace
In early 1989 Devyan Mull was elected President in the eastern republic when Marinin died unexpectedly of heart failure. Generals at the conference where Mull acceded the leadership, were reportedly confused as to Marinin's succession plans, which were written by hand. Historians have regarded Mull's accession as the single greatest contributing factor to the ending of the war between the states within the decade. Relatively inexperienced and with no military background, Mull and his leading generals became increasingly frustrated by each-other, and the actions of the state became increasingly erratic and less strategic as an internal power-battle played out. Several botched domestic attacks resulted in the deaths of its own citizens and the regime became increasingly unpopular. Fearing an uprising, Mull worked with communitarian loyalists to funnel money into the country to prop-up the failing economy and to launch a domestic propaganda campaign. By the early 1990s, ethnic attacks on Noric communities had fallen behind attacks on Bathi and Urzu communities in Polasciana. In August 1991 some 60 Bathi Polascianans were killed in a suicide attack in Cheiaka. The toll was one of the largest of the period and the first use of suicide bombings on the Gallian peninsular.
Democratisation in Saracia
Whilst Mull continued to use violence against Saracia, in 1990 Andreo Sukao became the first popularly elected Head of Government in Saracia. Launching an attempted peace deal and allowing Eastern citizens into the Saracian Republic, Sukao formed the cross-state 'United Confederation Party' - aiming to create a new political consensus in each respective republic and establish a civilian leadership. His far-reaching appeal prompted a failed assassination attempt on Sukao by the Eastern Republic. Prior to the attempt on Sukao's life, violence had largely become sporadic but retaliation saw a rise in terrorist attacks and the end of the initial negotiation of the peace deal. International and Gallian states continued to call for peace and a programme for transition. Sukao changed Saracia's governing settlement, in effect its constitution, in 1992 to include the words; "achieve a peace without the use of violence or corruption."
Failed peace plan and Scarlet Sunday
International support for the Saracian-led peace deal was widespread and became heavily endorsed by the Global Covenant when a heavy payload device in its late stages of development exploded in the Amarian city of Nyit - in 1994 causing the single biggest loss of life during the wars, with the death of some 993 Eastern Republic citizens. Known as 'Scarlet Sunday', the incident prompted global outrage at the Mull regime, which was developing extraordinarily powerful and dangerous weapons. Whilst no uprising took hold in the heavily policed state, support for the war in the Eastern Republic hit an all time low amongst citizens who began to favour a peace deal with Saracia.
Succession and disclosure
By the end of 1994, Mull had been quietly removed as President and was replaced by Nado Milutinovic who closed the country's domestic weapons programme and expelled foreign fighters. Whilst violent attacks occurred, they were much smaller in scale, and often resulted in minimal deaths and injuries. Sukao was also removed from power in Saracia when he was sentenced to serve a 12 year sentence from 1995 on the charge of war crimes and political corruption. Documents from the Saracian government were leaked to the international press showing Sukao's role in planning for the use of gas against Polasi citizens in coordinated attacks. The Sukao leadership was heavily undermined by the international stories and outrage. Milutinovic's regime did not initially respond with retaliation or violence, and the act of sentencing Sukao, the first to be done so, provided political will within the Polasi government to re-engage publicly with the Saracian leadership for the first time since 1940. By late 1995, for the first time the Eastern Republic proposed peace negotiations to Saracia's newly elected first-female leader Darina Kovac. Whilst Kovac did not initially accept the terms of negotiations set by her counterpart, a new consensus emerged following the long state of war between the nations.
Transition Agreement
The spring of 1996 brought the succession of a new generation of more moderate, pro-unification leaders who sought to unify the nation into a single unitary republic. In 2008 it emerged that Both Milutinovic and Kovac met secretly throughout the winter of 1995 to draft agreements that were proposed at the second peace conference between the nations that was held in Leipoa in April 1996. At the historic Unity Conference both states agreed in principle to work towards uniting the nations as a new democratic federation. Both leaders took the historic step to formally endorse a shadow 'unity administration' - The Transition Council - from December 31st 1996 until a deadline of 31st May 2003.
Modern History
Unification
The Transition Council gradually took responsibility for economic, social and lastly military affairs through 1996 to 1999. Plans for democratic elections, to be held before the deadline in 2003, were constructed in early 1998 and would be designed around a new system of government, focusing on semi-presidential leadership with a balance between presidential and prime ministerial power. A constitution was also drafted, developing plans for an equal right to settlement for the different ethnic groups of The Polamar. A liberalisation of the communitarian charter was presented - where unitary states would be supported by central government to aid the transition between the two republics and to redistribute and balance ownership and economic power between them. Provincial leadership was encouraged from 2001, in a phase known as "central diversification" - which aimed to bring politically moderate leaders together in states across the country. The transition team included Koruin Gruaman, who would go on to win the eventual presidential election, and the Unionist leader Stepan Michalvich who contested the first election.
The 2003 Polascianan Presidential Election was contested between four, new, political parties and their respective candidates. All four candidates had been involved with the Transition Council between 2000 and 2003 - with some international observers concerned this would simply be a dictatorship by default. However, Moleg Schnit (Communitarian Workers Party), Lev Gauk (Social Nationalist Party), Stepan Michalvich (Socialist Unionist Party) and Koruin Gruaman (Polascianan Centrist Party) all made the short-list and faced the electorate in a nation-wide poll on Sunday 11th May 2003. The eventual winner was Gruaman with 52% of the vote. The election of Gruaman, a Centrican from the north of Polasciana, suggested that many of the differences between the three main ethnic groups had been calmed within the reunification process.
Transition
Having won the presidential election, Gruaman negotiated with leading politicians from across the political divide that had been created. Close advisers commented that the President-elect knew that it would be increasingly important for him to have strong communications channels with other provincial leaders who had been elected, such as the governors and mayors in Polasciana's major states and cities. The Centrist leadership however was quick to announce the names of those who would fill key government positions. As widely expected, Marina Yanaka, the deputy leader of the party, was announced as Gruaman's choice for Prime Minister and would be given the responsibility to appoint her cabinet. Despite many suggestions of non-Centrist members joining the government, Yanaka announced a team that was made up of only Centrist representatives.
For the first year, the Yanaka-led administration was required to follow the cross-party, joint-religious and inter-cultural roadmap that had been written as part of the Transition Agreement. This restricted the powers that the government had, and limited its jurisdiction over the individual states which formally came into being once the transition deadline passed at the end of May. Until that time the central government, led by Marina Yanaka, focused on supporting the states to adopt several parts of the agreement and ensuring that citizens across all states had seamless access to schools, hospitals and welfare services. During the time that the agreement had been in force, universal income that had previously been offered to citizens in the former Eastern People's Republic was phased out and replaced with a less comprehensive form of state benefit. Whilst most of these changes in government support had been slowly phased out over a period of time, a number of changes would take effect as the deadline expired. Many commentators feared that some citizens could be left without financial provision or sufficient support. It was suggested at the time that this could cause civil unrest in larger cities, including Arvi.
Gruaman presidency (2003-2007)
Transitional completion
Many cities and villages held parties on the deadline day, Saturday 31st May 2003, which would formally become known later as the Festival of Unification and celebrated each year on the 31st, and was pronounced an official national holiday from 2004 onwards by the Yanaka government. As the deadline passed, the Central Federal Government formally received control and oversight on all economic and political affairs. Commander General Yuri Schechan also formally adopted powers over the military, and it was announced his term as head of the armed services would end in 2013 - a nine year term. The role of Commander General was overseen by the Federal Assembly, and by the President.
Yanaka government
By mid-2004, the Yanaka government had announced radical plans to continue the liberalisation of the economy, through the Yanaka 2003,Market Reforms. This package of reforms was passed by both the lower house and the assembly. They gave the states much more freedom in overseeing economic affairs, and reduced the government's central holdings portfolio, selling many public industries. Implemented through 2004 and 2005, this programme of reform attracted significant popular support, and for the first time Polasciana successfully negotiated an open-border trade deal, with its neighbour Eiffelland . Between 2005 and the end of Yanaka's term in government in 2007, the government signed more than 10 major trade deals, including significant arrangements with Unitania , Telora 
, Talemantros 
, Erlangen-Ansbach 
and the Centrální Republika . Polasciana also began border security negotiations with Shcerbatskaya and Wieserreich . Prime Minister Yanaka was widely praised for her achievements on international trade and economic affairs, as was her respected adviser, Yevginy Kalandarshivilli and Finance Minister Dimochka Yakushkin. Economic control and policy by this time was largely controlled solely by Yanaka and Yakushkin with Kalandarshivilli, acting as senior adviser and press spokesperson for the government - with the President focusing on other domestic areas, including security and foreign affairs.
Major reforms to education and health provision were also undertaken by the Gruaman/Yanaka administration - rapidly increasing foreign investment into Polasciana, and the presence of foreign corporations within the economy. Strict economic rules, set out in the Transition Agreement, however meant all overseas-operators were required to register and operate a wholly Polascianan subsidiary. This rule would eventually be overturned by the second Centrist government, in 2009. Local health provision was overhauled by a new standards authority, with patient satisfaction and efficiency rising in every year of the government's term. A new educational standards board was introduced in mid-2004 called the 'National Education Commission' which set about work to increase attainment at Polascianan schools. Significant progress was made to increase quality within some of the poorest schools - particularly in the former Eastern Republic with reading and writing attainment increasing by some 20% from 2004 to 2006. During this time Polasciana had rapidly increased its competitiveness compared to other Meridian Gallian states.
The school leaving age continued to stand at 15, with career prospects for pupils in the poorest towns in the east ranked at under 30% - some of the lowest in the region.
Polasciana's federal government, together with the Yevcimir regional government, launched a 'long-shot' bid to host the 2008 World Games Winter Series with the northern town of Ukhyny and was successfully awarded the games ahead of competition from the cities of Saronno (Pacitalia 
), Xishu (Touzen 
) and Chaumont (Serreniere 
). A new city plan had been developed, to promote Ukhyny as a sporting training and competition resort - located in the outer-metropolitan area of Brezúga and Niveri. Ukhyny's games would be based at the sports park with mountain events taking place in the Viasa Polysia mountain region on the border with Unitania .
Bribery and corruption scandal
In late 2006, President Gruaman and the Yanaka government were accused of aiding business deals that were made on unfavorable terms to the Polascianan tax-payer. Centering on privatisation deals led by the Industry and Trade department, the Centrist leadership faced accusations that they intervened on particular sales - including the deal to sell the national energy provider to Keiger Industries, a company in which Gruaman's family owned shares. Denying corruption, both Gruaman and Yanaka publically stated they had had little involvement in the sales directly, and that the offers from Keiger were the "best and biggest" offers that had been received. The opposition leader, Stepan Michalvich, heavily criticised both the president and prime minister saying they had "been caught with their fingers in the tiller." Government offices refused to release vital documents and evidence to the public, despite pressure from the opposition and the lower house.
Whilst an inquiry was called for, it was never held and the scandal was seen as a contributing factor to Gruaman's loss in the 2007 election. Keiger's energy, ship building and steel production arms fell into bankruptcy in 2007, just before the state poll - whilst its defence systems subsidiary remained afloat due to government subsidies, and increasing defence budget.
Munsau terror bombings
The Gruaman/Yanaka administration had heavily strengthened the Polascianan police and security forces during the previous three years to 2007 - increasing the budget available by the equivalent of some €2.6bn and forming the State Security Force. The secret service, U51, had also been formed and liaised with the Commander General as part of the National Terrorism Prevention Plan. Weapons, such as guns and knives, had been heavily restricted since the Transition Agreement was adopted - and the Federal Assembly took further action to limit their availability, including an anonymous penalty-free arms amnesty in late 2006. Despite the major security programme, leaked security briefings suggested the Government was aware that several underground terrorist groups still retained a presence in the country and had desires to launch an attack on Polascianan soil.
By early 2007 the government had been criticised as 'slow' to adapt its intelligence planning and a former government analyst said that the country was 'woefully' prepared to respond to threats. The Foreign Minister and Deputy Prime Minister Uri Mulakski responded in March announcing that the State Security Force would launch new anti-terror operations in Kresnovic with particular focus in the mountainous regions of the state near the city of Munshav. This was the first time that the Yanaka administration had admitted that threats of internal attacks had been made - and the first that Kresnovic was identified with suspected activity. The vice-chancellor of Eiffelland Egon Krenz, issued a statement announcing that a cross-border taskforce was being created between the two countries to strengthen the protection of the southern peninsular - including the permanent stationing of three naval destroyers from the Polascianan Long Sea military base in the port of Belev.
By June 2007 intelligence suggested that arms and potential explosives had been smuggled onto the peninsular - located in either Polasciana or Eiffelland and were part of a pan-Gallian threat to Noric nations. By July, senior intelligence officials urged the government to increase its terror response as significant leads suggested an attack in Polasciana or Eiffelland by Il'm or Bathi militants.
On Sunday 19th August 2007 a group of seven violent militants attacked the city of Munsau in a set of four coordinated bombings, killing 63 people and leaving over 600 injured. The seven militants were linked to a radicalist Khali ts’ants’i armatakanut’yuny Ketrianist cell based from Baia in Béspura, which had connections to a larger group based in Surat in Khalistan . A time-clock device was activated just after 2.40pm in the car-park of a hotel in the centre of the Munsau killing four people. The device failed to explode correctly - prompting emergency services to respond and report the attack as an isolated fire. A second device, placed in the lobby of the same Nikolskaya Hotel, did trigger properly at around 3pm. The second attack killed 25 people instantly, including seven fire officers responding to the original attack in the basement car-park. An evacuation of the building had been ordered as soon as smoke had been detected in the car-park, however the lobby device killed some of those who were making their way out of the building via the front exit. As many as two-hundred fire-fighters attended the scene in the immediate aftermath of the first two bombs. At 3.25pm a third bomb destroyed the entire front facade of the hotel and killed a further 17 people including four emergency workers as the building collapsed. Over 500 people were injured as fire engulfed the rest of the hotel site and many were hit by falling beams and glass. Many of the hotels residents were being evacuated through the hotels more stable emergency stairwells at the time of the third bomb which is thought to have saved hundreds of lives.
At the hotel site, 46 people lost their lives, including twelve emergency service workers. A fourth bomb detonated at 3.50pm in a Centrican shopping market next to the Nikolskaya. The shopping market attack killed 17 firefighters who were responding to the hotel bombs but no civilians were killed. The Munsau Terror Bombings were the single biggest loss of life through violence since unification. They sparked fears of returning terrorism and ethnic divides and are considered a major factor for the outcome of the 2007 presidential elections.
Re-election campaign
Gruaman's re-election campaign continued at the beginning of September 2007 with the announcement of a flurry of international visits for the president, attempting to portray his wealth of experience as a leader and Polasciana's strength and resolve following the Munsau attacks. However, the campaign was seen as weak and approval ratings for the Centrists following multiple scandals stood at an all-time low. Gruaman was to be challenged by the newly anointed (Social Union) leader Alexander Ivanchin-Pisarev, following the resignation of former presidential contender Stepan Michalvich as party leader, as well as former federal judge Pavel Lukyanov who had won the nomination of the Polascianan Unitarian Party. Early opinion polls suggested a virtual tie for first place between the two main challengers with Ivanchin-Pisarev carrying a slight lead over the president in some surveys. A major televised debate on foreign policy and security on the 24th September saw Gruaman lose his lead in polls - with the third party candidacy of Pavel Lukyanov gaining traction and rapidly closing the gap with the Unionist Party in second place.
In the closing days of the campaign, Lukyanov focused heavily on his plans to offer comprehensive free healthcare to all citizens and repeatedly criticised the government for not increasing health and well being standards and closing the gap that existed between the states in life expectancy. The Unitarian's promised better funding for both areas of health and education and announced that Lukyanov would issue an executive order that would cut the compulsory military service to just a year - but not abolishing the current system. The Social Unionists expanded their policy programme to cover environmental protections and new work safety standards - as well as expanding federal support for sustainable energy projects. By election day, Thursday 4th October 2007, polling showed both the incumbent Gruaman and Lukyanov at equal levels of support across the country - with the states of Kamchetka and Béspura as key targets for each candidate. The Social Unionists had fallen into an historic low and many predictions suggested they could fail to win any other state than Amar where they received their only majority support. Exit polls showed that the election was likely to fail to provide an overall majority for any candidate - although with Pavel Lukyanov expected to place first.
Lukyanov would go on to place first with 38.6% of the vote, to second place Gruaman with 34.3%. Party leaders gathered in Karasicena to begin negotiations as there was no precedent or constitutional process for deciding the outcome of the election result where no candidate achieved a majority. Lukyanov had gained many votes throughout central Polasciana, while Gruaman's campaign left him with only two clear state majorities in Chimsk and Kresnovic. Despite only receiving 18.1% of the vote the Social Unionist leader, Ivanchin-Pisarev, began direct talks with the Unitarians. The Electoral Regulatory Council, was responsible for overseeing all negotiations between parties - however, its participation was widely challenged by the Centrist leadership due to Lukyanov's former role as a judge and having overseen the Council's work in the run up to the 2003 election. By Saturday 6th October, Gruaman had conceded defeat to Lukyanov, and it became clear that Gruaman would stand down as president imminently. During the third day of negotiations in the capital, Marina Yanaka resigned as Prime Minister, suggesting a deal was brokered through the Polascianan Supreme Court - despite Gruaman's concerns over the impartiality of the court. In secret, at the same time, Pavel Lukyanov and Ivanchin-Pisarev met to formalise terms of a full merger of their respective parties. The deal was eventually signed on Monday 8th October, with the new Union Party being formed and commanding a 56.7% combined majority.
Gruaman formally resigned as President on Tuesday 9th October, opting not to complete his term that was due to run until January 2008. Ivanchin-Pisarev announced publicly the same day that he had no intention to serve as party leader into 2008 and as a result, Lukyanov appointed Maksim Obelschenko from the Social Unionist faction of the Union Party to serve as the country's second Prime Minister and both Lukyanov and Obelschenko were immediately sworn in and appointed. It became clear after the signing of the deal that Ivanchin-Pisarev standing down was a requirement of the power-sharing agreement between the parties. Lukyanov was angered with the attacks that had been made on his candidacy during the election, and signed the final agreement with Obelschenko - stating during the negotiations that he would not share power with Ivanchin-Pisarev. The Socialist Unionist Party leadership agreed to appoint Obelschenko as party leader as part of the deal.
Lukyanov presidency (2007-2011)
Appointments
The election of Pavel Lukyanov received praise from many of Polasciana's regional neighbours, who had recognised the previous Gruaman administration was embroiled in scandals that had damaged its confidence and ability domestically but also across Gallia. Many felt that the election of the Unitarian leader would be a catalyst for further trade deals across the continent. Following the appointment of Maksim Obelschenko as Prime Minister, further ministerial and cabinet appointments were made very quickly. It would then become clear that the merger agreement signed between the Unitarians and the Unionists would heavily favour the latter. Obelschenko was joined by nine further Socialist Unionist ministers, whilst the only other former Unitarians to join the cabinet were Yuri Jac who became the first ever Minister for Energy, Natural Resources and Environmental Protection and Andrei Lukyanenko who became Minister for Education, Science and Healthcare. The health and science ministry was the most important appointment for Lukyanov, as much of his planned agenda focused on these areas, including education.
Most of the cabinet appointments were met with caution - as, other than Obelschenko, most were young politicians who had only recently joined the Polascianan political system. Future President Gennadiy Artamova was appointed as First Deputy Prime Minister and future Unionist leader Lazar Ulanov took up a role as Regional Government Minister. Isidor Doletskaya, a former negotiator as part of the transition team took up the central role as Foreign Minister. The cabinet and ministerial team was noted for its lack of female representation - with only Korina Shulgin leading a central government department as Minister for Transport and Tourism.
Obelschenko Government
Economic Slowdown
Just weeks into the governments term Gallia was thrown into turmoil by the invasion of Lorraine by the Solari regime of Pope Urban III in Saarland . Some 50,000 loyalists to the Saar state had attacked the Lorraine border, not far from Nandrin in Solaren 
. The ITO alliance quickly responded by stationing troops close to the Belmonté 
border, however a stalemate occurred when ITO generals failed to respond directly to the Lorraine attack. As a result, an economic crisis hit the Gallian continent - spreading quickly across ITO member states such as Belmonté and the Freestates Union . By the beginning of November 2007, the Polascianan economy had begun to see the effects of the crisis and estimates suggest the economy lost almost 35% of its net-worth in just a week.
Before the slowdown Polasciana's economy had continually grown - particularly in manufacturing and agriculture. The economic crisis, combined with the bankruptcies of Polascianan privatised industries under the previous administration, cut Polasciana's economic growth from around 6% in previous years to just 0.7% by the end of 2007. The Obelschenko government injected almost €160bn into the economy within the first month of the crisis - spending vast amounts on transportation infrastructure and energy projects, having re-nationalised the nations electrical power provider. Many hospitals, schools and cities were earmarked for funding to be re-built. The Polascianan military also benefited greatly from an investment in funds, and particularly the air force which had lagged behind many in Gallia even though it took the majority of the military budget. The air force was given further funding to bring forward the arrival of its new Sukhoi Vapor jets that were being constructed. Immediate deals were also signed for the navy where many older ships being retired from Telora were bought. The observed increase in spending resulted in an increasing reliance on borrowing - and the Polascianan national debt trebling by the end of 2007 alone. The eventual increased spend on the military alone was 12% with the increase seeing more resources for ground troops, training, equipment and barracks being built in the northern states.
The president's opponents, still led by Koruin Gruaman criticised the government's spending projects and warned that the increased borrowing would harm the Polascianan economy for many years in the future. The Centrists commented that the 'vanity' projects of the administration would lead to 'economic ruin' in the next decade and warned against further 'irresponsible' borrowing. The Lukyanov administration responded by criticising the economic competence of the former Gruaman administration and announced its biggest infrastructure project to date with the construction of New Solsoa City - a new financial hub in Kamchetka state that was to be built by 2011. The government also prepared plans for a bid to host the 2008 Continental Football Championship with the Centrální Republika - with the bid alone costing €100m. Polasciana withdrew in favour of the successful application by Erlangen-Ansbach and was heavily criticised for the preparedness and execution of the bid as well as in 2009 the head of the bid being dismissed and charged with corruption.
Domestic policy
The Union Party government front-loaded investment into health as its first priority and took the first steps in offering Polascianan citizens universal healthcare coverage. The government controversially decided not to offer free healthcare to non-Polascianan citizens, sparking riots in the east of the nation where many do not hold full citizenship. A new law was passed to ensure that all profit was put directly back into the health authority however in its first year as a free-to-use provider the National Health Authority Alliance went from producing a €3.4bn profit to a €500m loss. The Gruaman opposition criticised the government, saying that healthcare would be affected and that investment in the health service would decline. The government responded by pledging an additional €100m for the health service in-year.
The administration also expanded its comprehensive school system in all states - and added Polascianan history, wellbeing and citizenship to the curriculum from 2009. Literacy rates continued to climb and caught the Gallian averages by the end of the decade. Polascianan State citizens were also not required to join the military armed forces for the first time. The Union Party voted in favour of withdrawing the former compulsory service and replaced it with additional funding for school-age leavers to enter military careers. A new six month intensive summer course was also developed and rolled out in all states for 16 year olds. The change in the law was well received and had been a centre-piece of the Lukyanov presidential campaign. By the end of the Union Party's term in office, violent crime had been cut by nearly thirty percent across a collection of states for the first time since 2006. The figures showed that heavy violent crime, including knife and gun crime was cut most successfully and the government received acclaim for making Polasciana safer.
Foreign policy
On assuming the presidency Lukyanov issued an immediate notice for the military to stand-down on the once militarised borders with Wieserreich and Shcerbatskaya . The decision was greeted with optimistic caution from Gallian leaders, who were concerned with migrants being able to flow 'freely' across the continent. The administration released a statement urging cooperation on border security - that was rejected by many states including Belmonté . The rejection of the Polascianan pan-Gallia plan for security was seen as a major embarrassment for the Lukyanov administration, which had made the deal a central part of its election campaign. Lukyanov had attacked the former president Koruin Gruaman for his failure in successfully negotiating a similar deal in 2006.
First international trip
To repair relations with other Gallian states, several nations invited President Lukyanov for state visits. The first international trip for the president was made to Nuweland. Whilst the president was out of the country the Prime Minister expressed his wish for Polasciana to associate itself with a "greater international" politics and suggested that Polasciana would attend the Greater North Conference, a meeting of several Gallian heads of state, that was to take place later that month. The Nuweland Prime Minister had been snubbed from the convention and this was taken by the Nuweland government as an underhand attack on the nation whilst it was hosting the Polascianan president and Obelschenko was forced to apologise, in what had been a major embarassment for the administration on the international stage. Many commentators had suggested that the Lukyanov administration was 'woefully prepared' in diplomatic conduct and was accused by the opposition of being 'inadequately prepared for government.' The Nuweland-Polasciana disagreement would be the first major clash between the President and the Prime Minister.
Crisis and Interlaken stand-off
In December 2007, a foreign aircraft infiltrated Polascianan airspace in what was deemed a 'provocation' by the government - blaming Khali forces. The aircraft was escorted from Polascianan territory however following the incident the government issued a memo declaring the 'Polasciana First doctrine' - where the government would put the protection of Polascianan borders as its primary objectives, and would reject any international laws that interfered with this aim. As a result, Polasciana reinstated border protections on its Eastern border and developed a new State Protection Force which routinely stopped and interviewed non-Polascianan citizens and threatened deportations. The opposition attacked the government on its radical departure from Polasciana's former immigration policies. Foreign states attacked the Lukyanov administration for 'politicising' immigration and accused the state of trying to create racist divisions. However, the government ignored these accusations and used the Racaria Crisis in the former territory of Paripana (now Sikandara 
) to clamp down further on immigration laws. The escalation of the crisis in Racaria became an international dispute between the Empire of Yujin 
and Belmonté which had traditionally controlled the Sikandara region. The Interlaken Treaty Organisation, advocating on behalf of Belmonté , threatened a military stand-off and Polasciana was asked by ITO generals for help and support in ensuring the defence of the Long Sea in any conflict. The crisis developed as the First Long Sea Crisis.
The government initially rejected assistance to the ITO alliance and General Yuri Schechan warned of 'obsession' with its leadership and stated that Polasciana's military and Long Sea territory would remain neutral in any armed conflict. By the end of the year, Prime Minister Obelschenko intervened in the issue whilst on a visit to Saint Georgia 
in the Great Sea. The Prime Minister criticised Havenshire for 'strong-arming' Polasciana into providing assistance and also stated that ITO members had privately supported Polasciana's moves to re-militarise the border with Scherbatskaya . Just days later, the government was forced to change its mind after the Solari regime attacked Belmonté - sparking a regional crisis and economic fall out as ITO moved to battle in the Saar region as well as continuing to threaten Racaria in the north east. Obelschenko attacked President Lukyanov for 'capitulating' to ITO.
Polasciana was further drawn into the military crisis as Kadikistan threatened to attack the self-proclaimed state of Jafnastaat in Paripana . As Gal and Il'm territories, the government was asked by Interlaken to take up a negotiating role - that it, again, initially rejected. Lukyanov and Obelschenko came under increasing pressure by the alliance to intervene. By the end of January, Kadikistan had moved over 60,000 troops to the Jafnan border and issued a 'notice to strike' to the international community. Obelschenko favoured rejecting the ITO offer and suggested instead to work with the Kadiki regime to support the creation of a unified Paripanese state in the north, incorporating Tavastan, Trans-Nineveh, Paripana and Racaria whilst allowing Kadikistan to control the Kolmar and Jafna. Lukyanov however had already endorsed the Belmonté plan for new independent Sikandara and Uusimaa states as well as autonomous regions for other Gal or Il'm majority areas. The government was split over which plan to support. A vote in the Federal Assembly saw Lukyanov lose support for his plan, and instead Obelschenko began negotiating with the Kadiki regime.
A government spokesperson issued a statement that confirmed that President Lukyanov had invited the Kadikistani government to Polasciana for a three day conference to discuss the crisis stating that "Today your government has invited a delegation from Kadikistan to visit Polasciana later this month for a three day conference that will result in talks between the United Federation and the regional power of Kadikistan. The conference will be hosted in Urnayt on the Isisny Islands in the east of Polasciana, and we look forward to working to build a peace where we can stand side-by-side." Lukyanov endorsed the plan, but only after definitive goals had been set over challenging the Kadiki regime on its human rights record. The opposition stated that President Lukyanov was damaging Polasciana. Foreign nations including the Vice Chancellor of Eiffelland criticised the move and warned Polasciana that it should "reconsider its latest political moves, lest they sacrifice their international position for an international pariah" and labelled Kadikistan a 'rogue' state.
Interlaken generals were also furious with Polasciana's negotiation with Kadikistan although, it did delay the Kadiki invasion of Jafna which gave the alliance time to mobilise sufficiently. Ultimately, Obelschenko would fail to construct a deal and the government was forced to offer assistance to ITO in the crisis when Kadikistan invaded Jafna and the Kolmar. The split between Lukyanov and Obelschenko became an increasingly difficult relationship for the government to manage as foreign governments issued their 'dismay' over Polascianan's 'lurch' in foreign affairs. This period in diplomatic affairs would be described by the former President Koruin Gruaman as 'toxic'.
The Interlaken alliance suffered a defeat to Kadikistan in protecting the Kolmar, however due to support by Urzu Uusimaa militants and fighters, ensured the independence of Jafnastaat and negotiated a peaceful end to the Racaria crisis, by giving the Gal leaders a power-sharing agreement over the autonomous region and an increased military presence to defend it from Yujin. Generals, particularly from the Freestates Union criticised Polasciana's handling of the crisis heavily and blamed Lukyanov for delaying a response to the crisis which it said was 'pivotal' in enabling the Kadiki government to build enough military units to successfully invade the Kolmar.
Kamchetkan independence calls
In early 2008, the Kamchetkan governor Stepan Michalvich headed calls for an independence movement in Polasciana's biggest state of Kamchetka. Crisis talks were immediately held with the government and a date for a March referendum was offered. However following the offer that was made by government negotiators, the President refused to sign the agreement. Tensions were further exaccerbated when the government announced that identity cards would become compulsory, despite an assurance being given to Kamchetka that this would not apply in the state. Repeated calls for independence were made and criticism of the Lukyanov administration, that had previously won the state in the last presidential elections, became increasingly strong. Michalvich later insisted in 2009 that Kamchetka remained committed to the federation - although this came at a time when economic growth and investment into the state from the Central Government was at an all-time record high.
Long Sea disputes
Whilst the crisis in the north-west was resolved, in January 2008 Solaren issued the Declaration of Padania - which claimed the territory of Nicosia 
. Obelschenko responded by joining Eiffelland and other ITO states in a joint-statement and the creation of a new shared Long Sea patrol. However, the President briefed that the government was considering a similar negotiating strategy to that it took earlier in the year with Kadikistan much to the dismay of ITO and other allies. Polasciana was universally condemned for suggesting that negotiations were started with the Solari regime in Torrence. First Deputy Prime Minister, and future President, Gennadiy Artamova attacked Lukyanov and screamed "let them have it" in a speech in the upper-house, referring to his desire for Polasciana to enter the military conflict against Solaren. In the same week the Prime Minister opened the latest militarty command centre on the Isles of Isisny and publicly attacked the President for considering a visit to Solaren for negotiations. Obelschenko called for further sanctions to be made against Solaren at the Global Covenant and visited many ITO member state capitals to speak directly with ITO leaders. His tour and statements were seen as a direct challenge to the president's authority - and signalled to many that he was considering a bid for the presidency in 2011. Lukyanov privately briefed that he wanted to remove Obelschenko as Prime Minister - however the power sharing agreement he had signed with the Socialist Unionists to come to power prevented him from doing so. Private memos that were leaked in 2014 also documented that Obelschenko had also considered advocating for negotiations with Solaren - and had been instrumental in persuading Lukyanov to adopt this strategy. The Prime Minister's office had even booked a private charter plane to take Obelschenko to Torrence for talks.
The president found himself politically alienated, and opinion polls showed his support at record lows. His support began to spiral as many states, with the increasing crisis in the Long Sea, started to withdraw from attending the 2008 World Games Winter Series that were due to be held in Ukhyny that March. By February, Lukyanov was attacked by the opposition for being 'weak', 'an embarrassment' and 'leading blind' as the campaign for the legislative elections began. Obelschenko was made the early favourite in the race - that would see him line up against former president Koruin Gruaman in a bid to retain his role as Prime Minister.
The Long Sea crises worsened in March and April as Jurzan attacked Elon 
in the Caspian Sea sparking global outrage. Polasciana was forced to once again join a naval force to protect Long Sea territories. Obelschenko visited the island of Palmyra, Coronado 
in an act of defiance against Jurzan provoking the nation to increase its own naval forces in the region. Days later, the Elon registered 'Merikil' ship was attacked off the coast of Polasciana and sunk. According to many insider reports, Obelschenko considered resigning from government in order to try and replace Lukyanov as president by forcing an early presidential election. However as elections drew nearer, Obelschenko focused on the legislative campaign and Lukyanov saw his presidency continually compared to that of Gruaman's towards the end of his term. The president began to pin his hopes that a visit from Brasilia Azul 
leader Luiz Domínguez would restore his reputation as a world leader. The visit became increasingly important to the president and just days before the visit the full €2bn bill for the cancelled World Winter Games was unveiled and polls showed that the government had a confidence rating of -20%.
During the state visit to Karasicena on 8th May 2008 Domínguez was shot in an assassination attempt by Brazillia Azul militants who had been supported by Khali terrorist cells in the south of the country. The international community branded Polasciana as 'unsafe' and Obelschenko returned from his visit to Redemption Island 
as ratings for the opposition soared. Commentators suggest that following the shooting, Obelschenko was almost in sole control of government as Lukyanov considered resigning. Lukyanov was continually criticised over security arrangements and all foreign government's cancelled scheduled visits to Polasciana. Lukyanov did not make a public appearance for several weeks and speculation swirled as to whether he would continue as president. Obelschenko adopted a much more significant public profile alongside Foreign Minister Isidor Doletskaya who was appointed as Interim Deputy Prime Minister to serve alongside Gennadiy Artamova.
In response to the security crisis General Yuri Schechan announced Polasciana would support the creation of a Long Sea exclusion zone off the coast of Saarland , as well as actively participate in ensuring its upkeep and that Polasciana would join as an associate member of the new Gallian Defence Federation, becoming a net contributor of the pact that was designed to protect Western Gallia. The government's reputation was badly damaged and calls continued to be made for Lukyanov to stand down as President and Socialist Unionists called for the Union Party to split - lobbying Obelschenko to force Lukyanov to resign.
Further economic spending
Prior to the legislative elections in 2008 the government received warnings of severe and unprecedented weather that would hit the east coast in February. The Union Party government increased spending on flood defences by over €90m and developed a new action plan to tackle coastline erosion. By the end of 2008 over 24 people had died in poor weather and over ten ships went missing off the Schnet Coast - in response in late April Adnan Anadinivich, the Minister for Defence and Disaster Relief resigned from government. Obelschenko struggled to appoint another Minister, and instead Doletskaya adopted the Defence and Disaster Relief ministry into his portfolio as Foreign Minister.
By the end of its term in office the government had increased the running budget deficit by over €900bn and added some 120% to the Polascianan national debt. Its ambitious spending became increasingly frantic as the elections drew closer - as advisers to the government felt that projecting an image of a fast growing and dynamic country could support Obelschenko in his bid for re-election. First-Deputy Prime Minister Artamova released details from the government detailing the states wish to form a 'flagship state airline' that would 'rival airline class across Europe'. Artamova stated that the government were suggesting a fully state owned airline backed by the Polascianan private sector, with an initial investment of over €4bn by the federal government. Other projects and investment continued, particularly in the Viasa Polysia region that bordered Unitania - including a glass transport tunnel through the mountains connecting both countries. Dmitry Kreshnenvo the Finance Minister became the second minister to resign in April 2008 and challenged Obelschenko for the leadership of the party - stating that he believed the 'economic incompetence' of spending decisions by the government rendered his role 'impossible'. Kreshnenvo lost the leadership election overwhelmingly and Obelschenko continued to lead the party into the elections. The government also rejected pan-Gallian calls for a new regional currency during attempts to revive the Gallian economy - however with increasing debt obligations, the Kryak had considerable losses and was at one time rendered the poorest performing currency in Gallia. Spending for the 2008 World Games Winter Series had also reached €2bn by the time that the games were cancelled. The government had to pay many contractors cancellation fees for services that were due to be provided during the games period - costing the government a further €90m. However, following the increased investment and the ever-increasing infrastructure developments in the Chimsk region for the games - economic forecasts suggested economic growth would be at its highest since the economic crash. The opposition criticised the government for creating 'inflation based economic growth'. Weeks after the forecast, further disputes in Western Gallia and in the Long Sea saw the economic outlook worsen.
Polasciana continued to increase spending on the military - including €500m to purchase three High-class submarines and two top range battleships from Telora . Obelschenko continued to portray Polasciana as a growing and innovative economy although he increasingly became the target of parody sketches on Polascianan television as a man in denial and continually burning money. Diaries released in 2014 from his private office stated that by May 2008 the Prime Minister and the President were not on speaking terms - with the President having little to do with the functioning of government although the true extent of this was hidden from public view by Communications and Media Minister Akim Veselov.
First Gruaman Government (2008-2011)
Election and appointments
In the run up to the elections, polls showed the United Nationalist Democrats gaining ground on the Centrists - with polls showing their candidate Tymur Rubin holding higher approval ratings than Koruin Gruaman. Many in the Centrist Party believed that former Prime Minister Marina Yanaka was a better national candidate than the former president however she resisted calls to enter the race or to challenge Gruaman. In 2014 it was reported that Yanaka coveted the role of leader of the Federal Assembly and was supportive of Gruaman's bid to become Prime Minister. The Union Party had lost over a quarter of its support - with Maksim Obelschenko facing calls to drop out of the election. By the last week of the elections, senior officials in the Centrist camp were calling on Gruaman to step aside for Rubin - to ensure that the Unionist vote collapsed and could not form a new government. The party believed that a landslide victory by the UND would mean a new coalition agreement with the Centrists and the poor result for the Union Party would mean that the President would be forced to resign - enabling Gruaman to run to take his place. Gruaman would refuse to drop out of the race believing that a victory or a strong result in the elections would mean he would be able to launch a campaign to become president again in 2011 and would have a more certain path back to the presidency.
The election campaign was bitter and many claimed that Obelschenko was suffering from poor health. At the final Prime Ministerial debate held on the 5th June, Obelschenko looked pale and gaunt. However the Union Party campaign to retain control of government was given a boost when the surging Social Nationalist Party candidate Lev Guak stood aside and endorsed the Prime Minister after the debate. Gruaman and Obelschenko both attacked the UND candidate Rubin and, by the next, day polls showed the race as a two-way tie between Gruaman and Obelschenko. Many were surprised by the Union Party's strong showing, although analysis suggested that this was to do with the unpopularity of both major candidates. The focus of the elections took pressure away from Lukyanov who continued to stay away from the campaign trail and public life - with the running of government handed temporarily to First Deputy Prime Minister Gennadiy Artamova whilst Obelschenko was campaigning. Artamova used this time to cement himself as a leader in the eyes of the public - and was rewarded by being appointed Federal Assembly Leader after the election by President Lukyanov, elevating him to second in command.
There were delays in voting results being announced on election day due to problems with the use of new electronic voting systems in many states. The delays caused many international observers to criticise the handling of the election by the Polascianan authorities and questioned the integrity of the result. An early lead for Obelschenko was caught by Gruaman as the full results showed the Union Party only holding Amar and the UND, surprisingly, only winning one state - Yevcimir. Gruaman carried all other states and beat Obelschenko to become the third Prime Minister of Polasciana.
Speaking to supporters after his landmark return to the top of Polascianan politics, the former president commented that it was his "aim to transform this government which we now control, our new government comes into effect from Monday and the Foreign Ministry is the first on the cards for change. Polasciana welcomes a new era, an era of change." The result was well received, despite criticisms over the electoral process, by foreign governments who had privately supported a Gruaman bid - fearing the continuation of the Obelschenko administration. Gruaman's first appointment was former Prime Minister Marina Yanaka who would serve as Deputy Prime Minister as well as the Minority leader in the Federal Assembly and her appointment was followed by Dimochka Yakushkin as Foreign Minister. Uri Mulakski who had held the post of Foreign Minister in the Yanaka administration, became Polascianan Envoy to Gallia - a new role designed by Gruaman to repair relations with Gallian heads of state and government following the foreign policy crises of the previous government. Gruaman was also praised for his inclusion of four women as leading ministers within the government and for its ethnic balance between Gals, Norics as well as Caspians.
Presidential Limitations Bill
Having won the election on the theme of competence against the former Union Party administration - Gruaman asked his ministerial team to draft and prepare a motion to the House of Deputies that would limit the powers of the president. After meeting privately with Lukyanov following his election win, it became clear to Gruaman that the president would not resign. The bill became the property of Alexei Sukhorukov who served as Deputy Prime Minister underneath Marina Yanaka. The draft act, named the Presidential Limitations (Amendments and Redefinitions) Bill, would restrict the powers available to the office holder of the presidency by reducing the ability to dissolve parliament as well as increasing the presidential term and redefining the presidency to a ceremonial Head of State as powers would be transferred to the Central Government. Amendments to the presidential role also included new electoral rules and the introduction of a run-off vote should no candidate reach 50% of the popular vote. The Union Party were against the bill and whilst the UND initially supported the legislation in the lower house, they voted against it in the Federal Assembly. The Centrists lost the vote in the upper house, and therefore the bill did not progress. Lukyanov's popularity was at an all-time low and the government felt that his withdrawal from major public events would be enough to restore Polasciana's reputation until the Presidential Elections in 2011.
Gruaman was still adamant that the government would restrict Lukyanov's powers - and tried to pressure the Federal Assembly to dissolve parliament through a majority vote. His efforts proved fruitless, and Gruaman turned the governments attention to domestic policy once again. It was revealed after his time in office that Gruaman privately met with Lukyanov in November 2008 and struck a deal that the president would not disrupt the government's legislative agenda. Gruaman also held private audiences with Gennadiy Artamova and Obelschenko as well as senior presidential advisers.
Legislative agenda
Yevgeniy Kalandarshivilli, a former adviser to Marina Yanaka and Dimochka Yakushkin was appointed as Finance Minister, becoming the youngest cabinet minister. The government quickly developed an economic turnaround strategy and committed to increasing growth to over 2% by the end of 2010. Investment was reduced from major infrastructure areas and the government committed to introducing a 'debt cap' that would mean the large budget deficit and national debt would start to be repaid should economic growth reach above 1.5%. The Centrists used this as a political attack on the Union Party - stating that their plan would begin to pay down debt. The cap was passed into law in 2009, although even by 2016 it had not been breached and thus the national debt continued to rise throughout the time of the Gruaman administration. The Union Party criticised the cap as a 'political ploy' and refused to sign up to honouring it - pledging to continue to fund economic growth through stimulus should they be elected at the next legislative elections in 2013. Investment into the National Health Authority Alliance was substantially cut in year, and the Centrists outlined their plan to return the service to a profit-making venture - a principle that had been withdrawn by the previous administration.
The government also increased local tax rates. The increase was controversial as Gruaman had ruled out rises during the election campaign. However the government claimed they were necessary to fund public services as well as to modernise the way that services were delivered. Gruaman and future Prime Minister Ludvig Fedorov, as Environmental Protection Minister, also outlined their plans for more environmentally friendly run council services by investing in new technology. The rise in rates was claimed by Communications Minister Krill Serbin as 'affordable' however some senior ministers considered resigning over what they considered a broken pledge. Deputy Prime Minister Alexei Sukhorukov was encouraged by his senior adviser, future minister Dmitry Lebedev to leave government over the rate increase although he chose not to resign.
During the first year of the Centrist administration the Federal Assembly rejected plans for the state energy supplier, Power4, to build four nuclear power stations in Polasciana. The decision was blocked by the United Nationalist Democrats who held the casting votes in the upper house. Some senior members of the government, including Ludvig Fedorov and Alexei Sukhorukov, withdrew from the vote in the lower house as they felt voters in their constituencies would be against the move. Gruaman privately admitted his resentment at the vote, particularly the decision by Fedorov to abstain, to his closest advisers as a 'betrayal' and was seen as the first major crisis of confidence in the Prime Minister. The Foreign Minister Dimochka Yakushkin privately took soundings on governments poll ratings at the time and held private talks with Krill Serbin about potentially replacing the Prime Minister.
In Autumn 2008 the Health, Education and Science Minister Raisa Skipetrova resigned after a serial killer murdered dix people in Glogikmo, Chimsk. Several members of the court commented that they had never heard such brutality and felt physically ill during the trial. Skipetrova had overseen large reductions in the mental health budgets. Dramatic under-funding of health services in the state were blamed for the failure to treat the perpetrator early and stop the attacks that took place, including the murderer of his wife and children. Skipetrova was replaced by Lena Zilberman who launched new mental health rehabilitation centres and oversaw the introduction of new legislation to regulate the NHAA. Zilberman was a popular replacement in the role, and also increased central education funding however the scandal hurt the government and Gruaman was damaged by sliding poll ratings.
Second Long Sea crisis
Shortly after the election of Koruin Gruaman as Prime Minister, General Yuri Schechan, the controversial head of the Armed Forces claimed that Polasciana had the naval power to 'close the Long Sea'. Despite Polasciana's geographic location and its growing military the claims were refuted by the international community and Polasciana's neighbours. However at a similar time Kadikistani media reported that Polasciana and Kadikistan had signed a naval deal in 2007 during Maksim Obelschenko's discussion and negotiations with the regime during the north west political crisis. The government claimed that the President had tried to keep this deal a secret. The apparent nature of the deal was not clear, but the government and the Niveri Palace came under significant pressure to reveal details of the negotiations that the former Prime Minister had undertaken with the Kadiki regime. The President issued only a written statement saying that "the former Prime Minister had been responsible for his own agenda, but I see no lasting friendship between a strong democratic nation like Polasciana and the Kadikistani regime. We should be looking to build relations that will last for all the future, with nations that share our ideals. I have apologised for my role and the role of my administration in preventing peace in the North West." Lukyanov remained out of the public spotlight and accusations regarding Polasciana's handling of the crisis continued. The government continued to pressure Obelschenko to release details of the negotiations with Kadikistan however the former Prime Minister refused stating that the deal was a private agreement between Kadikistan and the Sukhoi Corporation to purchase blueprints for the design of frigates. Obelschenko and the Union Party threatened to re-open corruption investigations against Gruaman and First Deputy Prime Minister Marina Yanaka in retaliation and the government dropped its calls for records to be released of the negotiations. Later, Lukyanov appointed Maksim Obelschenko into his presidential team as an adviser in July 2008 much to the disagreement of the government. Due to his role Obelschenko qualified for intelligence clearance and received additional salary and pension benefits.
At the same time, Kadikistan announced military mobilisations in the Sea of Four Nations and its intention to base two destroyers from the Khalistan base of Surat. The government launched an immediate warning to Ivar to reconsider its move however was rebuffed by Yujin who stated the move was in retaliation to 'provocation' by the enemies of Communitarianism, referring to ITO moving military ships into Saint Georgia in the Great Sea. In late July, the Solaren regime attacked a Carentania fishing ship in the Long Sea and killed the crew of five. Kadikistan immediately used the situation to claim it would move its fleet into the Long Sea. The Interlaken alliance issued a warning to all Communitarian nations (including Kadikistan, Yujin and Carentania) that the Long Sea should remain demilitarised and appealed to Karasicena for support. General Yuri Schechan said he would not stand-by and "watch any country see its independence be threatened by such a regime as Torrence" and rebuked the ITO statement. Lukyanov then issued a further statement recalling his earlier apology and stating that Kadikistani ships should be allowed to pass Polasciana's Schnet Coast towards the Saarland . The Polascianan Ambassador to the Freestates Union was immediately summoned to explain the president's decision. Gruaman and Foreign Minister Dimochka Yakushkin also demanded an explanation from the Niveri Palace in a private letter to Lukyanov. Gruaman, according to inside sources at the time, grew increasingly impatient with the President and threatened to resign to trigger early elections.
Following the declaration by President Lukyanov, regional neighbours Kryobaijan 
also stated that Kadikistani ships should be allowed to pass into the Long Sea in a move that was heavily criticised by ITO members in a joint-statement that stated "Kryobaijan's willingness to follow Polasciana into relations with Kadikistan is one that is highly worrying" and many claimed Derjiste was capitulating to a build-up of Kadiki military power in the Sea of Four Nations. By the end of July, and the beginning of August, the Prime Minister began to publicly criticise the president's stance and in a newspaper editorial claimed that Lukyanov's 'relationship' with Kadikistan was "almost illegal" as it threatened the integrity of Polascianan islands in the Long Sea and therefore was 'unconstitutional'. It was later revealed in 2015 that the government was also preparing a legal challenge to Pavel Lukyanov. The Federal Assembly Leader Gennadiy Artomova then decided to release a statement in early August stating that Polasciana needed "to get tough" against any military stand-off in Gallia. His statement was seen as a public challenge to the president and much commentary at the time suggested Artamova was preparing for a presidential bid in 2011. Artamova used his new position as Federal Assembly Leader to propose a motion calling for an immediate deescalation of military action by Communitarian and ITO states in the Long Sea - stating that Polasciana would host peace talks to try and bring an end to the Solaren crisis in a deal that would be supported by the leaders of Carentania . The motion passed, was adopted by the Polascianan government and was adopted at the Global Covenant in what was seen as a major victory for Artamova. The peace talks ultimately stemmed any further escalation of the Second Long Sea Crisis, and enabled an initial cooperation over the Saarland crisis between ITO and other states - including military attacks on the regime. Reports suggested that Artamova and the President were privately meeting. Gruaman was reportedly furious with Artamova for intervening in the crisis and was angered by Artamova's seemingly 'flawless' debut on the international stage.
Assassination attempt
Following the Munsau bombings in 2007, warnings continued of further imminent attacks. Several key leads suggested that the southern state of Kresnovic was still hosting several terrorist cells and raids across the state saw many arrested over fears of further terrorist plots. Controversial immigration laws which were put in place by the Obelschenko administration were used to arrest many people. A terrorist plot to blow up a government office in Baia, Kresnovic was also foiled. In early 2008 Dvorik Maliska was arrested on charges that he was responsible for the deaths of 62 Bathi immigrants during the wars between the former Polasciana states. At a similar time the administration arrested Devyan Mull for his role in the Scarlet Sunday tragedy after he was tracked down by the Polascianan security services in a joint mission with Eiffelland . Both of these actions fuelled anger towards Pavel Lukyanov and the administration and coupled with his low popularity ratings - particularly in the former East Lukyanov's security was given additional resource over fears he would be a target for retaliation. Whilst the president largely stayed away from the public eye and very rarely left the Niveri Palace by this time, there were credible threats by mainly right-wing Bathi militants against the president.
On the first anniversary of the Munsau bombings, Lukyanov led commemorations, including at a ceremony in the city of Siret, in his first public appearance for over three months. At around 1pm on August 18th 2008 Bajram Thaqi attended the memorial with explosives strapped to his person. Whilst security had a heavy presence at all of the events attended by the president, the lower-key more private memorial in Siret, where many of the victims of the bombings in 2007 were from, was not considered a high-security risk and extra close protection was judged to be inappropriate. Whilst the president was giving a speech to local media, Thaqi detonated his explosive vest - killing five people instantly. The explosion was not close enough to harm the president, who was removed from the scene immediately by security officers. Later it was found that the explosives had not detonated properly and Thaqi was taken to a military hospital where he later died. Security forces judged that had the suicide belt exploded fully, that the range of the explosion may have been large enough to cause significant harm to the president - the intended target. A video message was found at Thaqi's address stating that Lukyanov was a 'traitor' who had betrayed the 'Il'm way of life' - stating that the 'capitulation of the president to foreign forces had forced him to take action'. A significant number of writings and guides about Elementism were also found, convincing investigators that Thaqi had been radicalised and inspired in part by the Saar regime. The security services assessed the explosive device as well as the motive and assessed that Thaqi had indeed intended to assassinate the president. The attack happened in the aftermath of the Second Long Sea Crisis and escalation of military tensions across the continent. Thaqi was a Polascianan citizen who had emigrated from Altai 
in 2006. Following the assassination attempt the government was criticised for its lack of vigilance and allowing Thaqi into the United Federation. In particular, Prime Minister Gruaman was questioned heavily over his failure to support the Union Party in its immigration legislation, and later agreed not to repeal it as a consequence of the attack. The government also allowed the Union Party to pass crucial legislation allowing the introduction of compulsory identification cards, a policy that it had been vehemently opposed to, as a result of the attack.
Following the assassination attempt there were again rumours that President Lukyanov would resign. However in a public televised statement following the attack the President said that he would "refuse to stand down as the President of this country. I am committed to completing my term, which expires in 2011. My actions have not compromised national security, and instead have strengthened it. I am committed to leaving Polasciana as a stronger nation than when I was elected in 2007. I will fight any enemy or any lawsuit which attempts to bring my presidency into disrepute or to an end. The actions of our enemies, and the opposition, are for political gain and we will never bow to this kind of illegitimate behaviour. I speak before you today not with the full support of the government that serves our country and perhaps not with the full support of you the voters. But I speak to you today with the continued ambition and drive to take Polasciana back into the forefront of Gallia for the right reasons. I vow to change the mentality of my administration, quickly and efficiently, into one of hope that will spread our message across the nation and our continent." In the statement the president also attacked the Solari regime for its "reign of evil" and vowed to take swift action. In retaliation for the attack in October 2008 Polascianan military forces joined bombing raids of Torrence from Belev and the President and Prime Minister both joined together to reiterate calls for a suspension in military action on the continent, and for all parties to come together in diplomatic talks by the end of the month. Polasciana also withdrew its Ambassador to Altai and cancelled negotiations over a trade deal with the nation. Lukyanov did not return to the public eye and all presidential events and duties for just under a year, until August 2009, were undertaken by Artamova and all presidential meetings by Obelschenko on Lukyanov's behalf. The government increased the security budget for all leading politicians following the attack and formed a specialist presidential security detail, Unit 51.
Political allegiance
The President surprised many with an announced in December 2009 stating that he would resign from the Union Party following a 'prolonged disconnection from the values of the party'. A written statement confirming his resignation from the party came as he also admitted he would not be seeking a second term at the 2011 presidential elections and vowed to govern as an 'independent' until the election. Following his statement many leading members of the Union Party called for the alliance between Social Unionists and Unitarians, which had been formed in the aftermath of the 2007 election, to formally end and for the party to split - with many claiming that the Unionist brand was badly damaged by Lukyanov's leadership. As a result of the announcement Maksim Obelschenko stood down as party leader and former First Deputy Prime Minister Gennadiy Artamova was appointed as Acting Leader of the caucus and moved to elect a new party leader. Obelschenko stated that he would not re-run for the party leadership in the subsequent race with many believing his decision was to pursue a bid for the presidency in 2011. Later in January 2010 Obelschenko decided to stand down from the president's advisory team. It was also observed in diaries later released that Severina Forcova, the wife of President Lukyanov, had encouraged the President to stand down and been central to Lukyanov's decision to resign from the party. Obelschenko wrote that he intended to lobby Forcova to ask Lukyanov to stand down early as president. Obelschenko's protege Lazar Ulanov became the favourite for the Union Party leadership when the internal election began, however Artamova entered the race himself and won the vote of Union Party members. He was anointed as Unionist leader stating there was no desire or plan to split the party.
Second Gruaman Government (2011)
Internal divisions
By the end of 2010 the Gruaman government had suffered a loss of trust following disputes with new Union Party leader Gennadiy Artamova which in itself had created an inability for the government to pass legislation due to the Unionist majority in the Federal Assembly. A vote on the government's controversial proposed Environmental Protection Programme (EPP) – designed to counter growing tidal erosion on the south coast was lost in December 2010. The administration was also bitterly divided as the 2011 Presidential Elections approached. Health and Science Minister Lena Zilberman had been canvassing the ministerial team, supposedly with the authority and backing of Krill Serbin, seeking support to launch a potential challenge to Prime Minister Gruaman ahead of the elections. Private polls had shown the party that Zilberman was a much more popular choice to govern than Gruaman - and also polled well in a presidential run-off against Obelschenko, considered as the frontrunner for the 2011 election. By this time both Gruaman, Lukyanov and Obelschenko all had negative approval ratings and the United Nationalist Democrats as well as the Nationalist Party saw a surge in support. Zilberman privately received the support of the majority of the cabinet to pursue a challenge however a poll commissioned by the Gruaman camp saw the Prime Minister pulling ahead. Marina Yanaka, who was serving as First Deputy Prime Minister encouraged Gruaman to dismiss Zilberman and in January 2011 Gruaman fired Zilberman and replaced her with Ida Korneev. The decision was unpopular with many members of the cabinet and Krill Serbin threatened to resign over the dispute. The Centrists were badly damaged in the polls and, whilst no ministers resigned, a breakaway group of senior party figures formed their own voting bloc within the party called the 'Progressives'.
Presidential selection
Throughout January and February 2011 the Centrist and Progressive leadership internally negotiated and privately selected Koruin Gruaman as their candidate for the 2011 Presidential elections. Many felt that Zilberman had limited appeal outside of the caucus and was too untested to run a national campaign. Gruaman's approval by the party marked the green light for what would become his third run for the presidency - having won in 2003 and lost in 2007 to President Lukyanov. As the legislative calendar wound down ahead of the elections, polls showed Gruaman performing well in a match-up against Obelschenko and by April the economy had started to post improving figures including a 19% increase in foreign trade and inbound investment. Later in April, former Prime Minister Obelschenko shocked many by ruling himself out of the presidential race and stated that he would not publicly state a preference for a candidate to replace him as the front-runner for the Union Party nomination. His withdrawal from the race created further speculation as to the condition of the former Prime Minister's health. Gennadiy Artamova, as party leader, took over Obelschenko's position as favourite - however former presidential contender Stepan Michalvich announced his intention to run shortly afterwards. Analysts suggested that Artamova’s strong links with the incumbent President Lukyanov could become a major obstacle to his bid and therefore installed Governor Michalvich as the favourite for the Union Party nomination - a decision that would go on to be decided in a primary contest.
Fall
In May 2011 the government started to come under pressure through a series of stories and crises that led to the eventual collapse of the Gruaman administration. The National Health Authority Alliance was criticised in a report that suggested the flagship influenza vaccination program that the government had created had been ‘dogged by failure’. Lena Zilberman, who had been responsible but whom Gruaman had fired, had also left parliament after suffering a miscarriage. Ida Korneev as the incumbent minister offered to resign however Gruaman did not accept. Later the government's free-swimming policy that was offered to those under 15 was attacked in an independent report as a 'waste of money' and a 'misuse of public funds' after private health organisations were benefiting from an injection of investment through the scheme. Whilst the scheme was a creation of the former Union Party administration Gruaman was forced to apologise, however he rejected the resignation of the Recreation and Sport Minister Ruslan Cherstvennikov. On 12th May the government suffered another set-back due to a high-speed rail crash in Dubrovka - which would eventually lead to the prosecution of Transport Minister Kristina Rudakov for her role in covering up the fault of the manufacturers. On Wednesday 18th May, as part of the final few sessions of the legislative agenda before the summer break, the government lost a crucial vote on reforming the energy industry. Despite holding a majority in the lower house, the bill was controversial for many Centrist Party deputies and the Progressive wing of the Centrist Party rejected the legislation and voted with the opposition headed by Korina Shulgin. The Prime Minister had earlier rejected the advice of Energy Minister Ludvig Fedorov to sign an agreement with the United Nationalist Democrats to pass the bill and rejected the resignation of the minister following the vote. The fact that three ministers had all offered their resignation within a week was kept secret by the administration - however Gruaman was increasingly under pressure to resign as Prime Minister.
Reformation and cooperation agreement
Following the loss of the vote on the Energy Redevelopment and Investment Bill the Prime Minister approached the United Nationalist Democrat leader Tymur Rubin and signed a cooperation agreement on the basis that a further loss in the lower house would prove fatal for his leadership. Rubin joined the government as State Minister for Education, Science and Healthcare alongside Pavlo Moreno who took over the troubled Transport brief and Daniela Kuhn who moved into the Sport and Recreation Ministry. The agreement was criticised heavily and Deputy Prime Minister Alexei Sukhorukov resigned. The changes to the cabinet were also controversial on ethnic grounds with Rubin serving as the only new Gal member of the executive, whilst both Kuhn and Moreno descended from both from the Centrican and Caspian south of the country. The move caused protests and riots in the country's largest city of Arvi. Even though Deputy Union Party leader Lazar Ulanov attacked the protests saying that they "did nothing to promote Gal values" instead asking for people to work ‘constructively’ with the government, not "seeking to destabilise the political establishment" the tensions spilled over into the closing sessions of the government sitting and a crucial vote proposed by Finance Minister Yevginy Kalandarshivilli was disrupted by a walkout by senior Centrist figures. The Union Party opposition led calls for the Prime Minister’s resignation however the media noted at the time that Union Party leader Gennadiy Artamova was absent and caused many commentators to suggest they were ‘underwhelmed’ by the oppositions attack on the government. Artamova's advisers later commented that he believed the fall of the government would impact heavily on the presidential election and tried to mute Ulanov's attacks on Gruaman.
President Lukyanov was forced to intervene at the beginning of May and placed a deadline on the Prime Minister to find a solution to the political crisis. Gruaman refused to resign and presented a reshaped cabinet later in the month that promoted both Ludvig Fedorov into the role of Foreign Minister and Ida Korneev to Deputy Prime Minister. The changes to his executive enabled Gruaman to pass important legislation on the economy and put his presidential bid on track. During the crisis in Karasicena, Federal Assembly Leader Gennadiy Artamova had pulled ahead of Governor Michalvich as the Union Party candidate for the presidency and was also ahead in opinion polls in the race against the Centrists. Whilst Gruaman emerged from the crisis still in control of government, Union Party advisers believed the crisis was pivotal in damaging the Prime Minister ahead of the presidential election and contributed greatly to the Prime Minister's loss at the polls.
Election campaign
On the 12th July 2011 Kamchetka Governor Stephan Michalvich conceded the Union Party nomination to former First Deputy Prime Minister and Union Party leader Gennadiy Artamova. At a rally in front of 10,000 supporters in his hometown of Ivanopol the new Union Party presidential nominee vowed to win the election and "restore Polasciana's mission to become a regional power". His campaign had focused heavily on his military background and sought to distance the candidate from the incumbent president and former Unionist administration. Many political analysts thought that Michalvich would have made the better challenger to former President Koruin Gruaman, who would fight his third presidential election in the November poll. Therefore despite Gruaman's damaged reputation, Artamova's victory saw the Prime Minister installed as the favourite for the October election. As the national began, the Unionist campaign started strongly opening key campaign offices in Yevcimir, Amar and Bespura as well as a new campaign headquarters in Buratiyan and analysts reversed their earlier decision - placing Artamova as a firm favourite to win the election. It would also be the first election where both challengers came from the same home state.
In August Gruaman was forced to back down from his calls to lower defence spending following a series of terrorist attacks in neighbouring Eiffelland . Artamova attacked Gruaman for his 'mishandling' of economic forecasts after growth had also been revised down to 1.1% and the Union Party ramped up attacks on the Gruaman administration over economic competence. As part of his attack Artamova pledged 80,000 new jobs through a revitalised energy and heavy manufacturing industry by 2015 as well as scrapping environmental emissions targets and giving grants for increased production to private industries. In the same month the United Nationalist Democrats launched their campaign citing an 'appetite for change' in the country and Tymur Rubin attempted to distance the party from the cooperation agreement they had signed with the Gruaman administration.
The first Presidential Debate took place on 24th September and was perceived as a surprise draw between the two main challengers. Gruaman accused Artamova of being a 'divisive and authoritarian' leader and said he feared that the Union Party had learned 'very little' from their time in office and that Artamova was 'dangerous'. Artamova portrayed Gruaman as an establishment politician that had a record of failure and did not understand the challenges of working people in Polasciana. The attacks on both sides were brutal but polls suggested Gruaman received a one or two percent bounce following the debate and the Centrists continued with their line of attack for the remainder of the campaign. Gruaman appointed Centrist strategist Dmitry Lebedev as his campaign manager following the debate. Later in the month the Centrists went on to win the Rogan seat previously held by Lena Zilberman on a reduced majority of 58.2%, down from 83.3%.
Artamova decided to continue his style of holding large rallies in big cities and launched a tour of Northern states in September whilst Gruaman started to campaign in Yevcimir after polls suggested the president had a chance of winning back the state the Centrists held in 2003. However by the end of September polls were showing the Union Party gaining ground on the Centrists in Chimsk. Whilst the party had won the state in 2003, most strategists considered Chimsk a safe Centrist state. Centrist Progressive campaign manager Lebedev suggested that Gruaman visit the state and the Prime Minister went on to hold a rally there to over 20,000 supporters. Gruaman campaigned heavily on the economy pledging to restore economic growth by stimulating business demand with new attractive business rates and an expansion in business lending and credit by new domestic banks, supported by government funding and foreign businesses investment. Later Artamova commented that his campaign would have a 'mountain to climb' in order to win Chimsk and dampened the momentum of the Union Party in the state. The campaign claimed they were 'managing expectations' however started to heavily target Bespura. The Centrist campaign was criticised for its poor organisation despite being the third campaign the Centrists had fought with Gruaman. The team also struggled to find surrogates to campaign on behalf of Gruaman and much of the campaign was led entirely by the Prime Minister and his deputy in Marina Yanaka. The campaign also came under fire for attacking Artamova's military experience and as a result Artamova was endorsed by all major Polascianan veterans associations in a major blow to the Prime Minister's campaign.
By October 3rd 2011 polling still showed the race as a tie between Gruaman and Artamova - but crucially put Artamova ahead in Bespura which most commentators agreed would be the deciding state in the election. Artamova continued to lay out his economic platform - promising 30,000 new apprenticeships by 2015 as well as an increase in defence spending for the Long Sea military bases. The Unionists began to pull ahead based on projections of voter turnout and Artamova pledged the scrapping of environmental emissions targets in all northern states promising a 'new industrial revolution' and committed to a 5% growth target by the end of his time in office. Whilst the Centrists claimed Artamova was running a 'core' campaign solely designed to target voters in the north, projections showed the Centrists losing voter share off the back of the pledges and by mid-October Artamova held a 6% lead over Gruaman. The Centrist campaign focused on its key pledge to ensure Polasciana's accession into the Gallian League by 2020 and dropped its previous pledge to cut defence budget by 9% over the presidential term. Political analysts suggested that the Centrist campaign had struggled to present a compelling offer to the country.
Artamova won the presidential race on October 23rd 2011 and won every state that the Union Party collectively won in 2007 apart from Yevcimir. The state of Bespura was crucial in the election and Gruaman conceded the race stating that he had "not won majority of country" as well as announcing to senior advisers that he wanted to resign as prime minister as 'soon as possible'. The result in Bespura showed a clear victory for the Union Party however also posted a solid victory for Centrist Governor Katrina Fischer. Due to the result in Bespura many Centrist candidates quickly blamed Gruaman's personal approval ratings for the loss of the election. Governor Fischer went on record in the media later that night to say she was 'grateful' for Gruaman's role in campaigning in her state although party officials commented that they were 'disappointed in the result' and felt that another candidate may have performed better against Artamova. It was considered a surprising victory for the Federal Assembly Leader - and attention quickly turned to the prospect of how he would seek to govern. There was also increased speculation that Gruaman's expected resignation as Prime Minister could force early legislative elections, preventing Artamova from having to negotiate alongside a Centrist Prime Minister. President-elect Artamova took congratulatory phone calls from many heads of state and governments and his first call was to the Chancellor of Eiffelland . His decision to call Polasciana's ITO neighbour first was seen as a conciliatory move in contrast to the leadership and priorities of President Lukyanov.
Artamova presidency (2011-present)
First term (2011-2015)
Following the 2011 Presidential Election Koruin Gruaman resigned as both Prime Minister and Leader of the Polascianan Centrist Party on the morning of October 24th having spoken directly to President-elect Artamova. Believing she was too close to the Prime Minister to be seen as a 'fresh break', the First Deputy Prime Minister, Marina Yanaka also resigned from her role as Deputy Leader. Ida Korneev, who had only recently been promoted to Deputy Prime Minister, told a private caucus of Centrist ministers that she did not want to take over the role and instead Foreign Minister Ludvig Fedorov was installed as interim leader of the party. Fedorov began negotiations in the lower-house and sought permission to form a new government. The President-elect spoke with Fedorov later that day and offered his support in the interim leader forming a government. Artamova's advisers believed that an interim Prime Minister would maintain stability in the country as President Lukyanov prepared to stand-down and it was remarked that they did not see Fedorov as a political threat. The incoming administration believed that the Union Party would be competitive in the 2013 Legislative Elections, which were only 18 months away, and therefore decided not to call for emergency elections.
Close allies of Fedorov commented at the time that the former Energy Secretary was 'overwhelmed' when he was initially offered the role of Foreign Minister as part of Gruaman's reshaped executive cabinet. It was therefore thought by many that Fedorov would attempt to hand-over power to a new permanent leader of the Centrists after an interim period following Artamova's inauguration as President that was due for January. By mid-November Fedorov had still not managed to negotiate approval for his planned cabinet. The interim Union Party leader Lazar Ulanov, who had taken over from Artamova following his election victory, believed that new elections should be called immediately and was refusing to sign-up to any interim agreement to install Fedorov as Prime Minister. With Gruaman having already stood down, Polasciana was without a Prime Minister for two months until a deal was finally struck on Wednesday 21st December 2011. Ulanov was persuaded to ratify the deal after being granted private conversations with both President Lukyanov and President-elect Artamova. As part of the arrangement, the Federal Assembly gained an automatic veto on all government policy. The deal was negotiated by Ivan Tattar who became Artamova's chosen replacement as Federal Assembly Leader and offered General Yuri Schechan an extension to his term of Commander General until 2020, which was accepted.
First Fedorov government (2011-2013)
Prime Minister Ludvig Fedorov presented his new cabinet on Monday 26th December 2011 and pledged to "unite and renew the mission of the Centrist Progressive Party in government." He reinstated two former ministers of Gal descent, Kristina Rudakov and Ruslan Cherstennikov and appointed former Prime Minister Marina Yanaka to replace him as Foreign Minister. The Centrist strategist Dmitry Lebedev joined the cabinet as Deputy Prime Minister, Benjamin Usan replaced Yevgeniy Kalandarshivilli as Finance, Trade and Industry Minister and Fedorov also appointed Fabian Meyer into the executive team - all of which were known as close Fedorov allies.
Artamova's inauguration as president was held in Central Square in the country's largest city of Arvi. The choice of the second city, as opposed to the capital in Karasicena, was Artamova's personal choice and he became the first president inaugurated in what was the former Eastern People's Republic of Polamar. In a speech to over 150,000 citizens, that was televised, the new president said that he believed "kick-starting relations with Polasciana's friends in the Gallian Defence Federation, Gallian League and Interlaken Treaty Organisation" was his "number one priority" and that would include 'reaching out' to other nations in the Communitarian and Revolutionary Defence Treaty Organisation, namely Carentania. His speech focused on Polasciana becoming 'ambitious and defiant’ with a plan and mission to "reach beyond borders and be willing to embrace its neighbours more openly, and honestly in order to strengthen the economy." Artamova finished his address by declaring that “Our best days are yet to come. I believe that Polasciana’s economy can be back on track, I believe we must work together to heal the divisions between those who are given the proceeds of growth, and those who grow. I believe in an economy that works for the working people. Let's unite behind that - our shared vision of the future.” The President then launched a regional tour in order to re-establish relations with some of the country’s closest neighbours, after what he calls an era of ‘misjudged relations.’ Artamova visited Unitania and went on to further state visits in Eiffelland , Wieserreich and Karakhstan 
during his first two months as president.
Throughout President Artamova’s regional tour, the government was immediately drawn into a row surrounding refugees from the ongoing Saar crisis in the Long Sea. Newly installed Foreign Minister and minority federal assembly leader Marina Yanaka negotiated with the Serreniese and Unitantian governments over the transfer of refugees to the CGR. Fedorov’s administration initially refused to take part in resettlement programmes and joined Eiffeland in leading calls for a ‘swifter resolution’ to the crisis. The Global Covenant discussed the issue in February 2012 – but no firm or decisive plan was put to a vote, much to the anger of the ITO alliance.
At the end of January, the government pulled a planned bid for the 2015 World Games Summer Series, which had been launched by the previous Gruaman administration. Writing to potential candidate cities Ukhyny, Arvi and Kiase, the government stated that it felt that whilst Kiase presented a strong case, and would have been the preferred bidding partner, the administration had considered polling which showed the public viewed the bid as an extravagance at a time of financial difficultly and therefore had decided to reject its submission. The Polascianan Word Games committee would end up backing Valmy, Montellimar who would go on to be awarded the 2015 games in early 2013.
By March 2012, President Artamova had outlined the details of his energy policy, which had formed a central pillar of his 2011 election platform. Federal Assembly leader Ivan Tartar lead negotiations with the government. Energy Minister Dmitry Lebvedev reached a deal that cut the government’s previous renewable energy targets and opened up more oil and gas fields offshore on the Schnet Coast. A deal to construct pipelines across Polasciana was also struck with neighbouring Unitania. The deputy prime minister hailed the deal as a step towards the government’s goal of energy independence - but many criticised the lack of concessions the government had drawn from the president. The United Nationalist Democrats led opposition to the bill - along with the newly seated Nationalist Party in the Federal Assembly. As a result, a fissure in the Union Party opened between leader Lazar Ulanov and Ivan Tattar. Ulanov wanted to use the opportunity to force Fedorov into an early defeat, but Tattar felt it was more important to pass the president’s legislation.
At the same time the President’s education reforms, which proposed disbanding the state led Education Authority Alliance and replacing it with a national curriculum, were brought to the lower house. In April, Fabian Meyer was also appointed by the President and supported by the government, to lead accession talks with the Gallian League. As Minister of Transport, Meyer was considered an outside choice for the role - with many having expected Marina Yanaka, as Foreign Minister or Benjamin Usan as Trade Minister to lead the talks. It would later emerge Meyer was appointed on the suggestion of Prime Minister Fedorov, who viewed him as a closer ally than the foreign minister. In an aftershock of previous ethnic tensions and fissures across the Centrist Progressive Party, the debate over accession to the League, prompted the creation of a Gal-nationalist moment, Freedom Front - which would later create a political splinter faction known as The United Freedom Front Party ahead of the 2013 election – growing to become the Unity Party. The negotiations ultimately failed to produce accession or a trading agreement with the League, but Polasciana was welcomed as an ‘associate member’ - an offer that however came with no formal status.
At the end of quarter one in late April the Finance Minister revised economic growth down for a third consecutive year to stand at just 0.6%. New trade deals were negotiated with Karakhstan, Altai and Brasilia Azul to extract and export minerals and by the summer the economy was reported to be growing at a rate of 1.5% - outstripping all projections. However, the government faced difficulties when accusations of corruption were made public after a full public inquiry into the Dubrovka rail incident indicted newly reappointed Communications Minister Kristina Rudakov, who immediately faced calls to resign. Fedorov’s administration was placed further on the back foot when the government lost a crucial first vote on its Energy and Economic Futures Bill - in a row over an intention to privatise the industry. The Federal Assembly Leader prompts outrage within the Union Party by convincing Lazar Ulanov to vote for the deal in the lower house, only to then block the legislation using his own veto in the upper house. Eventually, Tattar achieves concessions from the government and the Bill passed in July. As a result, coal mines in the north of the country re-opened, despite safety warnings, and protests began to break out in Arvi and other northern cities. Curfews were later phased in to curb unrest in Arvi as a result of the continuing social disruption and former Deputy Prime Minister Alexei Sukhorukov, who had resigned from government in 2011, issued Ludvig Fedorov with a defection threat to Freedom Front in the summer of 2012 – with tensions growing in the lead up to the fifth anniversary of the Munsau terror bombings.
As a result of the backlash, Fedorov reshuffled his executive team and promoted Krill Serbin to Deputy Prime Minister and gave Dmitry Lebvedev an enhanced brief as Minister for Defence and Disaster Relief. Prominent Conservative Ada Mantel joined the cabinet and Rudakov was removed from government as the enquiry continued into the Dubrovka disaster. Within his first few weeks in the new role Dmitry Lebedev worked with Talemantros to support on developing legal and security frameworks within the breakaway Gorno Republic of Zamoska. Foreign Minister Yanaka deployed 1,000 personnel in a deal to replace withdrawing Potenzan forces. Union Party leader Lazar Ulanov dismisses the action and warned Yanaka over supporting Sikandara in providing guarantees over a growing diplomatic standoff with Boliatur. However, both incidents are swept aside when the Long Sea crisis escalated for a third time when a Nicosian fishing ship was captured by Solari terrorists operating in the exclusion zone - all 35 fisherman are later found dead when the ship was located in Serrieneese waters. Details released by the ITO alliance, whose patrol ships found the boat, suggested many sailors had been decapitated and the ship was looted. In August 2012 Prime Minister Fedorov visited Nicosia as tensions continued with the Solaren regime - a visit that completed the negotiation and implementation of a maritime and air exclusion barrier across the portion of the Long Sea close to the Saar border, that Polasciana agreed to participate in upholding through regular patrols. Belmonte president Amaury Debussy strengthened calls for more military strikes against Torrence, a request that was initially rejected with efforts focused on establishing the exclusion barrier.
By the end of the summer the President's legislative agenda continued to face difficulties and draft bills were put through several revisions by the House of Deputies and the Federal Assembly. With the passing of legislation continuing to be slow, further protests continued to grow in northern states in opposition to the president's energy policies and Artamova was forced to make a series of speeches calling for calm. As the end of the year approached, and with the 2013 legislative elections growing closer, compromises were finally struck between Ivan Tattar and the Prime Minister, allowing both the Energy and Economic Futures Bill and the Education Reform Act to pass before the election campaign began. In early 2013, the Centrist Progressives confirmed Ludvig Fedorov as its leader and leading candidate for Prime Minister, with the Union Party formally endorsing Lazar Ulanov after other leading party figures rejected a challenge to his leadership. Polls initially showed Fedorov having a commanding lead, but in the run up to the June election Ulanov gained ground - and by the time polls opened the race was considered too close to call. During the campaign Alexei Sukhorukov announced he would remain part of the Centrist Progressive party but would lead six other colleagues in the creation of a new Conservative caucus if reelected - and that they would align with other likeminded independent conservative candidates, in a bid to force Fedorov to adopt more economically liberal and socially conservative positions within his platform.
Geography
Polasciana is a nation mainly bordered by land, apart from in the south where the nation borders the ocean. 6 main islands close access to the sea, making Polasciana important for international shipping for Germania and Gallia and access to the east. The landscape mainly consists of a mix between fertile plains and forest. The nation encompasses significant natural resources including iron ore, coal, magnesium, natural gas, salt, sulphur, graphite and timber - while the economy is also partly sustained by an ability to export small amounts of oil from the eastern provinces. States in the north are situated much further above sea-level than the lowlands of the south. Amar contains a number of mountain resorts and highland regions, which are also prevalent in Kresnovic State in the south.
The nation also hosts a wide range of living species due to its varied climate and geographic state, while peat deposits, chalk, gravel and clay are other natural resources of the United Federation. Polasciana has a mostly temperate continental climate, however temperatures on the southern coast and across the islands are usually higher. Western and Southern Polasciana receives more rainfall than the East and North, while snow is common during the winter months, and particularly during spring and autumn in the north east.
Polasciana's southern islands border Carentania.
Politics
The country is a semi-presidential federation, governed by a directly-elected President through presidential elections every 4 years and a Prime Minister and Federal Executive through Legislative Elections every 5 years. Constitutionally, a president cannot serve more than 2 consecutive terms in office. The Federal Executive is a bicameral parliament, comprising of the 170 member lower house, the House of Delegates and the 40 member upper house, the Federal Assembly.
The Prime Minister and a 7 member executive cabinet sit in the lower-house together with their 'leading authority' (majority) members along with the 7 member shadow executive and the 'lower authority' (minority) members. The President and the Assembly Leader sit in the upper house together with members of the military and local government along with the opposition assembly leader and members of the assembly, both majority and minority.
Former judge Pavel Lukyanov served as President of Polasciana between 2007-2011 whilst in 2009 former Centrist president, Koruin Gruaman, was elected as Prime Minister when his Polasciana Centrist party won in the 2008 Legislative Elections with 54.6% of the popular vote, returning them 53.5% of the entitlement in the lower house, presenting them with an overall majority. The Union Party hold a majority in the Federal Assembly. In 2011, the Presidential Election was won by the Union Party nominee, Gennadiy Artamova.
Administrative divisions
Polasciana has 9 provincial states, 2 city states and 4 island territories. The provincial states are Amar, Bespura, Buratiyan, Chimsk, Isisny Islands, Kamchetka, Kresnovic, Preaisk and Yevcimir. While the two city states are Karasicena, the capital city and Arvi, the country's largest city. 4 islands also have their own local governments - Idir, Olkshoi, Samsucha and Simishir. Each state has the ability to set education, health and transport policy, in accordance with federal direction. National authorities exist for each of these areas. The National Education Commission, the National Health Authority Alliance and the Transport Commission bring together federal policy and report to the government, which reassesses national priorities.
Foreign relations
Polasciana currently considers Gallian and Centrican integration as its primary objective concerning its foreign policy - Seeking partnership and cooperation with its close neighbours, and to in time be considered a regional power. The nation considers its role important to maintaining a peaceful continent - branching between both eastern and western culture. By maintaining peaceful and constructive relations with all its neighbours; Polasciana aims to remain an independent force in the region.
Securing its own energy independence, and influencing attitudes towards environmental change and protection, under the Lukyanov Administration, Polasciana has pursued a policy of intervention and development with other nations on climate change and also on various humanitarian issues.
Economy
History
Prior to 2003, the Polascianan economy was characterised by state intervention and control. Government-imposed limitations existed on private sector business and foreign trade and investment was discouraged - if not completely outlawed. An expansive public-sector controlled industry and utilities. With the election of Koruin Gruaman as President, and the transfer of power from military rule to more moderate democratic control, the economy was liberalised under a set of reforms known as the Gruaman/Yanaka reforms of 2003/2004.
Yanaka Market Reforms of 2003
These reforms began Polasciana's economic transformation from largely state-controlled to a more liberal, private-sector market based model. Particularly industries such as coal, steel and shipping were privatised, but largely became large scale private monopolies controlled by wealthy businesspeople - who had close ties to the Gruaman government. The 'Keiger Energy Company' was one such monopoly that controlled vast amounts of the country's energy production and expanded rapidly into ship building and steel production. High inflation and an inflexible labour and currency market forced the company into bankruptcy in 2007.
in 2009State Intervention and Debt Expansion
The fall of many of the monopolies had a significant impact on the economic growth of Polasciana - falling to just 0.7%, compared to an average of 5.8% in the years previous. The Union Party led government of Maksim Obelschenko invested heavily in infrastructure through government spending to 'prop-up' the economy - namely vast expenditure into transportation and renewable energy. This expansion of the public sector included large construction projects, including; hospitals, schools, airports and redeveloped city centres. The government even funded the creation of 'New Solsoa' City in Kamchetka state, a brand new city.
'Plan for Growth' Reforms
Following the election of the Gruaman administration in 2008, the Polasciana Centrists embraced further deregulation and liberalisation of the economy in an attempt to create a more competitive business environment. These second round of market based reforms, dubbed 'The Plan for Growth', were led by government minister Lena Zilberman which gave them the name the 'Zilberman Reforms.' In these reforms in 2009, the government deregulated the Bank of Polasciana and allowed commercial banks to operate in Polasciana for the first time. Businesses from abroad were also able to operate in Polasciana, without the requirement of a Polascianan subsidiary. Whilst strict licensing laws still remained for many 'protected' industries including coal, steel, shipping and mining, the expansion of the private sector lowered unemployment but the economy has remained relatively stagnant since 2007. The 2009 reforms also saw another wave of privatisation - including rail and aviation industries. The Gruaman administration was also forced to renationalise a second energy monopoly, 'Siminich Energy', which had been privatised in 2007.
Features
The Polascianan economy has been criticised for its dualistic nature - where inner city and urban development has been led by technological and business innovation, whilst rural economies have continued to rely on traditional agriculture and manufacturing. Whilst large scale public and private monopolies still exist, infrastructure remains relatively underdeveloped and complicated by state corruption and excessive bureaucracy. Since market reforms of 2003 and 2009 respectively, public and private debt has expanded at an unprecedented rate - but has also increased investment from abroad.
Construction, energy, shipbuilding, aviation and traditional agriculture still account for more than 70% of the Polascianan economy, whilst inner city areas have seen growth in service-based sectors like banking.
Sport, culture and music
15-06-2008 Andrei Chekov, former soccer champion signed a record-breaking deal to become the Isisny Islands new manager earlier this year, however press rumours have speculated over an imminent departure to lead the state Polascianan team to victory in Euro 2008. However today, Chekov broke silence and refused to admit he had been in any talks with the national side and said he had "no desire" to lead the national side to Erlangen-Ansbach. With the new season beginning in August, Chekov confirms he is committed to leading the Isisny Islands team to glory in the Polascianan State Soccer Cup, and in the future in Champions League glory. Many often wrongly accuse the Islands club as being a state or national team, instead The Islands is firmly in club football and says they will continue to do what they love best, but in the end could the former champion be swayed by vast financial guarentees and European-wide glory?
13-07-2008 Polasciana has failed to qualify for the Euro 2008 championships to be held in Erlangen-Ansbach. The team failed to win any of their qualification games, and became the surprise non-qualifiers. Ultimatley Europaland progressed into the first stages of the compeititon, beating Waldeck on goal difference. Group W3 was given the title as the 'Group Of Death' by many commentators from around Europe. Other non-qualifiers included Centric, Kyiv and New Amargosa, who were beaten by Burgenland. Before the qualification rounds began, Polasciana were one of the keen favourites for qualification along with neighbours Telora. Millions of pounds will now be lost from potential sponsorship had the team progressed to the main championships.
TaTu' - the girl-band duo will represent Polasciana this year with the song 'Beliy Plashik' which translates as 'White Robe.' This will mark Polasciana's 4th entry into the contest, and so far the nation has been relatively successful - being out of the top 10 just once. The United Federation had a very successful debut in Vienna in 2007 - where Dima Bilan came 3rd singing 'Lady Flame.'
This year Polasciana comes up against 16 other nations. Bookmakers in Polasciana tip Erlangen-Ansbach while around Europe other favourites include Eiffelland and last years' runners up - Yugostrana. Only one country will win the trophy, and the right to host the next edition. Millions of viewers from across Polasciana are hoping that 'TaTu' can finally bring the title to the United Federation.
Polascianan Team Win Glory In Erlangen
Last night Polascianan side Simininya Karasicena won the Champions League final in Erlangen, by beating Nuwelanden side A.C. Ribenna 3-0. The team, who were flying the flag for Polasciana on their own, beat 31 others to become champions. The match was played at the Königliche Post Arena in the capital of Erlangen-Ansbach in front of over 65,000 spectators. The Polascianan president, Pavel Lukyanov was also in attendance as the Polascianan side sweeped to glory. Simininya, under the management of Egor Bartrev, came through to the final beating former champions and also knocking out pre-tournament favourites the Yangstry Yaks. The Champions League continues to be the most prestigious club trophy in European football, and the Polascianan side showed themselves to be worthy champions throughout the competition. Bartev, just 31 years old, came to the team in January 2008 and since has turned around the fortunes of the club. Bringing in the best players from across Polasciana, the investment in the team increased tenfold and now have major sponsorship and backing from large national companies.