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| The Economic Revitalization Act Article 1 – Name. 1.) This act shall be officially titled as the “Economic Revitalization Act of 2006”. 2.) This act shall officially replace and repeal the National Economic Reform Act and subsequent amendments to said act, as well as the Pay and Taxation Act, 2006. Article 2 – Currency of the Empire, money to be released into circulation. 1.) The currency to be used by the Empire of the Alexandrians shall be the Alexandrian Écu. It shall be symbolized by “AE” or “E”. 2.) The official Alexandrian écu-US Dollar rate shall be one Alexandrian écu to 0.75 American dollars for a period of six (6) months from the day of recieving Imperial Assent. After which the rate must be revised by Parliament, who reserve the right to make the Minister of Finance and Economics responsible for the management of the rate. 3.) A total of AE 650,000 shall be circulated initially. 4.) The Minister of Finance and Economics will manually set the rate of exchange of Alexandrian écu to Gotzborg Thalers. He may later decide to allow the market to dictate the exchange rate. Article 3. – Bank accounts. 1.) Every Alexandrian citizen is entitled to a bank account. Businesses, organizations and foreigners may also set up bank accounts. 2.) To establish a bank account, an individual or an organization’s representative must apply to the Chairman of a Bank, Central Bank or similar non-bank financial institution. The chairman must then report this to the Minister of Finance and Economics to allow for processing of transactions. 3.) All transactions shall be recorded by the Minister of Finance & Economics through a post on the message boards. A transaction must be acknowledged by the second party before it will be recorded, and after it is performed, the Minister of Finance and Economics must be notified. Transactions shall be reported at the end of each week. 4.) The Minister of Finance and Economics reserves the right to refuse to process any transaction, but must provide a valid reason for the refusal within seven (7) days of issuing such a statement. Article 4. - Banking System – PHP Bank; Central Bank of Alexandria. 1.) The current Bank of Alexandria is hereby dissolved and the former economic system shall be dissolved in full. The Bank of Alexandria shall be replaced by the Central Bank of Alexandria, which will be setup through PHP Bank. 2.) The Central Bank of Alexandria shall be the instrument of the Alexandrian Government in implementing monetary policy, ensuring the stability of the financial system and the payments system. The Central Bank of Alexandria shall also be the bankers’ bank and the government’s bank. The Government has liability for the actions of the Central Bank. 3.) Other banks may be charted by citizens of Alexandria, as may other non-bank financial institutions, with the approval of the Ministry of Finance and Economics. For all banks other than the Central Bank, bank employees shall have liability. 4.) All banks must ensure that each account holder will be permitted to make transactions, open and close their account at any time, notwithstanding Article 10. 5.) All banks, including the Central Bank, shall maintain a full-reserve system for liquidity purposes. The Minister of Finance and Economics shall regulate all banks in their achievement of this. 6.) All non-bank financial institutions shall maintain sufficient liquidity to deal expected transactions. The Minister of Finance and Economics and shall head a committee overseeing the achievement of this, and enforce its application. 7.) The government shall have a separate account to the Central Bank. 8.) The Central Bank may offer government bonds, which shall be capital guaranteed. Article 5. - Interest Rates, Land Value Tax. 1.) Interest rates may be paid for amounts of money in bank accounts, and may be charged on loans by the banks or non-bank financial institutions. 2.) Official interest rates shall be set by the Ministry of Finance and Economics at the beginning of each quarter, or part thereof. 3.) All land and forums in the Empire of the Alexandrians are the property of the society, not of private interests. 4.) All holders of such land and forums shall pay a land value tax equal to 50% of the value of such land or forums per quarter. 5.) Within Alexandria, the initial value of land shall be assessed at AE 100 per acre. The initial value of forums shall be assessed at AE 500 per forum. 6.) Foreign embassies, Alexandrian government agencies, and forums for non-profit public use are exempt from the land value tax. Article 6. - Salaries and wages. 1.) Government salaries shall be set by the Government Wages Act. 2.) Some or all government wage rates may be temporarily altered by Imperial Decree, on advice of the Ministry of Finance and Economics, for a period of no longer than three (3) weeks, in exceptional situations. 3.) Salaries for all employees shall be paid to each citizen’s bank account at the end of each week. 4.) If a citizen takes on several jobs, he/she shall only be given the highest salary. Article 7 - Taxation 1.) Rules of taxation, starting rates and other taxation details shall be set in the relevant Taxation Act. 2.) The first period of taxation shall begin on a date to be set in the Taxation Act, or by Imperial Decree, on advice of the Ministry of Finance and Economics. Article 8. - Stock Market 1.) A stock market shall be set up, pursuant to all rules and regulations set forth in the Stock Market Act. 2.) The stock market shall open on a date to be set by the Ministry of Finance and Economics. Article 9. - Reclaiming assets under last economic system 1.) Within 2 weeks of the opening of the economy, the Ministry of Finance and Economics shall declare the beginning of period of 4 weeks in which citizens who had bank accounts under the previous economic system shall be able to claim back their bank account with all monies and associated entitlements. 2.) Money and entitlements from any bank account that has not been claimed within the declared 4 week period shall revert the Crown, and shall return to the Central Bank. Article 10. - Freezing assets The Ministry of Finance and Economics reserves the rights to, at any time, freeze any or all parts of the economy, for whatever reason. This may only be achieved through a Royal Decree, on advice and countersignature of the Minister of Finance and Economics, and countersignature of the Prime Minister. Article 11 - Grants, Post Bonuses. 1.) All newly established firms headquartered in the Empire of the Alexandrians shall receive a grant titled the “Alexandrian Business Grant”. The grant shall be a one-time grant of 200 AE. 3.) An Alexandrian citizen that opens an account in the Central Bank shall receive a one-time grant of 300 AE. 4.) A foreigner that opens an account in the Central Bank shall receive a one-time grant of 300 AE. 5.) New grants may be established by law, only if the nation’s finances allow for the grants to be given. The Minister of Finance and Economics has the right to lower grant amounts only when extraordinary economic circumstances require it. 6.) All newly established firms requesting a forum for their company shall receive their first month of rent free. They shall also receive a tax break of one month, after which the government may tax accordingly. 7.) The Ministry of Finance and Economics has the power to grant nations a “Most Favored Nation” status in trade. This designation must be approved by Parliament through a simple majority vote. Companies originating from these nations shall receive a grant of 50 AE upon registration and confirmation of their origin. 8.) A citizen shall receive a bonus paid to their bank account by the government when they have posted a specified number of posts on the Alexandrian Message Boards. The bonuses shall be as follows: Post Bonuses AE 20th 50 50th 100 100th 150 every subsequent 50 200 Article 12. Imperial Assent This act shall become law once it receives Imperial Assent. |