Institutions

The Supreme Head of State

The office, established in 1971, brings together the leadership of the government, command of the armed forces, the conduct of foreign affairs, the appointment of senior judges and exclusive authority over the nuclear arsenal. It is neither an elected nor a hereditary office: the incumbent chooses their successor from a shortlist of candidates drawn up by the SRM, and this choice is confirmed by the Conseil Exécutif de Continuité (Executive Continuity Council), known as the ‘succession chamber’. Further details can be found on the Politics page.

Matters falling directly within his remit

5 institutions that keep the state running

Under the authority of the government, which is led by the Supreme Head of State, 5 national institutions administer public funds and services: one collects taxes, another keeps the accounts, a third runs public services, a fourth manages the defence budget, and the last generates and distributes the country’s energy. They implement decisions; they do not make them. Taxes are approved by the Assembly and the government, whilst the budget is adopted by the government alone.

What the Eldorians pay

The country's largest tax is VAT, at 15%, at a single rate. On the payslip, the system follows the Luxembourg model: contributions of about 12.4% for the employee and 12.6% for the employer, and a progressive income tax from 0 to 35%, the 35% rate applying only to the share of income above 250,000 Marks≈ 272,000 € · 321,000 $ a year; it is deducted at source, and taxable incomes below 12,000 Marks≈ 13,100 € · 15,400 $ a year are exempt. VAT brings in 700 billion Marks≈ 763 bn € · 897 bn $: its base, about 4,670 billion (45% of GDP), is narrower than elsewhere, because health, schooling and public transport, which are free, fall outside paid consumption.

The flow of public money

The same 2018 budget, viewed as a flow. On the left, the inflows: the INI collects 3,855 billion marks ≈ 4.20 T € · 4.94 T $ in taxes and contributions (37% of GDP); the INFP receives 1,334 billion in state funding. On the right, what goes out and how it is managed; the surplus of 441.5 billion is divided into 3 equal parts. The width of each band is proportional to the amount. Hover over or tap a band to see the details.

The INFP appears on both sides, and this is intentional: as the successor to the Treasury, it collects the State’s resources (oil, reserves, dividends, straits) and disburses grants to local authorities, as well as funding for public infrastructure and general administration. These are 2 distinct functions, managed in 2 separate accounts.

• INGSP · 2,300 bn Ɱ ≈ 2.51 trillion € · 2.95 trillion $ healthcare: hospitals, free healthcare (820) · pensions (based on 40% of the minimum wage, plus supplementary pensions) (760) · free public transport (250) · police, border control, fire service, civil protection (240) · benefits, family support, care for the dependent (230)
• INFP · 1,217.5 bn Ɱ ≈ 1.33 trillion € · 1.56 T $ grants to local authorities and regions (560) · infrastructure and housing (220) · justice, foreign affairs, Overseas, general administration (437.5)
• IEE · 140 bn Ɱ ≈ 153 bn € · 179 bn $ energy: electricity grid, power stations, civil nuclear research (140)
• Education · 640 bn Ɱ ≈ 697 bn € · 821 bn $ education and universities (640)
• INBA · 450 bn Ɱ ≈ 490 bn € · 577 bn $ personnel and military pensions (170) · equipment and major programmes (140) · maintenance and operations (95) · research and development (45)
• Surplus · 441.5 bn Ɱ ≈ 481 bn € · $566 billion in real assets: gold, strategic metals, shareholdings (147.2) · strategic reserves (147.2) · repurchase of foreign debt (147.2)

In billions of marks. The shares of the surplus are rounded to the nearest tenth: 441.5 ÷ 3 = approximately 147.2 each.

The 2018 budget in detail

Government revenue amounts to 5,189 billion marks ≈ 5.65 T € · 6.65 T $, roughly half of GDP. However, taxes and social security contributions account for only 3,855 billion, or 37% of GDP, which is less than in France: the remainder comes from state resources — oil, state-owned enterprises, reserves held abroad, and the straits. Expenditure amounts to 4,747.5 billion; the surplus of 441.5 billion is allocated according to the Doctrine of Thirds. These surpluses have almost wiped out the public debt: 0.4% of GDP in 2018, approximately 42 billion Marks ≈ 45.8 bn € · 53.8 bn $, a remnant of the war deficits; the last deficit dates back to 1997, following the Mediterranean War. Healthcare, which is free, costs 820 billion: the 3% + 3% health contribution covers only around 295 billion of this, just over a third; the general budget pays the rest.

The 450 billion marks allocated to defence are broken down as follows: military personnel and pensions 170; equipment and major programmes 140; maintenance and operations 95; research and development 45 billion marks. Across all categories, air defence accounts for 43 billion marks.

300 MPs, no more than 6 parties

As the successor to the consultative Parliament of 1889, the National Assembly was re-established by the Fundamental Law of 1971. Its 300 members are elected for a five-year term. Only parties that secure at least 5 % of the vote are represented, and no more than the top 6: ranging from the radical left to the national right, including the centre. Seats are allocated on a proportional basis, with a cap of 80 seats per party; any surplus is allocated to the other represented parties. The party that comes top presides over the Assembly, and speaking time is determined by the order of votes received.

The Assembly proposes, debates and passes laws and, together with the Government, determines taxation. The final say rests with the Head of State, who either enacts or vetoes the legislation. A vetoed bill may be resubmitted an unlimited number of times; the Head of State may, in turn, dissolve the Assembly — a power he wields with caution, as dissolution comes at the cost of popularity. The budget, however, is the sole responsibility of the government.

The Member of Parliament who drafted a law that has been passed is personally liable: if the law causes serious harm through negligence, they may be declared ineligible to stand for election for up to 10 years. See Law and Justice.

Political parties and elections

10 parties have played a significant role in Eldorian politics since 1972; 9 still exist. At each election, only the top 6 parties to achieve more than 5% of the vote gain seats in the Assembly; the others remain fully-fledged parties: they attend sittings, speak in committees and publish their proposals, but do not vote. The balance of power follows the mood of the nation — it hardens with every war and softens with prosperity.

The 10 parties

The status of elected representatives

A term of office is not a career. Whilst in office, MPs, mayors and ministers receive an allowance ranging from the minimum wage to twice the minimum wage (1,650 to 3,300 Marks ≈ 1,800 to 3,600 € · $2,120 to $4,230), depending on the post and the election result; they are provided with a driver and are responsible for covering the costs of any other necessary expenses.

At the end of their term of office, elected representatives revert to being ordinary citizens: they retain an honorary title and de facto influence, but no driver, no allowance, no discounts and no special services. Their years in politics entitle them only to the basic state pension available to all citizens, amounting to 40% of the minimum wage: it is better to have worked in a profession beforehand. See the Fundamental Law, Articles 40 to 42.

The Tavisky Tribunal, built in November 1982, is the supreme court; its senior judges are appointed by the Head of State. Tavisky is the country's judicial capital, Aldara its political capital. Court organisation and major laws: see Law and justice.