Economy of Princia

The economy of Princia is the economic system (sometimes known as the Princianomic system) currently in place in the Princian Commonwealth that includes complete state-ownership within the framework of a market economy – often colloquialised as "from the roe to the rux," referencing Penroe-Louçade ("the roe") and the Filorux Group ("the rux"). At present, the Princian economy is managed by the democratically elected and legislatively semi-independent Executive Commissariat for the National Economy and is comprised of three statutory corporations: the Filorux Group, Penroe-Louçade and the Dee Group; which have the obligation to provide healthcare, education, banking, transport, road maintenance, waste collection, vehicle licencing and utilities as set out in their royal charter of establishment. The aim of this system is that these organisations should receive little-to-no funding to operate their required services, in essence compelling them to provide commercial goods and services within a market economy as their only source of income. The statutory corporations are also restricted by a profit cap; forcing them to lower their prices, increase their employees' wages and reinvest excess income into innovation in the economy – simulating the market trends of capitalism while the aim of most free-market economies would be to achieve this with a competition mechanism. Due to the dominance of the Princian economy by statutory corporations, inflation is strictly controlled – with wage inflation and price inflation occurring at alternating 0·33% increments every other month from each other (≈2% annually), with price inflation beginning January of every year and wage inflation every February. Special status is given specifically to the January and October price and wage inflations so that the Economic Commissariat can set its own inflation rate to cover its costs accounting for international economic changes, with the chosen inflation rate needing to be consistent for both months. The most recent chosen inflation rate for the January 2023 price inflation was 10%, the maximum allowed, meaning wages in the coming October must also increase 10%.

History

The United Democratic & Liberal Party inherited a completely nationalised economy from the previous People's Party & Princian Party of Socialists government in February 2021, and converted the system to be "voluntarily nationalised," with the Filorux Group not being required to operate in any sectors of the economy not stated in its royal charter while also imposing a profit cap – but in reality nothing much changed as a result of these laws due to Filorux's continued obligation to operate its mandatory industries without state funding. Since July 2022 as part of the 2022 Economic Democracy Act and later its 2023 amendment, the people can elect representatives of electoral counties to Princia's economic regulator the Executive Commissariat for the National Economy in economic elections. Since the creation of these elections, the founding party of the Filorux Group and the main pioneer for the current economic system, the People's Party & Princian Party of Socialists, has been victorious in securing a majority in every single election.

Economic timeline

Date	Event	Ruling party	Economic system
			Means of production	Allocation mechanism
June 2017	Foundation of Princia	UDP	Market	Market
July 2020	Nationalisation of the economy under the Filorux Group	PPS	Planned	Planned (de jure) Market (de facto)
February 2021	Conversion of the economy to be "voluntarily nationalised" with the withdrawal of funding and imposition of a profit cap	UDP	Market (de jure) Planned (de facto)	Market